Terasen Gas applies for a regional natural gas commodity rate increase
| March 8, 2010 |  Follow us on Twitter |
Rates maintained for Vancouver Island, Whistler and Fort Nelson
SURREY, B.C. - Terasen Gas has now filed applications with the British Columbia Utilities Commission (BCUC) requesting an increase in the natural gas commodity rate it charges customers in the Lower Mainland, Fraser Valley, Interior, North and the Kootenays. If approved, the increase would take effect April 1, 2010.
Terasen Gas purchases natural gas on behalf of its customers and passes its cost on without mark-up. 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,” said Cynthia Des Brisay, Terasen Gas Vice President, Gas Supply and Transmission. “Even though the price of natural gas has increased slightly as a result of the recovering economy and cold weather in many parts of North America, this is the first time in over a year that we have had to apply to the BCUC for a natural gas commodity rate increase and if approved, the commodity rate will still be among the lowest in five years.”
For customers in the Lower Mainland, Fraser Valley, Interior, North and the Kootenays, Terasen Gas is requesting a commodity rate increase of $0.66 per GJ. If the application is approved, a typical residential customer will see an increase of approximately 6 per cent to their total annual gas bill, depending on consumption. The commodity rate accounts for a large portion of the typical residential gas bill. 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.
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. The delivery and midstream charges, which account for the remaining portion are reviewed annually and were changed effective January 2010. Terasen Gas earnings come from the delivery rate which are the costs associated with delivering natural gas to customers.
For more information on natural gas rate changes by region, visit our website. To learn more about Terasen Gas visit terasengas.com.
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
Marcus Wong
Corporate Communications Manager
Terasen Gas Inc.
Phone: 778-571-3263
Email: marcus.wong@terasengas.com
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