SURREY, B.C. – Terasen Gas has applied to the British Columbia Utilities Commission (BCUC) for adjustments to natural gas and propane commodity rates, effective July 1, 2009. If approved, rates in Whistler will decrease, while natural gas rates for customers in most regions will remain the same. An application to increase propane rates in Revelstoke has also been filed.

 

“The North American commodity market for natural gas has remained relatively stable, allowing us to apply to maintain rates for most of our customers,” said Cynthia Des Brisay, Vice President, Gas Supply and Transmission, Terasen Gas. “Propane prices are impacted by different market factors but principally are driven by the cost of crude oil which has been rising on North American markets.”

 

Natural gas commodity rates for customers in the Lower Mainland, Fraser Valley, Interior, North, the Kootenays and Fort Nelson would remain unchanged, if the application is approved by the BCUC. Vancouver Island, Sunshine Coast, and Powell River rates would also be unaffected.

 

In Whistler, where customers are currently being converted from propane to natural gas, the BCUC has recently approved a 12 per cent rate decrease to annual charges. These changes came into effect June 1, 2009. Terasen Gas has now applied for a decrease to Whistler commodity rates effective July 1, 2009. If approved, customers in Whistler will see a rate decrease of $2.41 per gigajoule (GJ). This equals approximately 10 per cent, or $217, on a total annual bill, based on an average annual consumption of 90 GJ. Due to ongoing conversions, some customers will not receive their first natural gas bill until August. More information about the Whistler Natural Gas Conversion Project is available at terasengas.com/whistler.

 

Customers in Revelstoke, who have benefited from a 28 per cent and 22 per cent decrease since January 1, 2009, will see a propane rate increase of $2.61 per gigajoule, if approved. This works out to an approximate 17 per cent increase, or $130 on a total annual bill, based on an average annual consumption of 50 GJ of energy per year. The increase is attributable to a moderate rise in oil prices in the last quarter.

 

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 gas or propane. The cost of the natural gas or propane commodity accounts for the majority of the typical residential bill.

 

Delivery charges account for the remaining portion of a residential bill and have remained relatively flat over the past six years for customers in the Lower Mainland, Fraser Valley, Interior, North, the Kootenays and Revelstoke. Terasen Gas Inc. will be filing a revenue requirement application with the BCUC by mid-June that, if approved, would be used to set delivery rates that come into effect January 1, 2010 for these customers.

 

In the coming weeks, Terasen Gas (Vancouver Island) Inc. will also file a revenue requirement application in addition to a rate design application that, if approved, would come into effect January 1, 2010 and could potentially impact rates for customers on Vancouver Island, the Sunshine Coast, and in Powell River.

 

 

Media contact:
Michael Chisholm
Corporate Communications Manager
Phone: (604) 576-7300
E-mail: michael.chisholm@terasengas.com