SURREY, B.C. - Terasen Gas has now filed applications with the British Columbia Utilities Commission (BCUC) to reduce its natural gas commodity rates in most areas of the province. If approved, the new rates will take effect October 1, 2009.

 

“Market changes have allowed us to apply for adjustments to our natural gas commodity rates for most of our customers. The proposed rates are the lowest in more than five years and we are pleased to file this application prior to the upcoming winter heating season,” said Cynthia Des Brisay, Vice President of Gas Supply and Transmission, Terasen Gas. “Current market conditions include low demand due to the economic downturn and cooler than normal summer weather in most of North America. At the same time, new shale gas developments are maintaining production levels. This has resulted in higher than usual storage levels for this time of the year and downward pressure on natural gas prices.”

 

Natural gas is an openly traded commodity, with prices subject to market conditions, supply and demand, and weather. Terasen Gas purchases natural gas on behalf of its customers and passes that cost on without mark-up. Every three months, Terasen Gas reviews commodity prices with the BCUC in order to ensure the flow-through rates customers are charged cover the cost of purchasing the gas.

 

For customers in the Lower Mainland, Fraser Valley, Interior, North and the Kootenays, Terasen Gas is asking for a commodity rate decrease of $1.01 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 nine per cent, or approximately $76 to $96 per year, depending on consumption levels.  

 

If approved, the cost of gas decrease to $4.95 per GJ will not affect the commodity rate for customers participating in the Customer Choice program.

 

In the Fort Nelson area, total annual gas bills for residential customers will decrease by about eight per cent, or $98 per year based on consumption of 140 GJ per year, if the application is approved.

 

The adjustments, if approved, will not affect customers on Vancouver Island, the Sunshine Coast, and in 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.

 

The application also requests that propane rates for customers in Revelstoke remain unchanged. Propane prices are more closely linked to global oil markets, however, and oil prices have continued to be strong in the last quarter. Terasen Gas purchases propane on behalf of its customers and passes that cost on without mark-up.

 

If approved, commodity rates in Whistler will also remain unchanged. The BCUC approved a rate decrease effective July 1, 2009, reflecting the conversion of the Resort Municipality of Whistler from propane to natural gas. The conversion of more than 14,000 appliances to natural gas will enable Whistler residents to enjoy one of the cleanest burning, most efficient fuels available today.
 
“While we are applying to adjust rates in most of our service areas, we encourage our customers to continue using energy wisely to help keep their costs down and benefit the environment,” said Des Brisay. “Our expanded energy efficiency and conservation programs will provide customers with enhanced tools and incentives to manage their natural gas consumption, reduce their energy costs and lower their greenhouse gas emissions.”

 

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

 

The cost of the natural gas or propane commodity accounts for the majority of the typical residential bill, while delivery charges account for the remaining portion. Delivery charges are the costs associated to safely and reliably bring natural gas or propane to a home or business. Terasen Gas Inc. and Terasen Gas (Vancouver Island) Inc. each filed applications in June, and are awaiting a BCUC decision for the determination of delivery rates that would come into effect January 2010.

 

Kirsten Walker
Communications Specialist
Terasen Gas Inc.
Phone: 604-592-7507
Email: kirsten.walker@terasengas.com