Terasen Gas applies to sell liquefied natural gas as cleaner, greener transportation fuel solution

    SURREY, BC, May 7 /CNW/ - Terasen Gas has applied to the British Columbia
Utilities Commission (BCUC) for approval to sell liquefied natural gas (LNG)
as a transportation fuel source for fleet vehicles. If approved, the proposed
rate schedule will help customers find solutions to manage transportation
costs, reduce emissions, optimize existing company assets and support and
advance the provincial government's Energy Plan.
    "This is an example of using a traditional energy source in a new way to
take advantage of the existing natural gas system," said Doug Stout, Vice
President of Marketing and Business Development, Terasen Gas. "Our proposal
ties in with government policy and initiatives to use available energy more
efficiently, and to reduce greenhouse gas emissions in the province."
    As a transportation fuel, LNG will result in approximately 20 per cent
less carbon dioxide and 50 per cent less nitrous oxide emissions than diesel.
Using LNG as a fuel source also provides cost savings to fleet operators, as
LNG is approximately 30 per cent less expensive than diesel.
    Terasen Gas believes an approved rate schedule will provide assurance of
supply and sales cost certainty to fleet vehicle and LNG refuelling station
owner-operators, thereby enabling the market to develop. LNG sales would
originate from the company's Tilbury LNG storage facility in Delta,
complementing its existing usage.
    An approved rate schedule supports the B.C. government's Request for
Expressions of Interest in an LNG Port Container Truck Demonstration Program
at Port Metro Vancouver. If approved, our application will also support
Wastech Service's plan to convert its fleet to LNG trucks for hauling solid
waste from Vancouver to Cache Creek's landfill site.
    "Terasen has a leadership role to play in order to facilitate the
development of LNG as a transportation fuel in B.C.," said Stout. "As a
primary energy provider in the province, Terasen is constantly seeking ways to
encourage the use of an abundant energy source that is safe, clean, reliable,
and a foundational energy form that will assist us in reaching our
environmental goals."
    If the current application is approved, Terasen Gas believes refuelling
stations could be established and operational within three months.

    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 more than two million gas and electric customers and has total
assets exceeding $11 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

For further information:

For further information: Media Contact: Michael Chisholm, Corporate
Communications Manager, Phone: (604) 592-7801, Email:

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