Terasen Gas (Vancouver Island) Inc.
Rate Reference Guide - Vancouver Island
June, 2008
www.terasengas.com
Please note that this guide is for information purposes only and does not replace the Standard Terms and Conditions and Rates for Gas Service or Rate Schedules of the Terasen Gas (Vancouver Island) Inc Tariff.
(Please note that the rates contained in this document are as at July 2008 and are updated on a quarterly basis.)
2008 Rate Reference Guide
Table of Contents
Introduction........................................................................................................................................ 1 Terasen Gas (Vancouver Island) Fact Sheet .................................................................................... 2 Terasen Gas (Vancouver Island) Contact Information ...................................................................... 3 2008 Rate Information....................................................................................................................... 4 Detailed Rate Schedule Information.................................................................................................. 9 Residential General Service Rate No. 1 (RGS-1) ........................................................................... 10 Residential General Service Rate No. 1 (RGS-1) - Annual Bill History........................................... 12 Residential General Service Rate No. 1 (RGS-1) - Annual Bill History Chart ................................. 13 Small Commercial Service Rate No. 1 (SCS-1) .............................................................................. 14 Small Commercial Service Rate No. 1 (SCS-1) - Annual Bill History.............................................. 16 Small Commercial Service Rate No. 1 (SCS-1) - Annual Bill History Chart.................................... 17 Small Commercial Service Rate No. 2 (SCS-2) .............................................................................. 18 Small Commercial Service Rate No. 2 (SCS-2) - Annual Bill History.............................................. 20 Small Commercial Service Rate No. 2 (SCS-2) - Annual Bill History Chart.................................... 21 Large Commercial Service Rate No. 1 (LCS-1) .............................................................................. 22 Large Commercial Service Rate No. 1 (LCS-1) - Annual Bill History.............................................. 24 Large Commercial Service Rate No. 1 (LCS-1) - Annual Bill History Chart .................................... 25 Large Commercial Service Rate No. 2 (LCS-2) .............................................................................. 26 Large Commercial Service Rate No. 2 (LCS-2) - Annual Bill History.............................................. 28 Large Commercial Service Rate No. 2 (LCS-2) - Annual Bill History Chart .................................... 29 Large Commercial Service Rate No. 3 (LCS-3) .............................................................................. 30 Large Commercial Service Rate No. 3 (LCS-3) - Annual Bill History.............................................. 32 Large Commercial Service Rate No. 3 (LCS-3) - Annual Bill History Chart .................................... 33 Large Commercial Service Rate High Load Factor (HLF)............................................................... 34 Large Commercial Service Rate Inverse Load Factor 150% (ILF).................................................. 35 Apartment General Service Rate (AGS) ......................................................................................... 36 Apartment General Service Rate (AGS) - Annual Bill History ......................................................... 38 Apartment General Service Rate (AGS) - Annual Bill History Chart ............................................... 39 How to Read and Calculate your Natural Gas Bill........................................................................... 40 Special Rate Schedule .................................................................................................................... 42 Glossary .......................................................................................................................................... 44
Introduction
Rate Schedules
This guide provides detailed information for Terasen Gas (Vancouver Island) Inc. Rate Schedules for residential and commercial customers in the Vancouver Island and Sunshine Coast service areas. Copies of the Terasen Gas (Vancouver Island) Inc. Tariff are available at: Terasen Gas Operations Centre 16705 Fraser Highway Surrey, BC V4N 0E8
or online at terasengas.com, and are on display at the British Columbia Utilities Commission. Additional information about Terasen Gas Inc. is also available at terasengas.com.
1
Terasen Gas (Vancouver Island) Fact Sheet
About Terasen
Terasen Inc. a subsidiary of Fortis Inc. is a leading provider of energy and utility services in western Canada. Through its subsidiary, Terasen Gas (Vancouver Island) Inc., the company distributes natural gas to customers throughout Vancouver Island and the Sunshine Coast. • Terasen Inc. acquired Centra Gas from Westcoast Energy Inc. in 2002 to create Terasen Gas (Vancouver Island) Inc. • Terasen Gas (Vancouver Island) Inc. is the largest distributor of natural gas to Vancouver Island, serving more than 92,000 customers in over 30 communities. The company serves most of Vancouver Island, and the Sunshine Coast from Campbell River south to Victoria, and east to Powell River. • Terasen Gas (Vancouver Island) Inc. is regulated by the British Columbia Utilities Commission.
Terasen Gas (Vancouver Island) Inc. System Map
2
Terasen Gas (Vancouver Island) Contact Information
Emergencies
In an emergency, or if you smell leaking gas 1-800-663-9911
All Residential and General Inquiries - Customer Service Centre
Throughout BC Billing and General Inquiries Send us an email 1-888-224-2710 customerservice@terasengas.com
Gas Line Location Information (Call Before You Dig)
BC One Call 1-800-474-6886 Cellular: *6886 Fax: (604) 451-0344
Commercial & Industrial Marketing
Throughout BC (604) 576-7135
For more information about this guide, please contact Regulatory Affairs at: (604) 576-7356.
3
2008 Rate Information
Rate Change Background
April 1, 2008 Rate Changes Vancouver Island, the Sunshine Coast and Powell River area covered by a separate regulatory agreement that includes a rate structure different from the one that applies to other BC communities, serviced by Terasen Gas. Effective April 1, a typical residential customer saw their total annual gas charges increase by 4 per cent or approximately $33.00 depending on consumption. Small Commercial Rate Schedule 1 customers’ annual charges increased by 4% depending on consumption levels. All other rate schedules remained unchanged. For more rate information, please visit the Terasen Gas website at terasengas.com.
4
Natural Gas Prices
TGVI works hard to provide its customers with affordable natural gas. As the largest distributor of natural gas on Vancouver Island, it is important to provide customers with information about the causes behind fluctuations in natural gas prices. Weather, supply and demand, international events and market speculation can all impact the price of the commodity you see on your bill. Here's why. Unusually cold or hot temperatures can both lead to increased demand for natural gas. Whether natural gas is used for home heating or to generate electricity for air conditioning, when demand outpaces supply, prices rise. Natural gas is deregulated and traded on the open market, much like oil or gold. Free trade has created a North American market for natural gas and a continental network of pipelines allows gas producers to sell their product where demand is greatest. TGVI does not produce or explore for natural gas; TGVI has to compete on the open market to purchase gas for customers. TGVI manages the gas supply with the aim of reducing the effect of market volatility for customers and attempts to obtain gas at the lowest possible price by purchasing gas from a variety of sources in B.C. and Alberta. When possible, TGVI tries to lock in the price of gas through the use of hedging contracts. Natural gas is also injected into storage during times of low demand for use at a later date. This storage buffer allows TGVI to bridge the gap between supply and demand, helping cushion TGVI customers from the fluctuations of the daily spot price charged for natural gas. Economic conditions and world events also impact the price of natural gas. During periods of economic growth, demand for energy rises to keep assembly lines moving and plants operating. When economic slowdowns occur, demand decreases. The amount of gas being produced, the cost of finding and producing that gas, and the costs associated with bringing it to market also affect the price. High prices tend to encourage exploration and production of natural gas, resulting in additional supply coming on market. Over time, increases in supply will catch up to demand and lead to a drop in prices.
5
What is Included in the Delivered Price of Natural Gas?
The rates you pay for natural gas are made up of two components: The Cost of Natural Gas and Delivery Service Terasen Gas (Vancouver Island) is not a producer of natural gas. TGVI purchases natural gas from a variety of sources and distributes it to customers. The costs associated with delivering natural gas to customers through the TGVI pipeline system include pipeline maintenance, customer administration (functions such as billing and meter reading), emergency services, wages and local taxes. Shareholder Return The cost of delivery service also includes a regulated rate of return paid to those who invest in Terasen Gas (Vancouver Island) Inc. and provide the capital necessary to build the gas delivery system. Terasen Inc. is a private company owned by shareholders and is regulated by the Commission. The Commission determines the rate of return paid to Terasen Gas (Vancouver Island) Inc. investors.
6
Conservation and Efficiency Initiatives
Terasen Gas (Vancouver Island) encourages customers to investigate and deploy measures that can help ensure the efficient and appropriate use of natural gas. Residential customers may find a number of publications from TGVI of particular assistance: Hot Tips, a booklet describing a number of possible conservation measures around the home; Heart of Your Home, a booklet describing heating options; and, the Qualified Dealer program, (a Qualified Dealer is an independent heating contractor who meets the defined performance criteria of Terasen Gas (Vancouver Island) and who is licensed by the British Columbia Safety Authority). For a list of Qualified Dealers, or more information relating to Hot Tips and Heart of Your Home at no charge, please call 1-888-224-2710 or visit our web site at terasengas.com. There are also data sheets available on a variety of subjects (listed on the web site) to help guide customers in their purchase decisions concerning natural gas appliances. Commercial customers are encouraged to contact their Terasen Gas Commercial & Industrial Account Manager for advice and assistance regarding specific gas applications or energy conservation measures. Data sheets and comparative analyses are available on specific topics to help guide commercial customers in their decision making.
7
Ten Hot Tips for Saving Energy
1. Turn down your thermostat to 20 during the day and 17 at night. You'll save as much as 15 percent on your heating costs. 2. Seal off drafts and leaks around windows, doors, and ceilings with caulking, weather stripping or insulation and trap heat inside. 3. Change or clean your furnace filters (as recommended by the manufacturer) during the heating season. 4. Tune up for peak performance. A well-tuned furnace saves energy and money over time. 5. Stabilize monthly bills by participating in the Budget Payment Plan (Equal Billing Payment Plan). 6. Trap heat inside. Close the drapes when the sun goes down to keep the heat inside. 7. Control the flow. Use ceiling fans to push warm air down to where you need it. 8. Recycle heat when you can. Run consecutive loads in your natural gas dryer to take advantage of accumulated heat. 9. Look for high-efficiency appliances. New high-efficiency appliances deliver fuel cost savings for years to come 10. Upgrade your log set. If you have a gas log set in a masonry fireplace, consider replacing it with an efficient insert unit. Terasen Gas (Vancouver Island) offers the Equal Payment Plan that allows you to even-out your gas bills over the entire year, instead of paying larger bills in the winter when you use more gas. The Equal Payment Plan is simple and convenient. For more details, please call toll free 1-888-224-2710.
8
Detailed Rate Schedule Information
A summary sheet outlining the typical customer types served under the Rate Schedule, the applicability criteria, typical end-use appliances and typical usage, and approximate annual bill totals are outlined for each of the Rate Schedules. Each section also includes: • an analysis of the impact of the most recent rate changes on customer’s bills • an annual bill history • and graphs depicting the annual bill history The graph below indicates the typical annual consumption distribution for customers being served under Residential General Service (RGS), Small Commercial Service 1 (SCS-1) and Large Commercial Service 1 (LCS-1). A residential customer (RGS) consumption distribution differs from a small commercial customer (SCS-1) and a large commercial customer (LCS-1). This is due to the fact that both residential and small commercial customers’ gas usage is primarily weather driven; hence in the summer months their gas usage is significantly less than the winter months. Commercial customers’ usage may be less weather sensitive since their use for natural gas may not be solely space heating driven.
Consumption Distribution 2008 Forecast
% of Total Annual Volume
20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
RSG-1
SCS-1
LCS-1
9
Residential General Service Rate No. 1 (RGS-1)
Customer Types
• Single family residences, separately metered single-family townhouses, row houses and apartments.
Applicability
• • Natural gas supplied to residential dwellings at one point of delivery through one meter. Residential General Service Rate No.1 is available in communities where consumers are served from distribution systems connected to the Vancouver Island Natural Gas Pipeline.
Rate Structure
• The rate structure of Residential General Service Rate No.1 consists of a basic monthly charge and an energy charge. The basic charge is a fixed monthly charge, while the energy charge applies to the amount of gas that a customer consumes, and includes both a delivery and commodity charge.
Typical End-Use Appliances
• Space heating, water heating, cooking, fireplaces and clothes dryers.
Typical Usage
•
30 to 90 GJ typical annual use.
10
Analysis of the Impact of Rate Changes
Residential General Service Rate No. 1 (RGS-1)
Use per Year
(GJ) Old Annual Bill April, 2007 Rates ($) New Annual Bill April, 2008 Rates ($) Change ($) Percentage Change (%)
RSG-1
High Typical Low
90 59 30
$1,360 $939 $537
$1,415 $975 $556
$55 $36 $19
4.0% 3.8% 3.5%
Notes: Includes Basic and Energy Charges and Applicable Riders Taxes are not included in the rates or calculations
11
Residential General Service Rate No. 1 - Annual Bill History
Residential General Service Rate No. 1 (RGS-1)
(Average Consumption 59 GJ/yr)
1-Jan-05 $ 10.50 $ 13.220 $ $ -
1-Jan-06 $ 10.50 $ 13.230 $ $ $ 10.50 $ 13.230 $ $ $ 126 785 911 0.1%
1-Jan-07 $ 10.50 $ 13.715 $ $ $ 10.50 $ 13.715 $ $ $ 126 813 939 3.1%
1-Jan-08 $ 10.50 $ 13.775 $ $ $ 10.50 $ 13.775 $ $ $ 126 817 943 0.4%
1-Apr-08 $ 10.50 $ 14.325 $ $ $ 10.50 $ 14.325 $ $ $ 126 849 975 3.4%
Rates Basic Monthly Charge Energy Charge Per GJ Rate Rider C Per GJ Rate Rider D Per GJ
Commodity and Delivery Related Charges Basic Charge (inc riders) per Month $ 10.50 $ 13.220 Energy Charge Per GJ Typical Annual Bill Calculation Basic Charge Energy Charge Total % Difference From Previous Rate Change $ $ $ 126 784 910 0.0%
12
Residential General Service Rate No. 1 – Annual Bill History Chart
Terasen Gas Vancouver Island Annual Residential Bill History Basic and Commodity/Delivery Charges
$1,000 $900 $800 $700 $600 $500 $400 $300 $200 $100 $0
1-Jan-05 1-Jan-06 1-Jan-07 1-Jan-08 1-Apr-08
$126 $126 $126 $126 $126 $784 $785 $813 $817 $849 $939 $943 $975
$910
$911
Annual Bill
Basic Charge
Assumes: Natural gas use of 59 GJ Includes basic charge and riders
Cost of Gas and Delivery
Series4
13
Small Commercial Service Rate No. 1 (SCS-1)
Customer Types
• Small commercial customers.
Applicability
• • Natural gas supplied to commercial users at one point of delivery through one meter. Small Commercial Service Rate No. 1 is available in communities where consumers are served from distribution systems connected to the Vancouver Island Natural Gas Pipeline.
Rate Structure
• The rate structure of Small Commercial Service Rate No.1 consists of a basic monthly charge and an energy charge. The basic charge is a fixed monthly charge, while the energy charge applies to the amount of gas that a customer consumes, and includes both a delivery and commodity charge.
Typical End-Use Appliances
• Space heating and water heating.
Typical Usage
•
40 to 110 GJ typical annual use.
14
Analysis of the Impact of Rate Changes
Small Commercial Service Rate No. 1 (SCS-1)
Use per Year
(GJ) Old Annual Bill April, 2007 Rates ($) New Annual Bill April, 2008 Rates ($) Change ($) Percentage Change (%)
SCS-1
High Typical Low
110 73 40
$1,893 $1,290 $760
$1,976 $1,345 $791
$83 $55 $31
4.4% 4.3% 4.1%
Notes: Includes Basic and Energy Charges and Applicable Riders Taxes are not included in the rates or calculations
15
Small Commercial Service Rate No. 1 - Annual Bill History
Small Commercial Service Rate No. 1 (SCS-1)
(Average Consumption 73 GJ/yr)
1-Jan-05 $ 9.45 $ 14.614 $ $ -
1-Jan-06 $ 9.45 $ 15.404 $ $ $ 9.45 $ 15.404 $ $ $ 113 1,120 1,233 4.9%
1-Jan-07 $ 9.45 $ 16.183 $ $ $ 9.45 $ 16.183 $ $ $ 113 1,177 1,290 4.6%
1-Jan-08 $ 9.45 $ 16.315 $ $ $ 9.45 $ 16.315 $ $ $ 113 1,186 1,299 0.7%
1-Apr-08 $ 9.45 $ 16.940 $ $ $ 9.45 $ 16.940 $ $ $ 113 1,232 1,345 3.5%
Rates Basic Monthly Charge Energy Charge Per GJ Rate Rider C Per GJ Rate Rider D Per GJ
Commodity and Delivery Related Charges Basic Charge (inc riders) per Month $ 9.45 $ 14.614 Energy Charge Per GJ Typical Annual Bill Calculation Basic Charge Energy Charge Total % Difference From Previous Rate Change $ $ $ 113 1,062 1,175 0.0%
16
Small Commercial Service Rate No. 1 – Annual Bill History Chart
Terasen Gas Vancouver Island Annual Small Commercial Service 1 Bill History Basic and Commodity/Delivery Charges
$1,400
$1,176 $1,233 $1,290 $1,300 $1,345
$1,200
Annual Bill
$1,000 $800 $600 $400 $200 $0
$113 $113 $113 $113 $113 $1,062 $1,120 $1,177 $1,186 $1,232
1-Jan-05
1-Jan-06
1-Jan-07
1-Jan-08
1-Apr-08
Basic Charge
Assumes: Natural gas use of 73 GJ Includes basic charge and riders
Cost of Gas and Delivery
Series4
17
Small Commercial Service Rate No. 2 (SCS-2)
Customer Types
• Small commercial customers.
Applicability
• • Natural gas supplied to commercial users at one point of delivery through one meter. Small Commercial Service Rate No. 2 is available in communities where consumers are served from distribution systems connected to the Vancouver Island Natural Gas Pipeline.
Rate Structure
• The rate structure of Small Commercial Service Rate No. 2 consists of a basic monthly charge and an energy charge. The basic charge is a fixed monthly charge, while the energy charge applies to the amount of gas that a customer consumes, and includes both a delivery and commodity charge.
Typical End-Use Appliances
• Space heating and water heating.
Typical Usage
•
150 to 460 GJ typical annual use.
18
Analysis of the Impact of Rate Changes
Small Commercial Service Rate No. 2 (SCS-2)
Use per Year
(GJ) Old Annual Bill April, 2007 Rates ($) New Annual Bill April, 2008 Rates ($) Change ($) Percentage Change (%)
SCS-2
High Typical Low
460 307 150
$7,176 $4,926 $2,611
$7,572 $5,191 $2,740
$396 $265 $129
5.5% 5.4% 4.9%
Notes: Includes Basic and Energy Charges and Applicable Riders Taxes are not included in the rates or calculations
19
Small Commercial Service Rate No. 2 - Annual Bill History
Small Commercial Service Rate No. 2 (SCS-2)
(Average Consumption 307 GJ/yr)
1-Jan-05 $ 33.53 $ 13.192 $ $ -
1-Jan-06 $ 33.53 $ 13.959 $ $ $ 33.53 $ 13.959 $ $ $ 402 4,288 4,690 5.3%
1-Jan-07 $ 33.53 $ 14.726 $ $ $ 33.53 $ 14.726 $ $ $ 402 4,524 4,926 5.0%
1-Jan-08 $ 33.53 $ 15.588 $ $ $ 33.53 $ 15.588 $ $ $ 402 4,789 5,191 5.4%
No Change 1-Apr-08 $ 33.53 $ 15.588 $ $ $ 33.53 $ 15.588 $ $ $ 402 4,789 5,191 0.0%
Rates Basic Monthly Charge Energy Charge Per GJ Rate Rider C Per GJ Rate Rider D Per GJ
Commodity and Delivery Related Charges Basic Charge (inc riders) per Month $ 33.53 Energy Charge Per GJ $ 13.192 Typical Annual Bill Calculation Basic Charge Energy Charge Total % Difference From Previous Rate Change $ $ $ 402 4,053 4,455 0.0%
20
Small Commercial Service Rate No. 2 – Annual Bill History Chart
Terasen Gas Vancouver Island Annual Small Commercial Service 2 Bill History Basic and Commodity/Delivery Charges
$6,000
$5,191 $5,191
$5,000
$4,455
$4,691
$4,926
Annual Bill
$4,000 $3,000
$4,053 $4,288 $4,524
$4,789
$4,789
$2,000 $1,000 $0
$402 $402 $402 $402 $402
1-Jan-05
1-Jan-06 Basic Charge
1-Jan-07 Cost of Gas and Delivery
1-Jan-08 Series4
1-Apr-08
Assumes: Natural gas use of 307 GJ Includes basic charge and riders
21
Large Commercial Service Rate No. 1 (LCS-1)
Customer Types
• Large commercial customers.
Applicability
• • Natural gas supplied to commercial users at one point of delivery through one meter. Large Commercial Service Rate No. 1 is available in communities where consumers are served from distribution systems connected to the Vancouver Island Natural Gas Pipeline.
Rate Structure
• The rate structure of Large Commercial Service Rate No.1 consists of a basic monthly charge and an energy charge. The basic charge is a fixed monthly charge, while the energy charge applies to the amount of gas that a customer consumes, and includes both a delivery and commodity charge.
Typical End-Use Appliances
• Space heating, water heating, and industrial process load.
Typical Usage
•
460 to 1,370 GJ typical annual use.
22
Analysis of the Impact of Rate Changes
Large Commercial Service Rate No. 1 (LCS-1)
Use per Year
(GJ) Old Annual Bill April, 2007 Rates ($) New Annual Bill April, 2008 Rates ($) Change ($) Percentage Change (%)
LCS-1
High Typical Low
1,370 916 460
$17,197 $11,738 $6,260
$18,087 $12,333 $6,559
$890 $595 $299
5.2% 5.1% 4.8%
Notes: Includes Basic and Energy Charges and Applicable Riders Taxes are not included in the rates or calculations
23
Large Commercial Service Rate No. 1 - Annual Bill History
Large Commercial Service Rate No. 1 (LCS-1)
(Average Consumption 916 GJ/yr)
1-Jan-05 $ $ $ $ 61.00 9.839 61.00 9.839 732 9,011 9,743 0.0%
1-Jan-06 $ 61.00 $ 10.845 $ $ $ 61.00 $ 10.845 $ 732 $ 9,932 $ 10,664 9.5%
1-Jan-07 $ 61.00 $ 12.018 $ $ $ 61.00 $ 12.018 $ 732 $ 11,006 $ 11,738 10.1%
1-Jan-08 $ 61.00 $ 12.668 $ $ $ 61.00 $ 12.668 $ 732 $ 11,601 $ 12,333 5.1%
No Change 1-Apr-08 $ 61.00 $ 12.668 $ $ $ 61.00 $ 12.668 $ 732 $ 11,601 $ 12,333 0.0%
Rates Basic Monthly Charge Energy Charge Per GJ Rate Rider C Per GJ Rate Rider D Per GJ
Commodity and Delivery Related Charges $ Basic Charge (inc riders) per Month $ Energy Charge Per GJ Typical Annual Bill Calculation Basic Charge Energy Charge Total % Difference From Previous Rate Change $ $ $
24
Large Commercial Service Rate No. 1 – Annual Bill History Chart
Terasen Gas Vancouver Island Annual Large Commercial Service 1 Bill History Basic and Commodity/Delivery Charges
$14,000
$11,738 $12,333 $12,333
$12,000
$9,743
$10,664
$10,000
Annual Bill
$8,000 $6,000
$9,011 $9,932 $11,006 $11,601 $11,601
$4,000 $2,000 $0
$732 $732 $732 $732 $732
1-Jan-05
1-Jan-06 Basic Charge
1-Jan-07 Cost of Gas and Delivery
1-Jan-08 Series4
1-Apr-08
Assumes: Natural gas use of 916 GJ Includes basic charge and riders
25
Large Commercial Service Rate No. 2 (LCS-2)
Customer Types
• Large commercial customers.
Applicability
• • Natural gas supplied to dwellings at commercial users one point of delivery through one meter. Large Commercial Service Rate No. 2 is available in communities where consumers are served from distribution systems connected to the Vancouver Island Natural Gas Pipeline.
Rate Structure
• The rate structure of Large Commercial Service Rate No. 2 consists of a basic monthly charge and an energy charge. The basic charge is a fixed monthly charge, while the energy charge applies to the amount of gas that a customer consumes, and includes both a delivery and commodity charge. Rate Rider D applies to the cost of gas component of the rate.
• •
Typical End-Use Appliances
Space heating, water heating, and industrial process load.
Typical Usage
•
1,170 to 3,510 GJ typical annual use.
26
Analysis of the Impact of Rate Changes
Large Commercial Service Rate No. 2 (LCS-2)
Use per Year
(GJ) Old Annual Bill April, 2007 Rates ($) New Annual Bill April, 2008 Rates ($) Change ($) Percentage Change (%)
LCS-2
High Typical Low
3,510 2,341 1,170
$40,188 $27,198 $14,179
$42,230 $28,560 $14,859
$2,042 $1,362 $680
5.1% 5.0% 4.8%
Notes: Includes Basic and Energy Charges and Applicable Riders Taxes are not included in the rates or calculations
27
Large Commercial Service Rate No. 2 - Annual Bill History
Large Commercial Service Rate No. 2 (LCS-2)
(Average Consumption 2,341 GJ/yr)
1-Jan-05 $ $ $ $ 97.82 9.631 97.82 9.631
1-Jan-06 $ 97.82 $ 10.559 $ $ $ 97.82 $ 10.559 $ 1,174 $ 24,722 $ 25,896 9.2%
1-Jan-07 $ 97.82 $ 11.115 $ $ $ 97.82 $ 11.115 $ 1,174 $ 26,024 $ 27,198 5.0%
1-Jan-08 $ 97.82 $ 11.697 $ $ $ 97.82 $ 11.697 $ 1,174 $ 27,386 $ 28,560 5.0%
No Change 1-Apr-08 $ 97.82 $ 11.697 $ $ $ 97.82 $ 11.697 $ 1,174 $ 27,386 $ 28,560 0.0%
Rates Basic Monthly Charge Energy Charge Per GJ Rate Rider C Per GJ Rate Rider D Per GJ
Commodity and Delivery Related Charges $ Basic Charge (inc riders) per Month $ Energy Charge Per GJ Typical Annual Bill Calculation Basic Charge Energy Charge Total % Difference From Previous Rate Change
$ 1,174 $ 22,549 $ 23,723 0.0%
28
Large Commercial Service Rate No. 2 – Annual Bill History Chart
Terasen Gas Vancouver Island Annual Large Commercial Service 2 Bill History Basic and Commodity/Delivery Charges
$36,000 $30,000
$23,723 $27,197 $28,560 $28,560
$25,896
Annual Bill
$24,000 $18,000 $12,000 $6,000
$1,174 $1,174 $1,174 $1,174 $1,174 $22,549 $24,722 $26,024 $27,386 $27,386
$0 1-Jan-05 1-Jan-06 Basic Charge
Assumes: Natural gas use of 2341 GJ Includes basic charge and riders
1-Jan-07 Cost of Gas and Delivery
1-Jan-08 Series4
1-Apr-08
29
Large Commercial Service Rate No. 3 (LCS-3)
Customer Types
• Large commercial customers.
Applicability
• • Natural gas supplied to commercial users at one point of delivery through one meter. Large Commercial Service Rate No. 3 is available in communities where consumers are served from distribution systems connected to the Vancouver Island Natural Gas Pipeline.
Rate Structure
• The rate structure of Large Commercial Service Rate No. 3 consists of a basic monthly charge and an energy charge. The basic charge is a fixed monthly charge, while the energy charge applies to the amount of gas that a customer consumes, and includes both a delivery and commodity charge.
Typical End-Use Appliances
• Space heating, water heating, and industrial process load.
Typical Usage
•
9,090 to 27,280 GJ typical annual use.
30
Analysis of the Impact of Rate Changes
Large Commercial Service Rate No. 3 (LCS-3)
Use per Year
(GJ) Old Annual Bill April, 2007 Rates ($) New Annual Bill April, 2008 Rates ($) Change ($) Percentage Change (%)
LCS-3
High Typical Low
27,280 18,188 9,090
$299,415 $200,431 $101,381
$314,501 $210,489 $106,408
$15,086 $10,058 $5,027
5.0% 5.0% 5.0%
Notes: Includes Basic and Energy Charges and Applicable Riders Taxes are not included in the rates or calculations
31
Large Commercial Service Rate No. 3 - Annual Bill History
Large Commercial Service Rate No. 3 (LCS-3)
(Average Consumption 18,188 GJ/yr)
1-Jan-05 $ 201.51 $ 9.429 $ $ -
1-Jan-06 $ 201.51 $ 10.351 $ $ $ 201.51 $ 10.351 $ 2,418 $ 188,264 $ 190,682 9.6%
1-Jan-07 $ 201.51 $ 10.887 $ $ $ 201.51 $ 10.887 $ 2,418 $ 198,013 $ 200,431 5.1%
1-Jan-08 $ 201.51 $ 11.440 $ $ $ 201.51 $ 11.440 $ 2,418 $ 208,071 $ 210,489 5.0%
No Change 1-Apr-08 $ 201.51 $ 11.440 $ $ $ 201.51 $ 11.440 $ 2,418 $ 208,071 $ 210,489 0.0%
Rates Basic Monthly Charge Energy Charge Per GJ Rate Rider C Per GJ Rate Rider D Per GJ
Commodity and Delivery Related Charges $ 201.51 Basic Charge (inc riders) per Month $ 9.429 Energy Charge Per GJ Typical Annual Bill Calculation Basic Charge Energy Charge Total % Difference From Previous Rate Change $ 2,418 $ 171,495 $ 173,913 0.0%
32
Large Commercial Service Rate No. 3 – Annual Bill History Chart
Terasen Gas Vancouver Island Annual Large Commercial Service 3 Bill History Basic and Commodity/Delivery Charges
$240,000 $200,000
$190,682 $173,913 $200,431 $210,489 $210,489
Annual Bill
$160,000 $120,000 $80,000 $40,000
$2,418 $2,418 $2,418 $2,418 $2,418 $171,495 $188,264 $198,013 $208,071 $208,071
$0
1-Jan-05 1-Jan-06 1-Jan-07 1-Jan-08 1-Apr-08
Basic Charge
Assumes: Natural gas use of 18188 GJ Includes basic charge and riders
Cost of Gas and Delivery
Series4
33
Large Commercial Service Rate High Load Factor (HLF)
Customer Types
• Large commercial customers.
Applicability
• • Natural gas supplied to commercial users at one point of delivery through one meter. Large Commercial Service Rate High Load Factor is available in communities where consumers are served from distribution systems connected to the Vancouver Island Natural Gas Pipeline.
Rate Structure
• The rate structure of Large Commercial Service Rate High Load Factor consists of a basic monthly charge, a demand charge per GJ per month, and an energy charge. The basic charge is a fixed monthly charge, while the demand charge and energy charge apply to the amount of gas that a customer consumes, and include both a delivery and commodity charge. The Consumer is required to sign a contract for service Terasen Gas (Vancouver Island) Inc. under this tariff for a minimum of one year. This rate is for commercial and industrial customers that utilize natural gas for process load. o The Consumer must demonstrate a monthly coincident peak (average January and February) load factor of greater than 85%. To calculate this monthly coincident peak load factor, the customer’s average yearly consumption is divided by the average January and February consumption, and this percentage must be greater than 85%, in order to qualify for this rate level.
• •
•
Typical End-Use Appliances
• Industrial process load.
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Large Commercial Service Rate Inverse Load Factor 150 % (ILF)
Customer Types
• Large commercial customers.
Applicability
• • Natural gas supplied to commercial users at one point of delivery through one meter. Large Commercial Service Rate Inverse Load Factor 150% is available in communities where consumers are served from distribution systems connected to the Vancouver Island Natural Gas Pipeline.
Rate Structure
• The rate structure of Large Commercial Service Rate Inverse Load Factor 150% consists of a basic monthly charge and an energy charge. The basic charge is a fixed monthly charge, while the energy charge applies to the amount of gas that a customer consumes, and includes both a delivery and commodity charge. The Consumer is required to sign a contract for service Terasen Gas (Vancouver Island) Inc. under this tariff for a minimum of one year. This rate is for Seasonal customer who consumes gas during the off-peak period. o The contract specifies a maximum daily use (Contract Demand) for the months of November, December, January, February and March. Unauthorized consumption in excess of the Contract Demand during the months of November, December, January, February and March is subject to the Unauthorized Over-Run Rate (LGS-25). Authorized consumption in excess of the Contract Demand during the months identified above is subject to the Authorized Over-Run Rate (LGS-26).
• •
•
Typical End-Use Appliances
• Industrial process load.
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Apartment General Service Rate (AGS)
Customer Types
• Large commercial customers.
Applicability
• • Natural gas supplied to Apartment General Service Rate at one point of delivery through one meter. Apartment General Service Rate is available in communities where consumers are served from distribution systems connected to the Vancouver Island Natural Gas Pipeline.
Rate Structure
• The rate structure of Apartment General Service Rate consists of a basic monthly charge and an energy charge. The basic charge is a fixed monthly charge, while the energy charge applies to the amount of gas that a customer consumes, and includes both a delivery and commodity charge.
Typical End-Use Appliances
• Space heating and water heating.
Typical Usage
•
690 to 2,080 GJ typical annual use.
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Analysis of the Impact of Rate Changes
Apartment General Service Rate (AGS)
Use per Year
(GJ) Old Annual Bill April, 2007 Rates ($) New Annual Bill April, 2008 Rates ($) Change ($) Percentage Change (%)
AGS
High Typical Low
2,080 1,389 690
$23,770 $16,034 $8,206
$24,968 $16,834 $8,603
$1,198 $800 $397
5.0% 5.0% 4.8%
Notes: Includes Basic and Energy Charges and Applicable Riders Taxes are not included in the rates or calculations
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Apartment General Service Rate - Annual Bill History
Apartment General Service Rate (AGS)
(Average Consumption 1,389 GJ/yr)
1-Jan-05 $ $ 40.00 9.180 40.00 9.180
1-Jan-06 $ 40.00 $ 10.130 $ 40.00 $ 10.130 $ 480 $ 14,072 $ 14,552 10.0%
1-Jan-07 $ 40.00 $ 11.197 $ 40.00 $ 11.197 $ 480 $ 15,554 $ 16,034 10.2%
1-Jan-08 $ 40.00 $ 11.773 $ 40.00 $ 11.773 $ 480 $ 16,354 $ 16,834 5.0%
No Change 1-Apr-08 $ 40.00 $ 11.773 $ 40.00 $ 11.773 $ 480 $ 16,354 $ 16,834 0.0%
Rates Basic Monthly Charge Energy Charge Per GJ
Commodity and Delivery Related Charges Basic Charge (inc riders) per Month $ Energy Charge Per GJ $ Typical Annual Bill Calculation Basic Charge Energy Charge Total % Difference From Previous Rate Change
$ 480 $ 12,752 $ 13,232 0.0%
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Apartment General Service Rate – Annual Bill History Chart
Terasen Gas Vancouver Island Apartment General Service Annual Bill History Basic and Commodity/Delivery Charges
$20,000
$16,034 $16,834 $16,834
$16,000
$13,232
$14,552
Annual Bill
$12,000 $8,000
$12,752 $15,554 $16,354 $16,354
$14,072
$4,000
$480 $480 $480 $480 $480
$0
1-Jan-05 1-Jan-06 1-Jan-07 1-Jan-08 1-Apr-08
Basic Charge
Assumes: Natural gas use of 1389 GJ Includes basic charge and riders
Cost of Gas and Delivery
Series4
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How to Read and Calculate your Natural Gas Bill
Ever wondered how the numbers on your meter turn into the dollar amount on your natural gas bill? Terasen Gas (Vancouver Island) has provided this information to help it make sense.
Step 1:
Reading the Meter
Calculating your bill begins with reading your natural gas meter or estimating the reading on your meter. When your reading is estimated, the estimate is based on your gas usage history, the daily temperature during the period being estimated and the number of days being estimated. You will notice that your meter readings appear on your Terasen Gas (Vancouver Island) bill. TGVI uses two types of meters: imperial and metric. Imperial meters measure gas consumption in units of hundreds of cubic feet while metric meters measure in cubic metres. To find out whether your meter is imperial or metric, simply check the units of measure indicated beside the reading on your meter.
Step 2:
Converting Gas Volume to Gigajoules (GJ)
The volume of natural gas you use is converted into joules, a measure of energy provided by natural gas. Since a joule is an extremely small unit, billing is done in gigajoules (one billion joules). A gigajoule is equivalent to about 28.85 litres of gasoline or 278 kilowatt hours of electricity. Natural gas rates are stated on a price per gigajoule basis. To convert the volumes to gigajoules, multiply the volume of natural gas you used (your present meter reading, less the previous meter reading) by the Conversion Factor*. Your meter reading and Conversion Factor appear on the left-hand column of your bill under “Gas Usage Calculation”. Present Meter Reading Previous Meter Reading Conversion Factor Gas used in gigajoules (GJ) 8
(3933
-
3861)
X
0.11077
*The Conversion Factor is a combination of three calculations: i) ii) The first calculation converts imperial gas volumes to metric – a requirement of Metric Measurement Standards. The second calculation adjusts to standard conditions of temperature and pressure. Because natural gas can expand and contract under varying pressures and temperatures, the volume of gas measured must be converted to standard conditions of 101.35 kPa and 15° C. The third calculation compensates for the energy content of gas over your billing period. Because natural gas wells produce gas of varying energy content, an average energy content is used to calculate the gas you have
iii)
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consumed during any given billing period. (The average energy content may vary from one billing period to the next.)
Step 3:
Calculating the Dollar Amount
In general, the amount you are billed for natural gas is calculated by taking the basic charge and to this add the natural gas you consume in gigajoules multiplied by the energy charge. On your bill the energy charge includes the applicable riders for TGVI. To calculate your total bill, add 7% GST to this total. Residential customers do not pay any PST. Here’s an example of a bill for Vancouver Island. Delivery Charges Basic Charge Energy charge per GJ (8 GJ at $14.325 per GJ)
$ 10.50 $114.60 $125.10*
GST (7% of * amounts) Total
$ 8.76 $133.86
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Special Rate Schedule
The following charges apply to special services and circumstances as set out in the Terms and Conditions. These charges are subject to revision based on the Company's cost of providing such services: 1. Removal and Testing of Meter at the Consumer's Request Charge per meter per request 2. Special Meter Readings Per occurrence 3. Application Fee Existing Installation New Installation New Installation – Manifold Meters New Installation – Vertical Subdivision 4. Service Line Cost Allowance Other than a duplex Duplex 5. $1,353.00 $3,070.00 $25.00 $85.00 $85.00 per meter $85.00 per meter $25.00 $50.00
Move Meter From Inside to Outside of Premises at Consumer's Request Per occurrence $100.00
6.
Resetting of Meter and Regulator Per occurrence $35.00
7.
Returned Cheque for Insufficient Funds - Service charge plus office cost: Office cost per occurrence $10.00
8.
Delayed Payment On accounts not paid on or before the due date, interest at the rate of 1.5% per month (19.56% per annum) will be applied to the unpaid balance and the resulting amount will be shown and identified on the bill.
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9.
Where services are performed at cost, cost shall be defined as: Materials: Labour: Heavy Equipment: Outside Services: Manufacturer's listed retail price plus freight and taxes. Hourly rate of $40.00. After hours to be charged double time. At prevailing local rates. At prevailing local rates.
* For all Standard Fees and Charges, please refer to Terasen Gas (Vancouver Island) Inc. Tariff Part C Rate Schedules.
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Glossary
Note: the definitions contained within this Glossary are to aid customers in understanding this Rate Reference Guide. These definitions do not replace the definitions contained within the Terasen Gas (Vancouver Island) Inc. Tariff.
Company
• Shall mean Terasen Gas (Vancouver Island) Inc., or any agent or representative thereof, as may be appropriate.
Consumer
• Shall mean the applicant for gas service, whose signature is attached to the service application for service, or who is otherwise being served.
Consumer Premises or Premises
• Shall mean the premises at the address or location specified in the application for service or such other premises to which the Consumer may move or to which the Company without application or contract supplies gas.
Cubic Foot
• Shall mean the volume of gas which occupies one cubic foot under the actual conditions of temperature, pressure and saturation prevailing from time to time at the meter.
Gas
• i) Shall mean: a mixture of propane and air having a gross heating value of not less than 1,145 Btu per cubic foot in Nanaimo or 1,350 Btu per cubic foot in Victoria, or ii) propane vapour having a gross heating value of not less than 2,500 Btu per cubic foot, or iii) natural gas having a gross heating value of not less than 36 MJ per m3.
Interruptible Service
• Shall mean the use of Gas which may be interrupted by the Company upon notice to the Consumer from time to time.
Service Line
• Shall mean the portion of the pipeline used for the transporting of Gas from the Company's main distribution pipeline to the sales meter position on the Consumer's Premises.
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