Terasen Gas (Vancouver Island) Inc. files two-year rate application

June 30, 2009

If approved, rates will remain stable for a two-year period, starting January 1, 2010

SURREY, B.C. – Terasen Gas (Vancouver Island) Inc. has filed a two-year revenue requirement and rate design application with the British Columbia Utilities Commission (BCUC). If the application is approved, rates will remain unchanged for a two-year period, starting January 1, 2010, for residential and commercial customers on Vancouver Island, the Sunshine Coast and Powell River.

“Terasen Gas’ reputation as a respected and trusted operator has been solidified during the past four years under the current revenue requirement agreement,” said Randy Jespersen, President and CEO, Terasen Gas.

“Our application is grounded in our continued commitment to meet the needs of the customers and communities we serve, while also addressing new requirements from our various regulators and policy makers. It also supports our efforts to develop affordable energy solutions that help customers reduce their energy consumption, and advance the province’s goals of reducing greenhouse gas emissions,” said Jespersen.

Terasen Gas has carefully managed operating costs under the current agreement, benefiting customers while also successfully reducing the debt incurred for bringing natural gas to Vancouver Island in the early 1990s.

If the application is approved, the company will build enhanced programs, which will include the expansion of energy efficiency and conservation initiatives, including programs for low-income and rental customers. The company will also continue to pursue alternative energy solutions, such as biogas, geothermal and district heating systems, and advance compressed and liquefied natural gas as cleaner transportation fuel alternatives.

“It’s been 18 years since we began natural gas service to Vancouver Island, and Terasen Gas is still a relatively young utility in that service region, compared to many other North American utilities that have had pipeline assets serving customers for decades,” said Scott Thomson, Vice President, Regulatory Affairs and CFO, Terasen Gas.

“Our application today proposes a two-year rate freeze and increases rate stability through 2012 and beyond,” said Thomson.

The natural gas rate structure in this region is set to be competitively priced against the cost of other energy sources including electricity and oil. The rate structures for the company’s different service regions around the province reflect the age of the natural gas system and the capital costs, and take into account the costs to serve customers.

To learn more about Terasen Gas rates, or to view the application 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 more than two million gas and electric customers and has total assets approaching $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:
Joyce Wagenaar
Director, Corporate & Marketing Communications
Terasen Gas Inc.
(604) 785-8946
Email: joyce.wagenaar@terasengas.com

Terasen Gas (Vancouver Island) Inc. files two-year rate application

If approved, rates will remain stable for a two-year period, starting January 1, 2010

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