Last monthly gas price under old rate-setting formula issued
By MEDICINE HAT NEWS on December 2, 2023.
https://www.medicinehatnews.com@MedicineHatNews The final monthly natural gas price in Medicine Hat set via a formula of averaging other default rates in Alberta will be $2.83 per gigajoule used in December, the city utility department said Friday. The local rate-setting formula will change in 2024 to system based on the department’s cost of procuring gas deliveries to the city plus a 7-cent per gigajoule rate of return. That was approved last month by city council to take affect Jan. 1, following a move away from averaging default power rates that took effect for November. That rate, offered in blanket fashion to all customers in Medicine Hat, Redcliff and city franchise areas of Cypress County, is 10.8 cents per kilowatt hour, and will be in effect until the rate is recalculated for the first three months of the new year. The current power rate comprises 10.1 cents based on the long-term outlook for wholesale power rates offered to retail companies without markup, plus an additional 0.7 cents to recover costs of a provincial power-rate deferral program last winter. In gas, the December default prices used to determine the local average price are $2.90 from Direct Energy and $2.75 from Apex Utilities. City gas rates will be reset monthly in 2024. The average for default power prices across the province for December range from 17.7 cents from Enmax to 18.8 cents from Direct, not including deferral recovery amounts in the 2-cent range. The highest combined default price is 20.9 cents from Epcor for urban customers. Measures for both rates essentially nullify contacts and put customers on the less expensive rate, though ratepayers can apply within 30 days (Feb. 1 in the case of gas) to retain their contract rate. 12-11
