Cost of gas rates to remain the same for FortisBC customers

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14-03-2025

SURREY, BC, March 14, 2025 /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). Some customers1 subscribed to the voluntary Renewable Natural Gas2 (RNG) program will see a rate increase, which will be offset by a change to the biomethane credit. The BCUC reviews FortisBC's cost of gas and voluntary RNG program rates every three months and will review them next in June.
"We know that energy costs matter to the families and businesses we serve in British Columbia," said Sarah Nelson, director of customer service. "While most of our gas customers won't see a change in rates, we're here to help if you have any questions about your bill. Our dedicated customer service team is ready to provide energy-saving tips, answer billing questions and offer personalized solutions to meet your needs."
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 natural gas, so customers pay what it pays.
To help keep rates affordable for its customers, FortisBC purchases gas in the summer when prices are lower and stores it so that lower-cost gas is available to customers in winter months when they need it most. In addition, FortisBC sells any surplus gas back to the market to further offset costs and passes those savings on to its customers.
On April 1, the Government of British Columbia's carbon tax on natural gas and propane will increase. FortisBC collects the carbon tax on behalf of the province and submits it to them. FortisBC does not gain any revenue from these charges.
Customers subscribing to the voluntary RNG program receive a carbon tax credit (called the biomethane credit) on the portion of their energy designated as RNG. As of April 1, some customers subscribed to the voluntary RNG program will see a rate increase from $13.22 per GJ to $13.96 per GJ. However, this will be offset by a change to the biomethane credit.
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.
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1 Excluding customers using RNG under the vehicle voluntary RNG Rate Schedules 3VRNG, 5VRNG, and 46 or commercial and industrial customers using RNG under Rate Schedule 11RNG, which are also reviewed by the BCUC.
2 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.
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, Whistler)
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 FortisBC's system, whether or not a customer is using any gas, as long as 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 FortisBC's system to a customer's home or business. This helps cover the costs of maintaining the gas distribution system, provides a return to FortisBC's investors and funds improvements to meet customers' needs. Delivery charges are reviewed annually by the BCUC.
Storage and transport charge
The storage and transport charge is what FortisBC pays to other companies to store and transport gas through their pipelines and infrastructure. FortisBC does not mark up the cost of storage and transport, and it is 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. FortisBC does not mark up the cost of natural gas, so customers pay what it pays. 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, B.C. 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.
SOURCE FortisBC Energy Inc.
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