Cost of gas rate changes due to increase in market demand

Sep 10, 2021

Total bill impact for majority of FortisBC customers estimated to be $8.00 per month

SURREY, BC, September 10, 2021 ­– FortisBC Energy Inc. (FortisBC) has received regulatory approval from the British Columbia Utilities Commission (BCUC) to increase the cost of gas rates for all of its customers beginning October 1, 2021. The cost of gas is only one component of the overall FortisBC gas bill and the next scheduled review is in December, 2021.

“We acquire natural gas at market-based prices and factors like supply and demand and economic conditions affect the price,” said Joe Mazza, vice-president, energy supply and resource development at FortisBC. “We understand that energy costs are an important consideration in household budgets and we are always here to help our customers manage their bills and energy use."

As of October 1, 2021:

Mainland and Vancouver Island (including North and South Interior), Whistler and Revelstoke

• The cost of gas rate will change by $1.00 per gigajoule (GJ) from $2.844 per GJ to $3.844 per GJ. For residential customers, monthly bills will increase by approximately $8.00 or nine per cent. This is based on an average household consumption of approximately eight GJs per month.

Fort Nelson

• The cost of gas rate will change by $0.965 per GJ from $2.999 per GJ to $3.964 per GJ. For residential customers, monthly bills will increase by approximately $10.00 or 12 per cent. This is based on an average household consumption of approximately 10 GJs per month.

Customer Choice program participants are not affected by changes to the cost of gas rate.

As an energy solutions provider regulated by the BCUC, FortisBC reviews the costs of gas rates with the BCUC quarterly to make sure the rates passed on to customers are fair. FortisBC acquires natural gas at market-based prices and factors like supply and demand and economic conditions affect the price of natural gas in North America. With market prices increasing, FortisBC rates are rising to reflect the higher cost of acquiring natural gas for customers.

FortisBC does not mark up the cost of gas; the cost that FortisBC pays is what is passed on to customers.

For more information about rates and the components that make up a FortisBC gas bill, visit: fortisbc.com/rates.

BACKGROUNDER

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

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.

Cost of gas

Every three months, FortisBC reviews the cost of gas rates with the British Columbia Utilities Commission to make sure rates passed on to customers cover the cost of the commodity purchased on their behalf. We do not markup 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.
• FortisBC does not mark up the cost of gas, customers pay what we pay.

Other charges and taxes

Other charges and taxes include the BC 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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