There were a couple corrections/comments sent to us last issue.
First, Zena at the museum sent a note: “The second paragraph [of the story about PRRD funding for the museum and the Geopark] insinuates the museum has received funding over and above our operational funding agreement with the District, and we have not. At no time over the last two years has the TRMF requested nor has the District provided the museum with additional funds to cover our shortfalls. Nor are we intending to ask them for additional funds. We are currently managing our shortfalls by accessing federal covid relief grants, and the direct support we received from the District of Taylor is helping us get by in the short-term while we continue to explore additional opportunities.”
Turns out neither organization has so far been funded by the District. Although the Geopark went before Council a few months ago to ask for funding, that has not been approved. Last year, they were able to get by with a grant from the Community Forest.
Also, Maxine Vanbrabant sent a note about our cover story on PNG rates and the work she’s doing to stop the increase: “Not sure where you got the $10.499/ GJ from as it was over $11 and is now over $12.”
That line was supposed to read “Tumbler Ridge residents already pay the highest rates in the region, $10.499/GJ, which is going up to $11.638/GJ for 2022.”
Which is all fine and dandy, but the actual amount on my latest bill is $12.294/GJ. What’s up with that?
According to BCUC, “The difference between the delivery charges you see on your monthly bill ($12.294/GJ) and the delivery rate that was approved in our information release ($11.638/GJ) is due to the Company Use gas cost delivery rate ($0.656/GJ). On the monthly bill, PNG has added the company use gas cost delivery rate to the delivery charges to result in a total charge of $12.294/GJ. The Company Use delivery rate is for the quantity of gas that PNG expects to purchase for company use, in the Tumbler Ridge service area this is primarily for process plant fuel and gas for line heaters.”
The BCUC also writes: “Delivery rates reflect the costs associated with getting gas safely and reliably to customers in Tumbler Ridge, which includes the cost of building and/or maintaining necessary infrastructure. At present, the Tumbler Ridge area is treated as a separate division with separate delivery rates from the Fort St John/Dawson Creek area. In the BCUC’s decision for the PNG(NE) 2020-2021 Rates Application, it says: ‘The Panel considers it may be in the best interests of both the shareholder and ratepayers for PNG to examine the long-term plans of its utilities and the continued viability of their current rate design as part of the utilities’ next RRAs. The Panel urges PNG to focus on the consideration and development of a comprehensive business strategy to address the current challenges, which may necessitate consideration of rate design changes including postage stamp rates and/or amalgamation of its various entities to reduce costs on a consolidated basis or produce greater operational efficiencies for the mutual benefit of ratepayers and the shareholder.’”
Which means that the BCUC is encouraging PNG to at least look at combining it’s delivery area for the Northeast, like they do in the northwest.
While this would mean a slightly higher cost for people in Dawson Creek and Fort St. John, it would decrease the cost Tumbler Ridge residents pay.
This is not something that PNG is adverse to. In a submission to the BCUC, they write: “PNG is in the process of completing its analysis and evaluation of possible alternative approaches to harmonizing commodity rates. PNG expects to begin engaging with stakeholders on the potential consolidation of commodity costs in the first quarter of 2022. The feedback from this engagement will be considered in the development of a potential request to be filed with the BCUC in the second quarter of 2022 with a proposal to consolidate commodity costs and implement commodity rates common to all divisions.…”
“All divisions” is the key word there. While Tumbler Ridge rates are high, they aren’t as high as PNG’s rates for Northwest BC. While PNG currently operates that as a separate entity, if they harmonize gas prices across both regions, it could mean a major spike in gas prices for people in the Northeast, something that would most likely be strongly opposed by people in Dawson Creek and Fort St. John.
Not trying to read the tea leaves or anything, but if they do move towards combining both northwest and northeast, it would be opposed by people in the Northeast. While combining Dawson Creek, Fort St. John and Tumbler Ridge would mean gas prices would go up a few cents for most people in the Northeast (and down for Tumbler Ridge residents), adding in the Northwest would mean gas prices would go up a few bucks. That is not something that would go over well, and most likely the system would remain as it currently is.
Trent is the publisher of Tumbler RidgeLines.
