Non-fixed utility rates on the summer rise as usual
By MEDICINE HAT NEWS on July 5, 2022.
https://www.medicinehatnews.com@MedicineHatNews Non-fixed utility rates are rising again heading into summer months, according to new prices for July published Monday. Power will be charged at 14.8 cents per kilowatt hour, up from 11.7 cents in June, while the gas rate rises to $9.09 per gigajoule as a mechanism for cost recovery works to correct pricing charged in the spring. It comes as power consumption is set to rise heading into heavy air-conditioning season, while the increase in gas price is exaggerated due to lower demand. The Alberta Utility Commission allows major distributors – which form an average price used to set the city’s default rate – to recover costs in months ahead when price forecasted cost of buying gas off the system for resale rose well above market rates last spring. July will also see the first of three $50 credits forwarded by the province flow on to power bills until September. A price cap on gas rates will go into effect in October if the price is above $6.50. The City of Medicine Hat’s fixed rates for 2022 are 8 cents for power and $4.35 for gas. Those are available to city of Medicine Hat utility customers who sign up for a minimum of six months. Last year, utility department administrators announced they plan to adjust rates on a yearly basis based partly on cost of service at the end of each year as business unit budgets are approved by council. The spread of power prices in Alberta used to form the local average ranges from 14.4-cents from Direct Energy to 15.1-cents from Epcor (Edmonton service). The two gas rates were $8.32 from Direct Energy and $9.86 from Apex Utilities (formerly AltaGas). 10-9
