BCUC approved FortisBC’s common rates for Fort Nelson

FORT NELSON, B.C. — The British Columbia Utilities Commission (BCUC) issued an order on Thursday approving FortisBC Energy Inc.’s application for common delivery rates and cost of gas rates for the Fort Nelson Service Area.

This application also set Fort Nelson’s midstream rates at 5 per cent, beginning January 1st, 2023, says the BCUC.

These changes will reportedly bring bill savings for Fortis’ small and large commercial customers in Fort Nelson and a bill increase of approximately 15 per cent for Fort Nelson residential customers in 2023 before any rate smoothing.

To minimize bill impacts on Fortis’ Fort Nelson customers, Fortis has been directed to phase in the delivery rate change for residential customers over five years which will reportedly result in an estimated total bill increase of approximately $5 or 0.5 per cent for 2023.

The BCUC says it conducted a review process and found that common rates between the Fort Nelson area and the rest of Fortis’ service area promote regulatory efficiency, fairness and consistency across Fortis’ service areas.

The commission also says common rates benefit Fort Nelson ratepayers by reducing the fluctuation of rates, which supports rate stability.

The BCUC has approved a separate midstream rate for the Fort Nelson service area of 5 per cent of Fortis’ mainland and Vancouver Island midstream rates.

According to the BCUC, midstream rates cover transportation and storage costs for gas.

BCUC says this distinction in rates accounts for Fort Nelson’s proximity to gas supply in its service area and its own unique gas supply arrangement.