SURREY, BC, March 15 /CNW/ - The British Columbia Utilities Commission (BCUC) has approved changes to Terasen Gas' propane commodity rate for customers in Revelstoke. The increase will take effect April 1, 2010.
"Terasen Gas purchases propane on behalf of its customers and passes its cost on without mark-up, so customers pay what we pay," said Cynthia Des Brisay, Vice President, Gas Supply and Transmission, Terasen Gas.
Propane is traded on the open market like oil, coffee or lumber and its market price is affected by factors such as weather, supply and demand, economic conditions, and the price of crude oil. Propane prices have continued to strengthen as a result of strong oil prices and low propane storage levels throughout North America coming out of winter.
Residential customers in Revelstoke will see a propane commodity rate increase of $1.79 per gigajoule, or approximately 12 per cent. The average residential customer will see their total annual bill increase by about nine per cent, or approximately $89 per year, depending on consumption.
The cost of the propane commodity accounts for a large portion of the average residential bill. The delivery charge, which accounts for the remaining portion, is reviewed annually and was changed effective January 1, 2010. Terasen Gas earnings come from the delivery rate which are the costs associated with delivering propane to customers. Every three months, Terasen Gas reviews propane commodity prices with the BCUC to ensure the rates passed on to customers cover the cost of purchasing the propane.
For more information on Terasen Gas and rate changes in propane commodity rates, visit terasengas.com.
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 approximately 2,100,000 gas and electric customers and has total assets exceeding $12 billion. 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.
SOURCE TERASEN GAS
For further information: For further information: Media Contact: Marcus Wong, Corporate Communications Manager, Terasen Gas Inc., Phone: (778) 571-3263, Email: firstname.lastname@example.org