Annual report

Terasen and natural gas play an important role in British Columbia's energy future. So we thought it fitting our theme for the 2007 Terasen Inc. annual report be "Blue path. Green future."

 

I invite you to use this report as your guide to our performance. See how our employees delivered financial results and supported customers and communities while remaining focused on safety, reliability and the environment every step of the way.

 

Terasen Gas had a truly exceptional 2007. We delivered superior operating results and met or exceeded every Service Quality Indicator in our regulatory agreements. Our Customer Satisfaction rating was the highest in the measure's history, with 79.3 per cent indicating a high level of satisfaction. Our gas utilities were well below their greenhouse gas emission targets, building on our reduction efforts over the past decade.

 

In 2007, we welcomed nearly 14,000 new customers. Not only is natural gas the comfortable choice for customers, it's the wise choice for space and water heating. To help optimize the use of energy, the government, in its 2007 BC Energy Plan, also encouraged British Columbians to use the right fuel, in the right place, at the right time. Using natural gas appropriately will help preserve BC's valuable electricity supplies and defer costs for upgrading and expanding these resources against ever-growing demand.

 

Terasen Gas helped bring choice in natural gas suppliers to customers with Customer Choice. The program allows residential and small commercial customers the option of choosing who they purchase their natural gas from. Either way, they still rely on Terasen Gas for the safe and reliable delivery they have come to expect.

 

By offering high efficiency equipment upgrades and energy audits, we helped customers save energy and reduce emissions. Individual metering in new multi-family construction gives those in condos and townhouses more control of how much gas they use and pay for. Innovations like these deliver value to our customers and keep Terasen Gas competitive in this growing housing sector.

 

Our results are especially impressive given they were achieved during a change in ownership. In May 2007, we became part of Fortis Inc. Although it was business as usual for our customers and partners, employees efficiently completed the many sale requirements. I would like to thank employees for their commitment and many volunteer efforts. They consistently deliver success, and make meaningful contributions to the communities where we live and work.

 

Reflecting the Fortis belief of community involvement in its companies, a new Board of Directors was established. The Board includes a few directors from within the Fortis Inc. group, with the majority reflecting community interests from different regions and business sectors of our service territory. Such a diverse group, they provide tremendous insight into our stakeholder interests and help guide our business direction. We are fortunate to have this calibre of talent on our Board.

 

Terasen Gas Inc. was one of the first utilities in North America to have a performance-based regulatory agreement. So when we reduce our operating costs for the benefit of customers, we share the savings. It's an effective regulatory model which in turn yields an efficient utility operation—like a company in a more competitive environment. Terasen values sound cost control measures and strong financial management. All in all, it's a direction that delivers consistent, repeatable results.

 

Going forward, we will build on a very successful year. We will create value for stakeholders through operational excellence and superior financial performance aligned with customer interests. By continuing to invest in infrastructure—like the Mt. Hayes Storage Facility on Vancouver Island and Whistler Pipeline—we will help BC meet its energy demands now and in the future.

 

Terasen Energy Services will continue to deliver district energy systems that we own and operate, while our position in the Fortis group opens up new opportunities.

 

Terasen Gas safely and reliably delivered 20 per cent of the energy used by British Columbians in 2007. By following our blue path to a green future, Terasen will continue to be an important part of the province's energy mix, supporting BC's economic, energy and environmental goals into 2008 and beyond.