Cost of propane decreasing for FortisBC customers in Revelstoke

Dec 7, 2018

SURREY, BC – As of January 1, 2019, FortisBC propane customers will see an overall decrease to their bills. The cost of propane for a residential customer decreases from $12.842 per gigajoule (GJ) to $10.621 per GJ, making it the lowest rate in two years.

The total overall decrease from the lower cost of propane is slightly offset by an approximate one per cent increase to delivery rates on an interim basis pending a final decision from the British Columbia Utilities Commission (BCUC) early in 2019. Overall, residential customers will see an annual decrease of $108 (11 per cent) on their bills.

The decrease to the cost of propane is due to healthy propane storage levels and relatively low oil prices over the past few months. FortisBC gas rates are regularly reviewed and approved by its regulator, the BCUC.

BACKGROUNDER

Items on a residential 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.

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, 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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