Natural gas bill to rise in new year

FortisBC blames 9% rate increase on pipeline explosion earlier this fall in northern B.C.

A ruptured pipeline in northern B.C. has led to a projected natural gas bill increase of nine per cent in the Okanagan.

The FortisBC rate increase will go into effect Jan. 1, and will result in about a $68 annual increase, based on an average annual usage of 90 gigajoules in most of the province.

“If you consume less gas, that price goes down,” said Diana Sorace, spokesperson for FortisBC.

This change is interim and is subject to regulatory approval by the B.C. Utilities Commission.

Permanent rate decisions are expected in the first quarter of 2019.

A pipeline explosion earlier this year is the leading cause of the rate increase, said Sorace.

“It’s a unique situation this year,” she said. An Enbridge pipeline near Prince George ruptured Oct. 9, prompting FortisBC to appeal for residential and business customers provincewide to reduce their energy use.

The nine per cent increase is specifically on the storage and transportation rate, which Fortis says reflects the prices it pays other companies to store and transport gas through their pipelines and infrastructure. Those prices are reviewed quarterly and set annually by the BCUC.

“The increase is to recover the costs that were associated with the reduced supply and Fortis having to procure gas from the open market and storing it,” said Sorace. “We needed to source additional gas supply to meet the needs of our customers by purchasing from storage and the open market.”

The cost of gas is being held at $1.55 per gigajoule. FortisBC customers are encouraged to continue conserving as much natural gas as possible this winter.

The Enbridge line is now operating at 85 per cent of normal, said Sorace.

“We’re in better shape now than we were in October, but every step of conservation does help,” she said.

FortisBC customers in Fort Nelson will see an approximate annual increase of seven per cent, or $51, based on an average annual usage of 125 gigajoules.

An electricity rate announcement for FortisBC is coming next week, but no changes are expected, said Sorace.