Natural gas rates change January 1 for FortisBC customers

SURREY, BC, Dec. 15, 2020 /CNW/ - As an energy solutions provider regulated by the British Columbia Utilities Commission (BCUC), FortisBC Energy Inc. (FortisBC) reviews its rates each year and its natural gas commodity-related rates each quarter with the BCUC to make sure that the rates charged to customers appropriately recover the costs of energy and delivering it safely and reliably. As of January 1, 2021, FortisBC natural gas customers will see an overall increase to their bill due to increasing storage and transport as well as delivery costs.  

Historical data for Mainland & Vancouver Island (including North and South interior). (CNW Group/FortisBC)

"There are a number of items that make up an energy bill, including the costs to store, transport and deliver energy, which have all increased," explained Diane Roy, vice-president of regulatory affairs with FortisBC. "Our priority continues to be delivering safe and reliable energy to our customers while working to keep rates as low as possible."

For FortisBC residential natural gas customers in the Lower Mainland, Fraser Valley, Interior, Whistler, Vancouver Island and the Kootenays, monthly natural gas bills will increase by approximately eight per cent, or six dollars, based on average usage (7.5 gigajoules per month). For residential customers in Fort Nelson, monthly bills will increase by approximately five per cent, or four dollars, based on average usage (10 gigajoules per month).

"We understand that energy costs are an important decision in household budgets, and that the COVID-19 pandemic continues to have unprecedented impacts on many of our customers," said Roy. "I want all of our customers to know that they are our primary focus. If any customer needs support with their bills, please call us and we'll work with you to find a solution."

While rates have risen for natural gas customers, those customers receiving propane in Revelstoke will see a decrease in their annual bills of approximately 36 per cent, equal to $350 for residential customers based on average usage (50 gigajoules per year). This is the result of the BCUC approving the amalgamation of Revelstoke's propane portfolio costs with natural gas portfolio costs to match natural gas rates in the rest of the province, outside of Fort Nelson. After this initial decrease, Revelstoke propane customers will see greater stability in their rates due to the amalgamation.

For more information about rates and what components make up a natural gas or propane bill, 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 more than 1,800 British Columbians and serves approximately 1,008,400 customers in 135 B.C. communities. FortisBC Energy Inc. owns and operates approximately 49,000 kilometres of natural 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 uses the FortisBC name and logo under license from Fortis Inc. For further information visit www.fortisinc.com.

BACKGROUNDER

Historical data for Mainland & Vancouver Island (including North and South interior)

RATES AT A GLANCE

Below is the breakdown of residential rates for each region effective January 1, 2021.

Service area	Rate	Change	New rate	Impact to customer
Mainland and Vancouver Island	Delivery	Increase of $0.428 per GJ	$5.024 per GJ
	Storage and transport	Increase of $0.378 per GJ	$1.397 per GJ
	Cost of gas	No change	No change (current rate of $2.844 per GJ)
	Basic charge	No change	$0.4216 per day
	Renewable Natural Gas (RNG) customers	Increase of $1.295 per GJ	$11.830 per GJ	* Subscriptions for new customers to our RNG program is temporarily closed as we work to bring new supply online
	Total impact*			Annual increase of $73 or eight per cent (based on the average annual usage of 90 GJ)
Revelstoke	Delivery	Increase of $0.428 per GJ	$5.024 per GJ
	Storage and transport	Implementation of the Mainland and Vancouver Island Storage and Transport rate	$1.397 per GJ
	Cost of propane (aligned with cost of gas)	Implementation of the Mainland and Vancouver Island cost of gas rate	$2.844 per GJ
	Basic charge	No change	No change (current rate of $0.4216 per day)
	Total impact*			Annual decrease of $353 or 36 per cent (based on the average annual usage of 50 GJ)
Fort Nelson	Delivery	Decrease of $0.231 per GJ	$4.064 per GJ	Interim, delivery component of rates
	Storage & transport	Decrease of $0.007 per GJ	$0.043 per GJ
	Cost of gas	Increase of $0.592 per GJ	$2.999 per GJ
	Basic charge	No change	No change (Current rate of $0.3701 per day)
	Total impact*			Annual increase of $44 or five per cent (based on the average annual usage of 125 GJ)

*Based on average residential annual usage for each region.

Items on a residential 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 natural 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 customer's home or business. This helps cover the costs of maintaining our natural gas distribution system, provide a return to our investors 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. FortisBC does not mark up the cost of storage and transport, customers pay what we pay.

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.

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.

SOURCE FortisBC

MEDIA CONTACT: Diana Sorace., Corporate Communications Advisor, FortisBC, Phone: [phone], Email: [email protected], fortisbc.com, 24-hour media line: 1-855-322-6397

Related Links

http://www.fortisbc.com/Pages/default.aspx