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)
June 2023

$0.16872/kWh

($0.15761 + Recovery Rate $0.01111)

 $3.363/GJ
Past six months

 

  
May 2023

$0.15755/kWh

($0.13966 + Recovery Rate $0.01789) 

 $2.249/GJ  
April 2023  

$0.17573/kWh

($0.15775 + Recovery Rate $0.01798)

  $3.569/GJ
March 2023

$0.20054/kWh

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

  $2.537/GJ
February 2023

$0.31914/kWh

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

 $5.218/GJ
January 2023

$0.28639/kWh

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

 $6.117/GJ 
December 2022 $0.22990/kWh $6.1540/GJ
Going Green: The Going Green surcharge is $0.001 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)
June 2023 $0.15761/kWh
Past six months  
May 2023 $0.13966/kWh 
April 2023 $0.15775/kWh 
March 2023 $0.20054/kWh
February 2023 $0.31914/kWh
January 2023  $0.33173/kWh 
December 2022 $0.20684/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.

A Recovery Rate is currently added to the calculated regulated rate price as part of the recovery from the Government of Alberta temporary price protection. See below.

The RRO for natural gas is calculated based on the average of the monthly gas charges set by Alberta gas distribution (pipes) owners. The City of Medicine Hat calculates the Monthly Reference Price based on the average of the rates approved by the Alberta Utilities Commission.

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 provided price stability for regulated rate option (RRO) customers in January, February and March 2023 by enforcing a temporary price ceiling.

As of April 2023, the cost difference between the RRO electricity rate from January to March and the $0.13500/kWh cap will be added to the current RRO to recover costs over the 21 months until December 2024.

Frequently asked questions

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

The Government of Alberta is offered temporary relief to those who pay a regulated rate on their electricity bill. It was provided in the form of a price ceiling of 13.5 cents per kilowatt-hour (kWh) in January, February, and March 2023. The rate cap was automatically applied to eligible consumers' electricity bills from January to March 2023. Any difference between the actual RRO rate and the 13.5 cent/kWh cap will be spread across future Regulated Rate Option rates until December 2024.

Do I have to repay the difference?

Yes. Starting April 1, 2023, any difference between the actual RRO rate and the 13.5 cent/kWh cap will be recovered through the addition of a Recovery Rate to the monthly RRO rates over a 21-month recovery period from April 1, 2023 to December 31, 2024.
Who qualified for the rate cap? 

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

  • consumed less than 250,000 kilowatt-hours (kWh) per year
  • whose site is connected to the system 
  • have consumed electricity within the past calendar year
Where can I find the Recovery Rate on my bill? 
If you are a RRO customer, the recovery rate is included in the price on your "Energy Charge." For details, refer to the price charts near above.
Who provided 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.

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