September 8, 2008

Terasen Gas Files for Reduction in Natural Gas Rates

Terasen Gas, a natural gas distribution company, has filed applications to the British Columbia Utilities Commission to reduce its natural gas commodity rates for customers in most regions of British Columbia, Canada.

If the applications are approved, commodity rate decreases will become effective October 1, 2008. Terasen Gas purchases natural gas and propane for its customers, and passes that cost on without mark-up.

Every three months, natural gas and propane commodity prices are reviewed with the British Columbia Utilities Commission (BCUC) in order to ensure the rates customers are charged for natural gas are sufficient to cover the cost of purchasing the gas.

In the Lower Mainland, Fraser Valley, Interior, North and the Kootenays the proposed decrease would drop the commodity price of natural gas by $1.86 per gigajoule (GJ). The decrease works out to an annual savings of about 12% or between $177 and $204 per year, depending on consumption levels.

In the Fort Nelson area, the proposed decrease would reduce the commodity price of natural gas by $1.73 per GJ. For the household consuming an average of 160GJ per year, this works out to a savings of approximately 15%, or $276 on the total annual gas bill.