Business
Terasen Gas receives approval to adjust natural gas and propane rates
Terasen Gas receives approval to adjust natural gas and propane rates
About this update from Fortis Inc.
[{"type":"text","content":"\n\n\n\nDec. 14, 2009 (Canada NewsWire Group) -- SURREY, BC, Dec. 14 /CNW/ -- Terasen Gas has received approval from the British Columbia Utilities Commission (BCUC) to adjust commodity and midstream rates for some customers in the province. The changes will take effect January 1, 2010.Terasen Gas purchases natural gas and propane on behalf of its customers and passes that cost on without mark-up, so customers pay what Terasen Gas pays. Midstream rates are what Terasen Gas pays other companies to store, transport and manage the gas delivered to customers. This cost is also passed onto customers without mark-up. Natural gas and propane are commodities traded on the open market like oil, coffee or lumber. Factors affecting the price of natural gas include weather, supply and demand, international events and market speculation.\"Today's decision means customers will still be enjoying some of the lowest rates in more than five years, even with the increases in commodity and midstream rates for customers in some of our service regions,\" said Cynthia Des Brisay, Vice President of Gas Supply and Transmission, Terasen Gas. \"Since October, when we were able to offer customers in most of our service regions a commodity rate decrease, several factors have affected the price of natural gas, including rising demand and colder weather. Our purchasing and hedging strategies have allowed us to soften the increase we have to pass on to customers.\"For customers in the Lower Mainland, Fraser Valley, Interior, North and the Kootenay service areas, commodity rates will remain unchanged, following an approximate nine per cent decrease to customers total annual bills in October. Customers in these regions will see an increase of $0.71 to $0.73 per gigajoule (GJ) in midstream charges, or approximately $55 to $67 per year, depending on consumption. The adjustment in midstream rates is a result of an increase in fees paid by Terasen Gas to store and transport gas.Commodity rates for customers participating in the Customer Choice program will not be affected, as they purchase the gas commodity from a licensed gas marketer, however changes in the midstream rate applies to all customers.Fort Nelson customers will see about an eight per cent increase in their total annual bill, reflecting both an increase in the commodity price of gas and a slight decreas...