FortisBC Hiking Natural Gas Rates
Prince George, B.C. – Natural gas rates are going up.
FortisBC announced today it has received approval from the BC Utilities Commission (BCUC) to increase gas rates beginning October 1, 2016.
“Natural gas prices have risen since spring 2016. The hotter-than-normal summer, for most of Canada and the US, has resulted in higher-than-expected continental demand for electricity, which is often generated by natural gas,” said Dennis Swanson, vice president of energy supply, FortisBC.
“This, combined with a slowdown in natural gas production, has led to an increase in prices during the past few months.”
FortisBC reviews natural gas and propane cost of gas rates every three months. Factors affecting prices in North America include weather, supply and demand and economic conditions. Propane prices are also influenced by global oil markets.
The majority of natural gas customers will see an increase to their cost of gas rate of $0.909 per gigajoule (GJ), meaning the cost of gas rate will change from $1.141/GJ to $2.050/GJ.2
These changes will result in an increase of approximately $82 annually for residential customers, based on the average use of 90 GJ per year.