TransGas Limited (TransGas) is proposing changes to its transportation and storage rates, effective April 1, 2025, and April 1, 2026. If approved, the changes will be as follows:
- An average rate increase of 3.2% effective April 1, 2025, with individual rate class adjustments ranging from a decrease of 6.1% to an increase of 9.0%; and
- An average rate increase of 6.1% effective April 1, 2026, with individual rate class adjustments ranging from an increase of 2.4% to 9.0%.
A two-year rate adjustment provides greater cost certainty for customers and revenue stability for TransGas. The proposed 6.1% rate increase for 2026-27 accounts for increases in salaries and benefits only, while maintaining other OM&A categories flat compared to 2025-26.
Over the past 10 years, TransGas rate increases have averaged 2.8%.
The rate increases over the next two years are driven primarily by the following factors:
- Increasing third-party transportation costs. The use of third-party pipelines allows TransGas to avoid the expense of building new transmission facilities and is considered a prudent and economical transportation option.
- Capital investments are increasing TransGas’ rate base and, subsequently, the return on capital investments.
- Rising labor costs due to inflationary pressures and additional resources required to manage increasing environmental regulations, execute capital projects, perform ongoing maintenance work, support system growth, and maintain system reliability.
The proposed rate changes (see below) are proceeding through the governance process, which is expected to be finalized in late March 2025.
TransGas remains committed to delivering safe and reliable service while minimizing the impact of rate changes on customers. If you have any questions about the proposed rate adjustments, please contact Erin Rodger at @email or Tanya Lang at @email.
TransGas will be hosting a webinar for customers on March 25, 2025, which will include an overview of the rate setting process. Please watch your inbox for a save-the-date notice.