Kitimat council is escalating its opposition to Pacific Northern Gas鈥檚 plan to double natural gas delivery charges over three years, voting July 7 to send a letter to Premier David Eby in solidarity with Terrace and other northern communities.
鈥淭he mayor of Terrace is touching on concerns that many of us around this table already have,鈥� said Kitimat councillor Michelle Martins, who introduced the motion. 鈥淚 wasn鈥檛 super impressed with PNG鈥檚 presentation to us a few weeks ago, and I don鈥檛 feel I鈥檓 alone.鈥�
Martins said the challenges faced by northern residents are not fully understood in Victoria, adding the region is more effective when communities advocate for one another.
The move follows a letter from Terrace Mayor Sean Bujtas to Eby, echoing earlier messages from the Village of Telkwa and the North Coast Regional District. That letter called for a full review and reset of PNG, including an independent audit of the company鈥檚 operations and spending.
鈥淲ith PNG鈥檚 delivery rates for residential natural gas continuing to rise, the financial burden on northern British Columbians, particularly during the coldest months, is becoming increasingly unsustainable,鈥� Bujtas wrote. 鈥淧NG鈥檚 pattern of increases feels disproportionately targeted at northern communities, amounting to what many perceive as a 鈥榥orthern tax.鈥欌��
Bujtas also raised concerns over a proposed $200-million pipeline project, saying it raises 鈥渟erious questions about fiscal responsibility鈥� and the assumption that ratepayers should bear the cost of potentially questionable decisions. He said Terrace 鈥渟trongly opposes鈥� any increase and urged the B.C. Utilities Commission to conduct a comprehensive audit of the company鈥檚 finances.
Kitimat councillor Terry Marleau backed Martins鈥� motion, calling the proposed increase one example of a broader pattern in which northerners pay more for less. 鈥淭he provincial government is not listening,鈥� he said, citing gaps in healthcare, education and utility services.
While the B.C. Utilities Commission is currently reviewing PNG鈥檚 proposed rate changes, Kitimat鈥檚 letter to the premier is not bound by the deadline for filing formal comments. The district has already submitted a formal opposition to the commission.
The proposed hike would apply only to the delivery portion of residential gas bills. If approved, it would be phased in over three years鈥攁n average of 20 per cent on May 1, followed by 28 per cent in 2026 and five per cent in 2027. PNG has described the changes as a financial 鈥渞eset,鈥� citing rising costs, reduced pipeline usage and industrial shutdowns. The company says the five per cent increase planned for 2027 is fixed, after which rates are expected to stabilize.
Councillors, however, rejected PNG鈥檚 explanation during a May 26 meeting, where the company faced pointed criticism. Councillor Mario Feldhoff challenged the notion that shareholder returns鈥攕et by the utilities commission鈥攃ould be separated from consumer burden. 鈥淪hareholders should share in the financial burden,鈥� he said.
Council also took issue with PNG鈥檚 presentation of the rollback of the federal carbon tax, suggesting it misleadingly made the rate hike appear neutral to customers. Councillors voiced frustration over what they described as a lack of clarity and transparency about long-term impacts, despite reassurances from PNG representative Jason Keir, who pointed to future demand tied to the Ridley Island LNG project.
