positive news for parts of b.c.

Terasen Gas applies to reduce natural gas commodity rates

SURREY, BC, March 7 /CNW/ - Terasen Gas asked the BC Utilities Commission today for a reduction in its natural gas commodity rates for customers in the Lower Mainland, Fraser Valley, Interior, North and the Kootenays.

The proposed decrease would drop the commodity price of natural gas by approximately 16.8 per cent, or $1.65 per gigajoule. The decrease works out to an annual savings of about 11 per cent, or $155 to $179 per year on the total annual gas bill for a typical residential customer depending on consumption and the region in which they live.

The rate reduction does not apply to customers on Vancouver Island,Sunshine Coast and Powell River since they are covered by a different regulatory agreement. ...

If approved, the commodity decrease will take effect April 1, 2006.

Terasen Gas will also file an application to increase delivery charges by about $2 to $3 per year for typical residential customers as a result of the recent BCUC decision on the utility's return on equity.

Natural gas is a commodity 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.

Terasen Gas purchases natural gas on behalf of its customers and passes its cost on without mark up. Terasen Gas earnings come from the delivery charges - what the company charges to bring the natural gas to a home or business. Every three months, Terasen Gas reviews natural gas commodity prices with the BCUC in order to ensure the rates we charge customers for natural gas are sufficient to cover the cost of purchasing the gas. ...



No change for natural gas rates on Vancouver Island, Sunshine Coast, Powell River

SURREY, BC, March 7 /CNW/ - Terasen Gas is recommending no changes to rates on Vancouver Island, the Sunshine Coast and Powell River following its quarterly review of natural gas commodity prices with the BC Utilities Commission.

"While natural gas commodity prices have risen and are now falling on the open market, our gas purchasing program and the rate design approved for Vancouver Island has allowed us to keep rates stable. Despite what is happening in other areas of BC and Canada, there is no need to change rates onVancouver Island. Vancouver Island residential customers have not experienced the previous rate increases that affected other areas of BC," said Doug Stout,Terasen Gas vice president marketing and business development. ...

Vancouver Island, the Sunshine Coast, and Powell River are covered by a separate regulatory agreement that includes a rate structure different fromthe one that applies to other BC communities served by Terasen Gas. ...