BC Gas Utility Ltd. has applied to the BC Utilities Commission for a 10% reduction in the commodity charge for natural gas to take effect Jan. 1, 2002. Vancouver-based BC Gas last reduced its commodity charge on Oct. 1 when the BCUC approved a reduction that saw customers’ bills decrease by approximately 11%.

“We are being cautious with this price adjustment since the volatility in the market that drove up prices last year still exists,” said Randy Jespersen, BC Gas senior vice president of energy delivery services.

The commodity decrease will go into effect along with an adjustment to the delivery charges that will provide for a decrease in usage charges and a corresponding increase in the basic monthly charge. These changes do not increase BC Gas revenues. A rider that provided customers with a refund due to a Revenue Canada tax ruling will also be removed. The net effect of these changes will give the typical BC Gas customer a 4% reduction on their gas bill.

Although the price of natural gas rose dramatically last winter, BC Gas did not pass on the full increase in gas costs. Consequently, the company incurred a deficit on behalf of its customers. The recovery of this deficit partially offsets this latest reduction in gas costs.

©Copyright 2001 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.