A new day is about to dawn for natural gas consumers in British Columbia.
As of May 1, residential market deregulation kicks in.
Deregulation represents a positive step forward for retail gas consumers, soon to be empowered to exert control over their own costs.
Deregulation also represents a fantastic opportunity for accredited Western Canadian investors to capitalize on an exciting growth market.
With almost 40 years of energy-industry experience behind them, the senior managers of Tahoe Energy are poised to move ahead on both fronts. Christina Davidson, chief executive officer of Tahoe Energy, and company President Glenn MacIntyre are seeking accredited investors to help them make it happen.
A word of explanation: Recent changes in provincial regulations have enabled Terasen Gas, a major B.C. natural gas provider, to "unbundle" about 725,000 retail accounts, under terms of a new program that separates the supply of natural gas from the provision of distribution services.
That means retail customers in most of B.C. will be able to protect themselves from market volatility, by locking into contracts that eliminate exposure to unexpected price swings. It means the market is now wide open for lean, light-on-their-feet sales and marketing teams such as Tahoe to step in and fill the gap.
"We'll be buying wholesale gas and selling it to these new customers on a retail margin, offering extremely attractive terms," explains Davidson.
Why put up your money to assist Davidson and MacIntyre with the execution of their sales plan? There are any number of good reasons to try to learn more about this low-risk, high-return investment opportunity. Start with the slick, seamless and straightforward business model.
It helps define the Tahoe Energy package as an investor's dream. For one thing, Davidson, MacIntyre and their associates are bringing a whole new set of selling points to the table. These are certain to draw a favourable response from a market that's more than ready for a change.
Retail gas consumers can look forward to unprecedented peace of mind by signing an extended agreement (terms range from 12 months to five years) at a fixed price, much like a mortgage.
Under the current system, customers are more or less defenceless in the face of quarterly shifts in the price they're asked to pay. But that's all about to change.
"We can guarantee customers that when they sign a contract with us, they lock in their gas cost with certainty. This allows them to budget accordingly, with no fear of dramatic price fluctuations for the duration of the contract," says MacIntyre.
Nor will the company be flying blind when deregulation kicks in on May 1. They'll be closely following a template that was put into place three years ago, when 73,000 small commercial customers were unbundled under a similar scheme.
Since then, one in four small commercial customers have switched to a competitive gas supplier, a percentage that proves the system works. Tahoe Energy plans to tap into this market as well, supplying gas to small commercial buyers.
"We firmly believe that the residential program is primed to meet with a similarly attractive rate of acceptance," says Davidson, who projects a profit by the end of the first year's operation.
"We believe the educated consumers in B.C. will be quick to embrace these new packages," she adds.
It should be mentioned that the B.C. government has become an unexpected ally of marketers such as Tahoe Energy and has funded a $5-million consumer-education campaign. This all-pervasive promotional drive has been designed to deliver a clear message to B.C. consumers, namely that they will soon enjoy a broad range of choices on the open market.
Prospective investors should also know that Tahoe Energy is absolutely committed to a policy of environmental sustainability. As Glenn MacIntyre explains it, Tahoe projects an eventual customer base of tens of thousands of residential customers and several hundred commercial clients, each of whom will eventually be serviced by a whole suite of alternative-energy options geared to their own unique needs.
Tahoe has pledged to enthusiastically support and promote proven "green" technologies that live up to the company's own high standards of conservation and environmental stewardship.
Private individuals interested in investing are urged to direct inquiries to Davidson (780.906.9904) and/or MacIntyre (403.815.7009). And please visit the Tahoe website: www.tahoe-energy.com.
This feature is not an offering for sale. All prospective investors will be provided with a prospectus and offering memorandum and are advised to discuss their options with an investment professional.
