SURREY, B.C. – Terasen Gas has filed several applications with the British Columbia Utilities Commission (BCUC) requesting adjustments in the commodity rates it charges customers for natural gas and propane. If approved, the rate changes will take effect April 1, 2009.

 

“These are the lowest gas commodity rates for some regions in more than five years,” said Cynthia Des Brisay, Terasen Gas Vice President, Gas Supply and Transmission. “A slowdown in the North American economy has impacted the price of natural gas and propane, so we are pleased to be in a position to ask the BCUC for a decrease in our commodity rates.”

 

Natural gas and propane are openly traded commodities, subject to the forces of supply and demand. Terasen Gas purchases natural gas and propane on behalf of its customers and passes that cost on without mark-up.

 

For customers in the Lower Mainland, Fraser Valley, Interior, North and the Kootenays, Terasen Gas is asking for a commodity rate decrease of $1.57 per gigajoule (GJ). If the application is approved, a typical residential customer in these regions will see their total annual gas bill decrease by about 12 to 13 per cent, or approximately $124 to $156 per year, depending on consumption levels.

 

If approved, the cost of gas decrease to $5.96 per GJ will not affect the commodity rate for customers participating in the Customer Choice program.

 

The adjustments, if approved, will not affect Vancouver Island, the Sunshine Coast, and Powell River. These regions are covered by a separate, longer-term regulatory structure that provides a level of insulation from fluctuations in the commodities market. As a result, these regions did not experience the rate increases felt by other regions in recent years.

 

In the Fort Nelson area, total annual bills for customers could decrease by 14 per cent, or $202 per year based on consumption of 140 GJ per year if the application is approved.

 

Customers in Revelstoke could see a propane rate decrease of $3.77 per GJ, which works out to a savings of approximately 20 per cent, or $193 on a total annual bill, based on an average annual consumption of 50 GJ per year. The commodity rate decrease reflects a drop in global oil prices, which propane rates closely follow.

 

In Whistler, Terasen Gas is awaiting a decision by the BCUC on a previous application to adjust rates for 2009, reflecting the conversion of the Resort Municipality of Whistler from propane to natural gas. Until then, customers will remain on interim rates. Conversion of appliances to natural gas will take place from April to July and customers will receive their first natural gas bill in August, 2009.

 

 “While we are applying for lower rates, we encourage our customers to continue using energy wisely to help keep their costs down and benefit the environment,” said Des Brisay.

 

Terasen Gas uses several tactics and strategies to ensure a reliable supply of natural gas at a reasonable price for our customers including:

The cost of the natural gas or propane commodity accounts for the majority of the typical residential gas bill. The delivery charges, which account for the remaining portion, have remained relatively flat over the past six years.

 

Terasen Gas earnings come from the delivery rate – what the company charges to bring the natural gas to a home or business. Delivery rates are reviewed by the BCUC once a year in December with any changes coming into effect the following January. Every three months, Terasen Gas reviews natural gas and propane commodity prices with the BCUC in order to ensure the flow-through rates customers are charged are sufficient to cover the cost of purchasing the gas.

 

 

Media contact:
Michael Chisholm
Corporate Communications Manager
Phone: (604) 592-7801
E-mail: michael.chisholm@terasengas.com