Natural gas rates dip in January, electric rates set to default minimum

By MEDICINE HAT NEWS on January 3, 2026.

newsdesk@medicinehatnews.com

This month’s natural gas rate for all customers has dipped approximately 50 cents from December, while still beginning the year approximately $1 more than January 2025.

On Friday, Medicine Hat set its January natural gas rate at $2.865 per GJ, down from December’s rate of $3.293, the highest of 2025.

However, at this time last year, natural gas rates were set at $1.9730 per GJ and prices dipped to as low as $0.6240 per GJ last August.

The rate also includes a $0.07 per GJ fee that is used to recover transactional costs and a small rate of return.

Although prices of natural gas will drop in warmer weather, city councillors recently approved an increase of an average $0.81 for gas utility services as well as $2.25 for electric utility services, and in 2026 efforts are expected for ensuring the long and short-term financial sustainability of each city utility provider.

The calculated electricity rate for January, February and March has been set at $0.05000 per kWh, however this defaults to the minimum price allowed under local bylaws. This means ratepayers for residential, farm, small and medium commercial will pay $0.07000 per kWh.

This rate will be recalculated April 1.

Large commercial and industrial ratepayers will pay $0.12025 per kWh, which is on par with rates in Calgary and Edmonton.

All customers will also be charged a $0.0046 per kWh ‘Going Green’ surcharge that is used for renewable energy purchased for residential, farm, small and medium commercial customers.

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