Delivery portion of natural gas and propane rates to decrease in most regions
SURREY, BC, May 25, 2012 /CNW/ - The BC Utilities Commission (BCUC) has determined the 2012/2013 delivery rates for FortisBC natural gas and propane customers.
"After reviewing our revenue requirement application, the BCUC has provided a decision which will see most customers' delivery portion of the bill decrease slightly from interim rates effective January ," said Roger Dall'Antonia, vice president strategic planning, corporate development and regulatory affairs. "One of the reasons for lower rates is a reduction of annual operating and maintenance costs from what FortisBC estimated it required as set out in the original application."
The delivery portion of rates is what FortisBC charges to recover costs associated with delivering natural gas and propane to customers including pipeline maintenance, emergency services, and customer service. When the BCUC made its decision on FortisBC's revenue requirement application, it evaluated what FortisBC would require to recover cost of providing services to customers. Delivery rates enable the company to invest in infrastructure to enhance safety and reliability of the system and meet the future needs of our customers.
These new rates will show on customer bills beginning June 1, 2012. However, the changed rates will be applied effective January 1, 2012. The resulting benefit will be factored into customers' rates for the remainder of the year. The changes are as follows:
Lower Mainland, Fraser Valley, Interior, North and the Kootenays:
- Residential customers will see a decrease to the delivery rate of about $0.15 per gigajoule (GJ). This means a decrease of approximately $14 or 1.6 per cent per year for the average residential customer using approximately 95 GJ in 2012.
- Residential Customers will see a decrease to the delivery rate of about $0.34 per gigajoule (GJ). This means a decrease of approximately $31 or 2.1 per cent per year for the average residential customer using approximately 90 GJ in 2012.
- Residential customers will see a decrease to the delivery rate of about $0.15 per gigajoule (GJ). The average residential customer using approximately 50 GJ of propane per year will see a decrease of approximately $8 or 0.7 per cent for 2012.
Vancouver Island, Sunshine Coast, and Powell River
- As part of this decision by the BCUC, FortisBC received final confirmation that rates should continue to be held at 2011 levels for most customers on Vancouver Island, Sunshine Coast, and Powell River, for a two-year period effective January 1, 2012.
- As part of this decision by the BCUC, FortisBC received final confirmation that rates should continue to be held at 2011 levels for a one-year period effective January 1, 2012.
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 a regulated utility focused on providing safe and reliable energy, including natural gas, electricity, propane and thermal energy solutions. 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.
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