Proposed Changes to PNG's Northeast Rate Structure
Natural gas rates in PNG’s Northeast service area are currently the lowest in British Columbia. Looking ahead, Pacific Northern Gas (PNG) is proposing changes to its natural gas rate structure to support greater long-term rate stability for Northeast customers.
The proposed changes would be subject to review and approval by the British Columbia Utilities Commission (BCUC).
What PNG is Proposing
PNG is proposing two related changes:
A single PNG-East division
Combine the existing Fort St. John/Dawson Creek and Tumbler Ridge divisions into a single Northeast division, known as PNG-East.
Common PNG-East basic charges and delivery rates
Introduce common basic charges and delivery rates for comparable customer classes within PNG-East, supporting greater long-term rate stability through a larger, shared customer base. Today, Fort St. John, Dawson Creek and Tumbler Ridge have different basic charges and natural gas delivery rates. Once fully implemented, customers in the same rate class would pay the same basic charge and delivery rate across PNG-East.
PNG-East and PNG-West would continue to have separate basic charges and delivery rates.
Why PNG is Proposing These Changes
In response to encouragement from the BCUC and feedback from interveners in previous regulatory proceedings, PNG has been examining alternatives to its existing Northeast rate structure.
Greater long-term rate stability
Currently, Fort St. John, Dawson Creek and Tumbler Ridge have different natural gas basic charges and delivery rates, reflecting historical rate-setting arrangements.
Establishing common basic charges and delivery rates would allow infrastructure costs and changes in natural gas demand to be shared across a larger customer base.
For example, changes in natural gas demand resulting from the addition, expansion or closure of large commercial and industrial operations would be reflected across PNG-East, rather than solely within the community where those changes occur. Similarly, sharing infrastructure costs across a broader customer base would reduce customers’ exposure to significant investments in any one community.
This approach is intended to support greater long-term rate stability for Northeast customers.
Importantly, the proposed common basic charges and delivery rates would change how the costs of providing service are shared among Northeast customers, not increase PNG’s total authorized revenue.
What This Means for Customers
The proposed common basic charges and delivery rates would affect customers differently depending on their community and rate class.
Because basic charges and delivery rates currently differ across Fort St. John, Dawson Creek and Tumbler Ridge, moving to common rates means customers currently paying below the proposed common rate would see increases in their basic charges and delivery charges, while those paying above it would see decreases.
These adjustments reflect the move from today’s separate rates to a common rate. Once common rates are in place, future infrastructure costs and changes in customer demand anywhere in PNG-East would be shared across the broader customer base, an arrangement that works in both directions.
The proposed changes relate specifically to basic charges and natural gas delivery rates, which cover the costs of safely delivering natural gas to homes and businesses. They do not affect commodity rates, which reflect the cost of the natural gas itself and are passed on to customers without markup. Common commodity rates for comparable customer classes across PNG-West and the existing Northeast divisions have already been in place since 2024.
PNG is proposing to phase in common basic charges and delivery rates over three years, beginning in 2028, subject to BCUC approval. The phase-in would apply to both increases and decreases, moderating year-over-year changes for all affected customers.
Estimated Customer Bill Impacts
The following estimates show the anticipated impact of transitioning to common basic charges and delivery rates over the proposed three-year phase-in period (2028–2030). The estimates are based on PNG’s BCUC-approved 2027 delivery rates.
Residential customers
For residential customers, the following changes to annual bills are expected in each year of the proposed three-year phase-in, based on average annual natural gas consumption in each service area:
- Fort St. John: An increase of approximately 0.2%, or $3 per year.
- Dawson Creek: An increase of approximately 0.7%, or $8 per year.
- Tumbler Ridge: A decrease of approximately 6.8%, or $79 per year.
Individual bill impacts will depend on actual consumption.
Commercial and industrial customers
Existing basic charges and delivery rates differ by community and customer class. As a result, the adjustments required to establish common basic charges and delivery rates also differ, meaning some commercial and industrial customers would see increases in their basic charges and delivery charges, while others would see decreases — even within the same community.
The following estimated changes to annual bills are expected in each year of the proposed three-year phase-in:
Fort St. John
- Small commercial (RS2): Decrease of approximately 0.3%.
- Large commercial (RS3): Decrease of approximately 0.2%.
- Small industrial (RS4): Increase of approximately 0.4%.
Dawson Creek
- Small commercial (RS2): Increase of approximately 1.6%.
- Large commercial (RS3): Increase of approximately 2.3%.
- Small industrial (RS4): Decrease of approximately 1.3%.
Tumbler Ridge
- Small commercial (RS2): Decrease of approximately 8.6%.
- Large commercial (RS3): Decrease of approximately 9.2%.
Individual bill impacts will depend on actual consumption.
Important Information About These Estimates
These estimates reflect only the anticipated impact of transitioning to common basic charges and delivery rates, using PNG’s BCUC-approved 2027 rates as the starting point.
Actual customer bills beginning in 2028 would also reflect other BCUC-approved rate changes, including changes from PNG’s next Revenue Requirements Application (the regular process through which the BCUC reviews the overall costs PNG may recover through basic charges and delivery rates), as well as changes in the market price of natural gas and individual consumption.
Timeline
|
2025 – 2026 Cost of Service AnalysisPNG evaluates alternative delivery rate structures. |
Fall 2026 Stakeholder engagement and public informationPNG shares its proposed approach. |
December 2026 BCUC applicationPNG files its application. |
EarLY-mid 2027 Regulatory reviewThe BCUC reviews the proposal and determines whether to approve it. |
2028–2030 ImplementationIf approved, common basic charges and delivery rates would take effect beginning January 1, 2028, and be phased in over three years. |
Regulatory Review and Next Steps
PNG expects to submit an application to the BCUC in December 2026 seeking approval for the proposed common basic charges and delivery rate structure.
Ahead of filing, PNG is engaging municipal and other stakeholders and providing information to customers and the public.
The BCUC will independently review the application and determine whether the proposed changes should be approved. The regulatory process will include opportunities for public participation.
Subject to BCUC approval, PNG is proposing to begin introducing common PNG-East basic charges and delivery rates in 2028.
Frequently Asked Questions
Encouragement from the BCUC and feedback from interveners prompted PNG to examine alternatives to its existing Northeast rate structure, which reflects historical rate-setting arrangements.
The proposed changes are intended to support greater long-term rate stability for Northeast customers.
No. Common basic charges and delivery rates would change how the costs of providing service are shared among Northeast customers, not the total amount PNG recovers. Increases for some customers would be offset by decreases for others. PNG’s rates and the return it is permitted to earn are regulated by the BCUC.
Customers in the same rate class would pay the same basic charge and delivery rate across PNG-East once common rates are fully implemented.
Different customer classes would continue to have different basic charges and delivery rates, and individual bills would depend on natural gas consumption and other applicable charges.
Commodity rates, which reflect the cost of the natural gas itself, were consolidated across PNG’s service areas in 2024. Customers in the same rate class already pay a common commodity rate regardless of where they are located. The current proposal relates specifically to delivery rates.
Existing basic charges and delivery rates across Fort St. John, Dawson Creek and Tumbler Ridge reflect different historical rate-setting arrangements. Moving to common rates would establish a consistent approach, with customers in comparable rate classes paying the same basic charges and delivery rate across PNG-East.
While some customers would see increases in their basic charges and delivery charges and others would see decreases, sharing infrastructure costs and changes in customer demand across a larger customer base would reduce customers’ exposure to changes concentrated within any one community.
This approach is intended to support greater long-term rate stability for customers throughout PNG-East.
Yes. PNG-West already uses a common basic charge and delivery rate structure, with customers in the same rate class paying the same basic charge and delivery rate regardless of where they are located within the service area.
Common basic charge and delivery rate structures are also used by other regulated utilities in British Columbia and across Canada.
A three-year phase-in would help moderate year-over-year changes and provide greater predictability as customers move from historically separate rates to a common rate structure. The phase-in would apply consistently to customers seeing increases and those seeing decreases.
The proposed common basic charges and delivery rates would apply only to PNG-East. PNG-West already has common basic charges and delivery rates, with customers in the same rate class paying the same basic charge and delivery rate whether they live in Vanderhoof or Prince Rupert. PNG-West would continue to have its own basic charges and delivery rates, separate from PNG-East.
PNG-West serves a vast, geographically dispersed area with higher costs of providing service. Establishing common basic charges and delivery rates across PNG-East and PNG-West would require Northeast customers to bear a greater share of PNG-West’s costs, resulting in significantly higher rates.
PNG’s proposed approach would provide the benefits of a larger, shared customer base within the Northeast while maintaining separate basic charges and delivery rates for PNG-East and PNG-West.
PNG offers Smart Energy Solutions programs to help eligible customers reduce natural gas use and manage energy costs.
For residential customers, these include rebates and incentives for energy-efficiency upgrades, as well as free energy-saving programs for income-qualified households. For commercial and industrial customers, these include rebates and incentives for high-efficiency equipment, funded energy studies and customized programs for larger or more complex projects.
Learn more at our Smart Energy Solutions hub.
PNG expects to file an application with the British Columbia Utilities Commission (BCUC) in December 2026. If approved, common basic charges and delivery rates would begin taking effect January 1, 2028, and be phased in over three years.
Before PNG files its application, customers can share questions or comments through the contact form at the bottom of this webpage.
Once PNG files its application, interested parties will have opportunities to participate in the BCUC’s public review process, including by submitting letters of comment or, where applicable, participating as an intervener. PNG’s application will be made publicly available on both the BCUC and PNG websites.
PNG will provide updates as the proposal moves through the regulatory process.
Questions or Additional Information
For questions or comments about the proposed Northeast rate structure, contact PNG through our webform below.
Regulatory Department | Contact
If you have an emergency request please call: 1-800-663-1173