Most regions to see commodity rate decreases
SURREY, BC, March 12, 2012 /CNW/ - The British Columbia Utilities
Commission (BCUC) confirmed today that, most of FortisBC's natural gas
customers will see a commodity rate decrease starting April 1, 2012.
This also includes piped propane customers living in Revelstoke.
Midstream and delivery rates for customers are not affected by this
"The rates approved today are allowing our customers to continue to
benefit from some of the lowest delivered natural gas prices in more
than a decade," said Cynthia Des Brisay, Vice President of Energy
Supply and Resource Development.
"A mild North American winter, growing supply of natural gas and reduced
demand have come together to keep natural gas prices low. "This has
allowed us to flow through a natural gas and a propane rate decrease at
Natural gas and propane rates will change as follows on April 1, 2012:
Lower Mainland, Fraser Valley, Interior, North and the Kootenays
Commodity rate decrease of $1.028 per gigajoule (GJ) for customers,
meaning the commodity rate will drop from $4.005 per GJ to $2.977 per
GJ. The average residential customer using approximately 95 GJ per year
will see a decrease of approximately $98 per year or a 9.9 per cent
decrease. Commodity rates for customers participating in the Customer
Choice program will not be affected, as they purchase the gas commodity
from a licensed gas marketer.
Commodity rate decrease of $1.028 per GJ for customers. The average
residential customer using approximately 90 GJ per year will see a
decrease of approximately $93 per year or a 6 per cent decrease.
Commodity rate decrease of $0.843 per GJ for customers. The average
residential customer using approximately 140 GJ per year will see a
decrease of approximately $118 per year or a 11.7 per cent decrease.
Commodity rate decrease of $2.125 per GJ for customers. The average
residential customer using approximately 50 GJ per year of piped
propane will see a decrease of approximately $106 per year or a 8.4 per
Vancouver Island, Sunshine Coast and Powell River
As part of a separate application currently before the BCUC, FortisBC
has received interim approval from the BCUC, effective January 1, 2012,
to hold rates at 2011 levels for most customers on Vancouver Island,
the Sunshine Coast and Powell River. This rate freeze keeps natural gas
competitive with other energy sources used in this region.
Recently, FortisBC filed an application with the BC Utilities Commission
to introduce common natural gas rates and program offerings across the
province, which will be made possible by combining our three natural
gas utilities into one. This application is at the regulatory stage and
if approved, customers would pay the same rate for natural gas
regardless of where they live.
FortisBC buys natural gas and propane on behalf of its customers and
passes that price on without mark-up. 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. 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
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.
To view natural gas prices over the last few years, visit www.fortisbc.com/costofgas.
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
investor-owned 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 47,000 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.
For further information:
Corporate Communications Advisor