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FortisBC receives approval for adjustment to natural gas rates

Nelson Daily Staff
By Nelson Daily Staff
September 13th, 2016

In a media release, FortisBC announced it has received approval from the BC Utilities Commission (BCUC) to modify natural gas rates. Beginning October 1, 2016 customers will see changes to their bill.

“Natural gas prices have risen since spring 2016. The hotter-than-normal summer, for most of Canada and the US, has resulted in higher-than-expected continental demand for electricity, which is often generated by natural gas,” said Dennis Swanson, vice president of energy supply, FortisBC said in a media statement.

“This, combined with a slowdown in natural gas production, has led to an increase in prices during the past few months.”

“Despite this, natural gas prices are still near their lowest levels in a decade. As we approach the winter heating season, we encourage our customers to continue using energy wisely, to help keep costs down,” added Swanson.

The release said propane rates for Revelstoke customers remained unchanged due to healthy propane storage levels and relatively stable oil prices over the past few months.

The release said 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,” the release said.

Fortis BC said the majority of natural gas customers will see an increase to their cost of gas rate of $0.909 per gigajoule (GJ), meaning the cost of gas rate will change from $1.141/GJ to $2.050/GJ.

These changes will result in an increase of approximately $82 annually for residential customers, based on the average use of 90 GJ per year.

Customer Choice program participants will not be affected by changes to the cost of gas rate.

Fort Nelson customers will not see a change to the gas cost recovery charge.

To learn more about FortisBC’s natural gas rates, visit fortisbc.com/rates.

This post was syndicated from https://thenelsondaily.com
Categories: Business

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