FortisBC natural gas rates to remain low this summer

SURREY, BC, June 19, 2017 /CNW/ - As of July 1, 2017, FortisBC customers will see no change to the cost of gas on their billing statement. FortisBC has received approval to maintain the cost of natural gas rates from the British Columbia Utilities Commission (BCUC). The cost of propane rates will also be maintained for those customers in Revelstoke.

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 purchasing the natural gas on their behalf. FortisBC does not mark up the cost of gas, customers pay what we pay.

Video: When it comes to your natural gas bill, chances are you're probably less concerned with gigajoules and more interested in how the actual rates on your natural gas bill are set, and why they tend to fluctuate from time to time. This video explains natural gas rates.

Cost of natural gas (per GJs). (CNW Group/FortisBC)

"Maintaining the cost of gas rate this quarter gives our customers predictability in what they can expect when they receive their bill," said Diane Roy, vice-president of regulatory affairs at FortisBC.  "Natural gas remains the affordable and efficient energy choice for home and business heating. In fact, it's about one third the cost of electricity for space and water heating."

Below are the continued current cost of gas rates for each region as of July 1, 2017:

Lower Mainland, Vancouver Island, Whistler, Fraser Valley, Interior, North and the Kootenays

• No change to the current rate of $2.050 per gigajoule (GJ).

Fort Nelson

• No change to the current rate of $2.086 per GJ.

Revelstoke

• No change to the current residential cost of propane rate of $11.088 per GJ. Cost of propane rates for commercial customers are also maintained.

Save with natural gas

While natural gas continues to be the number one heating choice in Canada, it is still important for customers to use energy wisely in order to keep costs down.

FortisBC is committed to helping customers conserve energy and get the most out of their energy dollar by providing both financial incentives and advice on energy efficient technologies and practices. This summer, customers can choose the versatility of natural gas for outdoor living spaces. Natural gas appliances not only offer convenience and reliability but also cost savings.

For more information about rates and to learn about the components of a bill statement, visit: fortisbc.com/rates

FortisBC Energy Inc. is a regulated utility focused on providing safe and reliable energy, including natural gas, propane and thermal energy solutions. FortisBC Energy Inc. employs almost 1,800 British Columbians and serves approximately 982,000 customers in 125 B.C. communities. FortisBC Energy Inc. is indirectly wholly owned by Fortis Inc., the largest investor-owned distribution utility in Canada. FortisBC Energy Inc. owns and operates approximately 48,200 kilometres of natural gas transmission and distribution pipelines. Fortis Inc. shares are listed on the TSX and NYSE and trade under the symbol FTS. Additional information can be accessed at fortisinc.com or sedar.com.

BACKGROUNDER

Items on a customer's bill

Basic charge
The basic charge is a flat daily fee that partially recovers the fixed costs of our system, whether or not you are using any natural gas, as long as you are connected to the system. The basic charge is reviewed by the BCUC annually.

Delivery charge
The delivery charge is based on consumption and pays for the cost of safely and reliably delivering gas through our system to your home or business. This helps cover the costs of maintaining our natural gas distribution system, earn a return on the amounts invested in our business and fund improvements to meet customers' needs. Delivery charges are reviewed by the BCUC annually.

Storage and transport
Storage and transport 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
Every three months, FortisBC reviews natural gas and propane cost of gas rates with the BCUC to make sure rates passed on to customers cover the cost of purchasing the gas on their behalf.

• Factors affecting the market price of natural gas and propane in North America include weather, supply and demand and economic conditions.
• Propane prices are also influenced by global oil markets.
• FortisBC does not mark up the cost of gas, customers pay what we pay.

Natural gas prices in British Columbia continue to remain near their lowest levels within the last decade.

• Natural gas is traded in the North American marketplace as a commodity like oil, gold or lumber. Our commodity rates are reviewed every three months by the BCUC to ensure the rates we are charging appropriately cover the cost of natural gas we purchase on behalf of our customers.
• Factors affecting the market price of natural gas and propane in North America include weather, supply and demand and economic conditions.
• Rates are reviewed each quarter based on a forecast of what our costs to purchase gas will be over the following 12 months, based on forward prices forecasted by the market.

Other charges and taxes
Other charges and taxes include the B.C. carbon tax, Clean Energy Levy, goods and services tax (GST) and, in some municipalities, the 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.

SOURCE FortisBC

MEDIA CONTACT: Diana Sorace, Corporate Communications Advisor, FortisBC Energy Inc., [email protected], fortisbc.com, @fortisBC, 24-hour media line: 1-855-322-6397