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.
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.
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.
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
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.
For further information:
Corporate Communications Manager