Liberty Files to Adjust Natural Gas Rates that will Continue to Offer Significant Savings
Liberty submitted a General Rate Application to the New Brunswick Energy and Utilities Board (NBEUB) on Monday, April 15 that includes adjustments to the distribution rates for all customer rate classes in 2024. The proposed changes would result in reductions in the total cost of natural gas for all customers. Natural gas continues to be a significantly lower cost alternative compared to other energy sources, by as much as 28.2% for large commercial customers compared to oil and as much as 31.8% for homeowners compared to electricity. Pending approval from the NBEUB, Liberty is seeking to implement the adjustments to distribution rates on September 1, 2024.
Commercial customers could see average decreases of 11.1% - 17.5% (depending on rate class) in the total cost of natural gas distribution service in 2024 as compared to 2023. Liberty is proposing to increase the distribution rates for all commercial customers, but when taking the lower forecasted commodity cost of $7.18/GJ into account, customers can expect to see savings compared to 2023.
Residential customers could see an average decrease of 9.8% in their total cost of natural gas distribution service in 2024 as compared to 2023. Liberty is proposing to increase the residential distribution rate from $10.8527 to $11.1900, and assuming the same forecasted natural gas commodity cost of $7.18/GJ, customers can also expect to see savings compared to 2023.
The actual impact on customers’ total annual costs will depend on how much natural gas is consumed and the price of natural gas supply. A typical residential customer, for example, who buys their gas supply from Liberty Utility Gas and uses 66 GJ per year for heat and hot water would see a total annual bill decrease of approximately $162.00 over the course of the year compared to 2023.
Total Annual Cost of Natural Gas: 2023 Current Rates vs. Proposed 2024 Rates
|
Customer Profile (Annual GJs) |
Total Cost Current 2023 Rates ($) |
Total Cost Proposed 2024 Rates ($) | % Change | |
|---|---|---|---|---|
| Small General Service (Residential) | 66 GJs | $1,650.50 | $1,488.50 | -9.8% |
| Mid-General Service (Small Commercial) | 408 GJs | $8,788.21 | $7,809.55 | -11.1% |
| Large General Service (Medium Commercial) | 4,247 GJs | $82,122.12 | $71,890.86 | -12.5% |
| Contract General Service (Large Commercial) | 10,941 GJs |
$205,658.62 |
$177,533.23 | -13.7% |
| Industrial Contract Service (Industrial / Institutional) | 179,873 GJs | $2,554,240.41 | $2,106,963.40 | -17.5% |
| Off-Peak Service | 1,126 GJs | n/a | n/a | n/a |
Based on the current and proposed distribution rates/charges and the average current/forecasted Liberty Utility Gas price in 2024 of $7.18/GJ and in 2023 of $10.04/GJ. The Federal Carbon Tax is excluded.
Customers can also expect to see significant savings compared to alternative energy. Commercial customers can expect to see substantial savings of 19% to 43% (depending on rate class) compared to No. 2 oil and even more if the cost of natural gas supply is lower than forecasted. Residential customers can still expect to see considerable savings compared to electricity – an estimated 31.8% or more if the cost of natural gas supply is lower than forecasted. These savings include the cost of the Federal Carbon Tax on Liberty rates only.
Comparison of Rates to Alternative Fuels: Liberty Proposed 2024 Rates vs Alternative Energy Rates
|
Customer Profile (Annual GJs) |
Total Cost Liberty Proposed 2024 Rates ($) |
Total Cost 2024 Rates of Alternative Energy ($) | Forecasted % Savings in 2024 | |
|---|---|---|---|---|
| Small General Service (Residential) | 66 GJs |
$1,759.79 |
$2,580.89 |
31.8% |
| Mid-General Service (Small Commercial) |
408 GJs |
$9,476.10 | $11,788.79 | 19.6% |
| Large General Service (Medium Commercial) | 4,247 GJs | $89,254.10 | $120,997.79 | 26.2% |
| Contract General Service (Large Commercial) | 10,941 GJs | $222,266.64 | $309,633.80 | 28.2% |
| Industrial Contract Service (Industrial / Institutional) | 179,873 GJs | $2,842,375.23 | $5,045,048.73 | 43.7% |
| Off-Peak Service | 1,126 GJs | n/a | n/a | n/a |
Based on the current and proposed distribution rates/charges and the average current/forecasted Liberty Utility Gas price in 2024 of $7.18/GJ and in 2023 of $10.04/GJ. Forecasted % Savings in 2024 is total cost compared to electricity for residential and No. 2 oil for commercial. The Federal Carbon Tax has been applied to Liberty rates only.
Liberty is also proposing the adoption of a Weather Normalization Adjustment (WNA) mechanism for rate classes other than the Large Industrial Contract Service (LICS) and Off-Peak Service (OPS) rate classes. A WNA removes the impact of variations in volumes due to weather, which is outside the company’s control.
With the increased cost of living being felt across our region, Liberty is glad to offer significant savings to New Brunswick residents and business owners compared to alternative fuels.
All adjustments to distribution rates and charges for all rate classes are reviewed and approved by the NBEUB. Please visit www.nbeub.ca for more information.
NOTE: Liberty does not earn a profit on the sale of natural gas supply (Liberty Utility Gas). Customers have a choice when it comes to purchasing their natural gas supply. Please visit www.nbeub.ca for more information.