Liberty Utilities Applies To Lower Total Cost of Natural Gas
FREDERICTON, August 7, 2020 - Liberty Utilities submitted an application to the New Brunswick Energy and Utilities Board (NBEUB) that includes adjustments to the distribution rates and charges for most customer rate classes in 2021 and a forecasted decrease in the Liberty Utility Gas supply cost in 2021. The proposed changes would result in reductions in the total cost of natural gas for all customers.
Pending approval from the NBEUB, Liberty Utilities is seeking to implement the adjustments to distribution rates and charges on January 1, 2021.
Liberty Utilities is proposing to lower the distribution rates for all commercial customers, which would mean decreases of 2.6% to 4.3% (depending on rate class) in their total cost of natural gas in 2021 as compared to 2020. This takes into account the lower forecast of the cost of commodity in 2021 of $8.50/GJ.
The lower forecast of the Liberty Utility Gas price in 2021 is expected to be below the prices for 2020 and will positively impact the total cost of natural gas for residential customers as well.
Liberty Utilities is proposing to maintain the residential distribution rate at $10.40, but when taking the lower expected commodity price into account, residential customers would see a decrease of 1.9% in their total cost of natural gas in 2021 as compared to 2020.
A typical residential customer, for example, who buys their gas supply from Liberty Utilities (Liberty Utility Gas) and uses 70 GJ per year for heat and hot water would see a total annual bill decrease of approximately $31 over the course of the year, compared to 2020.
Based on the current and proposed distribution rates/charges and the average current/forecasted Liberty Utility Gas price in 2020 of $8.74/GJ and in 2021 of $8.50/GJ.
Residential customers can still expect to see savings compared to electricity – an estimated 19% savings and even more if the cost of natural gas supply is lower than forecasted.
Commercial customers can expect to see savings of 12% to 29% (depending on rate class) compared to No. 2 oil and even more if the cost of natural gas supply is lower than forecasted.
The actual impact on customers’ total annual costs will depend on how much natural gas is consumed and what the price of natural gas supply will be in 2021.
All adjustments to distribution rates and charges for all rate classes are reviewed and approved by the New Brunswick Energy and Utilities Board through an open and transparent regulatory process. Please visit www.nbeub.ca for more information.
NOTE: Liberty Utilities 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.
About Liberty Utilities:
Liberty Utilities is regulated by the New Brunswick Energy and Utilities Board and has a distribution network that includes more than 1,200 kilometers of natural gas pipeline. Liberty Utilities serves 12,000 customers in Dieppe, Dorchester, Fredericton, Hanwell, Lincoln, Moncton, Oromocto, Riverview, Sackville, Saint John, St. George and St. Stephen.