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Terasen Gas receives BCUC approval to lower natural gas commodity rates
Terasen Gas receives BCUC approval to lower natural gas commodity rates
About this update from Fortis Inc.
[{"type":"text","content":"\n\n\n\nSep. 11, 2009 (Canada NewsWire Group) -- SURREY, BC, Sept. 11 /CNW/ -- The British Columbia Utilities Commission (BCUC) has approved Terasen Gas' applications to lower natural gas commodity rates for the majority of customers in the province. The changes will take effect October 1, 2009.\"Today's decision means customers in most regions of B.C. will enjoy the lowest commodity rates in more than five years,\" said Cynthia Des Brisay, Vice President of Gas Supply and Transmission, Terasen Gas. \"We are pleased to be able to provide these rates at a time of year when cooler weather approaches and customers' energy needs generally increase.\"In the Lower Mainland, Fraser Valley, Interior, North and Kootenays, the commodity rate will decrease $1.01 per gigajoule (GJ). This works out to an annual savings of about nine per cent, or approximately $76 to $96 per year, depending on consumption levels. The cost of gas decrease to $4.95 per GJ does not affect the commodity rate for customers participating in the Customer Choice program.In the Fort Nelson area, total annual bills for customers will decrease by about eight per cent, or $98 per year, based on consumption of 140 GJ per year.The adjustments do not affect customers on Vancouver Island, the Sunshine Coast, and in Powell River, as these regions are covered by different regulatory agreements. Propane prices for customers in Revelstoke are also unaffected. Propane prices are closely linked to global oil markets, and oil prices have continued to be strong in the last quarter.Commodity rates for customers in Whistler will remain unchanged, as the BCUC approved a rate decrease effective July 1, 2009, reflecting the conversion of the Resort Municipality of Whistler from propane to natural gas.Natural gas and propane are openly traded commodities, subject to market conditions, supply and demand, and weather. Terasen Gas purchases natural gas and propane on behalf of its customers and passes that cost on without mark-up. The company uses several tactics and strategies to ensure a reliable supply at a reasonable price for its customers including:- purchasing gas from a variety of sources;- locking in the price of gas for a portion of the supply through theuse of futures contracts; and- purchasing a portion of the supply based on monthly and spot marketprices.\"Although commodity rat...