Manitoba Hydro announced the launch of the new Fixed Rate service for primary natural gas supply. The Fixed Rate service provides customers with another pricing option to purchase their primary gas in addition to the quarterly rate option currently offered by the utility. Natural gas customers will have the option to sign up for a one, three, or five-year Fixed Rate service from Manitoba Hydro for their primary gas purchases.
The Fixed Rate service provides a fixed monthly rate for each cubic metre of primary gas that is used during the contract period. The initial enrolment period for the Fixed Rate service is from February 19 to March 12, 2009, or until the offering is fully subscribed. Subscriptions will be accepted on a first come basis as the availability of natural gas volumes are limited. Manitoba Hydro will offer the Fixed Rate service for primary gas on a regular basis if there is sufficient customer interest in the service.
“We are pleased to offer our customers more choice when it comes to their primary gas service,” says Bob Brennan, President and CEO, Manitoba Hydro. “This option will allow customers to fix their natural gas price for specific one, three or five year terms, rather than having the primary gas price move with the market on a quarterly basis.”
Residential and commercial Small General Service (SGS) and Large General Service (LGS) class natural gas customers are eligible to participate in Manitoba Hydro’s Fixed Rate service as long as they are not currently under contract with an independent gas marketer.
The Fixed Rate service provides a fixed rate for each cubic metre of primary gas. That will guarantee a fixed amount that you will pay for each unit of your natural gas, but of course your total gas bill will vary by usage. The best way to guarantee savings is to reduce the amount of natural gas that you consume regardless of which pricing option you choose. To reduce natural gas costs, Manitoba Hydro recommends improving the energy efficiency of a home or commercial building. Manitoba Hydro has a number of Power Smart programs that target energy efficient technologies and can reduce natural gas consumption.
Manitoba Hydro will continue to offer its Quarterly Rate service to customers as the default primary gas supply option. In late January, Manitoba Hydro announced an 8 per cent reduction in the price of the Quarterly Rate service to $0.2799/m3 effective February 1, 2009.
Compare Manitoba Hydro’s Quarterly Rate service with the Fixed Rate service offering based on a one, three, or five year term.
For more information on Manitoba Hydro’s Quarterly or Fixed Rate service offerings contact 480-5900 (in Winnipeg), 1-888-MBHYDRO or visit www.hydro.mb.ca/fixedrate.
