Natural Gas Price Hikes Good News At City Hall

Thursday, February 02, 2006 10:00 AM

If you look at your natural gas bill this month, you will notice two things:

1. the price of natural gas in this region has risen more than 500% over the past five years
2.the City of Prince George has been one of the big winners in that increase.

The City receives a franchise fee from Terasen gas of 3.09%. In many municipalities that amount is not calculated on the entire bill, but a portion. Here in this city you pay the franchise fee on the total amount of the bill which includes delivery, basic charges and commodity charges.

If you have wondered what has happened to your gas bill you can figure that gas was selling at less than $2.00 per GJ five years ago. On your latest bill, that price is now 9.840 per GJ or just under a 500 % increase in the price of the product.

If you factor in the increases in the delivery charge by Terasen gas, the overall cost of the gas reaching your home has risen significantly.

Meantime the other big winner in the price of natural gas is the Federal Government, which charges 7% on the entire amount.

So the average home that cost $400 a year to heat five years ago, now costs just under $2,000.
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Posted on Thursday, February 02, 2006 10:00 AM in News by 250 News

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Comments

Posted by: Percy on February 2 2006 8:19 PM

I don't see the city feeling badly for me or the Federal Government. Too bad. One would think that if prices get too high, the government could reduce the percentage of tax they charge us on this necessary commodity. It's easy to blame companies and corporations, but I hold government and taxes just as accountable for the increases in my cost of living. We need to lobby to reduce taxes on everything we buy, earn and have. Percy

Posted by: Palopu on February 4 2006 3:01 PM

The Federal Government portion should go to 6% fairly soon. If we have a City council that could do more that follow the instructions of our illustrious Mayor they could eliminate the franchise fee and save us 3.09%. Whats the chance of this Council ever doing anything but rubber stamp Kinsley and spend money. Maybe they need this 3.09% to pay the huge gas bills they are receiving from all their community buildings, spread through-out the City.

It was suggested years ago that these buildings be kept to-gether to reduce heating, and maintenace costs, however no one paid any attention. Quesnel has plans for new community buildings and guess what. They will be built close together to reduce heating and maintenance costs. Seems they know how to get it right.