Business
BC Utilities Commission approves Terasen Gas rate increases
SURREY, BC, Dec. 18 /CNW/ - The BC Utilities Commission (BCUC) has approved increases to various ...
About this update from Fortis Inc.
[{"type":"text","content":"\n\n\n\nSURREY, BC, Dec. 18 /CNW/ - The BC Utilities Commission (BCUC) has\napproved increases to various Terasen Gas rates, including those for midstream\nand delivery, for residential customers in several service areas. The rate\nchanges will take effect on January 1, 2008.\n\n\nTypical residential customers in the Lower Mainland, Fraser Valley,\nInterior, North and the Kootenays service areas will see their total annual\ngas bill rise by about 4 per cent, approximately $43 to $51 per year depending\non consumption levels. These changes are a result of the increased cost of\nstoring, transporting and managing the gas delivered to customers, plus costs\nassociated with the Customer Choice program. All residential customers in\nthese service areas are eligible to participate in Customer Choice.\n\n\n"Currently, we are under-recovering our costs for the storage and\ntransportation of natural gas. The majority of this increase is to help us\nmeet those costs which are referred to on a customer's bill as the Midstream,"\nsaid Jan Marston, Vice President, Gas Supply and Transmission. "The Midstream\ncosts are passed on without mark-up and Terasen Gas does not earn revenue on\nthese costs: customers pay what we pay."\n\n\nThe changes will also apply to those customers currently participating in\nthe Customer Choice program.\n\n\nNo change has been requested for the cost of gas, which is also passed on\nwithout mark-up and makes up about 60 per cent of a customer's monthly\nstatement.\n\n\nFor January, residential customers in the Fort Nelson service area will\nsee their rates increase by approximately 0.5 per cent. However, effective\nFebruary 1, the BCUC has approved an interim rate increase of an additional 5\nper cent, or approximately $70 per year depending on consumption levels.\nDelivery volumes for the Fort Nelson service area have decreased over the past\nfour years resulting in a higher cost of service per customer. This marks the\nfirst delivery rate increase for Fort Nelson residential customers since 2004.\n\n\nThe average residential customer on Vancouver Island, the Sunshine Coast\nand in Powell River will see their total annual gas bill increase by\napproximately 0.4 per cent or $4 per year depending on consumption.\n\n\nNatural gas is a commodity traded on the open market like oil, coffee or\nlumbe...