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2014-03-14 at 11:43

Gas rates could rise next month

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By tbnewswatch.com

Union Gas rates could be on the rise next month.

The utility has applied to the Ontario Energy Board to increase its rate by an average of $16 a month.

The rate would impact about 40,000 Union Gas customers in this region.

But Union Gas isn’t unique in asking for a rate adjustment. An unseasonably cold winter has also led Enbridge to apply to have its rates hiked.

If approved, the natural gas rate adjustment would take effect on April 1.


(CKPR Radio)

Tbnewswatch.com(46)

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Comments

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tiredofit says:
Surprise surprise.... But it's only $16 bucks right... added to all the other $5-$20 increases we're being hit with every dam month..... Some please explain that to my boss, I'd like my pay to increase to match.
3/14/2014 11:51:28 AM
Today1 says:
It's only another cup of coffee!! (they'll tell you)
3/14/2014 11:06:35 PM
whatever1239 says:
I love how all you people are so quick to respond on this article that you obviously know nothing about. Continue to make your uneducated statements. It was clearly noted in previous articles that Union Gas (or any other Gas company) does NOT make profit off the gas price. The only people who do make a profit off the gas is brokers such as Direct energy etc.
3/15/2014 12:58:30 PM
codvx87 says:
LIBERAL FATCATS and MONOPOLISTS taking advantage of the WORKING MAN. Under the table tax hikes and deals to benefit the 1%. How can we affpord an event center if we need to raise prices on everything else????? This city is luda. I am FFFFFFFFFFFFFFFFFF
3/14/2014 11:57:17 AM
fastball says:
Pssst - It's called supply and demand. It's only the oldest marketing adage known to man. (well, maybe the SECOND oldest)
Very cold winter = lots of gas used = shortages = price goes up.
I'd don't think the city's got anything to do with Union gas, let alone "liberals". Chances are a monolopolistic energy company cashing in on peoples' hardship is NOT a liberal entity.
And hey - no topic is too obscure to throw in an event center comment, right?
3/15/2014 6:34:00 PM
Tannoy says:
The only problem is when there is less demand prices DO NOT FALL. They never go back down to where they were they only keep going up and up. Look at gasoline, oil prices go up, prices go up, oil prices go down and ... prices remain the same until oil goes up again.
3/17/2014 9:17:00 AM
mystified says:
You had me until your last sentence.
3/18/2014 4:50:53 PM
westfort resident says:
An extra $192/year! That's outrageous. How about cutting top executives' wages to save money and pass along the savings to customers instead of constantly gouging us to support high figure salaries?
3/14/2014 11:59:01 AM
wasaya says:
Here we go again. And no, I'm not accepting it with a smile on my face....
3/14/2014 12:11:29 PM
rootbear says:
Thank goodness I'll be making $11/hour soon....
3/14/2014 12:27:50 PM
kaseybear says:
OMG people... its only 16 dollars a month, that is alot less than the increases that propane and fuel oil users have been gouged with this winter. Its still cheaper than it was in 2004. Just cut out a few tim's/starbucks trips, or use a regular coffee machine instead of the fancy keurigs and tossimo's
3/14/2014 1:16:50 PM
bay of blunders says:
Ummm Sorry there Kaseybear but I already cut out all my coffee trips to timmies and starbucks cause Keith Hobbs said i had to have 3 less a month to pay for water rate increase then he told me to just make my own coffee at home to cover the tax increases. Where will I get the coffees to cut out for the gas rates as the city already took all my coffees away and I had to sell my coffee maker and my silverware and my shoes to pay for my hydro. Between the city and government making me cut out coffee, necessities and such I am going to start searching a luxurious cardboard box to move into. Anyone wanna get together for a Co-Op box condo development?
3/14/2014 6:01:18 PM
CM Punk says:
WOW!
Another added expense to the already overly expensive homes.

My equal billing already went up last fall at $20 more per month and now another $16 come April?

And here they bragged how low the gas rates were and how Canada has an abundance of natural gas.
3/14/2014 1:21:43 PM
glass half full says:
Wow ! Almost 7.7 million dollars in annual revenue added with the stroke of a pen.

It must be nice to have a business model that allows that kind increases.

Disgusting...
3/14/2014 2:56:49 PM
807daisy says:
Union Gas does not have a monopoly on gas - yes they are the only delivery company in the area - but you can buy your gas from a broker. Take a look at the rates at energyshop.com. Or switch to propane or electric heat.
3/14/2014 3:15:42 PM
outsidelookingin says:
Enbridge applied for a 40% increase yesterday, today Union Gas. Can you spell collusion? Where's the competition bureau or whoever?! If they were to do that with gasoline the government would be all over them!
3/14/2014 6:55:56 PM
Realistic-rose says:
Seriously? They ask for increase because the gas market price went up. They have to forecast rates then once they pay for it to deliver it to you and find out the real cost you are billed that. They don't set these rates and don't profit from them. There is no collusion, read up on things before you comment. The government approves everything they charge you, it's called the Ontario Energy Board. Call Uniongas and I am sure someone will explain it to you, but you obviously don't know what you are talking about?
3/15/2014 12:03:55 PM
Kurtiswm says:
My last bill said the rate was going down on average of like 1.50-2.00 per month. I guess that's supposed to be their method of pulling the wool over our eyes.
3/14/2014 7:13:27 PM
trips says:
turn your thermostats down a couple degrees and wear a sweater in your caves...its not as if this is the first price increase tbay residents have had...o yea ...cut out the smokes
3/14/2014 7:29:24 PM
ring of fire dude says:
Expect Union Gas to announce record profits due to the frigid winter AFTER the Ontario Energy Board approves the rate hike .
3/14/2014 7:40:17 PM
lori says:
yes, a federally regulated issue where the gas companies need to apply to the Feds for the increase and somehow this is a Liberal issue.

It is amazing how so many people can know so little about so much.

This was the coldest winter for decades. Not just here but across North America. Do you think that supplies are just limitless.

I don't want to pay more but wake up you people.

If there are only 18,000 tickets for the Superbowl, do you think the tickets will be the same as the regular season game or more.

If people suddenly want 30% more oranges, do you think the price will go up or down.

Sorry your boss doesn't think about your gas increase, but guess what. His went up to, at his business and his home.

3/14/2014 9:11:57 PM
The Critic says:
This was approved by the Ontario Energy Board, not "the feds".
3/15/2014 1:36:34 AM
glass half full says:
I do not remember seeing a decrease in my gas bill during the warmer winters? Did you see one???

3/15/2014 8:14:19 AM
Realistic-rose says:
Last April you were paying 8 cents for gas. Check out historical rates at uniongas.com and you can see how low they have been. I say we all call uniongas and question them on rates. But in the end it is the OEB who decides this. If you have a problem then call uniongas or turn down your heat 2 degrees as this does help. But I am calling them Monday. Maybe if a lot of us thought about going paperless for bills as well this would help. Seeing postage is going way up maybe companies are going to start charging for bills in mail or raising some costs that they can. What will we all do when all companies start charging for bills in the mail? But again uniongas doesn't make any profit on the gas, only delivery. I didn't know that until I called on Friday. Even though 54% increase sounds like a lot, it is only 54% of current 13 cents which is only 7 cents. So is 7 cents really worth all this anger? Last April it was only 8 cents, no one seems to remember those low bills do they?
3/15/2014 5:49:48 PM
Realistic-rose says:
So you seem to forget that last April you were only paying 8 cents? Rates haven't been over 20 cents since 2009. So you have been paying less! Just remember Uniongas does Not profit on this increase. They pay what you pay, if they were to increase your delivery rate on gas they would profit. You have been paying record low rates for about 4 years now.
3/17/2014 8:38:32 PM
Realistic-rose says:
Seriously people? The competition bureau....the government has to approve these rates Enbridge and Uniongas do NOT PROFIT from gas commodity. They buy it for what you pay for it. They don't make a profit. They are a delivery company. Maybe read up on these things before you make your comments. Natural gas is cheaper than oil and hydro. This won't last and it is occurring in spring where your usage will be lower anyway. It's $17/month. Get over it.
3/14/2014 10:20:14 PM
grs says:
You don't seem to know what you're talking about. Absolutely, Union Gas DOES PROFIT from the price of gas.

From their website:

"...is a major Canadian natural gas storage, transmission and distribution company..."

This means that the gas you're buying from them when it's -40 outside was purchased and stored underground when it was +30 outside. Yes, they likely bought it at the rate we could have in the summer, but saying they don't profit on gas is like saying you don't profit when today you sell your house that you bought 20 years ago.

Their whole business, on the storage side, is based on 'buy low, sell high'.
3/18/2014 8:54:59 AM
Realistic-rose says:
You have no idea what you are talking about. Uniongas buys the gas at market rates and bills you whatever they paid for it. That is why on every bill you see a price adjustment. They do not profit from it. I called them. They profit from delivery but not the gas commodity.
3/18/2014 7:59:41 PM
Realistic-rose says:
Direct from their website....No, Union Gas does not earn any profit from the sale of the natural gas commodity. We pass the cost of natural gas and the cost to transport that gas into our delivery area through to our customers without mark-up. The price we pay is the price our customers’ pay, and not a penny more. As a distribution company we earn our income from the distribution and storage of natural gas. The rates we charge for these services are regulated by the Ontario Energy Board and have remained relatively stable for a number of years.
3/18/2014 8:04:06 PM
razor_burn says:
What a sad world we live in.
3/15/2014 4:44:10 AM
reese says:
You have to be tuff to be a northener
Indeed, The Economist rates Canada’s residential property market as one of the world’s most expensive. The magazine’s analysts say housing is 76 per cent overvalued against long-term averages on a rental basis – the highest among the 23-country league table – and 31 per cent against disposable incomes.
Another $16 is nothing


3/15/2014 9:14:53 AM
The Beaver..... says:
Lori.. it is the Provincial Energy Board not a Federal issue.. anyway nice to you fighting for the Liberals again.
3/15/2014 9:36:14 AM
Tiredofit says:
While not directly related, I'm sure it's the same with the gas employees. Friday morning I stopped at Tim's on Oliver,there were 6 Hydro One trucks in the parking lot and 8 employees inside. All 6 of the,trucks were left running in the parking lot!!! It wasn't old really cold, so why??? Gas is an expense that adds up. It scrap like this that keeps our bills increasing by $10-20 a bloody month. I felt like taking the keys from all of them and driving away.
3/15/2014 10:07:09 AM
Realistic-rose says:
Seriously tiredofit? Hydro One trucks running in a parking lot increases your bills? Employees don't have anything to do with gas rates. Uniongas has to buy the gas and you pay what they pay. They deliver it to you. They don't increase your bill to make money, they have to buy the gas at market price and if that goes up then you pay that. People don't realize that Uniongas in no way profits on the gas commodity at all. Call them and have them explain it to you before you go whining about it.
3/15/2014 11:59:02 AM
Tiredofit says:
So your telling me that the cost if running vehicles, be it the hydro, or gas companies don't cost you and I? They generate income from the sale of said products and those profits pay for the vehicle and the the gas in them, plain and simple. It's s waste of money, bad for the environment and affects the final cost of the product.

Tell us how is it that it doesn't affect the costs? I suggest you learn how a business runs, come back and show us your logic?
3/15/2014 2:28:17 PM
Realistic-rose says:
My point was that cars running in a parking lot do not affect the price of natural gas. Natural gas is a tradeable commodity on the market. Uniongas doesn't just raise costs on gas, they do not profit at all from the gas, the just deliver it, it is the delivery costs they receive. You pay what they pay for it. Natural gas prices have to be approved by OEB and Uniongas doesn't set these prices, they buy it and do not profit from it. This winter has been brutal and when this increase happens, if OEB approves it, you won't be broke from it. Keep in mind you have been paying very low prices for natural gas for about four years now. We haven't seen natural gas over 14 cents in about 4 years. Buy your gas from a broker at energyshop.com or see how much electric heat is. Just saying that people panic and think Uniongas does this for profit and they don't. They only profit from delivery costs on your bill, all the other charges on your bill are what they pay for it.
3/15/2014 5:40:13 PM
bay of blunders says:
Realistic-rose:


It seems you are the one that needs an education and to read more accurately. Tiredofit did state "While not directly related,"


Tiredofit made sure to state that line so people like you can perhaps comprehend their statement. Tiredofit is simply explaining how wasteful stupidity like allowing company vehicles for longer than necessary costs us all in the end. Every waste has a cost and every cost has a need to charge people more for things which makes monthly bills higher. Tiredofit did not state this particular waste of gas was the cause of the hike in the natural gas commodity. Go learn to play nice in the sand box Unrealistic-Rose
3/16/2014 7:57:33 PM
Tiredofit says:
The cost of running the vehicles comes out of the bottom line, if the cost go up, the the cost of the end products eventually rise to compensate for the increase cost of labour, and materials.

Basic business 101
3/17/2014 6:32:46 AM
Realistic-rose says:
Ya sorry, disagree here, I understand your running vehicles comes out of the bottom line and if that costs more for a business then they raise prices to customers. Not the case with a utility like Uniongas. They won't profit in any way from this increase. If they increase the delivery rates then yes they would profit but they will not profit from this at all. They won't make profits from increase. So no, I disagree with you, understand your point but Uniongas doesn't raise commodity price because they are losing money or need to profit more, because they buy the gas at market price and bill that to you and cannot make profit on that, only on delivery of it, as they are a DELIVERY COMPANY, they deliver gas to your home and profit from that and that alone.
3/17/2014 8:44:41 PM
lori says:
hey, my bad. Unlike my other expert friends, I will admit when I make an error. So it is the provincially regulated body that approves rates and a commodity traded world wide with one of the worst winters in decades. Okay, if you wish to blame the Liberals for the winter, feel free. As for gas prices, they have been below what they were 10 years ago and have been low for a long long time. As for the rest of my post about supply and demand, I will assume that part was correct as no one saw fit to correct me on that.

As for my friend tiredofit who disagrees with everything I post, I agree with your post. 8 employees, 6 trucks brutal but where is the supervision here. That's awful. They almost sound like cops. But I must disagree with your 10-20 a month increase. My last bill during the brutal cold weather with my car plugged in all the time was 164 for the two months. I am still not getting how people within the city limits can be hit with such high bills unless electric heat.
3/15/2014 12:32:15 PM
The Beaver..... says:
I am scratching my Head....ouch
Lori the great Liberal defender says its a Federal issue and 11 people agree with her. Its Provincial
(OEB Ontario Energy Board)
The Critic says it was approved by by the OEB it in fact is only a application to the board at this time

3/15/2014 1:22:08 PM
hotchoc says:
Before the usual government bashing gets going, I thought I would post this right from the OEB site


..........The OEB conducts its regulatory functions through oral and written public hearings, working groups and written consultations.

The OEB reviews and processes hundreds of applications annually, ranging from routine licensing requests to complex rate-change applications.

Based in Toronto, the OEB is an independent, self-financing Crown corporation.............

Seems the government does not have anything to do with it and yes, it does say ontario right in the story although it seems she apologized already for jumping the gun a wee bit.

And while I am not one of the 11 who clicked agree with her, I do agree with the rest of the post. Given the winter we had no one should be surprised that prices are increasing. I am surprised it took this long.
3/15/2014 5:17:19 PM
livewire says:
The OEB is a government run Crown Corp. and YES if it it a Crown Corp. then it is a government run outfit. Crown = Ontario Government. The OEB will say yes to the increase because the Government will rake more money in from the TAX.
3/15/2014 7:04:30 PM
The Beaver..... says:
@ Lori.. One guy on Hydro one with 30KW
per day consumption and 60% off peak charge pays an average of $195 a month.
The Delivery charge on that bill is $83
alone you either burn a lot of Candles or you live like Mother Teresa.
3/16/2014 9:06:44 AM
lori says:
Beaver that is a two month bill of $400. I don't know what printing press or factory you are running, that is crazy and no one I know even comes close to that amount. Nice try however.

I guess me and the people I associate with are the only ones in Ontario to have these bills
3/16/2014 11:44:38 PM
The Beaver..... says:
Lorie the average residential consumption on Thunder bay hydro is 21.7 kwh a day..so my posting of 34 KWH is not that far off. Add the KWH cost to the fixed cost of $14.90 a month then add your HST ...guess what.. there is your cost. It would be somewhere around 17 Cents per kwh or $3.69 per day X30 days that would be 110.70 a month. If you get the Northern credit it would bring that down to about 88.56 a month. Remember that is based on the average consumption of 21.7 KWH.
3/17/2014 11:11:57 AM
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