Sale of Swan Valley Gas Approved


By Board Order 29/14, the Public Utilities Board (Board) approved an application by Swan Valley Gas Corporation (“Swan Valley Gas”) to sell, and an application by Centra Gas Manitoba Inc. (“Centra”) to purchase, the natural gas distribution system assets of Swan Valley Gas, subject to certain conditions.

The Board denies Centra’s application to recover the purchase price of the assets from the gas customers in the Swan Valley Gas service territory through a rate rider.

The sale of the assets to Centra Gas is approved on the following conditions:
1. That the purchase price be amended to from $200,000 to $1, which eliminates the $50,000 annual payments over four years from Centra to Swan Valley Gas.

2. That the emergency services agreement between SaskEnergy Incorporated (“SaskEnergy”) and Centra, whereby SaskEnergy provides emergency response services to the Swan Valley Gas
service territory, be extended to an initial five year term from the proposed one year term.

3. That Centra provide to the Board a plan or strategy detailing how Centra will improve the financial viability of the distribution system in the Swan Valley Gas area.

4. That Swan Valley Gas or Centra file duly executed Council resolutions from the Rural Municipalities of Swan River and Minitonas, the Towns of Swan River and Minitonas, and the
Village of Benito with the Board which confirm that these municipalities consent to the assignment of their franchise agreements from Swan Valley Gas to Centra. As a result of the purchase, Swan Valley Gas customers will pay the same gas rates as Centra customers. Residential gas customers will see a decrease in natural gas bills of approximately 31% from current rates
charged by Swan Valley Gas. A copy of the Order, which contains significant additional information, may be reviewed on the Board’s website, or be obtained through the Board’s Office.

The Public Utilities Board
400 – 330 Portage Avenue
Winnipeg MB R3C 0C4
Telephone: 204-945-2638
Facsimile: 204-945-2643