Alberta power prices will rise, but Hat setting its own new rate April 1
By Medicine Hat News on March 30, 2024.
@MedicineHatNews Power prices are set to rise for default customers in the rest of Alberta, but that might not be reflected in local rates in Medicine Hat. Last fall, the city utility moved away from charging the default rate used in the rest of the province. It now bases the local energy rate based on Alberta wholesale prices that are marked up by other retailers offering contracts. That local price to customers will be reset April 1 for the next three months, and could fall as grid prices fall following a warmer winter. New submissions to the Alberta Utilities Commission from Epcor, Enmax and Direct Energy show an average default rate among major retailers of 10.8 cents per kilowatt hour. The total price rises to 14 cents once a repayment charge is blended in under a provincial price deferral program from the winter of 2023. The total charge on energy used in Medicine Hat since Jan. 1 has been about 9.3 cents. The provincial default rate in March was 13.6 cents in total. City utility officials told a committee meeting early in March that the price of power was falling in the province, partially offset by lower gas input costs. “We’re definitely seeing a decline in prices in the power market,” said Travis Tuchscherer, manager of utility business analysis, on March 7. “In the winter prices were lower than expected, and those are the factors. You see the market is changing as renewables enter the market … When renewables are not online we’re seeing really high prices and when they are, they’re killing the market as well (by driving prices much lower).” 12-11
