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Kamloops residents will pay less for natural gas
FortisBC has received approval from the BC Utilities Commission (BCUC) to decrease the natural gas commodity rates for most customers beginning on Tuesday, Oct. 1
The decrease will mean a savings for Kamloops residents who use natural gas supplied by Fortis.
Residential customers in the Tournament Capital will see a decrease to the commodity rate of 64.1 cents per gigajoule (GJ).
This will result in a decrease of approximately $61 per year for an average residential customer using approximately 95 GJ.
Customer Choice program participants will not be affected by changes to the commodity rate.
“Natural-gas prices have fallen since spring,” said Cynthia Des Brisay, vice-president of energy supply and resource development for FortisBC.
“The mild summer on the East Coast resulted in a reduced continental demand for power, which is often generated by natural gas
“Despite the fact that natural-gas prices are still near their lowest levels in a decade, as we approach the winter heating season, we encourage our customers to continue using energy wisely, helping keep costs down.”
Natural-gas customers are continuing to benefit from lower production costs and increased supply.
At the same time, low propane supplies and strengthening oil prices are resulting in increased propane prices.
Every three months, FortisBC reviews natural gas and propane commodity rates with the BCUC in order to make sure rates passed on to customers cover the cost of purchasing the gas on their behalf.
Factors affecting the market price of natural gas and propane in North America include weather, supply and demand, and economic conditions.
Propane prices are also influenced by global oil markets.
For more information about FortisBC and rates, go online to www.fortisbc.com/rates.
Natural-gas commodity rates
Natural gas is traded in the North American marketplace as a commodity like oil, gold or lumber.
Commodity rates are reviewed every three months by the BCUC to ensure the rates being charging appropriately cover the cost of natural gas FortisBC purchases on behalf of its customers.
Weather, Gulf of Mexico hurricanes, natural-gas competitiveness with other forms of energy, such as coal, economic conditions and other supply and demand factors.
FortisBC does not profit on natural-gas commodity charges.
The price FortisBC pays for the commodity (the gas itself) is a flow-through cost.
Flow-through means FortisBC purchases natural gas on behalf of its customers and passes the costs through to customers without markup.
Customers pay what FortisBC pays for the gas itself.
Rates are reviewed each quarter based on a forecast of what FortisBC’s costs to purchase gas will be over the following 12 months, based on forward prices set by the market.