'It's going to be very expensive': B.C. city's gas heating prices going up, while most of province sees drop

Heating for homes in Revelstoke is about to get pricier.

FortisBC announced that in 2020, Revelstoke customers will see a 12 per cent annual increase in prices for gas heating, while most of the province will see a two per cent drop.

This is because Revelstoke is one of the only cities in B.C. which uses propane instead of natural gas.

"There is volatility always in the propane market which you don't see as much of in the natural gas market," said Diane Roy, vice-president of regulatory affairs at FortisBC.

The price increase this time is due to propane storage levels and also oil prices being higher over the past few months, she said. 

Last year, Revelstoke residential customers had an annual reduction of 11 per cent.

Revelstoke has tried in the past to switch to natural gas, however extending the natural gas line to the southeastern B.C. city proved to be too "cost prohibitive," said Roy.

The overall bill for residential customers is expected to go up $99 for the year. 

Revelstoke Mayor Gary Sulz is concerned about the impact this could have on people in the community.

"That's significant for people who are on a fixed income. How are they going to afford to continue to heat their homes, and even though it only works out to $100 a year, is that going to change whether some months they are able to put some food on their table or actually heat their house?" he said.

Sulz added that it will also be a hit for larger businesses that use propane.

"It's going to be very expensive. You know it seems like a small amount, but you think about the ... companies that use a great amount of propane, it's going to really marginalize their bottom line."

Possible future relief

FortisBC filed an application in July to the B.C. Utilities Commission to have propane prices in Revelstoke matched to those of natural gas prices across the rest of the province.

"We would be just amalgamating the portfolios between the Revelstoke propane customers and all of our other customers who have natural gas through the rest of the province," said Roy. 

"So that all customers throughout the province would be paying the same rate regardless of where they lived, because they're all getting the same service, which is a provision of gas whether it's propane or natural gas."

A decision has not yet been made on the application, but Sulz hopes one will be made by the spring.

"I think everyone that's on the propane is really excited about this," he said.

There are concerns about the impact this could have on the Revelstoke Community Energy Corporation, which uses local fuel and wood residue from the Downie Timber mill to create energy, if the cost of propane becomes more affordable, said Sulz.

"But overall, for our members of our community, we need this rate to drop. We need it for our mill. We need it for every resident who's on propane so that it's really affordable for the whole community."