Natural gas rates change January 1 for FortisBC customers

Dec 15, 2020

SURREY, BC  ̶  December 15, 2020: 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.

“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.

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.

*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.

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