Natural gas customers across the Northwest are bracing for a jump in delivery charges starting May 1, with Pacific Northern Gas Ltd. (PNG) warning that average residential bills could rise by about $23 per month. The interim rate increase鈥攕till pending approval from the British Columbia Utilities Commission鈥攁pplies to PNG West customers, who span several communities in the region.
鈥淲e know that utility bills are an important part of household budgeting,鈥� said PNG president Gordon Doyle. 鈥淲e encourage customers to reach out to us for support for help with individualized payment options, programs designed to help customers use less energy and save on costs and other solutions to help manage bills.鈥�
While PNG says a recent rollback of the federal carbon tax will offset most of the increase鈥攅ffectively reducing the net bill impact to about $1 per month鈥攕ome municipal leaders say that framing doesn't change the reality of rising costs.
In Kitimat, council members have reacted with frustration to the proposed hike, which PNG has described as the first step in a multi-year 鈥渞eset鈥� of rates. According to the company, the initial rise would average 20 per cent in 2025, followed by another 28 per cent in 2026 and five per cent in 2027.
鈥淚f my math is right, we鈥檙e looking at a 53 per cent increase over the next three years,鈥� said Councillor Gerry Leibel during an April 22 meeting. 鈥淭hat鈥檚 a significant increase in costs, especially for low-income families.鈥�
PNG attributes the need for the new rates to rising operational costs, declining industrial demand, and the recovery of deferred maintenance expenses. Between 2021 and 2024, the company says it invested more than $200 million in capital improvements to its ageing PNG West infrastructure, citing compliance with new regulatory standards and upgraded inspection technology.
Kitimat councillors, however, are calling for action that goes beyond sending letters of protest. Council passed a motion to explore the feasibility of establishing a municipally owned utility, possibly by leasing PNG鈥檚 infrastructure and sourcing gas through partnerships with LNG Canada.
鈥淲e鈥檙e in a unique position,鈥� said Councillor Mario Feldhoff. 鈥淟et鈥檚 tell PNG we don鈥檛 need them anymore. We鈥檒l get our gas from LNG Canada and take control of the local distribution system, and refuse to pay for their mismanagement of it.鈥�
The sentiment was echoed across council chambers, with members calling the justification for the increases misleading.
鈥淚f people are happy they鈥檙e losing [the tax], you shouldn鈥檛 then say 鈥榦k, we鈥檙e replacing it with something else.鈥� That鈥檚 horrid,鈥� said Councillor Terry Marleau. 鈥淪ome can鈥檛 afford it, and that鈥檚 horrific.鈥�
Council agreed to send formal objections to PNG and the BCUC, citing both affordability and energy security as core concerns for northern communities.
