Gas rates to fall some while power remains at floor price

By Medicine Hat News on May 2, 2025.

The price of natural gas to city customers will fall slightly in May, according to the new rates posted Thursday, though power prices stand pat at a floor price established 18 months ago.

A gigajoule of gas used this month will be charged at $2.32, down from $2.49 in April, while the federal consumer carbon levy will either be absent or soon eliminated from utility bills.

Gas used after April 1 is charged at zero after charges to the federal program, though city utility officials have said billing cycles may mean a cost could appear on bills this month.

Electricity will continue to be charged at 7 cents per kilowatt hour for the next two months as the quarterly set price is based on a rolling average forecast for wholesale power on the Alberta market. That figure is currently 4.5 cents, but must be set between 7 cents and no higher than 11 cents under in an interim rate-setting formula.

Gas rates are determined by rolling contract purchases of gas for resale by the city, plus a premium of 7 cents per gigajoule.