BC Gas gains approval for 16% rate increase

new.stockwatch.com 2003-03-21 14:37 ET - News Release Mr. Dean Pelkey reports

B.C. UTILITIES COMMISSION APPROVES 16 PER CENT BC GAS RATE INCREASE

The British Columbia Utilities Commission has approved BC Gas's application for an increase in the rates it charges for the natural gas commodity.

The increase will add approximately 16 per cent to the typical residential customer's total gas bill. That works out to an additional $184 per year for a typical Lower Mainland home; $167 per year for a typical home in the Interior and $183 per year for a typical home in the Kootenays.

The increase will take effect April 1, 2003.

Natural gas is a commodity traded on the open market, like oil or gold. In the past six months, the market price of natural gas has increased substantially, driven upward by heavy demand in the east as a result of a very cold winter. Rising crude oil prices, spurred by civil disruption in Venezuela and uncertainty around the Middle East situation have also served to push natural gas and other energy prices upward.

BC Gas Utility does not earn a profit on natural gas; the utility's cost is passed onto the customer and any rate change must be approved by the B.C. Utilities Commission.

The cost of the natural gas makes up about two-thirds of the typical residential gas bill. The remaining one-third is composed of delivery charges. Customers can check the rate they pay for natural gas on their BC Gas bill, since it is listed separately from the delivery charges.

Consumers can find more information on how to save energy and reduce gas consumption on the BC Gas Web site at www.bcgas.com.