FortisBC currently has 1,500 propane customers in Revelstoke. The fossil fuel is brought in via train or truck to be distributed. (File photo/National Energy Board)

FortisBC proposing rate subsidy for Revelstoke propane users

Residential properties could save an average of $407 a year

FortisBC Energy Inc. is proposing a rate subsidy for propane users in Revelstoke.

At the moment rates are much more volatile than for propane users than for natural gas users, Fortis is proposing that they amalgamate propane supply costs with the midstream natural gas supply resource costs and implement a revised cost rate setting mechanism.

“The proposed rate setting mechanism will provide Revelstoke customers with propane rate stability that matches the stability of FEI’s natural gas customer rates, and can provide propane commodity rate relief to Revelstoke customers,” the application to the BC Utilities Commission reads.

Revelstoke operates as a satellite off-grid distribution system where propane is brought in via rail or truck, stored and distributed as needed. Fortis has 1,500 customers in Revelstoke and claims that implementing this new system would reduce their customers annual propane bill.

READ MORE: City of Revelstoke on the hook for another $10 million after failed grant application

Fortis estimates that, should the system be changed, Revelstoke residential customers would see their annual bill decrease an average of $407. Small commercial operations would see an average of $2,100 in savings and large commercial users would see an average savings of $48,200 a year.

By comparison, with this change Lower Mainland residents will see an average cost decrease of 98 cents a year.

For more information see the full application here.

The utilities commission has called for a written hearing process before making the decision on Fortis’ proposal. The deadline for people to register to participate in the process by Sept. 12.

Cornelius Suchy, CEO at Canadian Biomass Energy Research Ltd., encouraged the City of Revelstoke to register as an intervener.

READ MORE: Small burnings planned on Mount Revelstoke

In a presentation made to council on Aug. 27, Suchy said that the proposed subsidy will have detrimental effects on alternative energy forms. He predicts that if the proposal is approved, that Revelstoke Community Energy Corporation will find it difficult to compete in the market.

He also said that he believes subsidizing the use of fossil fuels in times of climate crisis is not the right move and requested that the city oppose or request changes to Fortis’ plans.

Instead he recommended that the city look at opportunities to create combustible gas from wood waste and other green alternatives available locally.

READ MORE: Revelstoke City Council hears concerns about proposed cold weather shelter


 

@JDoll_Revy
jocelyn.doll@revelstokereview.com

Like us on Facebook and follow us on Twitter.

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

Just Posted

Okanagan Spirits donating free sanitizer to those most at risk during COVID-19 pandemic

The Okanagan distillery has ceased spirits operations and has produced over 3,000 litres of sanitizer since March 26

Social media a blessing and a curse during time of crisis: B.C. communication expert

‘In moments of crisis, fear is very real and palpable,’ says SFU’s Peter Chow-White

Living with faith

Bea Buhler is a pillar of strength at the Alliance Church

Interior Health officials outline pandemic response in virtual town hall

Kelowna-Lake County MLA Norm Letnick moderates digital discussion, Q&A with Interior Health leadership

Second Vernon-area high school exposed to COVID-19

Kalamalka Secondary School staff, students urged to self-isolate if showing symptoms

Canada will make sure masks sent by China meet quality standards: Trudeau

Chinese Embassy tweeted that China was sending 30,000 medical masks along with gowns, gloves and goggles

B.C. issues guidelines about distancing, reusable bags to grocery stores amid COVID-19

Hand sanitizer and markers to keep lines two metres are apart are needed, province says

Vehicle goes up in smoke in Okanagan garage

Fire department on-scene in 200 block of Poplar Point Drive near Knox Mountain in Kelowna

COSAR rescues two lost hikers from Okanagan Mountain Park

Two male hikers were overdue from a hike they left for on the morning of March 28

No plans to call in military right now to enforce COVID-19 quarantine: Trudeau

Trudeau unveils $7.5M for Kids Help Phone, $9M for vulnerable seniors amid COVID-19

Okanagan women spending quarantine making masks

Group at Predator Ridge, and a colleague in Vernon, keeping busy making surgical masks for others

QUIZ: How much do you know about the Olympics?

Put your knowledge to the test with these 12 questions

B.C. announces $3M for food banks to increase capacity during COVID-19

It is not clear how much of the money will flow towards Greater Victoria food banks

Most Read