June 23, 2011
Renewable natural gas will help British Columbia fight climate change Surrey, BC –
FortisBC announced today it has launched its renewable natural gas product offering for residential customers in the Lower Mainland, Fraser Valley, Interior and the Kootenays. Eligible customers now have the option of designating 10 per cent of their household’s natural gas usage as renewable natural gas. FortisBC will then inject an equivalent amount of renewable natural gas into its distribution system from local renewable natural gas projects. Customers will be subscribed on a first-come, first-served basis, for about an additional $4 per month, based on an average annual consumption of 95 gigajoules (GJs). “I want to encourage our customers to sign up for renewable natural gas. By signing up, customers are helping create a more sustainable future for our province, reducing their carbon footprint and supporting a carbon-neutral B.C.-made product,” said Doug Stout, vice president, energy solutions and external relations, FortisBC.
The only portion of the bill that would change for customers who subscribe to renewable natural gas is the cost of gas. Their cost of gas will now be made up of 10 per cent of the renewable natural gas cost and 90 per cent of the standard cost of gas. Subscribers will not be locked into a contract and can opt-out at any time at no cost.
As renewable natural gas is also considered carbon neutral in B.C., subscribers’ carbon tax will be credited by 10 per cent. FortisBC’s renewable natural gas offering was recently granted Carbon Neutral Product status by Offsetters in B.C., Canada’s leading carbon management solutions provider, after assessing the expected lifecycle emissions savings of the program.
Fortis B.C. Summary of rate calculation
Only your cost of gas will change on your bill. Customers who sign up for renewable natural gas will be moved from the residential rate to the renewable natural gas rate. The rate will now be 10 per cent renewable natural gas cost and 90 per cent standard cost of gas. Since renewable natural gas is considered carbon neutral, the BC carbon tax amount on your bill will be credited by 10 per cent.Example below:
| Cost of gas as of Apr 1, 2011 (adjusted quarterly)* | $4.568 GJ x 90% |
| Renewable natural gas cost as of Jan 1, 2011 (adjusted annually)* | $9.904 GJ x 10% |
| Renewable natural gas rate subtotal: | $5.102 GJ |
At today’s prices, this works out to $0.53 (5.102-4.568 = 53.4 cents) more per gigajoule or about $4 more per month based on the average use of 95 GJ per year.
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The actual all in cost per year for the average user of 95 GJ is $43.24 ($3.60/month)
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You can figure out your own Fortis Bill on a yearly basis based on your total GJ for a calendar year at a cost of 45.50 cents per GJ. This is the cost that you are assuming if you sign up to reducing yourcarbon footprint.
Remember you are also helping your local municipality who will get the additional franchise fee increase of 1.65 cents/GJ and the HST fund who will pick up about 2.87 cents per GJ.
Make your decision with the true costs known upfront.
1 comment:
Why should customer sign up for this gambit.
Fortis gets flat fees for providing gas lines to homes. These lines have been in place for up to 20 years and consumers are still having to pay these ridiculus fees.
It is time that the Provincial Government ordered a change in the people at the BC Utilities Board who have been general Sops for whatever the industry wanted.
I am not a Left Wing Liberal Pinko either.
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