FortisBC gas customers to see a decrease to their bill on January 1

Dec 12, 2023

Customers who subscribe to using low-carbon Renewable Natural Gas will see a greater decrease

SURREY, B.C.—December 12, 2023: As of January 1, 2024, most FortisBC Energy Inc. (FortisBC) natural gas customers will see an overall decrease to their bill of approximately one per cent, or about $1 per month, depending on consumption. Further, customers who subscribe to using Renewable Natural Gas¹ (RNG), a low-carbon² energy used to displace conventional natural gas and reduce overall emissions, will see an additional decrease in the cost of RNG.

In support of B.C.’s energy transition, FortisBC has been a leader in providing renewable and low-carbon energy³ options, including RNG since 2011. In this coming year, customers who subscribe to RNG will see a decrease in the cost of RNG from $14.718 to $12.468 per gigajoule (GJ).

“Decreasing gas bills will be welcome news for many of our customers, especially at this time of year when energy use increases with colder temperatures,” said Michelle Carman, vice-president of customer service and external communications. “We encourage any customer who has questions about their bill, to reach out. Our customer service team can provide information about energy-saving tips, answer billing questions and offer solutions that fit your personal needs.”

As an energy solutions provider regulated by the British Columbia Utilities Commission (BCUC), FortisBC reviews its delivery and storage and transport rates each year and its cost of gas rate each quarter with the BCUC. This is done to ensure the rates charged to customers appropriately recover the costs related to delivering energy safely and reliably. There is no mark up on the cost of gas, you pay what we pay.

As of January 1, 2024:

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

• Residential customers in the Lower Mainland, Fraser Valley, Interior, North, Whistler, Vancouver Island, Revelstoke and the Kootenays will see an overall monthly decrease of approximately 1.1 per cent, or less than $1 per month based on the average monthly consumption of 7.5 GJ.

Fort Nelson

• For residential customers in Fort Nelson, monthly bills will increase by approximately $9.75, or 11.4 per cent. This is based on an average household consumption of approximately 10 GJ per month.

Renewable Natural Gas

• For residential RNG customers in Mainland and Vancouver Island, monthly bills will decrease by about $2.58 or 2.8 per cent, based on a ratio of 10 per cent RNG and a monthly consumption of 7.5 GJ.

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 2024.

“As we look to meet the growing demand for clean and lower-carbon energy, RNG will play a critical role,” noted Carman. “The decrease in the price of Renewable Natural Gas creates more opportunity for our customers to play a positive role in meeting climate goals.”

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

Backgrounder

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

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 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.

¹Renewable 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 Renewable Natural Gas.

²When compared to the lifecycle carbon intensity of conventional natural gas. The burner tip emission factor of FortisBC’s current Renewable Natural Gas (also called RNG or biomethane) portfolio is 0.29 grams of carbon dioxide equivalent per megajoule of energy (gCO₂e/MJ). FortisBC’s current RNG portfolio lifecycle emissions are -22 gCO₂e/MJ. This is below B.C.’s low carbon threshold for lifecycle carbon intensity of 36.4 gCO₂e/MJ as set out in the 2021 B.C. Hydrogen Strategy.

³FortisBC uses the term renewable and low-carbon gas to refer collectively to the low-carbon gases or fuels that the utility can acquire under the Greenhouse Gas Reduction (Clean Energy) Regulation, which are: Renewable Natural Gas (also called RNG or biomethane), hydrogen, synthesis gas (from wood waste) and lignin. FortisBC’s renewable and low-carbon gas portfolio currently includes only Renewable Natural Gas. Other gases and fuels may be added to the program over time. Depending on their source, all of these gases have differing levels of lifecycle carbon intensity. However, all of these gases are low carbon when compared to the lifecycle carbon intensity of conventional natural gas. The current burner tip emission factor of RNG is 0.29 grams of carbon dioxide equivalent per megajoule of energy (gCO₂e/MJ) and the current renewable and low-carbon gas portfolio lifecycle emissions are -22 gCO₂e/MJ. This is below B.C.’s carbon intensity threshold for low-carbon gases of 36.4 gCO₂e/MJ set out in the 2021 B.C. Hydrogen Strategy.

 

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