SURREY, BC, Dec. 1 /CNW/ -- Terasen Gas (Vancouver Island) Inc. (TGVI) has received approval from the British Columbia Utilities Commission (BCUC) for the negotiated settlement agreement for its two-year revenue requirement and rate design application. The approval means rates will remain unchanged for a two-year period, starting January 1, 2010, for residential and commercial customers on Vancouver Island, the Sunshine Coast and Powell River.
"A number of customer groups were involved in the negotiated settlement process. The new negotiated settlement agreement provides customers with rate stability through to 2012 and enables Terasen Gas to continue to provide safe, reliable and cost effective natural gas service to B.C. customers," said Randy Jespersen, President and CEO, Terasen Gas (Vancouver Island) Inc. "It also supports the company's efforts to pursue alternative energy solutions, helping municipalities and the Province meet B.C.'s Climate Action challenges."
"It is a pivotal time in the energy business and going forward, TGVI will need to make new investments, ensuring the energy needs of British Columbians are met today and tomorrow. The agreement will enable us to grow the business while ensuring compliance with new requirements from our various regulators and policy makers," said Jespersen.
TGVI has carefully managed operating costs under the previous agreement, benefitting customers while also successfully reducing the debt incurred for bringing natural gas to Vancouver Island in the early 1990s.
Under the new agreement, residential and commercial customers will benefit from expanded energy efficiency and conservation programs, including enhanced tools and incentives to manage their natural gas consumption, reduce their energy costs, and lower their greenhouse gas emissions. TGVI will also design and implement programs and initiatives for affordable housing and rental customers, guaranteeing accessible and effective energy conservation programs.
Terasen Gas Inc., which serves customers in the Lower Mainland, Fraser Valley, Interior, North and the Kootenays, is waiting for decisions on multiple applications before the BCUC that, if approved, will complete all of the information required to determine rates that will be reflected on customer bills beginning January 2010.
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 approaching $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