CUSTOMER CHOICE for residential natural gas customers
March 5, 2007
Today Terasen Gas kicks-off its customer education campaign to highlight the arrival of choice in the residential natural gas market.
A new program called CUSTOMER CHOICE starts May 1. It will allow natural gas marketers to sell long-term, fixed-price natural gas contracts to residential natural gas users. Previously, it was only possible for residential users to purchase their natural gas from Terasen Gas. Customers signing natural gas contracts beginning in May will receive their gas at the marketer's rate starting in November.
"Our customer education campaign is designed to help consumers learn about their options and make the choice that's right for them," said Doug Stout, Terasen Gas Vice President Marketing and Business Development. "To make an informed choice, consumers need to know what they should ask a gas marketer and how a marketer's offer differs from our commodity rates. That's where we hope this education campaign is helpful."
Terasen Gas does not earn a profit on natural gas commodity charges; the price it pays for the commodity is a flow-through cost. The company generates earnings through the delivery of gas to customers. The BCUC approves all Terasen Gas rate changes.
Regardless of who a customer purchases natural gas from – a gas marketer or Terasen Gas – Terasen Gas will continue to deliver the gas, and charge for delivery and service installations. All customers will still receive a Terasen Gas bill. The marketer's rate per gigajoule will be shown on those customer's bills who have selected that option.
The CUSTOMER CHOICE education campaign, running from March through November, uses ads in newspapers, TV and radio to ensure customer awareness. Terasen Gas has also developed bill inserts and has full program details with an informative video at
http://www.terasengas.com/.
The choice of natural gas suppliers will only be available to Terasen Gas residential customers in the Lower Mainland, Fraser Valley, Interior and the Kootenays (excluding Fort Nelson and Revelstoke). Due to the different regulatory agreements in place, it will not be available on Vancouver Island, the Sunshine Coast, Powell River or Whistler.
"Our research has told us that customers want a broader range of pricing options over and above the regulated variable-rate pricing plan that Terasen Gas is able to offer," said Stout. "This program has been successful in other jurisdictions and we know it will succeed in BC."
A similar program for small and mid-size commercial customers was launched in BC in 2004. Ontario opened its residential market to competition in the late 1980s; Alberta opened its market in the 1990s while Manitoba allowed gas marketers in 2000.
Any energy-related sales calls that customers may receive will be coming from natural gas marketers and not Terasen Gas. Consumers can expect to receive natural gas sales solicitations in-person, over-the-phone and through the mail.
Last August, the BC Utilities Commission, Terasen Gas's regulator, agreed to open a portion of the province's residential natural gas market to competition, allowing homeowners to sign long-term fixed price contracts for natural gas with companies other than Terasen Gas. This stemmed from the province's 2002 energy plan.
Terasen Gas, a subsidiary of Kinder Morgan, Inc., delivers natural gas and piped propane to approximately 900,000 homes and businesses in 125 communities throughout BC. Terasen Gas is the common name of three companies: Terasen Gas Inc., Terasen Gas (Vancouver Island) Inc. and Terasen Gas (Whistler) Inc.
Media contact: Joyce Wagenaar
Corporate Communications Manager
Phone: 604-592-7682
E-mail:
joyce.wagenaar@terasengas.com