Terasen Gas applies for January rate increases

    SURREY, BC, Dec. 4 /CNW/ - Terasen Gas is asking the BC Utilities
Commission (BCUC) for increases to various rates in several service areas. The
proposed changes include increases to midstream and delivery rates for
customers in the Lower Mainland, Fraser Valley, Interior, North and the
    If approved, a typical residential customer in the Lower Mainland, Fraser
Valley, Interior, North and the Kootenays will see their total annual gas bill
rise by about 4 per cent, approximately $44 to $52 per year depending on
consumption levels. The changes are a result of the increased cost of storing,
transporting and managing the gas delivered to customers. In addition, this
includes costs associated with the Customer Choice program, as all residential
customers in these service areas are eligible to participate.
    "Terasen Gas works to keep customer rates as low as possible. Natural gas
commodity costs are passed on without mark up," said Jan Marston, Vice
President, Gas Supply and Transmission. "No change has been requested to the
cost of gas, which makes up about two thirds of a customer's monthly
statement. This follows the October 1, decrease of 5.9 per cent in the annual
bills for these customers."
    Fort Nelson residential customers could see an increase on their total
annual gas bill of about 5.8 per cent, approximately $77 per year depending on
consumption levels. This marks the first increase in delivery rates for this
service region since 2004. Delivery volumes for the area have decreased over
the past four years resulting in a higher cost of service per customer.
    If approved, the average residential customer on Vancouver Island, the
Sunshine Coast and in Powell River would see their total annual gas bill
increase by approximately 0.4 per cent or $4.00 per year depending on
    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 the price of other energy commodities.
    Any change in Terasen Gas rates must be approved by the BCUC. The
applications ask to have the increases take effect January 1, 2008.

    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
$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.

    Terasen Gas may include forward-looking statements in this release which
reflect management's expectations regarding the Company's future growth,
results of operations, performance, business prospects and opportunities.
Wherever possible, words such as "anticipate", "believe", "expects", "intend"
and similar expressions have been used to identify the forward-looking
statements. These statements reflect management's current beliefs and are
based on information currently available to the Company's management. By their
very nature, forward-looking statements are based on underlying factors or
assumptions which are subject to inherent risks and uncertainties surrounding
future expectations generally. Such risk factors or assumptions include, but
are not limited to, general economic, market and business conditions,
regulatory developments, gas distribution operating risks, natural gas prices
and supply, weather and competition. Terasen Gas cautions readers that a
number of factors could cause actual results, performance or achievements to
differ materially from the results discussed or implied in the forward-looking
statements. These factors should be considered carefully and undue reliance
should not be placed on the forward-looking statements. For additional
information with respect to certain of these risks or factors, reference
should be made to Terasen Gas's continuous disclosure materials filed from
time to time with Canadian Securities Regulatory Authorities. Terasen Gas
disclaims any intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or

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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