As council readied rate offering debate, lower default price announced

By James Tubb on October 4, 2023.

A new “default rate” for power has been announced as usual on the first business day of the month, just as Medicine Hat city councillors were prepared to debate changes to rate offerings later on Tuesday.

Each month, the City of Medicine Hat utility department announces its monthly rate for customers without fixed or variable rate term contracts. As the beginning of a new financial quarter as well, new rates for expired contracts were also available.

The monthly non-contract rate is set as the average of major retailers elsewhere in the province, and power in October will fall by more than one third compared to recordsetting prices this summer.

The local default price will sit at 18.93 cents per kilowatt hour, including a 1.6-cent charge to recover amounts deferred during last winter’s provincial program to cap bill rates.

Major retailers Enmax, Epcor and Direct energy all included rates between 18.89 and 20.48 cents. All retailers charge specific payback portions.

That local rate in September was 26 cents, following 30.5 cents in August.

On Tuesday the new 12-month fixed contract rate for the fourth-quarter was announced at 11.69 cents, down from 16.9 cents for the quarter ending Sept. 30.

The local rates for natural gas also dropped slightly, to $2.495 per gigajoule in October, from $2.85 last month. The fourth-quarter fixed-rate offering is $3.95 covering the next 12 months, including the traditionally higher priced winter months.

City council was prepared to hear a proposal for an interim power rate from administrators at its regular meeting on Tuesday evening. Initial documents suggest that rate, if approved, could be in place later this month. Details on how existing contract customers might be affected was to be determined during debate.

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