Fortis Inc.'s Terasen Gas increases rates in B.CFortis Inc.'s Terasen Gas increases rates in B.C.
2009-12-18 17:52 ET - News Release
Mr. Kirsten Walker reports
TERASEN GAS ADJUSTS DELIVERY RATES EFFECTIVE JANUARY 1, 2010; CUSTOMERS HAVE SOME OF THE LOWEST TOTAL ANNUAL RATES IN YEARS
Fortis Inc.'s Terasen Gas has received decisions from the British Columbia Utilities Commission (BCUC) that will affect delivery rates for customers in most service regions effective Jan. 1, 2010. This announcement summarizes the impacts of all of the decisions used to establish customers' rates effective Jan. 1, 2010. Commodity and mid-stream rates were set earlier this month.
"Our new delivery rates will ensure that Terasen Gas can continue to maintain safe, reliable and cost-effective natural gas delivery, and help communities and the province meet climate action goals by providing means to integrate alternative energy solutions with our traditional natural gas services as well as to provide expanded energy efficiency offerings that our customers are looking for," said Randy Jespersen, president and chief executive officer of Terasen Gas Inc. "Furthermore, we received a decision increasing our regulated rate of return and equity component in our capital structure which helps Terasen Gas maintain a strong credit rating and attract investment for infrastructure to help meet B.C.'s current and future energy needs."
Delivery rates represent the costs associated with delivering natural gas and propane to customers including pipeline maintenance, emergency services, customer care and a regulated rate of return to the company's shareholder, Fortis Inc. Delivery rates make up approximately 40 per cent of a residential customer's annual bill. Terasen Gas purchases and stores both natural gas and propane on behalf of its customers. These costs are then passed on without markup to customers through the commodity and mid-stream rates which make up approximately 60 per cent of a residential customer's annual bill.
In the decisions, the BCUC also accepted Terasen Gas's plans to pursue alternative energy systems and continue to develop energy solutions, such as biogas, geothermal and district energy systems, and advance compressed and liquefied natural gas as cleaner transportation fuel alternatives. It is now one of the first utilities in North America to provide alternative energy services to customers and will move forward in building upon its history of innovation in developing initiatives that expand energy efficiency and conservation programs for residential, commercial, affordable housing and rental customers.
Rates will change as follows on Jan. 1, 2010
Lower Mainland, Fraser Valley, Interior, North and the Kootenays:
- Residential customers will see an increase to their overall annual bill of between $81 and $101 or approximately 10 per cent, due to a 3-per-cent delivery rate increase and a previously determined 7-per-cent mid-stream rate increase. Both rate changes will also apply to customers participating in the Customer Choice program as these customers only purchase the gas commodity from licensed gas marketers.
Revelstoke
- Residential customers will see an increase to their overall annual bill of $144 or approximately 16 per cent, due to a delivery rate and propane rate increase.
Whistler
- Customers will see a decrease to their overall annual bill of $232 or 12 per cent, due to a slight delivery rate increase and a significant commodity rate decrease as a result of cost savings from their conversion to natural gas.
Fort Nelson
- Customers will see an increase to their overall annual bill of $95 or approximately eight per cent due, to an increase in the commodity rate and a slight decrease in a delivery component of rates, as determined by the BCUC in previous applications.
Vancouver Island
- Rates will remain frozen until 2012 due to the BCUC's approval of Terasen Gas (Vancouver Island) Inc.'s negotiated settlement for its revenue requirement and rate design application.
With these adjustments to the delivery rate, customers will be enjoying lower rates than over the same time last year. Customers are encouraged to visit Terasen Gas's website for energy saving tips and to learn how they can become more energy efficient, helping to lower their monthly bills and benefit the environment.