FortisBC receives approval for adjustments to natural gas and propane rates

Natural Gas Bill to decrease !!!!

December 17, 2015 Fortis B.C.
Changes bring all customers closer to paying the same for natural gas no matter where they live
SURREY, B.C. – ​FortisBC has received approval from the BC Utilities Commission (BCUC) to modify natural gas and propane rates. Beginning January 1, 2016 customers will see changes to their bill.

This date also marks the second year of a three-year phased-in approach to a common natural gas rate across the province, which will result in customers paying the same for natural gas no matter where they live.

“Natural gas prices in North America have continued to fall due to expectations for a mild winter, strong natural gas production and record natural gas storage levels heading into winter”, said Cynthia Des Brisay, vice president of energy supply and resource development. “These factors have resulted in a decrease in the cost of gas effective January 1.”


Lower Mainland, Fraser Valley, Interior, North and the Kootenays
Customers will see a decrease of $0.77 per gigajoule (GJ) to the cost of gas rate. Residential customers will see an increase of $0.46 per GJ to their delivery rate and a decrease to the storage and transport rate of $0.41 per GJ. For the average residential customer using 90 GJ of natural gas per year, this works out to an overall decrease of approximately $65 per year, or a decrease of 8 per cent. Customer Choice program participants can also expect to see the above changes to the delivery and storage and transport rates on their bills.

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Current Aug 1, 2015 rates:

Don Quixote Note:
I heat my house with a gas fired water boiler system. Using these new rates and applying them to my last bill for November,  I would have a $24 savings before a further reduction for (GST, Carbon Tax , Clean E Energy Levy & the 3.09% Franchise fee.

This will reduce the franchise fee that is paid to our local municipality.  It will not effect the Franchise Fee Revenue Estimated in our Current 2016 Budget as this is collected from fortis in November 2016 for the period of Jan1, 2015 to December 31, 2015.

The Franchise fee (P.134) which was $490,744  in 2015 was originally budgeted for the same amount in 2016  but was reduced down  to $ 427, 000 after verification with Fortis during budget process.  (a 13% reduction of $63,744). The 2014 Actual was $440,161.

Rate Changes in 2015
Natural gas commodity rates have changed from $3.781 to $2.486 per gigajoule effective
April 1. 2015 Residential customers’ annual charges will decrease by approximately 13 per cent
depending on consumption. The BC Utilities Commission approved this rate adjustment.
For more details, visit fortisbc.com/rates.

Natural gas delivery rates have changed effective August 1, 2015. Residential customers’ annual charges will increase by less than 1 per cent, depending on consumption. The BC Utilities Commission approved this rate change. For more details, visit fortisbc.com/rates.

Natural gas rates tumble

by Wayne Moore CASTANET- Mar 18, 2015 / 10:52 am
Good news, if you're a FortisBC natural gas customer. The energy utility has received approval from the B.C. Utilities Commission to decrease natural gas commodity rates for all customer beginning April 1. Residential customers in the Interior could see an average yearly saving of about $117 as a result of a decrease in the commodity rate of $1.295 per gigajoule to $2.486. "Compared to a year ago, natural gas prices are lower coming out of this past winter due to reduced overall demand for natural gas to heat homes and generate power," said Fortis spokesperson Cynthia Des Brisay. "At the same time, supplies of natural gas have increased, allowing storage levels to return to normal levels." These are the lowest commodity prices in a decade. "Oil prices have declined as well, driven by increased North American oil supplies and reduced international demand," added Des Brisay. "This drop in oil prices has helped to lower propane prices, benefitting our propane customers." FortisBC customers in the Lower mainland, Fraser Valley, Whistler, the Kootenays and the North will also see savings of about $117 a year, while the average residential customer on Vancouver Island, the Sunshine Coast and Powell River could save $58 a year. The average customer in the Revelstoke area, using approximately 50 GJ of natural gas a year, could see a reduction of approximately $235. Fortis reviews natural gas and propane rates every three months with the BCUC in order to make sure rates passed on to customers cover the cost of purchasing the gas on their behalf. Factors affecting the market price of natural gas include weather, supply and demand, and economic conditions. Propane prices are also influenced by global oil markets.

Many natural gas bills to drop across B.C. this winter

CBC News Posted: Sep 19, 2013 1:02 PM PT
Many B.C. homeowners’ natural gas bills will be significantly reduced this winter as the price of natural gas plummets amidst a North American market glut. FortisBC, which provides about 900,000 people with natural gas throughout the province, says they have received approval from the B.C. Utilities Commission to decrease prices for most of their customers starting October 1. The company says the savings will amount to approximately $60, or about $5 a month, over the course of the year for homeowners in the Lower Mainland, the Interior and northern B.C. Customers on Vancouver Island, the Sunshine Coast and Powell River will not benefit from the price reductions, however, because they are in a fixed-price agreement with FortisBC. A mild summer in eastern Canada significantly reduced demand for natural gas, which is commonly used to cool homes, and advancements in the extraction process have both contributed to the decrease in price, says the company.
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Lower Mainland, Fraser Valley, Interior, North and the Kootenays

Residential customers will see a decrease to the commodity rate of $0.641 per gigajoule (GJ). This results in a decrease of approximately $61 per year for an average residential customer in the Lower Mainland using approximately 95 GJ.
Customer Choice program participants will not be affected by changes to the commodity rate

Fortis Natural Gas Rates going up.

Commodity rates passed on to customers without markup

Surrey, BC –  ​FortisBC has received approval from the B.C. Utilities Commission (BCUC) regarding changes to natural gas commodity rates and delivery rates effective July 1, 2013.

Customers will see changes as follows on July 1, 2013:

Current Rates to be changed July 1, 2013

Lower Mainland, Fraser Valley, Interior, North and the Kootenays

• Residential customers will see an increase to the commodity rate of $0.936 per gigajoule (GJ). As part of the BCUC’s review of the regulated rate of return for energy utilities in B.C., delivery rates for customers in these regions will decrease $0.294 per GJ. The combined rate change means an increase of $0.642 per GJ, or approximately $61 per year for an average residential customer in the Lower Mainland using approximately 95 GJ.

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Don Quixote Note: 
July 1, 2013 Rate Changes

• It appears Delivery Charge will decrease from 3.691 per GJ to 3.397 (Decrease of .294/GJ. )
• It appears Cost of gas per GJ will increase from 2.977 /GJ to  3.913/GJ . (Increase of .936/GJ. ) 
• Midstream Rate charge no change at 1.159 GJ

Net Overall per GJ increase is .642/GJ. (An effective 8.2% increase) (7.827/GJ )(Old) to 8.469 GJ (New)

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Jan 1, 2013  Rate Changes:

• Delivery Charge will increase from 3.375 per GJ to 3.691 (Increase of .316/GJ. )
• No Change in  Cost of gas per GJ will stay at 2.977 /GJ 
• Midstream Rate charge decrease from 1.339GJ to  1.159 GJ (decrease of .18 GJ.

Net Overall per GJ increase is .136/GJ (An effective .98% increase) (7.691 )(Old) to 7.827/GJ (New)

Council Watchdog Looks For Budget Savings

Written by Peter McIntyre Monday,  107.5 KISSFM 28 January 2013 22:02
  How much is too much? That's a question at least one Vernon councillor is asking after the city's proposed tax hike rose to 4.7%, up a half a percent. Bob Spiers says he will do what he can to get it lower. "I mean 1.9% of that is the building up for infrastucture, so we're talking about 2.7...2.8%, well above the cost of living for this year." Spiers says he will look for savings. "Hopefully we won't pass this budget until after the city's core service review, and maybe there's some money saving ideas in there," Spiers told the media. The proposed increase translates to an extra $53 for the average homeowner. Mayor Rob Sawatzky realizes many residents would like that figure go down, not up. "Wouldn't we all, so we'll see if councillor Spiers brings forward some ideas that are sustainable reductions," Sawatzky tells Kiss FM. The proposed hike went up Monday after council agreed to cover for $147,728 in over-estimated Terasen gas franchise fees, and to add $40,000 funding to recruit and train volunteer firefighters for a new Predator Ridge station. Fire chief Keith Green told council, the $600,000 firehall could go out to tender this spring, and be completed by the fall.
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Don Quixote Note: At the Council meeting I did manage to get $30,000 reduced from the budget as the budget had been presented with a 1.5% salary increase for exempt workers and it was adjusted downwards to reflect the .8% actual Canadian CPI. (If this Canadian CPI Policy was changed to be calculated based on B.C. CPI (as is used in Coldstream and RDNO) this would have been a further $30,000 saving. ) The Council's remuneration formula for the 2012 and 2013 was changed to BC CPI rather than Canadian CPI. This ensures that the calculated deferred increase to be start in 2014 will use a .1% BC CPI increase rather than the 2012 Can CPI of .8%

The average difference in CPI over the last 10 years has been a minimum of 20% with the Canadian CPI being higher each year. This might be a sustainable change to be made for 2014???

The $30,000 budget change reflects the exempt positions that affect taxes.  The amount of savings for the Utilities positions (Water, Sewer ) were not changed as they affect Utility Ratepayers.

FortisBC natural gas customers benefit from recent BC Utilities Commission decision

SURREY, BC, March 12, 2012 /CNW/ - The British Columbia Utilities Commission (BCUC) confirmed today that, most of FortisBC's natural gas customers will see a commodity rate decrease starting April 1, 2012. This also includes piped propane customers living in Revelstoke. Midstream and delivery rates for customers are not affected by this decision. "The rates approved today are allowing our customers to continue to benefit from some of the lowest delivered natural gas prices in more than a decade," said Cynthia Des Brisay, Vice President of Energy Supply and Resource Development. "A mild North American winter, growing supply of natural gas and reduced demand have come together to keep natural gas prices low. "This has allowed us to flow through a natural gas and a propane rate decrease at this time."
Natural gas and propane rates will change as follows on April 1, 2012:
Lower Mainland, Fraser Valley, Interior, North and the Kootenays

• Commodity rate decrease of $1.028 per gigajoule (GJ) for customers, meaning the commodity rate will drop from $4.005 per GJ to $2.977 per GJ. The average residential customer using approximately 95 GJ per year will see a decrease of approximately $98 per year or a 9.9 per cent decrease. 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.

FortisBC launches renewable natural gas program for residential customers

 June 23, 2011

Renewable natural gas will help British Columbia fight climate change Surrey, BC – 

FortisBC announced today it has launched its renewable natural gas product offering for residential customers in the Lower Mainland, Fraser Valley, Interior and the Kootenays. Eligible customers now have the option of designating 10 per cent of their household’s natural gas usage as renewable natural gas. FortisBC will then inject an equivalent amount of renewable natural gas into its distribution system from local renewable natural gas projects. Customers will be subscribed on a first-come, first-served basis, for about an additional $4 per month, based on an average annual consumption of 95 gigajoules (GJs). “I want to encourage our customers to sign up for renewable natural gas. By signing up, customers are helping create a more sustainable future for our province, reducing their carbon footprint and supporting a carbon-neutral B.C.-made product,” said Doug Stout, vice president, energy solutions and external relations, FortisBC.

 

The only portion of the bill that would change for customers who subscribe to renewable natural gas is the cost of gas. Their cost of gas will now be made up of 10 per cent of the renewable natural gas cost and 90 per cent of the standard cost of gas. Subscribers will not be locked into a contract and can opt-out at any time at no cost.

 

 As renewable natural gas is also considered carbon neutral in B.C., subscribers’ carbon tax will be credited by 10 per cent. FortisBC’s renewable natural gas offering was recently granted Carbon Neutral Product status by Offsetters in B.C., Canada’s leading carbon management solutions provider, after assessing the expected lifecycle emissions savings of the program.

 Fortis B.C. Summary of rate calculation

Only your cost of gas will change on your bill. Customers who sign up for renewable natural gas will be moved from the residential rate to the renewable natural gas rate. The rate will now be 10 per cent renewable natural gas cost and 90 per cent standard cost of gas. Since renewable natural gas is considered carbon neutral, the BC carbon tax amount on your bill will be credited by 10 per cent.
Example below:

Cost of gas as of Apr 1, 2011 (adjusted quarterly)*	$4.568 GJ x 90%
Renewable natural gas cost as of Jan 1, 2011 (adjusted annually)*	$9.904 GJ x 10%
Renewable natural gas rate                                        subtotal:	$5.102 GJ

At today’s prices, this works out to $0.53  (5.102-4.568 = 53.4 cents)  more per gigajoule or about $4 more per month based on the average use of 95 GJ per year.
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Don Quixote Note: When you receive your latest Fortis (Terasen) Natural Gas Bill in early August for the July billing a Renewable natural gas Pamphlet was included "so you could reduce your Carbon footprint even more " The statement that 'The only portion of the bill that would change for customers who subscribe to renewable natural gas is the cost of gas.' is incorrect as it does not take into account the effect of the Franchise Fee of 3.09% increase (.0165 per GJ), the HST on the Franchise Fee of 12% (.0020),the 5% HST on rate increase portion (.0267) bringing the real increase per GJ to $.5792 not the $.53/GJ as stated in pamphlet. This is an additional 5 cents per GJ before you can deduct the 10% carbon tax credit if you sign up.  This 10% credit will amount to 1.2415 x .10=  $.12415 per GJ.    Your net Cost all in will be $.4550 per GJ.

The actual all in cost per year for the average user of 95 GJ is $43.24 ($3.60/month)
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You can figure out your own Fortis Bill on a yearly basis based on your total GJ for a calendar year at a cost of 45.50 cents per GJ.  This is the cost that you are assuming if you sign up to reducing yourcarbon footprint.

Remember you are also helping your local municipality who will get the additional franchise fee increase of 1.65 cents/GJ and the HST fund who will pick up about 2.87 cents per GJ. 

Make your decision with the true costs known upfront.

Natural gas deal regrets

by Wayne Moore -CASTANET  Dec 20, 2010 / 7:00 am

Graham Waites is hot under the collar over the price he is paying for heat. The Kelowna man signed what he thought was a good deal for his household gas nearly two years ago, only to find he is now paying upwards of three times the going rate. To make matters worse, Waites says it will cost him $900 to get out of the five year contract with Ontario based Superior Energy. "A couple of years ago some people came to our door and said they were with Superior Energy and that they could offer us comparable rates to our gas service over a five year term," says Waites. "They said they could lock us in over a five year term with comparable rates to what we were paying. If the gas price goes up or down it doesn't matter, the rates stay the same." Waites says his gas rate is $9.69 a gig while the going rate right now is $3.145 a gig.

"This is insane. We are paying three times the cost of gas and to me that is not comparable. I phoned Superior Energy and they basically said we can buy out the contract on the anniversary date, April 1, 2011 and it will cost me another $900 to get out of it." He says he threatened to put the gas in his wife's name but was told she is on the contract as well. "She never signed it (the contract) but they said it doesn't matter because she is my spouse so she is legally on there. I'm stuck with this until 2014. I can't get out of it, I can't move away from it and I can't put the gas in my wife's name." Waites says he knows of others, including one of his neighbours, who are in the same situation. "The way the girl who came to the door explained it, yes, it made sense. Gas is going up so let's get a deal on it. They're quick to get you in, quick to sign you on the dotted line and then they walk away and move on to the next sucker." He says he's waiting for a copy of the contract from the company before deciding on his next move. Waites says he has spoken with Terasen Gas who suggested he call the BC Utilities Commission.  He hasn't heard back from the commission but says he knows one thing for sure, his days of buying anything sold door-to-door are over.

Gas rates to fall in most of B.C. Jan. 1

CBC News December 13, 2010
Most Terasen Gas customers in B.C. will soon be enjoying the lowest natural gas rates in five years.

The company says the B.C. Utilities Commission has approved rate cuts effective Jan. 1.  Terasen says most customers will save from $55 to $69 a year, but people in the Whistler area will save a bit more, while those in the Fort Nelson region will save a little less.  Natural gas rates will not change on Vancouver Island, the Sunshine Coast or Powell River.  Strong natural gas production, large inventories of gas and lower than expected demand in parts of the U.S. are all factors behind the rate cut for most Terasen customers.  However, customers of propane in the Revelstoke area will be paying $33 more a year because of an increase in propane commodity rates
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Note: Delivery Charge goes up from 3.145 to 3.207 (.062 per GJ) but Midstream charge decreases from 1.725 to 1.349 (.376 GJ).  Net decease is the difference of .314 per GJ) 

Natural gas glut changes global energy forecast

Scott Simpson, Vancouver Sun November 9, 2010
 There was some good news/bad news today for British Columbia, and for global efforts to curtail greenhouse gas emissions.  A global glut of natural gas will keep prices of the fossil fuel depressed for at least a decade, threatening efforts to boost investment in renewable energy, the International Energy Agency says in a report released Tuesday in London.The IEA's World Energy Outlook for 2010 - an annual forcast of energy supply, demand and consumption authored by the world's developed nations including Canada and the United States - anticipates a global oversupply of gas on the order of 200 billion cubic meters beginning next year according to a Reuters story. That's more than three times the excess supply that was available as recently as 2007. Even rising global gas use, which will increase faster than any other fossil fuel, won't overcome a production surge that is emerging from shale gas resource development in the United States, and in Canada. "The gas glut will be with us 10 more years," IEA chief economist Fatih Birol told Reuters.

Heating costs on the rise

Published: March 18, 2010 10:00 AM

Most homes heated by natural gas will pay an estimated six per cent more on their Terasen Gas bills starting April 1. Regulators approved the request to increase the utility’s natural gas commodity rate by 13 per cent.

Terasen says the rate increase of $0.66 per gigajoule works out to around six per cent more on the full household bill, or about $49 to $62 more per year. The decision was released Monday by the B.C. Utilities Commission. The company said natural gas prices are up because of cold weather in much of North America and a recovering economy. Terasen’s commodity gas rate fell 35 per cent in 2009 and is still relatively low compared to the last five years.

Terasen natural gas rates to increase for most of B.C.

ctvbc.ca Date: Monday Mar. 15, 2010 2:41 PM PT

Terasen Gas will raise residential natural gas rates in most parts of B.C. by about six percent, after receiving approval from the B.C. Utilities Commission. The increases take effect on Apr. 1, and affect customers in the Lower Mainland, Fraser Valley, Kootenays, and the Interior and North regions. According to a press release from Terasen, the average customer's annual bill is expected to increase by between $49 and $62. A typical natural gas user pays between $800 and $1,000 per year in natural gas fees. Terasen claims that the rate increase was necessary to respond to rising natural gas commodity prices, citing weather, supply and demand, and economic conditions.

Natural gas rates in Whistler, Fort Nelson and on Vancouver Island will not be affected by the rate increase.

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.

New year rings in higher rates for natural gas

January 02, 2010 12:00 PM Morning Star:

Natural gas users in British Columbia can expect their home heating bills to climb 10 per cent in the new year. Terasen Gas says rate changes approved by the B.C. Utilities Commission will work out to an annual increase of $81 to $101 for the typical household. The new rate structure came into effect Jan. 1.

The change isn’t due to the actual price of natural gas, which fell in 2009. Instead, Terasen has been given approval to increase its delivery rate by three per cent and its midstream charges, which are related to storage of gas, by seven per cent. The rate hikes also apply to customers who buy their natural gas from independent gas marketers, because they must still pay Terasen to deliver the gas. Some consumers signed up to long-term contracts that locked them in at prices of around $10 per gigajoule and they haven’t benefitted from the big slide in natural gas prices. Terasen’s fluctuating gas rate, which most customers pay, has fallen 35 per cent over the past year to $4.95 per gigajoule. Natural gas is also subject to B.C.’s carbon tax, which rises again in July.

In approving the new rates, regulators decided Terasen’s profit margin should rise from 8.47 per cent to 9.5 per cent, which is less than the 11 per cent rate of return on equity the utility had requested. Officials with the corporation say that they need the higher rates to maintain the company’s high credit rating and also to meet British Columbia’s climate action goals. The utility is promising to provide more energy conservation assistance to its customers, as well as improved options, like online bill payments.

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Don Quixote Note:

The 3.09% Franchise Fee that Terasen Collects and remits to your local municipality is applied not only to Natural Gas but also delivery and midstream costs. The City of Vernon's franchise fee was budgeted for $581,400 but collected 659,567 in 2009. (a surplus of $78,167) The budget for 2010 remains at $581,400. The city of Vernon actually gets paid the Franchise Fee in November 2010 for the money collected from Jan 1 ,2009 to December 31, 2009.

You can find the details and history since 1957 of the Franchise Fee at A HIDDEN TAX in your GAS BILL.

Vernon's share of 3.09% BC GAS FRANCHISE FEE
2000 $290,331
2001 $398,823
2002 $501,972
2003 $472,388
2004 $487,013
2005 $492,625
2006 $550,000
2007 $570,000
2008 $579,000

2009 $659,567)

2010 $581,400(est.)

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And in case I haven't already made your day the Feds come along and tag their 5% GST on not only the hike but on the 3.09% franchise fee also. On July 1, 2010 the HST will kick in and will be applied to the Franchise Fee at a 11% rate. Talk about a TAX on a Tax on a Tax. (The HST also will apply to the B.C. Carbon Tax.)

Terasen applies to lower natural gas bills

Ctv.ca Updated: Fri Sep. 04 2009 12:30:51 The Canadian Press

Terasen Gas is planning to cut natural gas rates for its customers across many parts of British Columbia, citing a slump in the commodity price now at its lowest level in more than five years.The utility, a division of Fortis Inc. (TSX:FTS), said Friday it has filed a request with the British Columbia Utilities Commission regulatory body to lower rates starting Oct. 1. If approved, Terasen said a typical household could save just under $100 annually its gas bills.

For customers in the Lower Mainland, Fraser Valley, Interior, North and the Kootenays, Terasen said it is asking for a commodity rate decrease of $1.01 per gigajoule (GJ).If the application is approved, Terasen said customers will see their total annual gas bill decrease by about nine per cent, or approximately $76 to $96 per year, depending on consumption levels.If approved, the cost of gas decrease to $4.95 per GJ will not affect the commodity rate for customers participating in the Customer Choice program, Terasen said.

Natural gas price hits 7-year low

Thursday, August 20, 2009 CBC NEWS:

Natural gas prices on the New York Mercantile Exchange dipped below the $3 US level on Thursday for the first time in seven years.The September natural gas contract was trading at $2.94 US per thousand cubic feet in afternoon NYMEX trading — down 18 cents from Wednesday's close. The front-month gas contract hasn't been that low since August 2002.Consumers could see lower heating bills this winter as natural gas prices drop. (CBC)The drop followed the release of U.S. supply data that showed yet another increase in gas storage levels. The Energy Information Administration reported Thursday that the amount of gas stored underground in the U.S. grew by 52 billion cubic feet last week to 3.2 trillion cubic feet. That's 19 per cent higher than the five-year average of gas storage levels.

In Calgary, the AECO-C one-month spot price tumbled 17.5 cents to $2.36, according to data from the NGX. Natural gas prices have plunged by 80 per cent in the last year as buoyant supplies and sluggish demand combined to create the most bearish market for gas in years.The oversupply has reached the point that analysts say many of the available gas storage facilities in North America are now almost full. In an average year, the facilities don't approach capacity until early fall.

In the 2008-09 fiscal year, Alberta took in $5.8 billion from gas royalties, more than triple what it got from oil royalties. Every 10-cent drop in gas prices costs the provincial treasury $126 million in lost revenue.

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Don Quixote Note: The City of Vernon receives 3.09% of the cost of natural gas consumed and delivered to City of Vernon customers who use Terasen Gas. City's revenue below. This fee is paid by all customers even those who signed a fixed natural gas contract with another supplier.

Vernon's share of 3.09% BC GAS FRANCHISE FEE
2000 $290,331
2001 $398,823
2002 $501,972
2003 $472,388
2004 $487,013
2005 $492,625
2006 $550,000
2007 $570,000
2008 $579,000

2009 $581,400 (est.)

Details at A HIDDEN TAX in your GAS BILL

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In the Annual Report of City of Vernon 2008 on page 58 2008 - 4.6MB is the notation that the City of Vernon paid $318,084.57 in 2008 ($408,159.18 in 2007) to Terasen Gas Inc.. Details state that "beginning in Sep 2008, commodity component of natural gas purchased from another supplier through a fixed price contract. " (No term or rate given !!)

No idea if NORD (GVSC) has a fixed price contract for their gas bills. (Multiplex, Community Theatre etc. ???)

Terasen Gas cuts rates for Lower Mainland, B.C. Interior

CBC News:

Terasen Gas customers around Vancouver and the B.C. Interior can expect to see their natural gas rates cut by 13 per cent on April 1. The rate cuts were approved by the B.C. Utilities Commission on Friday and apply to the Lower Mainland, the Fraser Valley and the Interior, North and Kootenay regions. They won't apply to customers on Vancouver Island, the Sunshine Coast, Whistler and Power River. Those areas, which are on a different rate structure, could get a rate cut later in the year, according to Terasen Gas spokesman Mike Chisholm. The rate cuts are the result of lower demand and falling prices for natural gas worldwide, as a result of the global economic slow down. Last April, Terasen increased rates for Metro Vancouver, the Fraser Valley, and the Interior, North and Kootenay regions by 11 per cent after world energy prices rose.

Terasen proposes to slash natural gas bills

Scott Simpson, Vancouver Sun March 5, 2009

Terasen Gas is proposing to slash by an average of 12 per cent the commodity rate it charges many of its British Columbia customers for natural gas. An application was filed Thursday with the B.C. Utilities Commission and if approved, will cut customers’ gas consumption bills by $124 to $156 per year, depending on consumption levels. If the BCUC approves, which is extremely likely, many of Terasen’s customers will be paying the lowest commodity rate for gas in five years. It will be the second time in nine months that commodity gas prices have fallen for Terasen’s variable-rate customers, reflecting a decline in the trading price of natural gas on the North American market. . Customers who have contracted their gas supply with third-party gas-marketing companies are excluded from the reduction, which applies only to the cost of gas, not the cost of delivery.

Signatures forged in alleged gas contracts scam

Updated: Tue Dec. 16 2008 15:17:57 The Canadian Press

TRAIL, B.C. -- The RCMP say several householders in Castlegar have complained about being fraudulently signed up for natural gas contracts. Police say the residents had their gas service switched from Terasen to a fixed-term contract with another supplier, apparently with the aid of forged signatures. Natural gas suppliers use independent agents or contractors to sell contracts to consumers. In this case, police say the scheme appears to have gone on without the knowledge of Terasen or the supplier.

Arena fees hiked for coming season

By Richard Rolke - Vernon Morning Star - June 15, 2008
It’s going to cost more to lace up the skates at Greater Vernon’s arenas. The Greater Vernon Services Committee has decided to hike arena rates for 2008/09 by 5.5 per cent. "There are increased costs we are seeing in our facilities. Hydro is going up and natural gas is going up,” said Al McNiven, parks and recreation administrator. For all GVSC facilities (ice and non-ice), hydro costs went up 6.56 per cent in April and a further 8.21 per cent is expected next year. Gas went up 17.9 per cent and it’s anticipated it could climb by another 11.2 per cent in 2009. For Civic and Priest Valley arenas, recreational hockey and adult groups will see the hourly rate go from $167.25 to $176.45, while the pre-season training rate for junior hockey will go from $167.25 to $176.45. At Wesbild Centre, public skating rates for adults will go from $4.10 to $4.25 and for youth it will go from $3.10 to $3.25. Regular ice for figure skating and minor hockey will go from $193.54 to $204.18 an hour while rates for recreational hockey, adult groups and private rental will go from $193.54 to $204.18 an hour.

McNiven said that while adult ice fees are on the higher end of the scale compared to other communities, the youth ice fees in Greater Vernon are below average.The user fees for all non-ice facilities will increase 3.5 per cent in 2008/09, primarily because of higher labour costs. Those fees include parks and the swimming pool. “There are big utility costs at the pool but when we compare it to other communities, our fees are at the higher end so we thought we would leave them at 3.5 per cent,” said McNiven. A single adult admission at the pool will go from $4.50 to $4.65. while it will go from $3.40 to $3.50 for youth. In terms of sports fields owned by GVSC, the fee for adult ball league play will go from $15.45 an hour per field to $16, while will go from $6.18 to $6.40 for minor bail league play. McNiven admits that there is always a balancing act when establishing fees because operating costs must be covered, but if fees are set too high, that can scare customers away and that has a negative impact on the bottom line. “You have to find out where the breaking point is,” he said.
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Don Quixote Note: Because of its franchise fee on all Terasen Gas Bills, The City of Vernon will actually increase its revenue by an estimated $78,375 to total $657,375 in 2009. When natural gas rates go up the City cheers silently so as to not annoy taxpayers who have to pay increased rates caused by Terasen increases.