FortisBC has filed a two-year revenue requirement application with the British Columbia Utilities Commission (BCUC) that, if approved, would increase rates for natural gas delivery service for most residential customers in the province, effective January 1, 2012.
Scott Thomson, FortisBC’s executive vice-president of finance and energy supply, said, “The requested costs identified in the application support enhancements to our asset management and system integrity programs to support ongoing investment in the safety and integrity of our delivery system, enabling FortisBC to continue to provide reliable natural gas service.”
The company said, if the application is approved, it will continue to develop energy efficiency and conservation programs to help customers reduce their energy consumption and lower their utility bills.
FortisBC will also continue to pursue opportunities to provide renewable energy solutions, including biomethane, and to advance compressed and liquefied natural gas as cleaner transportation fuel alternatives.
The cost of natural gas service varies from region to region in B.C. If the application is approved, residential customers in the Lower Mainland, Fraser Valley, Interior, north and Kootenays would see their total annual gas bill increase by 2.8% (roughly $28) in 2012 and 3% ($31) in 2013, depending on consumption.
Annual gas bill increases for residential customers in Whistler would be 4.7%($69) in 2012 and 7.1% ($115) in 2013.
The lowest increase would occur in Fort Nelson, where total annual gas bills for customers would increase by 1.8% ($20) in 2012 and 0.6% ($7) in 2013.
FortisBC is seeking to maintain current rates for customers on Vancouver Island, the Sunshine Coast and in Powell River for a two-year period starting January 1, 2012. This will help dampen the impact of rates with the expiry of the Royalty Revenue agreement on Vancouver Island at the end of this year.
This agreement was put in place to help offset the cost to Vancouver Island customers of bringing natural gas to the Island 20 years ago.
Later this year, FortisBC will file an application with the BCUC requesting a common natural gas rate structure across the province.