Gas rates will change on January 1 for FortisBC customers

Dec 6, 2024

Rate changes will help meet customers’ energy needs and support the safety and reliability of the gas system

SURREY, B.C.—December 6, 2024: As of January 1, 2025, the average FortisBC Energy Inc. (FortisBC) residential gas customer will see an overall increase to their bill of around $14.25 per month based on a monthly consumption of about 7.5 gigajoules (GJ). Changes to individual bills will vary based on use. This marks the first increase since 2022, as overall gas rates fell in both 2023 and 2024 for most customers. This change will help FortisBC to make the necessary system improvements and long-term investments so that customers have the energy they need, when they need it.

As a critical energy provider regulated by the British Columbia Utilities Commission (BCUC), FortisBC reviews its delivery and storage and transport rates each year and its cost of gas rate each quarter with the BCUC. This is done to help ensure the rates charged to customers appropriately recover the costs related to delivering energy safely and reliably. There is no mark up on the cost of gas; customers pay what FortisBC pays.

FortisBC has received approval from the BCUC for its gas rates, which will result in an overall increase of 17.5 per cent for the average residential customer. These rates are approved on an interim basis. The BCUC is also in the process of reviewing FortisBC’s 2025 to 2027 Rate Setting Framework, which could affect final rates. A decision is expected in the first half of 2025 and FortisBC expects to apply for permanent rates later in 2025.

“We understand that rate changes may be difficult for some of our customers, and we want to assure you that these rate adjustments are aimed at better serving your energy needs.” said Michelle Carman, vice president of customer service and external communications. “If you have any questions about your bill, please don't hesitate to reach out to us. Our dedicated customer service team is here to support you with energy-saving tips and tools available online, answer any billing questions and offer personalized solutions that fit your needs.” 

FortisBC operates efficiently to help keep rates as low as possible. However, increases are sometimes needed to ensure the gas system remains safe and reliable.

The 2025 rates include investments in a number of approved and completed projects needed to support the safe and reliable delivery of energy, including the Inland Gas Upgrades, Gibsons Capacity Upgrade, Coastal Transmission System Transmission Integrity Management Capabilities and the Pattullo Gas Line Replacement projects. The changes to FortisBC’s rates also reflect a shift back to historical cost levels for storage and transport, the increasing blend of Renewable Natural Gas¹ (RNG) to help reduce carbon emissions, and necessary investments in maintenance and upgrades that ensure the safety and reliability of the gas system that delivers energy to customers.

To help reduce costs for its customers, FortisBC purchases gas in the summer when prices are lower and stores it so that lower-cost gas is available to customers in winter months when they need it. In addition, FortisBC sells any surplus gas back to the market to further offset costs and passes those savings on to its customers.

As of January 1, 2025:

Residential customers throughout B.C., excluding Fort Nelson

• Residential customers, except for those in Fort Nelson, will see an overall change on their bill of about $14.25 per month based on average monthly household consumption of approximately 7.5 GJ, or about 17.5 per cent.

Fort Nelson

• Residential customers in Fort Nelson will see an overall change on their bill of about $14 per month based on average monthly household consumption of approximately 10 GJ, or about 14.5 per cent.

RNG blend

• RNG is a low-carbon² energy that can help British Columbia advance its climate action goals and supports FortisBC’s customers in reducing overall greenhouse gas (GHG) emissions.
• As of January 1, 2025, all FortisBC customers will have two per cent of their gas designated as RNG, up from one per cent.

While the costs related to storing, transporting and delivering gas typically remain in place for the year, FortisBC reviews the cost of gas every quarter with the BCUC, and the next review will be in March 2025.

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

BACKGROUNDER

Historical data for Mainland and Vancouver Island (including North and South Interior, Whistler)

Items on a residential gas customer’s bill

Basic charge

The basic charge is a flat fee that partially recovers the fixed costs of FortisBC’s system, whether or not a customer is using any gas, as long as they 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 FortisBC’s system to a customer’s home or business. This helps cover the costs of maintaining the gas distribution system, provides a modest return to FortisBC’s investors and funds improvements to meet customers' needs. Delivery charges are reviewed by the BCUC annually.

Storage and transport

Storage and transport is what FortisBC pays to other companies to store and transport gas through their pipelines and infrastructure. It also includes the cost associated with the RNG blend. The RNG blend adds to FortisBC’s ongoing efforts to reduce overall GHG emissions and can help British Columbia reach its climate action goals. FortisBC does not mark up the cost of storage and transport, and it is reviewed quarterly and set annually by the BCUC.

Cost of gas

Every three months, FortisBC reviews the cost of gas rates with the BCUC to make sure rates passed on to customers cover the cost of the commodity purchased on their behalf. FortisBC does not mark up the cost of gas, so customers pay what it pays. Factors affecting the market price of natural gas in North America include weather, supply and demand, and economic conditions.

Other charges and taxes

Other charges and taxes include the B.C. carbon tax, B.C. 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 behalf of its customers. FortisBC does not gain revenue from these charges.

¹Renewable Natural Gas (also called RNG or biomethane) is produced in a different manner than conventional natural gas. It is derived from biogas, which is produced from decomposing organic waste from landfills, agricultural waste and wastewater from treatment facilities. The biogas is captured and cleaned to create RNG. When RNG is added to North America’s natural gas system, it mixes with conventional natural gas. This means we’re unable to direct RNG to a specific customer. But the more RNG is added to the gas system, the less conventional natural gas is needed, thereby reducing the use of fossil fuels and overall greenhouse gas emissions.

²When compared to the lifecycle carbon intensity of conventional natural gas. The burner tip emission factor of FortisBC’s current Renewable Natural Gas (also called RNG or biomethane) portfolio is 0.27 grams of carbon dioxide equivalent per megajoule of energy (gCO₂e/MJ). FortisBC’s current RNG portfolio lifecycle emissions for stationary combustion are -22 gCO₂e/MJ. This is below B.C.’s low carbon threshold for lifecycle carbon intensity of 30.8 gCO₂e/MJ as set out in the 2024 Greenhouse Gas Reduction Regulation amendments.

 

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