FortisBC natural gas rates remain low for remainder of the year
Change in season a reminder to service or upgrade natural gas appliances
SURREY, BC, Sept. 19, 2017 /CNW/ - FortisBC has received approval to maintain the cost of natural gas rates from the British Columbia Utilities Commission (BCUC). As of October 1, 2017, FortisBC customers will see no change to the cost of gas on their billing statement. The cost of propane rates will also be maintained for customers in Revelstoke.
Every three months, FortisBC reviews the cost of gas rates with the BCUC to make sure rates passed on to customers cover the cost of purchasing the natural gas on their behalf. FortisBC does not mark up the cost of gas, customers pay what we pay.
"Our customers can be assured that for the rest of the year, the cost of gas rate is holding steady," said Diane Roy, vice-president of regulatory affairs at FortisBC. "With winter heating season coming up, it's also a good reminder to service your natural gas appliances and take advantage of many rebates we have to offer when it's time to upgrade."
Below are the continued current cost of gas rates for each region as of October 1, 2017:
Lower Mainland, Vancouver Island, Whistler, Fraser Valley, Interior, North and the Kootenays
- No change to the current rate of $2.050 per gigajoule (GJ).
Fort Nelson
- No change to the current rate of $2.086 per GJ.
Revelstoke
- No change to the current residential cost of propane rate of $11.088 per GJ. Cost of propane rates for commercial customers are also maintained.
Save with natural gas
Natural gas is an affordable option to heat customers' homes and water when compared to other energy choices in B.C. such as electricity. In fact, it's about one third the cost of electricity.
Natural gas appliances offer convenience, comfort and cost savings. This season, if customers are planning on upgrading their appliances, building new or renovating, FortisBC has rebates on high-efficiency appliances, equipment and more.
For those who are not yet a natural gas customer, now is the time to connect to gas. Customers can save energy and money by having natural gas piped directly to their home, meaning no more oil storage tank, wood chopping or filling propane tanks.
For more information about rates and to learn about the components of a bill statement, 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 almost 1,800 British Columbians and serves approximately 994,000 customers in 125 B.C. communities. FortisBC Energy Inc. is indirectly, wholly owned by Fortis Inc., the largest investor-owned distribution utility in Canada. FortisBC Energy Inc. owns and operates approximately 48,700 kilometres of natural gas transmission and distribution pipelines. FortisBC is a subsidiary of Fortis Inc., a leader in the North American regulated electric and gas utility industry. For further information visit www.fortisinc.com.
BACKGROUNDER
Items on a customer's bill
Basic charge
The basic charge is a flat daily fee that partially recovers the fixed costs of our system, whether or not you are using any natural gas, as long as you are connected to the system. The basic charge is reviewed by the BCUC annually.
Delivery charge
The delivery charge is based on consumption and pays for the cost of safely and reliably delivering gas through our system to your home or business. This helps cover the costs of maintaining our natural gas distribution system, earn a return on the amounts invested in our business and fund improvements to meet customers' needs. Delivery charges are reviewed by the BCUC annually.
Storage and transport
Storage and transport 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
Every three months, FortisBC reviews natural gas and propane cost of gas rates with the BCUC 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 oil markets.
- FortisBC does not mark up the cost of gas, customers pay what we pay.
Natural gas prices in British Columbia continue to remain near their lowest levels within the last decade.
- Natural gas is traded in the North American marketplace as a commodity like oil, gold or lumber. Our commodity rates are reviewed every three months by the BCUC to ensure the rates we are charging appropriately cover the cost of natural gas we purchase on behalf of our customers.
- Factors affecting the market price of natural gas and propane in North America include weather, supply and demand and economic conditions.
- Rates are reviewed each quarter based on a forecast of what our costs to purchase gas will be over the following 12 months, based on forward prices forecasted by the market.
Other charges and taxes
Other charges and taxes include the B.C. carbon tax, Clean Energy Levy, goods and services tax (GST) and, in some municipalities, the 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.
SOURCE FortisBC
MEDIA CONTACT: Diana Sorace, Corporate Communications Advisor, FortisBC Energy Inc., [email protected], fortisbc.com, @fortisBC, 24-hour media line: 1-855-322-6397
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