BCUC Approves a Low Carbon Energy Program for Pacific Northern Gas

VANCOUVER, BC, Nov. 25, 2022 /CNW/ - Today, the British Columbia Utilities Commission (BCUC) approved Pacific Northern Gas Ltd. and Pacific Northern Gas (N.E.) Ltd. (collectively, PNG) to establish a Low Carbon Energy program to reduce the utility and its customers' greenhouse gas emissions, by Order G-339-22.

PNG's Low Carbon Energy program includes a voluntary Smart Energy program to offer PNG's residential, commercial, and industrial natural gas customers the option to receive a blend of renewable natural gas (RNG) with their natural gas supply.

For customers who opt-in to the Smart Energy program, the approved commodity charge is currently set at $27.50 per gigajoule, which reflects PNG's total estimated cost to provide RNG. PNG notes that customers in the Smart Energy program will also receive a carbon tax credit based on the amount of RNG purchased.

PNG may use a portion of its RNG supply to meet its own demand to reduce its greenhouse gas emissions, and/or may sell some of the RNG to those outside the Smart Energy program to reduce the overall costs for customers.

In addition, PNG was approved to recover costs for the Low Carbon Energy program, including the costs to acquire RNG supply, from all PNG customers through a rate rider. The rate rider is initially set at $0 per gigajoule.

In the BCUC's decision, PNG was directed to complete several tasks, such as:

1. Including Tumbler Ridge customers in the Low Carbon Energy program.
   
   
2. Reporting yearly on the cost of the Smart Energy program incentives, related accounts, program performance, and expenses.
    
3. Providing an analysis of the Low Carbon and Smart Energy programs to the BCUC by June 30, 2026, to report on PNG's supply, customer demand, emission reductions, marketing activities, costs, and benefits.

More information about the PNG Low Carbon Energy Cost Recovery Mechanism and Biomethane Purchase Agreements proceeding can be found here.  

The BCUC is an independent regulatory body, responsible for regulating BC's energy utilities, as well as its compulsory automobile insurance rates, and intra-and provincial pipelines rates. The BCUC is also responsible for administering BC's Fuel Price Transparency Act. It is the BCUC's role to balance the interests of customers with the interests of the businesses it regulates. The BCUC carries out fair and transparent reviews of matters within its jurisdiction and considers public input where public interest is impacted.

SOURCE British Columbia Utilities Commission