Terasen asks for natural-gas hike of 13.3%

Wendy Mclellan and John Bermingham
The Province
09-Sep-2005

B.C.ers are about to experience the after-effects of Hurricane Katrina on their natural-gas bills.

Terasen Gas filed a request yesterday with the B.C. Utilities Commission to up its rates for residen-tial customers in mainland B.C. by 13.3 per cent, effective Oct. 1.

Vancouver Island customers will not be affected because they follow a different regulatory schedule.

The rate hike would add $180 to the average annual natural-gas bill in the Lower Mainland.

"The primary reason is the repercussions from Hurricane Katrina," said Terasen spokesman Dean Pelkey. "At first we thought it would be an increase of five to 10 per cent, but with the damage to the infrastructure on the Gulf Coast, it will be 13.3 per cent."

Utilities commission spokesman Rob Pelat said a decision on Terasen's request will be made early next week.

"We've already had [an increase] in July of 5.6 per cent," he said. "Just have a look at the market-price of natural gas -- it's just been horrendous."

Said Jim Quail of the B.C. Public Interest Advocacy Centre: "It's very painful, but I don't think Terasen is the villain.

"The market price goes up, unfortunately, and we get skinned. Once again, consumers are the victims of large market forces, which have been worsened by Hurricane Katrina."

Peter Dyne of the Consumers Council of Canada said natural-gas bills could rise another 30 per cent.

"There's more incentive for people to think about insulating their houses," he said from Ottawa. "The trouble is those things cost money, too. It's a very difficult problem, particularly for low-income consumers."

Rudy Lawrence, president of the Council of Senior Citizen's Organizations of B.C., agreed: "It's going to have an impact on some people for sure, not just seniors, but a lot of people on low incomes. That's just scandalous."

Homeowners are shifting to other forms of heating, said Doug Rempel, owner of Solace Energy, a Burnaby home-heating retailer.

Customers are looking at investing in geothermal heating systems and high-efficiency gas furnaces.

"People are concerned, so they're putting in considerably more expensive systems when they're building homes," said Rempel.

Energy Minister Richard Neufeld said there are no plans to help out with the bills.

"Those higher energy costs will be experienced by mostly people that live outside the Lower Mainland, in the colder regions," said Neufeld. "Royalties do increase as the price of natural gas goes up, and so the province will be receiving more revenue. But we haven't contemplated anything about rebates."

Terasen makes its money from delivering the gas, not on its price. The company says it has to raise rates to cover the anticipated increase in natural gas prices.

wmclellan@png.canwest.com

jbermingham@png.canwest.com

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HEATING TIPS . . .

At least 50 per cent of your energy bill goes to heating your home. Here are some tips to reduce heat loss:

WINDOWS

- Up to one third of the heat can escape through windows. Put storm windows or plastic sheeting on single-glazed windows.

- Consider installing energy-efficient windows.

HEATING SYSTEM

- Clean your furnace filters.

- Avoid heating uninsulated spaces.

- Close the fireplace chimney damper between fires to keep warm air in.

- Avoid heating unused rooms by closing doors and warm-air-supply registers or lower the room thermostat for baseboards.

-- B.C. Hydro