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—still pending approval from the British Columbia Utilities Commission—applies to PNG West customers, who span several communities in the region.
“We know that utility bills are an important part of household budgeting,” said PNG president Gordon Doyle. “We 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.”
While PNG says a recent rollback of the federal carbon tax will offset most of the increase—effectively reducing the net bill impact to about $1 per month—some 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 “reset” 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.
“If my math is right, we’re looking at a 53 per cent increase over the next three years,” said Councillor Gerry Leibel during an April 22 meeting. “That’s a significant increase in costs, especially for low-income families.”
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’s infrastructure and sourcing gas through partnerships with LNG Canada.
“We’re in a unique position,” said Councillor Mario Feldhoff. “Let’s tell PNG we don’t need them anymore. We’ll get our gas from LNG Canada and take control of the local distribution system, and refuse to pay for their mismanagement of it.”
The sentiment was echoed across council chambers, with members calling the justification for the increases misleading.
“If people are happy they’re losing [the tax], you shouldn’t then say ‘ok, we’re replacing it with something else.’ That’s horrid,” said Councillor Terry Marleau. “Some can’t afford it, and that’s horrific.”
Council agreed to send formal objections to PNG and the BCUC, citing both affordability and energy security as core concerns for northern communities.
