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Deal brings discount for Fortis customers

NATURAL GAS

Natural gas customers will see a significant drop in rates under an agreement between FortisBC and the Association of Vancouver Island Coastal Communities (AVICC) that’s expected to be ratified by the end of the year.

Under the deal, residential gas customers would see a decrease of more than 20 per cent phased in over four years, while most small commercial customers would see more than a 30 per cent drop in rates, Gibsons chief executive officer Mani Machado told council Oct. 7.

The agreement will also benefit municipalities by providing a three per cent operating fee based on gas volumes sold within their boundaries, starting in March 2016.

“We’ll be looking at a cheque in the neighbourhood of $38,700 for simply being part of this area,” Machado said.

For District of Sechelt, the first annual payment would total $73,000, chief financial officer Victor Mema said Tuesday. Sunshine Coast Regional District (SCRD) treasurer Tina Perreault said the SCRD is not eligible for the municipal fee.

The agreement was intended to correct an inequity created 25 years ago when Centra Gas — the predecessor of FortisBC — was exempted from municipal fees to help the company finance the installation of natural gas to Vancouver Island.

“Municipal taxpayers were not consulted about this decision, but were required to forgo literally tens of millions of dollars in fees and to subsidize gas provision in a manner not required of other taxpayers outside of metro Vancouver,” Machado said in his report.

Municipalities served by gas, he said, are being asked to endorse the agreement by the end of this month under a “very aggressive timeline” that will see enabling legislation introduced during the fall sitting of the legislature and BC Utilities Commission approval before the end of the year.

Gibsons council voted unanimously to endorse the agreement. District of Sechelt council will deal with the request at its next meeting, Mema said.