SURREY, B.C. - The British Columbia Utilities Commission (BCUC) has approved Terasen Gas’ applications to lower natural gas and propane commodity rates for several regions of the province. The changes will take effect April 1, 2009.

 

“These decreases mean our customers in some regions are enjoying the lowest rates in more than five years,” said Cynthia Des Brisay, Terasen Gas Vice President, Gas Supply and Transmission. “Conditions in the North American commodities market have allowed us to apply for these lower rates, which we are pleased to be able to pass on to our customers.”

 

In the Lower Mainland, Fraser Valley, Interior, North and the Kootenays, the commodity rate will decrease $1.57 per gigajoule (GJ). This works out to an annual savings of about 12 to 13 per cent, or approximately $124 to $156 per year, depending on consumption levels.

 

The cost of gas decrease to $5.96 per GJ does not affect the commodity rate for customers participating in the Customer Choice program.

 

The adjustments do not affect customers in 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 will decrease by 14 per cent, or $202 per year, based on consumption of 140 GJ per year.

 

Customers in Revelstoke will see a propane rate decrease of $4.15 per GJ, which works out to a savings of approximately 22 per cent, or $212 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.

 

Natural gas and propane are openly traded commodities, subject to the forces of supply and demand. Terasen Gas uses several tactics and strategies to ensure a reliable supply at a reasonable price for our customers including:

“While our customers will benefit from lower rates, we still encourage everyone to use energy wisely all year round,” said Des Brisay. “Terasen Gas has an application before the BCUC to expand its programs we currently offer that help customers save energy and money, while reducing greenhouse gas emissions.”

 

The cost of the natural gas or propane commodity accounts for the majority of the typical residential 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 charges – what the company charges to bring the natural gas or propane 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 cover the cost of purchasing the gas.

 

Natural gas remains the best energy source for space and water heating and overall home comfort.

 

 

 

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

 

 

 

 

 

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.