Cost of gas rate to remain the same for FortisBC customers
SURREY, BC, March 18, 2024 /CNW/ - FortisBC Energy Inc. (FortisBC) reviews the cost of gas rate every three months with the British Columbia Utilities Commission (BCUC). The company has received approval from the BCUC to maintain the cost of gas rate for all of its customers at $2.230 per gigajoule (GJ) as of April 1. This is unchanged from the last review in January that saw a decrease in the cost of gas for both natural gas and Renewable Natural Gas[1] (RNG) customers. The cost of gas rate will be reviewed by the BCUC again in June.
"We understand that energy costs are important to the families and businesses we serve, so we strive to deliver gas safely and reliably at the most reasonable cost," said Joe Mazza, vice-president, energy supply and resource development at FortisBC. "Even with the cost of gas staying the same, we understand that customers may have questions about their bill so our customer service team is always ready to support them if they need it."
FortisBC acquires natural gas at market-based prices and factors like supply and demand, weather and economic conditions affect the price of natural gas in North America. We do not mark up the cost of gas, so our customers pay what we pay.
The existing gas system plays an important role in British Columbia's transition to a cleaner energy future, as it can deliver renewable and low-carbon gases[2] such as RNG and, potentially in the future, hydrogen to displace conventional natural gas.
On April 1, the Government of British Columbia's carbon tax on natural gas and propane will increase. FortisBC does not gain revenue from these charges. Customers subscribing to RNG do not pay the carbon tax on the portion of their energy designated as RNG.
We encourage any customer who has questions about their bill to reach out. Our customer service team can answer billing questions, provide information about energy-saving tips and offer solutions that fit your personal needs.
For more information about rates and the components that make up a FortisBC gas bill, visit fortisbc.com/rates.
FortisBC Energy Inc. is a regulated utility focused on providing safe and reliable energy, including natural gas, Renewable Natural Gas and propane. FortisBC Energy Inc. employs around 2,096 British Columbians and serves approximately 1,075,595 customers across British Columbia. FortisBC Energy Inc. owns and operates approximately 51,174 kilometres of gas transmission and distribution pipelines. FortisBC Energy Inc. is a subsidiary of Fortis Inc., a leader in the North American regulated electric and gas utility industry. FortisBC Energy Inc. uses the FortisBC name and logo under license from Fortis Inc. For further information on FortisBC, visit www.fortisbc.com. For further information on Fortis Inc., visit www.fortisinc.com.
BACKGROUNDER
Historical data for Mainland & Vancouver Island (including North and South Interior)
Items on a residential gas customer's bill
Daily or monthly basic charge
The basic charge is a flat fee that partially recovers the fixed costs of our system, whether or not you are using any gas, as long as you are connected to the system.
Delivery charge
The delivery charge is based on consumption and pays for the cost of safely and reliably delivering gas through our system to our customers' homes and businesses. This helps cover the costs of maintaining our gas distribution system, provides a return to our investors and funds improvements to meet customers' needs. Delivery charges are reviewed by the BCUC annually.
Storage and transport charge
The storage and transport charge reflects the prices we pay to other companies to store and transport gas through their pipelines and infrastructure. We do not mark up these costs, and they are reviewed quarterly and set annually by the BCUC.
Cost of gas rates
Every three months, FortisBC reviews the cost of gas rates with the BCUC to make sure rates passed on to customers cover the cost of the commodity purchased on their behalf. We do not mark up the cost of gas, so customers pay what we pay. Factors affecting the market price of natural gas in North America include weather, supply and demand and economic conditions.
Other charges and taxes
Other charges and taxes include the B.C. carbon tax, Clean Energy Levy, goods and services tax and, in some municipalities, a municipal operating fee. These charges are set by various levels of government and collected by FortisBC on their behalf. FortisBC does not gain revenue from these charges.
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1 Renewable Natural Gas (also called RNG or biomethane) is produced in a different manner than conventional natural gas. It is derived from biogas, which is produced from decomposing organic waste from landfills, agricultural waste and wastewater from treatment facilities. The biogas is captured and cleaned to create Renewable Natural Gas. |
2 FortisBC uses the term renewable and low-carbon gas to refer collectively to the low-carbon gases or fuels that the utility can acquire under the Greenhouse Gas Reduction (Clean Energy) Regulation, which are: Renewable Natural Gas (also called RNG or biomethane), hydrogen, synthesis gas (from wood waste) and lignin. FortisBC's renewable and low-carbon gas portfolio currently includes only Renewable Natural Gas. Other gases and fuels may be added to the program over time. Depending on their source, all of these gases have differing levels of lifecycle carbon intensity. However, all of these gases are low carbon when compared to the lifecycle carbon intensity of conventional natural gas. The current burner tip emission factor of RNG is 0.29 grams of carbon dioxide equivalent per megajoule of energy (gCO2e/MJ) and the current renewable and low-carbon gas portfolio lifecycle emissions are -22 gCO2e/MJ. This is below B.C.'s carbon intensity threshold for low-carbon gases of 36.4 gCO2e/MJ set out in the 2021 B.C. Hydrogen Strategy. |
SOURCE FortisBC
MEDIA CONTACT: Gary Toft, Senior Advisor, Corporate Communications, FortisBC, Phone: 604-219-0809, Email: [email protected], fortisbc.com, 24-hour media line: 1-855-322-6397
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