The B.C. Utilities Commission (BCUC) has rejected FortisBC’s application to build a $327 million natural gas pipeline in the Okanagan region. The project, known as the Okanagan Capacity Upgrade (OCU), aimed to address the growing demand for natural gas in the southern Interior of British Columbia over the next two decades. However, the BCUC determined that FortisBC did not factor in the potential decline in natural gas demand as the province shifts towards cleaner energy sources under its CleanBC plan.
According to a BCUC panel report released on Friday, the project was deemed unnecessary for the public’s convenience and did not serve the public interest. The report highlighted the province’s emphasis on electrification of heating infrastructure, encouraging homeowners to install technologies such as heat pumps instead of traditional natural gas heaters. The BCUC also considered input from various stakeholders, including the Penticton Indian Band (PIB).
In response to the decision, FortisBC expressed disappointment and stated that the OCU project was crucial for delivering renewable and low-carbon gases to help meet the CleanBC targets. The company has the option to file a reconsideration application or challenge the decision in court.
During the consultation period, the BCUC received 96 public letters regarding the project. The PIB and five other stakeholders participated as interveners in the BCUC panel. Some argued in favor of FortisBC’s immediate need for increased capacity, suggesting that electrification would have a minimal impact in the short term. Others, like climate non-profit First Things First Okanagan, emphasized the need to reduce natural gas usage in buildings as outlined in climate action plans by Vernon and Penticton.
Ultimately, the BCUC panel concluded that the full scope of the project was not necessary. Instead, they directed FortisBC to explore alternative short-term solutions for projected natural gas demand and submit a mitigation plan by July 2024.
The rejection of FortisBC’s application reflects the province’s commitment to transitioning to cleaner energy sources and reducing reliance on fossil fuels. While the decision is a setback for FortisBC, it also highlights the growing importance of renewable energy solutions in meeting climate goals and ensuring a sustainable future for British Columbia.
