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Gas rates change January 1 for FortisBC customers

Dec 17, 2021

SURREY, B.C. - December 17, 2021: As an energy solutions provider regulated by the British Columbia Utilities Commission (BCUC), FortisBC Energy Inc. (FortisBC) reviews its delivery rates each year and its gas commodity rates each quarter with the BCUC to make sure that the rates charged to customers appropriately recover the costs related to delivering energy safely and reliably. As of January 1, 2022, FortisBC gas customers will see an overall increase to their bill due to an increased cost of gas rate and increased delivery rates.

“While we strive to deliver gas safely and reliably at the lowest reasonable cost, we’ve seen an increase in the market prices of natural gas over the last quarter. FortisBC does not mark up the cost of gas, so customers pay what we pay,” explained Joe Mazza, vice-president of energy supply and resource development with FortisBC. “We have also seen an increase to delivery rates, which takes into account the cost of maintaining our gas system.” 

As of January 1, 2022: 

Mainland and Vancouver Island (including North and South Interior, Whistler and Revelstoke)

  • For residential customers, monthly bills will increase by approximately $8, a nine per cent increase. This is based on an average household consumption of approximately 7.5 gigajoules (GJs) per month. For details on the various charges that will be changing, see the attached backgrounder.

Fort Nelson

  • For residential customers, monthly bills will increase by approximately $2, a two per cent increase. This is based on an average household consumption of approximately 10 GJs per month. For details on the various charges that will be changing, see the attached backgrounder.

“We understand that energy costs are an important consideration in household budgets, and if any customer needs support with their bills, we are here to help find a solution to suit their unique needs,” adds Mazza.

While the costs related to storing, transporting and delivering gas typically remain in place for the year, FortisBC reviews the cost of gas every quarter with the BCUC and the next review will be in March 2022.

For more information about rates and the components that make up a FortisBC gas bill, visit: fortisbc.com/rates.

Backgrounder

Rates at a glance

Below is the breakdown of residential rates for each region effective January 1, 2022.

Service area Rate Change New rate Impact to customer

Mainland and Vancouver Island (Including Revelstoke)

Delivery

Increase of $0.502 per GJ.

$5.526  GJ.

 

Storage and transport

Decrease of $0.046 per GJ.

$1.351 per GJ.

 

Cost of gas

Increase of $0.659 per GJ.

$4.503 per GJ.

 

Basic charge

No change

No change (Current rate of $0.4216 per day).

 

Renewable Natural Gas (RNG) customers

Increase of $1.978 per GJ.

$13.808 per GJ.

 

Total impact*

   

Estimated combined increase of approximately $100 or 9 per cent to their annual bills, (based on an average usage of 90 GJ). 

Fort Nelson

Delivery

Increase of $0.095 per GJ.

$3.880 per GJ. (interim rate) 

 

Storage & transport

Increase of $0.038 per GJ.

$0.081 per GJ.

 

Cost of gas

No change.

$3.964 per GJ.

 

Basic charge

No change.

No change (Current rate of $0.3701 per day).

 

Total impact*

   

Estimated combined increase of approximately $17 or 1.5 per cent to their annual bills, (based on an average usage of 125 GJ). 

 

*Based on average residential annual usage for each region.

Historical data for Mainland & Vancouver Island (including North and South interior)

natural-gas-rates-change-january-1-2022-for-fortisbc-customers-graph

Items on a residential natural gas customer’s bill

Daily or monthly basic charge

The basic charge is a flat 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. 

Delivery charge

The delivery charge is based on consumption and pays for the cost of safely and reliably delivering gas through our system to our customer’s home or business. This helps cover the costs of maintaining our natural gas distribution system, provides a return to our investors and funds 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 the cost of gas rates with the BCUC to make sure rates passed on to customers cover the cost of the commodity purchased on their behalf.  We do not mark up the cost of gas, so customers pay what we pay. 
  • Factors affecting the market price of natural gas in North America include weather, supply and demand and economic conditions.
  • FortisBC does not mark up the cost of gas, customers pay what we pay.

Other charges and taxes

Other charges and taxes include the BC carbon tax, 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.

 

Media contact

Diana Sorace
Corporate Communications Advisor
FortisBC 
Phone: 604-328-0790
Email: diana.sorace@fortisbc.com
fortisbc.com
24-hour media line: 1-855-322-6397

FortisBC Energy Inc. is a regulated utility focused on providing safe and reliable energy, including natural gas, renewable gas, propane and thermal energy solutions. FortisBC Energy Inc. employs more than 2,000 British Columbians and serves approximately 1,054,097 customers across British Columbia. FortisBC Energy Inc. owns and operates approximately 50,182 kilometres of natural gas transmission and distribution pipelines. FortisBC Energy Inc. is a subsidiary of Fortis Inc., a leader in the North American regulated electric and gas utility industry. FortisBC Energy Inc. uses the FortisBC name and logo under license from Fortis Inc. For further information on FortisBC, visit www.fortisbc.com.