July 23rd, 2024

City’s quarterly power price remains basically steady

By Medicine Hat News on July 3, 2024.

The local power price remains steady for the next quarter, while the monthly cost of natural gas plummets.--NEWS FILE PHOTO

@MedicineHatNews

The new power price for the coming three months has remained essentially level at 7.84 cents per kilowatt hour, the city’s utility department announced Tuesday.

Meanwhile, monthly gas rates plunged to just 77 cents per gigajoule.

Local power price is set by quarter at the forecast wholesale prices in the Alberta market for the next 12-month rolling basis. That figure is 5.6 cents per kilowatt hour – below a floor price enacted by council last fall.

Therefore the base price is set at 7 cents, to which a rate deferral recovery charge of 0.84 cents is added, bringing the total price to 7.84 cents.

That is half the contract rate offered last year and less than a quarter of the floating default rate offered in July 2023.

Default power rates (the regulated rate option) for July in the rest of the province from major retailers range from a combined rate (energy plus deferral recovery) of 11.04 cents from Enmax to 12.24 cents from Direct Energy.

Natural gas prices continued to slide lower across Alberta.

In the Hat, 77 cents is down from $1.23 per gigajoule in June.

That price is set at cost-recovery of gas contracted for resale plus a 7-cent premium.

Other Default gas prices in Alberta were 40 cents from Apex Utilities, and 89 cents from Direct Energy.

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