FortisBC receives approval for natural gas and propane rate adjustments

Vancouver Island rates to remain unchanged; changes to other regions

SURREY, BC, Nov. 25, 2011 /CNW/ - FortisBC has received approval from the B.C. Utilities Commission (BCUC) to adjust the rates it charges customers for natural gas and propane service. Most customers will see no change to the commodity rate, while midstream and delivery rates will increase, effective January 1, 2012.

"FortisBC is sensitive to any rate change and works hard to ensure value for our customers," said Cynthia Des Brisay, vice president of energy supply and resource development. "Even with these changes to midstream and delivery rates, customers are continuing to benefit from some of the lowest delivered natural gas rates in more than a decade as a result of our commodity purchasing strategies and market conditions."

"North American natural gas prices have continued to remain low due to abundant supply, allowing us to maintain our current commodity rate for most customers. While the price of crude oil and propane remains high, we are able to avoid any commodity rate increases for propane customers at this time."

Rates will change as follows on January 1, 2012:

Lower Mainland, Fraser Valley, Interior, North and the Kootenays

  • Residential customers will see no change to the commodity rate and an increase to the midstream rate of between $0.01 to $0.016 per gigajoule (GJ). The slight increase in the midstream rate is due to increases in third party gas transportation and storage costs. As part of the 2012-2013 revenue requirement applications filed earlier this year, FortisBC received interim approval to increase its delivery rate $0.320 per GJ for customers in these regions. The combined rate change of up to $0.336 per GJ means an increase of approximately $32 per year for the average residential customer using approximately 95 GJ.

    Customer Choice program participants can also expect to see changes to the delivery and midstream rates on their bills.

Whistler

  • Residential customers will see a commodity rate decrease of $0.074 per GJ. As part of the 2012- 2013 revenue requirement application filed earlier this year, FortisBC received interim approval from the BCUC to increase its delivery rate by $1.063 per GJ for Whistler customers. The average residential customer using 90 GJ per year will see an increase of approximately $89.

Fort Nelson

  • Residential customers using approximately 140 GJ of natural gas per year will see a decrease of approximately $6. This is based on no change to the commodity component of rates and from the approved interim decrease to a component of delivery rates for this region.

Revelstoke

  • Residential customers receiving piped propane will see no increase in the commodity rate of propane. The average residential customer using approximately 50 GJ of propane per year will see an increase of approximately $16 due to the new approved interim delivery rate changes.

Vancouver Island, Sunshine Coast and Powell River

  • FortisBC has received interim approval from the BCUC to hold rates at 2011 levels for most customers on Vancouver Island, the Sunshine Coast and Powell River effective January 1, 2012.

FortisBC buys natural gas and propane on behalf of its customers and passes that price on without markup. Every three months, FortisBC reviews natural gas and propane commodity rates with the BCUC in order to make sure rates passed on to customers cover the cost of purchasing the gas on their behalf. Midstream rates, also passed on to customers without mark-up, cover the storage and transportation of natural gas delivered to customers. Factors affecting the market price of natural gas in North America include weather, supply and demand, and economic conditions. Propane prices are closely linked to global oil markets.

As part of the 2012-2013 revenue requirement applications filed earlier this year, FortisBC received approval for interim delivery rate adjustments. The delivery portion of rates is what FortisBC charges to deliver natural gas and propane service to customers. It enables the company to recover its costs, and make investments in its business that will benefit the evolving needs of customers and communities served.

For more information on natural gas and propane rates by region, how commodity rates are set, and to learn more about FortisBC, visit www.fortisbc.com/rates.

FortisBC is an integrated energy solutions provider focused on providing safe and reliable energy, including natural gas, electricity, propane and alternative energy solutions, at the lowest reasonable cost. FortisBC employs more than 2,300 British Columbians and serves approximately 1.1 million customers in more than 135 B.C. communities. FortisBC is indirectly wholly owned by Fortis Inc., the largest investorowned distribution utility in Canada. FortisBC owns and operates four regulated hydroelectric generating plants, approximately 7,000 kilometres of transmission and distribution power lines and approximately 46,000 kilometres of natural gas transmission and distribution pipelines. FortisBC Inc., FortisBC Energy Inc., FortisBC Energy (Vancouver Island) Inc., and FortisBC Energy (Whistler) Inc. do business as FortisBC. Fortis Inc. shares are listed on the Toronto Stock Exchange and trade under the symbol FTS. Additional information can be accessed at www.fortisinc.com or www.sedar.com.

SOURCE FortisBC

For further information:

Media contact:
Neal Pobran
Corporate Communications Manager
Phone: 250-469-8128
fortisbc.com
twitter.com/FortisBC
youtube.com/FortisBC


FORFAITS PERSONNALISÉS

Jetez un coup d’œil sur nos forfaits personnalisés ou créez le vôtre selon vos besoins de communication particuliers.

Commencez dès aujourd'hui .

ADHÉSION À CNW

Remplissez un formulaire d'adhésion à CNW ou communiquez avec nous au 1-877-269-7890.

RENSEIGNEZ-VOUS SUR LES SERVICES DE CNW

Demandez plus d'informations sur les produits et services de CNW ou communiquez avec nous au 1‑877-269-7890.