Local utility rates shift, while an increase to the carbon tax (and its rebate) is set for April 1

By Medicine Hat News on January 5, 2021.

Monthly power prices are rising as the new year starts, but that doesn’t include changes to the federal carbon tax that take effect this spring.

The cost of power for City of Medicine Hat utility customers will go up 1.2-cents per kilowatt hour, to 7.95-cents, while gas falls slightly to $2.623 per gigajoule in January.

The local January power price marks just the second time in 10 months that the rate has risen above a set-price option offered by the City of Medicine Hat as provincial rates plunged in 2020 due to low industrial demand and the pandemic response.

Local floating commodity rates are based on the average of default prices charged across the province by major providers.

The low and high prices for power in January are 7.70-cents from Direct Energy and 8.12-cents from Epcor in Edmonton zone, respectively.

Comparative gas prices for the month are $2.784, from Direct Energy, and $2.462, from AltaGas.

The federal carbon price charged to Alberta residents remained at $30 per tonne on Jan. 1, but is scheduled to rise to $40 on April 1.

That will increase the levy on natural gas by one-third, to a total of $2.10 per gigajoule, which is charged separately from the commodity rate and is remitted to Ottawa. At that time, reimbursements from Ottawa are also set to increase by $104 per year for a family of four to $992.

The levy is not charged directly to customers on power use in Alberta, where the province charges producers a separate levy on emissions.

Commodity rates represent only part of a customer’s bill.

Local delivery and administration charges will also increase this month on service provided, as part of a general adjustment for 2021.

In December, council approved a business plan and budget adjustments that would total about $4.75 per month for the average household.

Those include an extra $1.31 combined on gas and power delivery, based on average consumption, plus a $2.40 increase to franchise fees and smaller amounts on sewer, water and solid waste collection service.

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