SURREY, B.C. – Terasen Gas has now filed applications to the British Columbia Utilities Commission (BCUC) to reduce its natural gas commodity rates for customers in most regions of B.C. If the applications are approved, commodity rate decreases will take effect October 1, 2008.

 

“We are pleased market conditions have changed allowing us to apply for lower customer rates prior to the upcoming winter heating season,” said Cynthia Des Brisay, Terasen Gas Vice President, Gas Supply and Transmission. “Natural gas is traded on a North American market basis and conditions including strong production levels in the US, a mild summer across most of the continent and a hurricane season that has not resulted in any significant gas production disruptions to date have enabled storage balances to rebound and prices to fall from the highs of early July.”

 

Terasen Gas purchases natural gas and propane for its customers, and passes that cost on without mark-up. Natural gas is a commodity traded on the North American markets like oil, gold or lumber.  Its price is affected by weather, supply and demand, international events and market speculation. Every three months, natural gas and propane commodity prices are reviewed with the BCUC in order to ensure the rates customers are charged for natural gas are sufficient to cover the cost of purchasing the gas.

 

In the Lower Mainland, Fraser Valley, Interior, North and the Kootenays the proposed decrease would drop the commodity price of natural gas by $1.86 per gigajoule. The decrease works out to an annual savings of about 12 per cent or between $177 and $204 per year, depending on consumption levels. The decreases will not impact the commodity rates for those customers participating in the Customer Choice program.

 

In the Fort Nelson area, the proposed decrease would reduce the commodity price of natural gas by $1.73 per gigajoule.  For the household consuming an average of 160 gigajoules per year, this works out to a savings of approximately 15 per cent, or $276 on the total annual gas bill.

 

The rate reduction would not apply to customers on Vancouver Island, Sunshine Coast and Powell River since they are covered by a different regulatory agreement. Customers in this region did not experience the increases that were felt by other regions in the province this past April and July.

 

No changes to propane rates are expected at this time for Whistler and Revelstoke.  

 

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

“Using energy wisely is one of the easiest ways for customers to lower their natural gas bills,” says Des Brisay. “We actively promote energy efficiency and conservation throughout the year, and we currently have an application before the BCUC to expand our programs aimed at helping customers save energy and money, while reducing greenhouse gas emissions.”

 

Customers can visit www.terasengas.com for energy saving tips and information. Natural gas is competitive with electricity and remains the best energy source for space and water heating and overall home comfort.

 

 

Media contact:

Joyce Wagenaar
Director, Corporate and Marketing Communications
Terasen Gas Inc.
(604) 592-7682
joyce.wagenaar@terasengas.com