About us > News > Terasen Gas receives BCUC approval for a regional natural gas commodity rate increase
Terasen Gas receives BCUC approval for a regional natural gas commodity rate increase
| March 15, 2010 |  Follow us on Twitter |
Rates maintained for Vancouver Island, Whistler and Fort Nelson
SURREY, B.C. – The British Columbia Utilities Commission (BCUC) has approved changes to Terasen Gas’ natural gas commodity rates. The increases will take effect April 1, 2010, for customers in the Lower Mainland, Fraser Valley, Interior, North and the Kootenays.
“Terasen Gas purchases natural gas on behalf of its customers and passes its cost on without mark-up, so customers pay what we pay,” said Cynthia Des Brisay, Vice President, Gas Supply and Transmission, Terasen Gas. “This is the first time in over a year that natural gas commodity rates have been increased and rates will still be among the lowest in five years.”
Factors affecting the market price of natural gas include weather, supply and demand, and economic conditions.
Terasen Gas ensures a reliable supply of natural gas and works to get our customers competitive prices by purchasing from a variety of sources and under varying terms. The price of natural gas has increased slightly as a result of the recovering economy and cold weather in many parts of North America. Based on past consumption trends, consumers’ energy needs are expected to decrease as warmer weather approaches.
The cost of the natural gas commodity accounts for a large portion of the average residential bill. The delivery and midstream charges, which account for the remaining portion, are reviewed annually and were changed effective January 1, 2010. Terasen Gas earnings come from the delivery rate which are the costs associated with delivering natural gas to customers. Every three months, Terasen Gas reviews natural gas commodity prices with the BCUC to ensure the rates passed on to customers cover the cost of purchasing the gas.
For more information on Terasen Gas and changes in natural gas commodity rates by region, visit terasengas.com.
See the backgrounder for a summary of the approved increases in natural gas commodity rates.
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 approximately 2,100,000 gas and electric customers and has total assets exceeding $12 billion. 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 www.fortisinc.com or www.sedar.com.
Media Contact:
Marcus Wong
Corporate Communications Manager
Terasen Gas Inc.
Phone: 778-571-3263
Email: marcus.wong@terasengas.com
Follow us on Twitter
Marcus Wong
Corporate Communications Manager
Terasen Gas Inc.
Phone: 778-571-3263
Email: marcus.wong@terasengas.com
Follow us on Twitter
BACKGROUNDER – Approved Residential Natural Gas Commodity Rates
|
Approved commodity rate increase* |
Per cent increase in commodity rate |
Approximate annual bill increase for average customer depending on consumption | |
|---|---|---|---|
| Lower Mainland, Fraser Valley, Interior, North, and the Kootenays | $0.66/GJ | 13% | 6% ($49 to $62) |
| Whistler |
No change |
No change |
No change |
| Vancouver Island |
No change |
No change |
No change |
| Fort Nelson |
No change |
No change |
No change |
* Commodity rates for customers participating in the Customer Choice program will not be affected, as they purchase the gas commodity from a licensed gas marketer.
A gigajoule (GJ) is a measure of energy. One gigajoule is equivalent to 278 kilowatt hours of electricity. One gigajoule of natural gas can heat a typical 2,000 square foot home for one day during the winter.
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