Approximately 3,200 local natural gas customers may see bill increases of up to $90 annually following the recently announced amalgamation of Terasen Gas Squamish with its parent company, Terasen Gas Inc. (TGI).
When Squamish changed over from a piped propane system to a natural gas system in 1991, rates were capped at 67 per cent of thecost of electricity to encourage conversion to natural gas. Thosesame rates today mean that most Squamish customers do not cover the costs associated with natural gas service, so the province pays for shortfalls in revenue.
To make up for the shortfall, natural gas rates will jump from $11.78 per gigajoule to $13.72 per gigajoule effective January 1, 2007.
The amalgamation may be good news to some local users, according to TGI community relations officer Carol Greaves, since the new structure will issue a fixed charge every month, along with variable delivery and commodity charges. Customers who use more natural gas will see less of anincrease that those who use less.
"While the average residential customer in Squamish could see rates increase by about $90 annually, larger users of natural gas could see rate decreases," said Greaves.
Greaves said that new rates are still significantly lower than other sources of energy.
With one gigajoule of natural gas equal to 27 litres of fuel oil, 39 litres of propane, 26 litres of gasoline or 277 kilowatt hours of electricity, a conversion shows that electricity wouldcost $15.83, propane would cost $22.81 and fuel oilwould cost $20.10 per gigajoule.
"Terasen Gas does not mark up the cost of the natural gas commoditydelivered to customers," added Greaves. "The price Terasen pays for natural gas is the same as the price the customerpays."
Another benefit to amalgamation, said Greaves, is access to TGI energy conservation and rebate programs never before available to the Squamish customer base.
Among incentives is a heating upgradeprogram offering$250 for installation of an Energy Star qualified natural gas furnace or boiler, an additional $100 if the natural gas equipment installed has a variable speed motor and anadditional $150 to $1,000 available in manufacturer offers.
A residential new construction heating program also offers$500 for installing a new Energy Star qualified natural gas furnace or boiler plus any natural gas water heater.
