o Increase adds two per cent
to gas utility bills
Natural gas customers will notice an increase on their bills this month as a Terasen Gas rate change has been approved.
The change, which took effect on Jan. 1, will mean an increase of about two per cent for gas customers in most parts of the province, including Summerland.
On Vancouver Island and the Sunshine Coast, the increase is 3.1 per cent while residential propane customers in Revelstoke and Whistler will see their costs decrease by 14 per cent and 12 per cent respectively.
According to figures from Terasen Gas, the basic monthly charge and the delivery charge have dropped slightly, while the charges for gas used have increased from $8.080 to $8.513 a month.
Joyce Wagenaar, corporate communications manager with Terasen Gas, says the monthly charge and delivery charge have dropped because of cost savings and efficiencies by the gas utility.
The charge for gas, which makes up about two-thirds of the bill, is increasing to reflect the increasing market price for gas.
It depends on whats happening in the commodity market at the time, she says.
She explains that Terasen earns a profit on delivery but not on the cost of the gas itself.
The rate change was approved by the B.C. Utilities Commission in late December. All rate changes must be approved by the utilities commission.
Commodity charges are reviewed four times a year while delivery charges are reviewed annually.
The next gas charge review will be in March.
Terasen Gas is a subsidiary of Kinder Morgan, Inc. The utility delivers natural gas and piped propane to approximately 900,000 homes and businesses in 125 B.C. communities.
