gas meters

Renewable gas proposal by FortisBC falls flat with regulator

In a setback for FortisBC, the British Columbia Utilities Commission has turned down a proposal aimed at pushing renewable natural gas for new buildings, citing unfair cost burdens on existing customers.

Andrew MacLeod reports for The Tyee.


In short:

  • The plan would have had current FortisBC customers subsidize the higher costs of renewable natural gas for new connections.
  • Renewable natural gas is seen as carbon-neutral because it comes mainly from existing emissions sources that are captured and redirected as energy, such as methane from landfills, dairy farms and sewage plants. However, it comes with higher expenses compared to traditional natural gas.
  • Despite rejection of the full proposal, FortisBC can still sell and blend renewable natural gas for customers willing to share in the additional costs.

Key quote:

"This is squirrely accounting and BCUC yesterday said we’re not having any of that."

— Eoin Finn, director of research for My Sea to Sky

Why this matters:

Energy companies like FortisBC are under pressure to meet climate targets while keeping costs affordable for customers. The cost of investments in new technologies and infrastructure are significant, and how they are financed varies widely across different regions and companies.

Ensuring affordability of cleaner energy sources is an environmental justice issue. For more, read Kartik Amarnath's piece: How financial institutions engineered climate injustice and the clean energy colorline.

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