Total bill impact for majority of FortisBC customers estimated to be six dollars per month
SURREY, BC, July 17, 2020 /CNW/ – FortisBC Energy Inc. (“FortisBC”) has received regulatory approval from the British Columbia Utilities Commission (BCUC) to modify the cost of natural gas rate for the majority of its customers beginning August 1. The cost of natural gas is only one component of the overall FortisBC natural gas bill and the next scheduled review is October 1.
“We strive to provide a safe and reliable supply of natural gas at the lowest reasonable cost,” said Diane Roy, vice-president of regulatory affairs. “Even with the current cost of gas increase, natural gas prices in British Columbia remain among their lowest levels in almost 15 years.”
For residential natural gas customers except those in Fort Nelson, monthly bills will increase by approximately six dollars per month, or nine per cent. This is based on an average household consumption of eight gigajoules (GJ) of natural gas per month.
As an energy solutions provider regulated by the BCUC, FortisBC reviews the costs of natural gas and propane rates with the BCUC to make sure the rates passed on to customers are fair. FortisBC acquires natural gas and propane at market-based prices and factors like supply and demand and economic conditions affect the price of natural gas and propane in North America. Recently, the price of natural gas has risen due to a drop in North American natural gas production as well as the worldwide impacts of the COVID-19 pandemic.
This rate change follows an earlier application to the BCUC which approved a one month delay to changing the cost of gas rate to allow the economic recovery of the province to advance further. The rate change is to the cost of gas component only and not to other line items on customers’ bills. 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.
As of August 1, 2020:
Mainland and Vancouver Island (including North and South Interior)
- For all customers, the cost of natural gas will change by $0.730 from $1.549/GJ to $2.279/GJ.
- For all customers, the cost of natural gas will change by $0.647 from $1.048/GJ to $1.695/GJ.
- For residential customers, the cost of propane will change by $0.542 from $11.180/GJ to $11.722/GJ.
For more information about rates, and what components make up a natural gas or propane bill, visit: fortisbc.com/rates.
FortisBC Energy Inc. is a regulated utility focused on providing safe and reliable energy, including natural gas, propane and thermal energy solutions. FortisBC Energy Inc. employs more than 1,800 British Columbians and serves approximately 1,029,000 customers in 135 B.C. communities. FortisBC Energy Inc. owns and operates approximately 49,000 kilometres of natural gas transmission and distribution pipelines. FortisBC Energy Inc. is a subsidiary of Fortis Inc., a leader in the North American regulated electric and gas utility industry. FortisBC uses the FortisBC name and logo under license from Fortis…