Cost of gas and RNG voluntary program rates to remain the same for FortisBC customers
SURREY, BC, Sept. 16, 2024 /CNW/ - FortisBC Energy Inc. (FortisBC) has received approval from the British Columbia Utilities Commission (BCUC) to maintain the cost of gas rate for its customers at $2.230 per gigajoule (GJ). The Renewable Natural Gas1 (RNG) rate for customers subscribed in the voluntary program2 will also stay the same at $13.22 per GJ. The BCUC reviews FortisBC's cost of gas and voluntary RNG program rates every three months and will review them next in December.
"FortisBC is committed to providing safe, reliable and affordable energy for our customers across British Columbia," said Joe Mazza, vice-president of energy supply and resource development. "With the fall and winter heating season upon us, the cost of gas and voluntary RNG program rates staying the same helps keep energy costs stable for the families and businesses we serve."
FortisBC acquires gas at market-based prices, and factors like supply and demand, weather and economic conditions affect the price of gas in North America. FortisBC does not mark up the cost of gas, so its customers pay what it pays.
Customers who have questions about their bill are encouraged to reach out. FortisBC's customer service team can answer billing questions, provide information about energy-saving tips and offer payment plan solutions that fit individual needs.
For more information about rates and the components that make up a FortisBC gas bill, visit fortisbc.com/rates.
About FortisBC Energy Inc.
FortisBC Energy Inc. is a regulated utility focused on providing safe, reliable and affordable energy, including natural gas, Renewable Natural Gas and propane. FortisBC Energy Inc. employs around 2,143 British Columbians and serves approximately 1,086,500 customers across British Columbia. FortisBC Energy Inc. owns and operates two liquefied natural gas storage facilities and approximately 51,600 kilometres of gas transmission and distribution lines. FortisBC Energy Inc. is a subsidiary of Fortis Inc., a leader in the North American regulated electricity and gas utility industry. FortisBC Energy Inc. uses the FortisBC name and logo under license from Fortis Inc. For further information on FortisBC Energy Inc., visit fortisbc.com. For further information on Fortis Inc., visit fortisinc.com.
BACKGROUNDER
Historical data for Mainland and Vancouver Island (including North and South Interior)
Items on a residential gas customer's bill
Daily or monthly basic charge
The basic charge is a flat fee that partially recovers the fixed costs of our system, whether or not customers are using any gas, as long as that 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 our system to our customers' homes and businesses. This helps cover the costs of maintaining our gas distribution system, provides a return to our investors and funds improvements to meet customers' needs. Delivery charges are reviewed by the BCUC annually.
Storage and transport charge
The storage and transport charge reflects the prices we pay to other companies to store and transport gas through their pipelines and infrastructure. We do not mark up these costs, and they are reviewed quarterly and set annually by the BCUC.
Cost of gas rates
Every three months, FortisBC reviews the cost of gas and voluntary RNG program rates with the BCUC to make sure rates passed on to customers cover the cost of the commodity purchased on their behalf. We do not mark up the cost of gas, so customers pay what we pay. Factors affecting the market price of 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, 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 their behalf. FortisBC does not gain revenue from these charges.
1 Renewable 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.
2 Excluding commercial and industrial vehicle voluntary RNG rates under Rate Schedule 3VRNG, 5VRNG, and 46, which are reviewed by the BCUC annually.
SOURCE FortisBC Energy Inc.
MEDIA CONTACT: Gary Toft, Senior corporate communications advisor, FortisBC, Phone: 604-219-0809, Email: [email protected], fortisbc.com, 24-hour media line: 1-855-322-6397
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