BC Utilities Commission approves Terasen Gas commodity rate decrease



    SURREY, BC, Sept. 14 /CNW/ - The BC Utilities Commission (BCUC) has
approved changes to Terasen Gas (TSX:FTS) rates that will reduce residential
customers' annual natural gas bills by approximately 5.8 to 5.9 per cent.
    The rate changes will take effect October 1, 2007 for customers in the
Lower Mainland, Interior, North and Kootenays. Changes do not apply to
customers on Vancouver Island, the Sunshine Coast, Powell River, and Fort
Nelson since they are covered by different regulatory agreements. Propane
rates for Whistler and Revelstoke are also unaffected.
    The decrease works out to an annual savings of about $70 to $81 per year
on a typical residential customer's annual gas bill, depending on consumption.
    "A cooler than expected summer contributed to a decline in North American
market prices for natural gas in recent weeks," explained Jan Marston, Terasen
Gas Vice President, Gas Supply and Transmission.
    "The cooler summer reduced air conditioning use which resulted in more
gas supply in the market. When combined with ample inventories already
available, it allowed us some savings in the natural gas we purchase on behalf
of our customers," Marston continued.
    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, and production and transportation costs.
    Terasen Gas purchases natural gas on behalf of its customers and passes
the cost on without markup. 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.

    Terasen Gas is mainly composed of the operations of Terasen Gas Inc. and
Terasen Gas (Vancouver Island) Inc., both indirect wholly owned subsidiaries
of Fortis Inc. Fortis Inc., the largest investor-owned distribution utility in
Canada, serves almost two million gas and electric customers and has
approximately $10 billion of assets. Its regulated holdings include Terasen
Gas and electric utilities in five Canadian provinces and three Caribbean
countries. Fortis Inc. owns non-regulated hydroelectric generation assets
across Canada and in Belize and upper New York State. It also owns hotels and
commercial real estate in Canada. Fortis Inc. shares are listed on the Toronto
Stock Exchange and trade under the symbol FTS. Additional information can be
accessed at www.fortisinc.com or www.sedar.com.


    
                       Estimated Change in Annual Bills

          October 1, 2007 - Rates for Typical Residential Customers
                                 Backgrounder

    -------------------------------------------------------------------------
                    Lower Mainland      Interior
                    and Fraser Valley   and North           Kootenays
                    Based on            Based on            Based on
                    110 GJ/year         95 GJ/year          110 GJ/year
    -------------------------------------------------------------------------
                    Current   Oct 1     Current   Oct 1     Current   Oct 1
    -------------------------------------------------------------------------
    Commodity
     cost/GJ        $7.662    $6.926    $7.662    $6.926    $7.662    $6.926
    -------------------------------------------------------------------------
    Estimated total
     annual bill    $1,374    $1,293    $1,203    $1,133    $1,380    $1,299
    -------------------------------------------------------------------------
    

    A gigajoule (GJ) is a measure of energy. One gigajoule is equivalent to
278 kilowatt hours of electricity. One gigajoule of natural gas can heat a
typical 2,000 square foot home for one day during the winter.





For further information:

For further information: Media contact: Joyce Wagenaar, Corporate
Communications Manager, Phone: (604) 592-7682, E-mail:
joyce.wagenaar@terasengas.com; Scott Thomson, Vice President, Regulatory
Affairs & Chief Financial Officer, Terasen Inc. and Terasen Gas, Phone: (604)
592-7784, E-mail: scott.thomson@terasengas.com

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