SURREY, B.C. – Terasen Gas Inc. has filed a two-year revenue requirement application with the British Columbia Utilities Commission (BCUC) that, if approved, will ensure enhanced services and programs are put into place to help meet the growing and changing energy needs of British Columbians, and further support provincial energy policies.

 

“We have carefully considered the steps required for maintaining safe, reliable and cost-effective natural gas delivery. The requested changes are grounded in our continued commitment to meeting the needs of the customers and communities we serve, while also addressing new requirements from our various regulators and policy makers,” said Randy Jespersen, President and CEO, Terasen Gas.

 

“The costs identified in the application also support our efforts to develop affordable energy solutions that help customers reduce their energy consumption, and advance the province’s goals of reducing greenhouse gas emissions,” said Jespersen.
 
If the application is approved, Terasen Gas will expand energy efficiency and conservation initiatives, including programs for low-income, rental and industrial customers. To meet the needs of our customers, the company will also continue to pursue alternative energy solutions, such as biogas, geothermal and district heating systems, as well as advance compressed and liquefied natural gas as cleaner transportation fuel alternatives.

 

The existing performance-based rate agreement, which expires on December 31, 2009, has been extended once, reflecting the value it has generated for both customers and the company. An estimated $69 million of cost-shared savings has accrued to customers, helping to keep delivery rates relatively stable for six years.

 

The cost of natural gas service varies from region to region, and if the application is approved, residential customers in the Lower Mainland would see their total annual gas bill increase by approximately three per cent, or $31 per year, depending on consumption, effective January 1, 2010.

 

“The external environment has changed significantly since the last multi-year agreement was put in place six years ago, and to remain a trusted operator, Terasen Gas must take action to keep pace with the ever-evolving business environment in which we operate,” said Jespersen.

 

“The forecasted increase in rates primarily relates to changes in accounting standards that Canadian utilities are required to comply with, as well as the important role Terasen Gas must play in pursuit of the goals and objectives of B.C.’s most recent energy and environmental policies. We look forward to building on our successes with enhanced offerings and initiatives outlined in this application,” said Jespersen.

 

In June, Terasen Gas (Vancouver Island) Inc. will file a revenue requirement application, in addition to a rate design application, with the BCUC.

 

To learn more about Terasen Gas rates, visit terasengas.com

 

 

Joyce Wagenaar
Director, Corporate & Marketing Communications
Terasen Gas Inc.
(604) 785-8946
Email: joyce.wagenaar@terasengas.com