Natural gas rates tumble

by Wayne Moore CASTANET- Mar 18, 2015 / 10:52 am
Good news, if you're a FortisBC natural gas customer. The energy utility has received approval from the B.C. Utilities Commission to decrease natural gas commodity rates for all customer beginning April 1. Residential customers in the Interior could see an average yearly saving of about $117 as a result of a decrease in the commodity rate of $1.295 per gigajoule to $2.486. "Compared to a year ago, natural gas prices are lower coming out of this past winter due to reduced overall demand for natural gas to heat homes and generate power," said Fortis spokesperson Cynthia Des Brisay. "At the same time, supplies of natural gas have increased, allowing storage levels to return to normal levels." These are the lowest commodity prices in a decade. "Oil prices have declined as well, driven by increased North American oil supplies and reduced international demand," added Des Brisay. "This drop in oil prices has helped to lower propane prices, benefitting our propane customers." FortisBC customers in the Lower mainland, Fraser Valley, Whistler, the Kootenays and the North will also see savings of about $117 a year, while the average residential customer on Vancouver Island, the Sunshine Coast and Powell River could save $58 a year. The average customer in the Revelstoke area, using approximately 50 GJ of natural gas a year, could see a reduction of approximately $235. Fortis reviews natural gas and propane rates every three months 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 include weather, supply and demand, and economic conditions. Propane prices are also influenced by global oil markets.