TERRACE, B.C., February 6, 2026 – Pacific Northern Gas Ltd. (PNG) is taking additional regulatory steps following the British Columbia Utilities Commission’s (BCUC) recent decisions on PNG’s 2025–2027 revenue requirements applications (RRA) for its West and Northeast service areas.
PNG is taking these steps because the decisions change how required system integrity work—which underpins safe and reliable operations—is structured and funded across the system. In PNG West, the BCUC decision also defers the recovery of approved costs to future years. These changes have consequences for customers in both service areas, with impacts in PNG West further compounded by the deferrals.
PNG is a regulated utility that operates under multiple, complementary regulatory frameworks with different areas of oversight. This primarily includes the BCUC, which regulates customer rates and the economic aspects of utility operations, and the BC Energy Regulator (BCER), which oversees pipeline safety and system integrity. PNG’s role is to comply with all applicable regulatory requirements and to work within established regulatory processes where those mandates intersect.
System integrity work is a core regulatory requirement overseen by the BCER and is not discretionary. In both the PNG West and PNG Northeast service areas, significantly reduced integrity funding means that PNG’s required safety and reliability work is not fully reflected in the BCUC decision rates, even though PNG remains accountable for meeting system integrity expectations under the BCER’s regulatory framework. The current decision does not address how required integrity obligations will be funded. This creates uncertainty about future regulatory, cost and rate outcomes in both service areas.
In the PNG West service area, the BCUC decision requires PNG to carry approximately one-third of its required costs over a 5-year period, resulting in significantly higher financing costs. These financing costs must be recovered through customer rates in later years, resulting in higher PNG West customer bills in 2028 and 2029. These increases would not arise under a recovery structure aligned with PNG’s proposed recovery structure.
For PNG West, the combined effect of the BCUC decisions regarding its costs and integrity-related funding is a higher risk of sharper bill increases and greater rate volatility in later years. By comparison, PNG’s proposal allowed for a recovery structure aligned with spending in an effort to support more stable and predictable customer outcomes.
For these reasons, PNG is using the formal regulatory processes available under the BCUC framework to seek reconsideration and related procedural steps on these defined elements of the decisions. These steps are intended to support safe and reliable service and to achieve more stable, predictable customer outcomes over time.
While these processes are underway, PNG will continue to support customers through existing customer care and demand side management programs, and individualized payment arrangements where needed. PNG’s focus remains on maintaining safe, reliable service for the communities it serves and operating with financial prudence.
PNG’s Application for Reconsideration is available on BCUC’s PNG Reconsideration of Orders G-270-25 and G-284-25 proceeding page.
PNG Media Contact: media@png.ca
About Pacific Northern Gas Ltd.
PNG provides reliable gas service to approximately 42,000 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.
