PNG looking at a $4.92 million Gas Plant upgrade

Pacific Northern Gas (PNG) has put a proposal before the BC Utilities Commission (BCUC) that would see them put $4.92 million into repairing the Tumbler Ridge Gas Plant.

And, while plant upgrades would be nice, the way PNG has structured their distribution network, the cost of paying for these upgrades would be borne by residents and businesses of Tumbler Ridge. That would mean an increase in the amount residents and businesses pay of at least $3.79/Gigajoule (Gj), starting in 2026.

Tumbler Ridge already pays the highest price for residential customers in the Northeast, at $43.086/Gj, compared to $36.448 in Dawson Creek and $36.646 in Fort St. John.

Rates are currently higher in the Northwest, with people in the Vanderhoof/Prince Rupert/Terrace corridor paying $46.438, but the additional $3.79/Gj would push Tumbler Ridge PNG clients even higher than that, to at least $46.876.

Meanwhile, elsewhere in the province, customers of FortisBC are paying $9.934/Gj in Fort Nelson, $8.631/Gj for everywhere else.

If this plan were to go through, it would mean Tumbler Ridge would potentially have the highest gas bills in the province.

According to a letter PNG sent to the BCUC, the repairs are “critical.”

However, on October 18, PNG requested a temporary suspension of the proceeding “to allow PNG to evaluate a new proposal for an alternate gas supply arrangement, which could significantly impact the anticipated capital expenditures,” according to the BCUC website.

In its letter, PNG proposes to provide an update four weeks from the date of the BCUC order pausing the proceeding, which BCUC has granted. The deadline for this new proposal has come and gone, however, with no new news.

Instead, PNG has asked the BCUC for another three months. “As an update, PNG and its natural gas supplier are engaged in ongoing and constructive discussions regarding an alternative supply arrangement,” they wrote in their submission, dated November 18. “Additional time is needed to thoroughly explore, evaluate and finalize mutually acceptable contractual terms and conditions to support the proposed gas supply plan.”

They propose a new date of February 18 for an update to the plan. “This update will include a recommendation on whether to resume the regulatory timetable with adjusted dates, extend the adjournment, or pursue different or additional steps,” says the company.

https://tumblerridgelines.com/2024/11/22/png-looking-at-a-4-92-million-gas-plant-upgrade/