Rates support the continued safety and reliability of PNG’s natural gas system
TERRACE, B.C., April 3, 2025 – Pacific Northern Gas Ltd. (PNG) is advising residential PNG West customers that it anticipates new delivery rates will take effect beginning May 1, 2025. These interim rates are pending the approval of the British Columbia Utilities Commission (BCUC). Compared to today’s rates, the average residential customer in the PNG West service territory will see a bill increase of about $23 per month, based on ~5.5 gigajoules (GJ) of average monthly consumption. Additional bill impacts are expected in 2026, after which PNG expects rates to normalize.
As a regulated natural gas utility, PNG’s rates are set by the BCUC. Interim rates are a standard part of the regulatory process and are implemented while the BCUC completes its full review. A decision on final 2025 delivery rates is expected in late 2025.
Carbon Tax Impact
The proposed May 1st rate increase would be largely offset by the rollback of the consumer carbon tax.
The carbon tax is now set to $0.00 on natural gas consumption on or after April 1. The previous carbon tax rate on natural gas was set at ~$4.00 per GJ. Based on the average monthly PNG West residential usage, the effective removal of the tax will reduce overall average bill impacts by about $22 per month.
Factoring in both the proposed delivery rate increase and the carbon tax decrease, PNG West residential customers would effectively experience an average overall bill impact of ~$1.00 per month.
Focus on Safety and Reliability
The rate adjustments are being implemented to support the continued safety and reliability of PNG’s natural gas system, impacted by higher operational costs, lower demand and the need to recover deferred costs.
- Operational Costs – Since 2021, PNG has made significant investments in the safety and reliability of its aging PNG West system due to recent regulatory changes and advancements in pipeline maintenance and inspection technology. The company undertakes work to ensure compliance with the codes, standards and regulations overseen by the BC Energy Regulator, and its costs are reviewed and ultimately approved by the BCUC.
- Lower Demand – An economic downturn—particularly in the forestry sector—has led to reduced industrial demand. When fewer large customers use the system, delivery costs must be spread across a smaller customer base, affecting rates.
- Recovery of Deferred Costs – In 2023 and 2024, PNG deferred certain costs to help stabilize rates during a period of higher system maintenance requirements, high inflation and record-high energy prices. When the BCUC approved these cost deferrals—and the use of one-time customer termination payments—in order to lower rates, PNG was optimistic about higher demand for gas in the near future. As a result, rates temporarily benefitted from these actions.
“Our priority is to provide safe and reliable natural gas service while keeping rates as stable as possible,” said Gordon Doyle, President of Pacific Northern Gas. “That’s why we’ve taken steps to reduce impacts where we can, and we continue to focus on long-term stability by efficiently managing costs and adding new customers to help offset future rate pressures.”
“We know that utility bills are an important part of household budgeting. We encourage customers to reach out to us for support for help with individualized payment options, programs designed to help customers use less energy and save on costs and other solutions to help manage bills.”
Customer Support and Resources
PNG offers several programs to help customers manage their bills, including:
- Budget Billing Program – Spreads annual costs into equal monthly payments for easier household budgeting.
- Energy Efficiency Programs – Includes free, low-cost and income-qualified energy efficiency programs and offers to help reduce energy consumption and lower utility bills.
- Payment Arrangements – Customers who need extra support can work with PNG on payment arrangements based on their individual needs.
Understanding Your Bill
A customer’s natural gas bill is made up of two main components:
- Commodity Charge – The cost of the natural gas itself, which PNG purchases at the best possible price on behalf of its customers. This charge is passed directly to customers with no markup, and fluctuations in cost are primarily based on market prices.
- Delivery Charges – The cost of safely delivering natural gas to homes and businesses. This includes maintaining and upgrading the pipeline system, activities to ensure regulatory compliance and operating expenses. These costs are independent of the market price of gas.
To see all components that make up a residential customer bill, please visit png.ca/understanding-your-bill/.
PNG Media Contact: media@png.ca
About Pacific Northern Gas Ltd.
PNG provides reliable gas service to approximately 42,600 residential, commercial and industrial customers in more than 20 communities across northern B.C. In operation since 1968, PNG owns and operates a transmission and distribution system in west-central B.C. and a distribution system and processing plant in the province’s northeast. PNG is a wholly-owned subsidiary of TriSummit Utilities Inc. For more information, visit www.png.ca.
