Customers have some of the lowest total annual rates in years
SURREY, BC,
"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
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 mark-up to customers through the commodity and midstream 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
Rates will change as follows on January 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 three per cent delivery rate increase and a previously determined seven per cent midstream 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 terasengas.com for energy saving tips and to learn how they can become more energy efficient, helping to lower their monthly bills and benefit the environment.
For more information on rate changes, refer to the Backgrounder attached.
Terasen Gas is mainly composed of the operations of Terasen Gas Inc. and Terasen Gas (
BACKGROUNDER - Estimated Changes in Annual Bills
Rates for typical natural gas residential customers
A gigajoule is a measure of energy. One gigajoule is equivalent to 278 kilowatt hours of electricity. One gigajoule of gas can heat a typical 2,000 square foot home for one day during the winter.
------------------------------------------------------------------------- Lower Mainland & Fraser Valley Interior & North Based on 95 GJ/year Based on 75 GJ/year --------------------------------------------------------- Jan 1, Oct 1, Jan 1, Jan 1, Oct 1, Jan 1, 2009 2009 2010 2009 2009 2010 ------------------------------------------------------------------------- Basic monthly charge $11.99 $11.84 $11.84 $11.99 $11.84 $11.84 ------------------------------------------------------------------------- Delivery charge/GJ $2.85 $2.80 $3.15 $2.85 $2.80 $3.15 ------------------------------------------------------------------------- Midstream charge/GJ $1.02 $1.02 $1.73 $0.98 $0.98 $1.70 ------------------------------------------------------------------------- Charges for gas used/GJ $7.54 $4.95 $4.95 $7.54 $4.95 $4.95 ------------------------------------------------------------------------- Estimated total annual bill $1,227 $974 $1,075 $996 $796 $877 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Kootenays Based on 80 GJ/year -------------------------------------------- Jan 1, 2009 Oct 1, 2009 Jan 1, 2010 ------------------------------------------------------------------------- Basic monthly charge $11.99 $11.84 $11.84 ------------------------------------------------------------------------- Delivery charge/GJ $2.85 $2.80 $3.15 ------------------------------------------------------------------------- Midstream charge/GJ $1.05 $1.05 $1.76 ------------------------------------------------------------------------- Charges for gas used/GJ $7.54 $4.95 $4.95 ------------------------------------------------------------------------- Estimated total annual bill $1,059 $846 $931 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Fort Nelson Based on 140 GJ/year -------------------------------------------- Jan 1, 2009 Oct 1, 2009 Jan 1, 2010 ------------------------------------------------------------------------- Minimum monthly charge (includes the first 2 GJs) $23.48 $19.20 $21.22 ------------------------------------------------------------------------- Charge on the next 28 GJ/month $9.88 $7.74 $8.35 ------------------------------------------------------------------------- Charge on excess of 30 GJ/month $9.82 $7.68 $8.29 ------------------------------------------------------------------------- Estimated total annual bill $1,427 $1,128 $1,223 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Whistler Based on 90 GJ/year -------------------------------------------- Jan 1, 2009 Jul 1, 2009 Jan 1, 2010 ------------------------------------------------------------------------- Basic monthly charge $7.50 $7.50 $7.50 ------------------------------------------------------------------------- Charge for gas used per GJ $23.84 $19.76 $17.18 ------------------------------------------------------------------------- Estimated total annual bill $2,236 $1,869 $1,637 -------------------------------------------------------------------------
For further information: Media Contact: Kirsten Walker, Communications Specialist, Terasen Gas Inc., Phone: (604) 592-7507, Email: [email protected]
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