FortisBC receives approval to maintain most natural gas and propane commodity
SURREY, BC, Dec. 5, 2012 /CNW/ - FortisBC has received approval from the B.C.
Utilities Commission (BCUC) to maintain the natural gas and propane commodity
rates it charges most customers, while midstream and delivery rates will
change, effective January 1, 2013.
"WhileNorth American gas prices have increased from their lows earlier this
year due to a slowdown in production growth and increased industrial and power
generation demand, and propane prices have risen due to early cold weather in
the eastern U.S. and Canada, FortisBC is able to avoid any commodity rate
increases for our customers at this time," said Cynthia Des Brisay, vice
president of energy supply and resource development. "Additionally, we are
able to lower our midstream rate for customers due to lower storage and
pipeline transportation costs. While customers may see a slight increase on
their monthly bill, these changes are due to a change in delivery rate
approved by the BCUC earlier this year."
Customers will see changes as follows on January 1, 2013:
Lower Mainland, Fraser Valley, Interior, North and the Kootenays
-- Residential customers will see no change to the commodity rate
and a decrease to the midstream rate of between $0.173 to
$0.208 per gigajoule (GJ). As part of the 2012-2013 revenue
requirement application filed last year, FortisBC received
approval to increase its delivery rate by $0.316 per GJ for
customers in these regions. The combined rate change means an
increase of $ 0.143 per GJ, or approximately $14 per year for
an average residential customer in the Lower Mainland using
approximately 95 GJ.
-- Customer Choice program participants can also expect to see the
above changes to the delivery and midstream rates on their
-- Residential customers will see their commodity rate, which
includes the midstream rate, increase by $0.212 per GJ. As part
of the 2012-2013 revenue requirement application filed last
year, FortisBC received approval from the BCUC to increase its
delivery rate by $0.583 per GJ for Whistler customers. The
average residential customer using 90 GJ per year will see an
increase of approximately $72 per year.
-- Residential customers using approximately 140 GJ of natural gas
per year will see an increase of approximately $29. This is
based on no change to the commodity component of rates, which
includes the midstream rate, and from the approved increase to
delivery rates for this region.
-- Residential customers receiving piped propane will see no
increase in the commodity rate of propane. The average
residential customer using approximately 50 GJ of propane per
year will see an increase of approximately $16 due to the
approved delivery rate changes.
Vancouver Island, Sunshine Coast and Powell River
-- Rates will remain unchanged from current levels for most
customers, including residential, on Vancouver Island, the
Sunshine Coast and Powell River effective January 1, 2013.
FortisBC buys natural gas and propane on behalf of its customers and passes
that price on without mark-up. Every three months, FortisBC reviews natural
gas and propane commodity rates with the BCUC in order to make sure rates
passed on to customers cover the cost of purchasing the gas on their behalf.
Midstream rates, also passed on to customers without mark-up, cover the
storage and transportation of natural gas delivered to customers. Factors
affecting the market price of natural gas in North America include weather,
supply and demand, and economic conditions. Propane prices are closely linked
to global oil markets.
As part of the 2012-2013 revenue requirement application filed last year,
FortisBC received approval for delivery rate adjustments. The delivery portion
of rates is what FortisBC charges to deliver natural gas and propane service
to customers. It enables the company to recover its costs, and make
investments in its business that will benefit the evolving needs of customers
and communities served.
For more information on natural gas and propane rates by region, how commodity
rates are set, and to learn more about FortisBC, visit www.fortisbc.com/rates.
FortisBC is a regulated utility focused on providing safe and reliable energy,
including natural gas, electricity, propane and thermal energy solutions.
FortisBC employs more than 2,300 British Columbians and serves approximately
1.1 million customers in more than 135 B.C. communities. FortisBC is
indirectly wholly owned by Fortis Inc., the largest investor-owned
distribution utility in Canada. FortisBC owns and operates four regulated
hydroelectric generating plants, approximately 7,000 kilometres of
transmission and distribution power lines and approximately 47,000 kilometres
of natural gas transmission and distribution pipelines. FortisBC Inc.,
FortisBC Energy Inc., FortisBC Energy (Vancouver Island) Inc., and FortisBC
Energy (Whistler) Inc. do business as FortisBC. Fortis Inc. shares are listed
on the Toronto Stock Exchange and trade under the symbol FTS. Additional
information can be accessed at www.fortisinc.com or www.sedar.com.
MEDIA CONTACT: Michael Allison Corporate Communications Advisor FortisBC
Phone: 604-592-7536 Email:firstname.lastname@example.org fortisbc.com
To view this news release in HTML formatting, please use the following URL:
ST: British Columbia
NI: OIL UTI
-0- Dec/05/2012 19:53 GMT
Press spacebar to pause and continue. Press esc to stop.