Ms. Grace Pickell reports

MOST NATURAL GAS CUSTOMERS TO SEE COMMODITY RATE DECREASE

Fortis Inc.'s FortisBC has received approval from the B.C. Utilities Commission to decrease natural gas commodity rates for most customers starting Oct. 1. The rate for piped propane customers living in Revelstoke will remain the same.

"North American gas market prices have gone down recently. Strong gas production and lower demand due to cooler summer weather have allowed gas storage inventory levels to recover prior to the upcoming winter season," said Cynthia Des Brisay, vice-president of energy supply and resource development.

"The result has been lower commodity rates for most of our gas customers; however, as heating season fast approaches, we encourage customers to take advantage of energy-saving tools to reduce their energy use."

Customers will see the following changes to their natural gas bills, effective Oct. 1, 2014:

Lower Mainland, Fraser Valley, Interior, North and the Kootenays

The commodity rate for customers will decrease by 85.9 cents per gigajoule. This is equivalent to a decrease of approximately $82 per year for an average residential customer in the Lower Mainland using approximately 95 gigajoules per year.

Customer Choice program participants will not be affected by changes to the commodity rate.

Whistler

The commodity rate for customers will decrease by 85.9 cents per gigajoule. This is equivalent to a decrease of approximately $77 per year for an average residential customer in Whistler using approximately 90 gigajoules per year.

Fort Nelson

The commodity rate for customers will decrease by 51.6 cents per gigajoule. This is equivalent to a decrease of approximately $72 per year for an average residential customer in Fort Nelson using approximately 140 gigajoules per year.

Revelstoke

Rates will remain unchanged from current levels for customers, including residential, who receive piped propane.

Vancouver Island, Sunshine Coast and Powell River

Rates will remain unchanged from current levels for customers, including residential, on Vancouver Island, the Sunshine Coast and Powell River.

FortisBC is a regulated utility focused on providing safe and reliable energy, including natural gas, electricity and propane. FortisBC employs more than 2,200 British Columbians and serves approximately 1.1 million customers in more than 135 B.C. communities. FortisBC is indirectly wholly owned by Fortis Inc. FortisBC owns and operates four regulated hydroelectric generating plants, approximately 7,000 kilometres of transmission and distribution power lines, and approximately 47,000 kilometres of natural gas transmission and distribution pipelines. FortisBC Inc., FortisBC Energy Inc., FortisBC Energy (Vancouver Island) Inc. and FortisBC Energy (Whistler) Inc. do business as FortisBC.

Backgrounder on natural gas commodity rates

Natural gas is traded in the North American marketplace as a commodity like oil, gold or lumber. The company's commodity rates are reviewed every three months by the BCUC to ensure the rates that the company is charging appropriately cover the cost of natural gas the company purchases on behalf of its customers.

Weather, Gulf of Mexico hurricanes, natural gas competitiveness with other forms of energy such as coal, economic conditions, and other supply and demand factors influence the price of natural gas.

FortisBC does not profit from natural gas commodity charges. Customers pay what FortisBC pays for the gas. Rates are reviewed each quarter based on a forecast of what the company's costs to purchase gas will be over the following 12 months, based on forward prices set by the market.