Energy Plans and Pricing
You have choice in selecting your energy pricing. We offer a variety of natural gas and electricity plans to suit your energy needs.
The energy market can be challenging to navigate which is why we provide you with easy to understand information and multiple plan options to suit your specific needs.
The choice is yours.
For residential, farm, small and medium commercial, unmetered and rental lighting customers, for both electricity and natural gas, you have three options:
- Default (Regulated Rate) or "RRO"
- Fixed Contract
- Variable Contract
Rate contracts are optional. If you don’t feel comfortable committing to a contract, don’t! You can stay on the default Regulated Rate Option. The contracts are meant to reflect market pricing just like the RRO, but just based on the forward projections to protect from high fluctuations month to month. They are designed so that over a one-year period, there really isn’t that much difference between the RRO and a contract price.
You can choose separately for Gas and Electric, and even enter contracts at different times.
Though rates are announced on the first business day of the month, you do not have to decide right away. Rate changes take effect on your billing date.
If you are in a rate contract, at the end of your contract, your rates will return to the regulated rate option. Your statement indicates when your contract expires.
Utility Rates
Your utility bill includes both utility charges and energy charges.
Utility Rates (water, sewer, solid waste): Set once a year for the entire year, and include all the other line items on your utility bill.
Energy Rates (electricity and natural gas): Depending on the rate option, these rates change monthly and are specific to the Electric Energy and Gas Commodity line of your utility bill.
Current Utility Rates Current Energy Rates
| Utility and Energy Rate Archive |
The Government of Alberta is delivering energy relief under the Affordability Action Plan.
Frequently asked questions
| What are the new options for energy plans (electricity and gas) with the City of Medicine Hat? |
| There will now be three plan options for electricity and natural gas commodity rates. You can choose the same or different options for each.
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| Why are the energy plans changing? |
| Over time, a distortion of pricing has occurred between what was intended with the former fixed rate program, and what has actually occurred with commodity market prices. The fixed rate program was intended to provide predictability for customers by charging the same commodity rate each month rather than experiencing the ups and downs of market prices. However, the fixed rate that was set for calendar year 2022 did not anticipate the significant market price increases that occurred this year. The City of Medicine Hat was not able to adjust the fixed rate during the year, therefore subsidized many utility bills as the actual cost of providing energy to customers was higher than the fixed rate that was being charged. As such, the program was adjusted to offer more options for the customer and to ensure commodity rates are closely aligned with the actual price of utilities to customers (rather than a price that was established up to 12 months earlier). These new options are comparable to what is provided by other utility companies in Alberta. This methodology can be compared to mortgage rates, where the posted rate of the day determines the mortgage rate you can sign on for (whether fixed or variable). |
| What if I just signed up for the fixed rate program? |
| All contracts in place under the fixed rate program will be honoured for the duration of the original six-month contract, so if you signed on within the six-month period prior to December 31, your contract will be honoured. Current fixed rate subscribers who are past their initial six-month commitment can contact Customer Care at 403-529-8111 or fill out the online form to start a 12-month fixed or variable contract. Those who do not renew will return to the default monthly rate (Regulated Rate Option) in January or may choose to select one of the new options. |
| Who is eligible for these options? |
| Residential, small commercial and medium commercial customers in the Medicine Hat service area are eligible for the electric contract rate options. All customers in the Medicine Hat service area are eligible for the natural gas contract rate options. |
| Are there any fees and charges associated with opting in or out of the different energy price plans? |
| There are no fees or charges associated with signing up for any of the energy plans. All contracts expire at the end of the 12-month term - there is no need to opt out of the program. If you wish to stay on a contract rate option, you will need to sign a new contract. Once you are in a contract, you cannot opt out and will be billed as per the contract for the entire 12-month period. Note: The contract terminates if you change your service location (i.e. move) and you have the choice to enter a new contract or remain on the default RRO. |
| How do I know what energy plan I am currently on? |
| Your utility statement will indicate which energy plan you are on beside the service (electric or gas). It is also indicated on the front of your utility bill, as well as in your email notification. |
| Once I apply, do I have to renew the contract once it expires? |
| Yes, you will have to sign up again. With the former fixed rate program, renewals occurred automatically. With more than one contract option now available, customers will need to sign up for one of the contract options each time their term expires. If you do not sign up for a new contract, your utility rates will go back to the default option, which is the regulated rate offering (market-based rate calculated monthly). If you wish to sign up for a contract option, call 403-529-8111 or fill out the online form. |
| How do I cancel? |
| Once you have committed to a contract, you are unable to cancel until the end of the contract term, which is 12 months for both the fixed contract rate and the variable contract rate. At the end of the contract, you will automatically return to the default option. |
| What if I move? |
| Contracts will automatically terminate when you move or sign off utility services at the service location. When you sign on to utility service at a new location, you will automatically receive the default option, which is the regulated rate offering (market-based rate calculated monthly). You will stay at the default option at the new location unless you choose to sign up for a new fixed or variable contract option. |
| Do I have to sign up for both gas and electric contracts, or can I select just one? |
| You have full control of your pricing choices. You can enter a contract for either gas or electric, or both. |
| How often do the contract rates change? |
| Under the new energy plans, the offered rates will change either monthly or every three months. If you sign on for a fixed contract rate, you will 'lock in' the rate that is offered during that three-month period, and pay that same rate for the duration of your 12-month contract.
If you sign on for a variable contract rate, you are charged an average of daily prices for the month, plus $1/GJ (gas) or $0.02 per kWh (electricity). Through this option, you are locked into the pricing methodology for 12 months, but each month of the contract will have a different price.
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| Why can’t I keep the contract rate that I signed on with under the fixed rate program in 2022 or earlier? |
| The electric and gas rates with the former fixed rate program were updated annually, so all customers would eventually experience a price change because of these annual updates. The new contract rate options ensure utility rates are closely aligned with the actual price of utilities (rather than a price that was established up to 12 months earlier). |
| What is the difference between contract options and budget billing? |
| Budget Billing is a program where your monthly payments of the total bill are the same amount each month (based on a projection of how much electricity and gas you will consume). Then, once a year, your account is reviewed to determine your actual usage and settled-up to bring your account to zero. On Budget Billing, you can still choose to be on a contract rate or the default rate. This program allows for more predictable monthly budgeting. Learn more on our Budget Billing page. You can think of Budget Billing as picking your “payment” option. Contract rate options allow you to sign on for a 12-month period at either a fixed rate or a variable for either gas or electricity (or both) instead of the default option. The default option is the regulated rate offering (market-based rate calculated monthly). There is no settle-up required with the contract rate options as your bills are calculated based on actual usage. You can think of the contract rate as picking your “price” option. |
