The cost of gas remains steady for the majority of FortisBC customers

Mar 18, 2020

SURREY, BC, March 18, 2020 ­– FortisBC Energy Inc. (“FortisBC”) has received regulatory approval from the British Columbia Utilities Commission (BCUC) to maintain the cost of natural gas rate for the majority of its customers from April 1 to June 30, 2020.

As an energy solutions provider regulated by the BCUC, FortisBC reviews the costs of natural gas and propane with the BCUC each month to make sure the rates passed on to customers are fair. The cost of natural gas has remained steady for over two-and-a-half years. FortisBC does not mark up the cost of natural gas or propane; the cost that FortisBC pays is what is passed on to its customers.

“Not only is natural gas safe and affordable, it’s an important energy that serves over half of the homes in the province,” said Dennis Swanson, vice-president of energy supply and resource development at FortisBC. “Natural gas is an integral part of our energy future – it gives us the ability to gradually reduce emissions in an affordable way through the use of carbon-neutral renewable gases as well as find new ways to help our customers reduce their use of energy.”

The cost of natural gas rate is increasing for customers in Fort Nelson and for propane customers in Revelstoke. These increases are due to increased commodity costs being passed on to customers. All rates will hold steady until the next quarterly review in June 2020.

As of April 1, 2020:

Mainland and Vancouver Island (including North and South Interior)

• There is no change to the cost of gas rate, which remains at $1.549 per gigajoule (GJ).

• This cost of gas rate has remained steady since January 2018.

Fort Nelson

• For residential customers the cost of natural gas will change from $1.048/GJ to $1.863/GJ.

Revelstoke

• For residential customers the cost of propane will change from $11.180/GJ to $11.889/GJ.

For more information about rates, and what components make up a natural gas or propane bill, visit: fortisbc.com/rates.

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

Items on a residential customer’s bill

Daily 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 British Columbia Utilities Commission (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 the cost of natural gas and propane 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 natural gas or propane. 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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