In response to David Oh's recent letter (Fortis increase a money grab), I would like to respond to a few points raised.
The ruptured pipeline that caused natural gas supply concerns is not owned or operated by FortisBC. While the rupture itself was not our responsibility, ensuring our customers have the natural gas they need is. As Enbridge was unable to supply sufficient volumes of natural gas through their system, we worked to obtain additional supply from other sources to ensure we met our customers' needs. In our latest rate submission to the British Columbia Utilities Commission (BCUC), it was determined that the added cost of these actions would be met by increasing the storage and transport rate as part of the approved interim rates.
In regard to the point made about a price hike passed on to consumers, it is important to understand that the BCUC reviews all changes to FortisBC's customer rates and determines whether changes are necessary. In this case, the BCUC has determined that an increase in the rate charged to customers on the Mainland and Vancouver Island is needed to cover these additional costs.
FortisBC does not mark up costs or make any profit on the charges that are increasing. You pay what we pay. The rate increase reflects the prices we paid to procure additional gas either from storage or on the open marketplace, to replace the gas that was not received through the Enbridge pipeline. Under the province's regulatory structure, these are flow through costs that are paid for by the customer base to account for part of the cost of providing gas service to homes and businesses.
We understand that getting a higher than expected bill can be frustrating and we are happy to work with customers having difficulty managing their bills. It is common to see higher natural gas bills during the winter months (from December to February) and we have several options available that can help customers meet their own unique circumstances. It is important to note that the nine per cent is not applied to the taxes - GST, any operating fees or carbon tax.
In regard to lower-income households as well as those struggling with higher bills, we are committed to working with customers one-on-one to find options and solutions for managing their energy use. We work with customers year-round to determine reasons for higher than expected bills and find solutions that may include payment arrangements. There are a number of small and affordable things customers can do in their homes to lower energy usage. For more information about these programs, customers can visit fortisbc.com/rebates.
While we realize a rate increase is never welcome, we continue to focus our efforts to keep costs as low as possible for customers. The BCUC-issued decision on interim rates is subject to their approval in the first quarter of 2019. Once approved, the decision may result in a bill adjustment for our customers if there has been a change in costs. It is difficult to predict what the adjustment may be, but we always strive to deliver natural gas safely and reliably at the lowest reasonable cost to our customers. Natural gas continues to remain an affordable option to heat your home and water when compared to other energy choices in B.C. such as electricity.
For further information about the January rate changes, or to contact us to determine how the proposed changes may impact your household, please visit fortisbc.com/rates or call our Contact Centre at 1-888-224-2710.
Dennis Swanson,
vice-president, energy supply and resource development, FortisBC
