BC Utilities Commission approves Terasen Gas rate increases
| December 18, 2007 |  Follow us on Twitter |
SURREY, B.C. - The BC Utilities Commission (BCUC) has approved increases to various Terasen Gas rates, including those for midstream and delivery, for residential customers in several service areas. The rate changes will take effect on January 1, 2008.
Typical residential customers in the Lower Mainland, Fraser Valley, Interior, North and the Kootenays service areas will see their total annual gas bill rise by about 4 per cent, approximately $43 to $51 per year depending on consumption levels. These changes are a result of the increased cost of storing, transporting and managing the gas delivered to customers, plus costs associated with the Customer Choice program. All residential customers in these service areas are eligible to participate in Customer Choice.
“Currently, we are under-recovering our costs for the storage and transportation of natural gas. The majority of this increase is to help us meet those costs which are referred to on a customer’s bill as the Midstream,” said Jan Marston, Vice President, Gas Supply and Transmission. “The Midstream costs are passed on without mark-up and Terasen Gas does not earn revenue on these costs: customers pay what we pay.”
The changes will also apply to those customers currently participating in the Customer Choice program.
No change has been requested for the cost of gas, which is also passed on without mark-up and makes up about 60 per cent of a customer’s monthly statement.
For January, residential customers in the Fort Nelson service area will see their rates increase by approximately 0.5 per cent. However, effective February 1, the BCUC has approved an interim rate increase of an additional 5 per cent, or approximately $70 per year depending on consumption levels. Delivery volumes for the Fort Nelson service area have decreased over the past four years resulting in a higher cost of service per customer. This marks the first delivery rate increase for Fort Nelson residential customers since 2004.
The average residential customer on Vancouver Island, the Sunshine Coast and in Powell River will see their total annual gas bill increase by approximately 0.4 per cent or $4 per year depending on consumption.
The average residential customer on Vancouver Island, the Sunshine Coast and in Powell River will see their total annual gas bill increase by approximately 0.4 per cent or $4 per year depending on consumption.
Natural gas is a commodity traded on the open market like oil, coffee or lumber. Factors affecting the price of natural gas include weather, supply and demand and the price of other energy commodities. Natural gas commodity costs are passed on without mark-up.
Any change in Terasen Gas rates must be approved by the BCUC.
Terasen Gas is mainly composed of the operations of Terasen Gas Inc. and Terasen Gas (Vancouver Island) Inc., both indirect wholly owned subsidiaries of Fortis Inc. Fortis Inc., the largest investor-owned distribution utility in Canada, serves almost two million gas and electric customers and has $10 billion of assets. Its regulated holdings include Terasen Gas and electric utilities in five Canadian provinces and three Caribbean countries. Fortis Inc. owns non-regulated hydroelectric generation assets across Canada and in Belize and upper New York State. It also owns hotels and commercial real estate in Canada. Fortis Inc. shares are listed on the Toronto Stock Exchange and trade under the symbol FTS. Additional information can be accessed at http://www.fortisinc.com/ or http://www.sedar.com/.
Terasen Gas may include forward-looking statements in this release which reflect management’s expectations regarding the Company’s future growth, results of operations, performance, business prospects and opportunities. Wherever possible, words such as “anticipate”, “believe”, “expects”, “intend” and similar expressions have been used to identify the forward-looking statements. These statements reflect management’s current beliefs and are based on information currently available to the Company’s management. By their very nature, forward-looking statements are based on underlying factors or assumptions which are subject to inherent risks and uncertainties surrounding future expectations generally. Such risk factors or assumptions include, but are not limited to, general economic, market and business conditions, regulatory developments, gas distribution operating risks, natural gas prices and supply, weather and competition. Terasen Gas cautions readers that a number of factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward looking statements. These factors should be considered carefully and undue reliance should not be placed on the forward looking statements. For additional information with respect to certain of these risks or factors, reference should be made to Terasen Gas’s continuous disclosure materials filed from time to time with Canadian Securities Regulatory Authorities. Terasen Gas disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Terasen Gas may include forward-looking statements in this release which reflect management’s expectations regarding the Company’s future growth, results of operations, performance, business prospects and opportunities. Wherever possible, words such as “anticipate”, “believe”, “expects”, “intend” and similar expressions have been used to identify the forward-looking statements. These statements reflect management’s current beliefs and are based on information currently available to the Company’s management. By their very nature, forward-looking statements are based on underlying factors or assumptions which are subject to inherent risks and uncertainties surrounding future expectations generally. Such risk factors or assumptions include, but are not limited to, general economic, market and business conditions, regulatory developments, gas distribution operating risks, natural gas prices and supply, weather and competition. Terasen Gas cautions readers that a number of factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward looking statements. These factors should be considered carefully and undue reliance should not be placed on the forward looking statements. For additional information with respect to certain of these risks or factors, reference should be made to Terasen Gas’s continuous disclosure materials filed from time to time with Canadian Securities Regulatory Authorities. Terasen Gas disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Backgrounder with residential customer rates by region attached.
Media contact:
Joyce Wagenaar
Corporate Communications Manager
Phone: (604) 592-7682
E-mail: joyce.wagenaar@terasengas.com
Corporate Communications Manager
Phone: (604) 592-7682
E-mail: joyce.wagenaar@terasengas.com
Scott Thomson
Vice President, Regulatory Affairs & Chief Financial Officer
Terasen Inc. and Terasen Gas
Phone: (604) 592-7784
E-mail: scott.thomson@terasengas.com
Vice President, Regulatory Affairs & Chief Financial Officer
Terasen Inc. and Terasen Gas
Phone: (604) 592-7784
E-mail: scott.thomson@terasengas.com
Background - Estimated change in annual bills
Rates for Typical Natural Gas Residential Customers
| Lower Mainland & Fraser Valley Based on 110 GJ/year | Interior & North Based on 95 GJ/year | Kootenays Based on 110 GJ/year |
Vancouver Island & Sunshine Coast Based on 59 GJ/year | |||||
|---|---|---|---|---|---|---|---|---|
| Current | Jan. 1 | Current | Jan. 1 | Current | Jan.1 | Current | Jan.1 | |
| Basic monthly charge | $10.94 | $11.13 | $10.94 | $11.13 | $10.94 | $11.13 | $10.50 | $10.50 |
| Delivery charge/GJ |
$2.773 | $2.748 | $2.773 | $2.748 | $2.773 | $2.748 | ||
| Midstream |
$0.860 | $1.327 | $0.851 | $1.304 | $0.913 | $1.383 | ||
| Charges for gas used | $6.926 | $6.926 | $6.926 | $6.926 | $6.926 | $6.926 | $13.715 | $13.715 |
| Estimated total annual bill | $1,293 | $1,344 | $1,134 | $1,176 | $1,299 | $1,350 | $939 | $943 |
A gigajoule is a measure of energy. One gigajoule is equivalent to 278 kilowatt hours of electricity. One gigajoule of gas can heat a typical 2,000 square foot home for one day during the winter.
Hot tips to help you save energy
- Upgrade your furnace. If your furnace is more than 10 years old, it’s likely a low-efficiency model. Consider upgrading to a high-efficiency furnace with an AFUE (annual fuel utilization efficiency) of 90 per cent or more. Terasen Gas offers rebate programs for people purchasing new ENERGYSTAR-qualified high-efficiency furnaces and boilers. Check out our ENERGY STAR® Heating System Upgrade program at http://www.terasengas.com/
- Tune up your furnace. Change or clean your furnace filters during the heating season. An occasional tune up will ensure things are running properly and will save you money over time.
- Turn your thermostat down. Turning your thermostat down to 20 C during the day and
17 C at night can save as much as 15 per cent on your heating costs.
Select your region
ACCOUNT LOG IN
Select your region
Help us better serve you with offers, promotions, rates and services relevant to your area.
For your convenience
Select your region to view offers, rates and other information for your area throughout our site.