Follow Us! Like Our Page!

BCUC Approves FortisBC Energy Inc.’s Second Quarter Gas Commodity Rates

Press Release

VANCOUVER – Today, the British Columbia Utilities Commission (BCUC) completed its review of FortisBC Energy Inc.’s (FEI) Second Quarter Gas Cost Reports and approved commodity rate changes in the Fort Nelson, and Mainland and Vancouver Island service areas.

Gas commodity rates are a flow-through of the market prices that the utility pays. The BCUC reviews FEI’s gas costs every quarter and does not approve utilities to earn a return or profit on the cost they incur to purchase the commodity.

As a result of volatility in the gas market and external geopolitical factors, commodity prices have increased dramatically. The BCUC recognizes the impact the rate changes will have on utility customers and has encouraged FEI and other energy utilities to think creatively and explore all options within their means to try and mitigate the impact to customers. One of the mitigation efforts includes extending the amortization period for these higher commodity costs from the typical 12-month period to 24 or 36 months.

For the Fort Nelson service area, the total annual bill for a typical Fort Nelson residential customer with an average annual consumption of 125 gigajoules will increase by approximately $172 or 15.3 percent.

For the Mainland and Vancouver Island service area, the total annual bill impact for a typical residential customer with an average annual consumption of 90 gigajoules by approximately $126 or 10.7 percent.

The following rates have been approved by the BCUC and are effective July 1, 2022.

Service Area Rate Class Commodity Cost Recovery
Rate
Commodity
Type
Rate
Smoothing

Period
Fort Nelson Sales Rate Classes Increase by by $1.377 from
$3.964/GJ to $5.341/GJ
Natural Gas 36 months
Mainland and
Vancouver
Island
Sales Rate Classes
and Rate Schedule
46 LNG Service
Increase by $1.404/GJ
from $4.503/GJ to $5.907/GJ
Natural Gas 24 months

More information is available at the following links:

  • Mainland and Vancouver Island – Order Number G-154-22
  • Fort Nelson – Order Number G-156-22

About the BCUC

The BCUC is an independent regulatory body, responsible for regulating BC’s energy utilities, as well as its compulsory automobile insurance rates, and intra-and provincial pipelines rates. The BCUC is also responsible for administering BC’s Fuel Price Transparency Act. It is the BCUC’s role to balance the interests of customers with the interests of the businesses it regulates. The BCUC carries out fair and transparent reviews of matters within its jurisdiction and considers public input where public interest is impacted.

CONTACT INFORMATION

Krissy Van Loon
Manager, Communications
Phone: 604.660.4727
Email: [email protected]

IBF4

 96 total views,  2 views today

NationTalk Partners & Sponsors Learn More