Gas Costs:

Working with gas marketers', the utility seeks to ensure the lowest cost supply of the commodity and in doing so, has, from time to time, entered into forward contracts for the purchase of natural gas.  The BCUC is integrally involved in our selection of a gas marketer and vetts the initial and follow on contracts made between the utility and marketer as each are negotiated.  As a consequence of significant increases in natural gas reserves and other factors, there has been and is expected to be ongoing supply side pressure serving to reduce gas costs.  Importantly, the Company does not earn a profit nor incur losses in gas costs as its commodity price is adjusted annually to refund/collect any excess/shortfall of the prior year. 

 

Delivery Costs:

The utility files applications with the BCUC reflecting all of its revenues and costs for a year (its "test" year) and through an exchange of interrogatories and responses resolves those costs to be allowed in the determination of its revenue requirement and the return to be allowed investors'.

 

Cost Comparisons:  

The average residence at Silver Star Resort consumes 80 gigajoules of natural gas (which equates to 3,152 liters of propane and 22,226 Kwh of electricity). At our forecast rate for the commodity and its delivery, expected to be effective from November 1st, 2012, of $11.40 per gigajoule, the average customer would pay $912 plus our fixed monthly charge of $15 and carbon taxes of $119 or at total of $1,211 for a full years supply of natural gas.  At an average of 65 cents per liter with two deliveries and applicable carbon tax, propane customers would pay $2,234 for their consumption of that alternative. Customers using electricity would pay $2,147 for the equivalent volumes of natural gas (at an average of .089423 cents per KwH). Expressed another way, our $11.40 per gigajoule price equates to 29 cents a liter and to .04104 cents per KwH.

 

Customers converting from propane to natural gas would save an estimated $1,023 annually; our installation cost is $1,920 (single meter) and appliances in your home will require a gas fitter to accept the alternative fuel.  If you'd like to begin enjoying these savings, Stargas will finance its portion of your conversion costs (contact us to start the process). Note that today's savings are expected to grow as the price of propane (a byproduct of oil production) is expected to move with those of oil. Quite apart for the savings, natural gas has characteristics that make it a superior heating and cooking alternative.