Terasen seeks 13-per-cent gas charge hike

By Scott Simpson, Vancouver Sun March 8, 2010

VANCOUVER — Terasen Gas has applied for a 13-per-cent increase in its natural gas commodity charge, the utility announced on Monday. Terasen is asking the British Columbia Utilities Commission for an increase of 66 cents per (gigajoule) unit of gas, which would have the effect of raising an average customer’s overall bill by about $5 a month, or $60 a year. It would apply only to customers on Terasen’s variable rate plan in Metro Vancouver, the Fraser Valley, the Interior, North and Kootenays. It is the first time in more than a year that Terasen, which reviews its commodity gas price on a quarterly basis, has asked the BCUC for a rate increase. Terasen does not make a profit on the commodity price of gas, passing along without markup the contract prices it secures on North American gas trading markets. The proposed increase does not apply to Terasen delivery or midstream charges, which are listed separately on monthly utility bills.

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Don Quixote Note: The company did, however, recently increase the separate rates it charges to store and deliver gas to customers. That increase raised home heating bills about 10 per cent effective Jan. 1.

Rates will change as follows on January 1, 2010:

    Lower Mainland, Fraser Valley, Interior, North and the Kootenays:
   -   Residential customers will see an increase to their overall annual
       bill of between $81 and $101 or approximately 10 per cent, due to a
       three per cent delivery rate increase and a previously determined
       seven per cent midstream rate increase. Both rate changes will also
       apply to customers participating in the Customer Choice program as
       these customers only purchase the gas commodity from licensed gas
       marketers.