Natural gas rate hike approved for FortisBC

Rebounding gas prices result in $61 hit to typical home

Natural gas prices are going up for most residential users across B.C.

A jump in natural gas rates in the Lower Mainland means most households using gas will pay about $61 more each year.

The B.C. Utilities Commission approved the rate increase by FortisBC effective July 1.

Fortis officials say natural gas prices have rebounded from low levels in 2012 after increased demand, a colder winter and a slowdown of growth in gas production.

Commodity rates today are still about half of what they were in 2006, according to the company.

Fortis charges no markup on the commodity cost of the gas, it makes a profit only through its delivery charges to transmit it.

While the commodity cost is going up by $0.936 per gigajoule (GJ), the delivery charge is actually dropping by $0.294/GJ, so the net increase is $0.642. The average home uses about 95 GJ per year.

Customers who buy their gas on a fixed-price contract from a different supplier delivered through Fortis will pay about $28 less because of the reduced delivery charge.

The rate changes apply in the Lower Mainland, Interior, Kootenays and northern B.C.

Just Posted

Michael Nenn running with NDP in Mission-Matsqui-Fraser Canyon

The Mission resident will be seeking a seat in parliament in the federal election this October

Missing man last seen in Chilliwack Sept. 7

Friends concerned for well-being of 44-year-old Jean Pierre Baril

Chilliwack school board to vote on whether to paint rainbow crosswalk at district office

Scheduled vote at Sept. 17 meeting comes two weeks after city hall said ‘no’ to the idea

Agassiz pawn shop ordered to pay thousands due to ‘criminal interest rate’

Pioneer Trading Post charged 25% interest a month, similar to other pawn shops in the region

VIDEO: Harrison’s Bands on the Beach a long weekend hit

The annual two-day outdoor concert took place at the waterfront over the long weekend

Vancouver’s Tristan Connelly shocks the UFC world

Late replacement upsets big favourite Pereira, main event sees Gaethje stop Cerrone in round one

UVic president offers condolences after two students killed in bus crash

‘We also grieve with those closest to these members of our campus community,’ Cassels says

Coming Home: B.C. fire chief and disaster dog return from hurricane-ravaged Bahamas

The pair spent roughly one week on Great Abaco Island assisting in relief efforts

Newcomer Ferland lines up with sniper Pettersson as Vancouver Canucks camp opens

Ferland provides more depth and a scoring threat up front, Pettersson says

Intelligence official charged seemed to be ‘exemplar of discretion’: UBC professor

Professor Paul Evans says he served on Cameron Ortis’s doctoral dissertation committee

B.C. company gets licence to test psychedelic drugs for therapy treatment

Salvation Botanicals interested in manufacturing, testing and research and development

B.C. police watchdog to investigate man’s head injury during RCMP arrest

Suspect fled on a bicycle and fell off when an officer attempted to stop him

‘A real shame’: B.C. MLA says factors behind Tolko mill closing should have been caught

Kelowna-Mission MLA Steve Thomson said the industry is in bad shape across the province

Most Read