Regulated Rate

The Regulated Rate is also known as the 'Default' rate and is sometimes referred to as the RRO (Regulated Rate Option).

When your utilities are hooked up, all customers start on the default RRO. Customers who do not enter into a contract, or whose contract has expired, are on the RRO. 

Choose the default rate if you:

graphic outline of a girl's head and shoulders

  • don't want a contract
  • enjoy flexibility
  • are comfortable with a different rate each month
  • want assurance you are paying the current market price

Rate changes monthly

Rate set at beginning of month

No contract

In most parts of Alberta the regulated rates are reviewed and approved by the Alberta Utilities Commission (AUC) and can change from month to month. Generally, the balance between the energy supply and energy demand determines the market price.

Default regulated rate
for Residential, Farm,
Small and Medium Commercial,
Unmetered Services and Rental
Lighting customers
Electricity (per kWh)Natural Gas (per GJ)
February 2023

$0.31914/kWh

Temporary Rate Cap*
$0.13500/kWh
(see below)

$5.218/GJ
Past six months

 

 
January 2023

$0.28639/kWh

Temporary Rate Cap*
$0.13500/kWh
(see below

$6.117/GJ 
December 2022 $0.22990/kWh $6.1540/GJ
November 2022 $0.17734/kWh $5.5070/GJ
October 2022 $0.18723/kWh $5.1140/GJ
September 2022 $0.15785/kWh $7.2120/GJ
August 2022 $0.17174/kWh  $6.6800/GJ 
Going Green: The Going Green surcharge is $0.0005 per kilowatt hour, and is calculated monthly to recover costs incurred to purchase renewable energy.

 

for Large Commercial, Industrial and Street Lighting customersElectricity (per kWh)
February 2023 $0.31914/kWh
Past six months  
January 2023  $0.33173/kWh 
December 2022 $0.20684/kWh
November 2022 $0.16234/kWh
October 2022 $0.28640/kWh
September 2022 $0.27775/kWh
August 2022 $0.16155/kWh
The default electricity rate for Large Commercial, Industrial and Street Lighting customers is based on the monthly average Alberta Power Pool price as established and published by the Alberta Electric System Operator (AESO) plus $0.02 per kilowatt hour.

 

Calculation

The RRO for electricity is calculated based on the average of the rates using the four Regulated Rate Option providers approved by the Alberta Utilities Commission under section 103(2) of the Electric Utilities Act.

The RRO for natural gas is calculated using the weighted average 120-day buying window price for the forecasted volume.

Benefits of the regulated rate

  • The regulated rate always provides the current market price
  • You don't need to sign a contract or remember to renew
  • If the price drops, you share in the savings

Potential risks

  • The regulated rate reflects the current market price, which fluctuates up and down on a monthly basis making costs less predictable
  • The regulated rate will have higher price volatility, which can result in price spikes one month followed by significant decreases the next

*Temporary electricity price protectionicon of electricity plug and flame

As part of Alberta's Affordability Action Plan, the Government of Alberta is providing price stability for regulated rate option (RRO) customers in January, February and March 2023 by enforcing a temporary price ceiling.

  • If you are on the default regulated rate option (RRO), you will benefit from temporary price relief through a $0.13500/kWh rate cap in January, February and March 2023.
  • The cost difference between the RRO electricity rate and the $0.13500/kWh cap will be deferred and then charged over a 21-month recovery period from April 1, 2023 to December 31, 2024.

Frequently asked questions

What is the Regulated Rate Option (RRO) rate cap? 

The Government of Alberta is offering temporary relief to those who pay a regulated rate on their electricity bill. This will come in the form of a price ceiling of 13.5 cents per kilowatt-hour (kWh) in January, February, and March 2023. The rate cap will be automatically applied to eligible consumers' electricity bills, beginning on their January 2023 bill. Any difference between the actual RRO rate and the 13.5 cent/kWh cap will be spread across future Regulated Rate Option rates.

Do I have to repay the difference?

Yes. Any difference between the actual RRO rate and the 13.5 cent/kWh cap will be deferred and then charged in future RRO rates over a 21-month recovery period from April 1, 2023 to December 31, 2024.

Who is eligible for the rate cap? 

Electricity consumers who are on the regulated rate option in January, February, and March 2023 and:

  • consume less than 250,000 kilowatt-hours (kWh) per year
  • whose current site is connected to the system 
  • have consumed electricity within the past calendar year
When will I see the rate cap? 
If you are a RRO customer, the rate cap will be applied to your bill starting in January 2023 and it will also apply in February and March 2023. 
Who is providing this rate cap? 
On December 15, 2022, the Government of Alberta passed the Regulated Rate Option Stability Act through Bill 2: Inflation Relief Statues Amendment Act. This regulation mandates that RRO providers in Alberta must implement the regulated rate cap program.
Does the rate cap still apply if I sell my property or move? 
The rate cap will apply only to RRO customers who consume electricity through the months of January, February and March 2023. If you remain responsible for paying for electricity for a site on the RRO, you will be eligible to receive the rate cap, even at a new home for January 2023 through March 2023. 

Where can I find more information on the rate cap? 

Find more information here: https://www.alberta.ca/enabling-energy-rebates.aspx 

 


The Regulated Rate is only one of three choices you have for energy pricing in Medicine Hat.

View all options