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

 

“Today’s decision means customers in most regions of B.C. will enjoy the lowest commodity rates in more than five years,” said Cynthia Des Brisay, Vice President of Gas Supply and Transmission, Terasen Gas. “We are pleased to be able to provide these rates at a time of year when cooler weather approaches and customers’ energy needs generally increase.”

 

In the Lower Mainland, Fraser Valley, Interior, North and Kootenays, the commodity rate will decrease $1.01 per gigajoule (GJ). This works out to an annual savings of about nine per cent, or approximately $76 to $96 per year, depending on consumption levels. The cost of gas decrease to $4.95 per GJ does not affect the commodity rate for customers participating in the Customer Choice program.

 

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

 

The adjustments do not affect customers on Vancouver Island, the Sunshine Coast, and in Powell River, as these regions are covered by different regulatory agreements. Propane prices for customers in Revelstoke are also unaffected. Propane prices are closely linked to global oil markets, and oil prices have continued to be strong in the last quarter.
 
Commodity rates for customers in Whistler will remain unchanged, as the BCUC approved a rate decrease effective July 1, 2009, reflecting the conversion of the Resort Municipality of Whistler from propane to natural gas.

 

Natural gas and propane are openly traded commodities, subject to market conditions, supply and demand, and weather. Terasen Gas purchases natural gas and propane on behalf of its customers and passes that cost on without mark-up. The company uses several tactics and strategies to ensure a reliable supply at a reasonable price for its customers including:

“Although commodity rates are decreasing, it’s always a good idea to use energy wisely all year long. We encourage customers to take advantage of our expanded energy efficiency and conservation programs,” said Des Brisay. “Customers can visit our website for energy saving tips and to learn how they can become more energy efficient, helping them lower their monthly bills.”

 

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

 

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.

 

Visit terasengas.com for information about rates, energy saving tips, and to learn more about our energy efficiency programs, incentives and rebates.

 

 

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