Kitchener Utilities

Public Notice - Proposed Natural Gas Rates for January 1, 2017

Posted on Thursday September 22, 2016

 

The Finance and Corporate Services Committee of City Council will formally consider Kitchener Utilities’ proposed natural gas rates on Monday, October 3, 2016 in the Council Chamber, 2nd floor, Kitchener City Hall.  The meeting time and staff report will be posted to the City’s website as of Friday, September 23, 2016.

 

Delegations are invited to register by 5 p.m. on Friday, September 30, 2016 by filling out the form online at http://www.kitchener.ca/en/insidecityhall/registerasadelegation.asp or by calling 519-741-2200 ext. 7277.  Delegations are permitted five minutes to address the Committee.  To ensure compliance with the Municipal Freedom of Information and Protection of Privacy Act (MFIPPA), all presentations must be in Power Point submitted before noon on Friday, September 30, 2016.

 

The proposed rate changes include:

  • Supply rate decrease from 10.5 to 9.5 cents per cubic metre
  • Transportation rate increase from 4.0 to 5.0 cents per cubic metre
  • For M1 customers, delivery rate decrease to 6.9890 cents per cubic metre
  • For M2 customers, reducing the delivery rate tiers to one tier to 6.1873 cents per cubic metre

 

*NEW* Introduction of Ontario Cap and Trade Charge

  • In compliance with provincial legislation, KU is required to purchase natural gas emission allowances for its customers. KU will recover these costs through a new cap and trade charge on your bill.
  • New Ontario Cap and Trade charge to be included is 3.5647 cents per cubic metre. This will be included within the delivery rate on your bill.

 

For the average residential customer, the combined impact of this rate change is net zero from KU. The introduction of the Ontario Cap and Trade charge is expected to produce an increase of 10% or approximately $71 per year for the average residential system gas customer.* 

*The average residential customer uses 2,100 cubic metres of natural gas annually

 

Kitchener Utilities goal is to meet our customers’ expectations by providing natural gas supply with stable pricing. To achieve this goal, KU takes a disciplined approach to buying natural gas.  We do not make a profit on our natural gas supply and transportation programs.  They are operated at cost.  Customers on our supply program pay what we pay our suppliers – without any mark-up or discount – and all our customers pay the same price.

 

Information is available upon request by contacting Kitchener Utilities at utilities@kitchener.ca