FortisBC natural gas rates to remain low for the rest of the year

Natural gas customers have not seen a rate increase in two years

SURREY, BC, Sept. 17, 2018 /CNW/ - FortisBC has received approval from the British Columbia Utilities Commission (BCUC) to maintain the cost of gas for its natural gas customers. As of October 1, 2018, FortisBC customers will see no change to the cost of natural gas on their bill.

Over three million British Columbians use natural gas every day with over 58 per cent of households using natural gas as their primary heating source. It is an affordable option to heat homes and water when compared to other energy choices in B.C. such as electricity. In fact, natural gas is about one-third the cost of electricity.

"Natural gas prices in our province continue to remain near their lowest levels in over a decade and our natural gas customers have not seen a rate increase in two years," says Diane Roy, vice-president of regulatory affairs at FortisBC. "The preference for natural gas is reflected by our continued customer growth."

At these rates, natural gas appliances offer convenience, comfort and cost savings, plus if customers are planning on upgrading appliances or building or renovating a home, FortisBC has rebates on high-efficiency appliances, equipment and more.

Below are the rate changes for each region effective October 1, 2018:

Mainland, Vancouver Island and Whistler

• There is no change to the current cost of gas rate for residential customers at $1.549 per gigajoule (GJ).

Fort Nelson

• Residential customers in Fort Nelson will not see any changes to their bill. The current cost of gas rate is $1.571 per GJ.

Revelstoke

• Residential customers will see an increase to the cost of propane rate from $11.791 per GJ to $12.842 per GJ. This is an increase of $1.051 per GJ.

For more information about rates, visit: fortisbc.com/rates.

FortisBC Energy Inc. is a regulated utility focused on providing safe and reliable energy, including natural gas, propane and thermal energy solutions. FortisBC Energy Inc. employs more than 1,800 British Columbians and serves approximately 1,008,400 customers in 135 B.C. communities. FortisBC Energy Inc. owns and operates approximately 49,000 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. For further information visit www.fortisinc.com.

BACKGROUNDER

Items on a residential customer's bill

Basic charge
The basic charge is a flat daily 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. The basic charge is reviewed by the BCUC annually.

Delivery charge
The delivery charge is based on consumption and pays for the cost of safely and reliably delivering gas through our system to your home or business. This helps cover the costs of maintaining our natural gas distribution system, earn a return on the amounts invested in our business and fund 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 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.
• FortisBC does not mark up the cost of gas, customers pay what we pay.

Other charges and taxes
Other charges and taxes include the B.C. carbon tax, Clean Energy Levy, goods and services tax (GST) 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

View original content to download multimedia: http://www.newswire.ca/en/releases/archive/September2018/17/c3604.html