Decrease in propane commodity rates approved for July 1st

FortisBC receives approval from BC Utilities Commission to decrease propane commodity rates for Revelstoke customers starting July 1.

  • Jun. 17, 2014 8:00 p.m.

Contributed by FortisBC

SURREY, B.C. – FortisBC has received approval from the BC Utilities Commission (BCUC) to decrease propane commodity rates for Revelstoke customers starting July 1.

Propane prices have returned to lower levels from recent highs that were caused by extreme cold weather this past winter as well as strong propane demand for crop drying prior to winter.

Residential customers receiving piped propane will see a commodity rate decrease of $1.235 per gigajoule (GJ). The average residential customer using approximately 50 GJ per year of piped propane will see a decrease of approximately $62 to their total annual bill.

Factors affecting the market price of propane and natural gas in North America include weather, supply and demand, transportation constraints and economic conditions. Propane prices are also more directly influenced by global oil markets than natural gas.

In recent years, natural gas prices have trended lower relative to propane due to increased supply availability resulting from advancements in production technology. However, propane prices have remained more closely connected to oil prices. Propane prices have also been volatile due to fluctuating demand, limited storage infrastructure and supply chain congestion and disruptions connecting the propane supply to market. This has increased the premium paid for propane over natural gas prices.

FortisBC helps mitigate the impacts of market price volatility on customers by locking in prices for a portion of supply before peak winter demand begins.

Every three months, FortisBC reviews propane and natural gas commodity rates with the BCUC in order to make sure rates passed on to customers cover the cost of purchasing the propane and gas on their behalf. The next review of natural gas and propane commodity rates will take place prior to October 1.

 

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Updated: City of Revelstoke workers vote to strike

This comes a day after city council gave themselves a raise

Revelstoke councillor revokes support for raises for mayor and council

Cody Younker proposed the raises in the first place and now no longer supports them

Fair pay? Revelstoke council seeks wage similar to Salmon Arm counterparts

Neighbouring mountain town pursues different path to increase remuneration

Highway 1 to close west of Revelstoke for avalanche control

DriveBC says the road will be closed between 1 p.m. to 3 p.m.

LETTER: Cross is a man of integrity and honesty

Dear editor, Another year has gone and wow are things getting better,… Continue reading

VIDEO: Rare ‘ice circle’ spotted on Kamloops river

An ice circle or ice pan, has formed in the chilly waters just east of the Yellowhead Bridge

Health upgrades in South Okanagan and Similkameen forecast to cost nearly $10 million

Capital projects include CT scanner, medical vacuum system, ultrasounds and more

Uber, Lyft approved for ride-hailing in Lower Mainland

Kater Technologies Inc.’s application was rejected

B.C. man rescued after getting trapped headfirst in well as water level rose

The rescue involved crews from Oak Bay and Saanich

Investigators in wildfire-torn Australia head to site of B.C. airtanker crash

The B.C. government sends condolences to Port Alberni-owned Coulson Aviation

RCMP investigating sexual allegation against Lower Mainland police officer

Delta officer suspended while the alleged off-duty incident involving a co-worker is investigated

Former Mountie, sports coach convicted of sex abuse in B.C. granted day parole

Alan Davidson was sentenced to almost six years for abusing seven boys in the late 1970s and early 1990s

VIDEO: Person in wheelchair narrowly avoids collision with car in Kelowna

There were no injuries in the scary looking near-accident last week in Rutland

Most Read