Kitchener Utilities

Most customers to see decrease on natural gas bill

Posted on Monday October 02, 2017

 

Kitchener -- Today, staff brought forward the proposed gas rate changes to the finance and corporate services committee. Thanks in part to a warmer than average winter followed by a cooler than average summer, 98 per cent of customers will see a net decrease to their gas bill. Staff proposed the following changes to gas rates that will take effect Nov. 1, 2017:

  • The supply component of the natural gas rate will be decreased to 9.0000 cents per cubic meter (from 9.5000 cents)
  • The transportation component of the natural gas rate be decreased to 4.5000 cents per cubic meter (from 5.0000 cents)
  • These two components – supply and transportation - will also be combined on the bill to align with industry trend and simplify the bill.
  • The Ontario Cap and Trade component of the variable delivery rate is to be increased by 0.3072 cents per cubic metre from 3.5647 cents per cubic metre to 3.8719 cents per cubic metre to cover the ongoing cost of compliance.
  • The combined impact of the rate changes are expected to produce a decrease of two per cent or about $18 on the overall bill to the average system gas (based on residential customer consuming 2,100 cubic metres annually).
  • The large industrial and commercial contract customers will see rates increase by 0.50000 cents per cubic metre.

Kitchener Utilities goal is to provide customers with reliable service at a fair price and strive to keep rates consistent and as low as possible. Customers have consistently provided feedback around their preference for rate stability over the rise and fall of rates which is difficult to plan for.

Cap and Trade

The cap and trade program is a provincially legislated emission trading system launched by the Ontario government to reduce the impacts of climate change. It places a price on the emissions from the burning of fossil fuels. Because natural gas is a fossil fuel, it is subject to this new charge. Kitchener Utilities must purchase emission allowances on behalf of its customers.

The committee’s recommendation will go to the Oct. 16 council meeting for ratification.

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