Gas, electric, wind energy rates set for January

Medicine Hat - The City of Medicine Hat has set its January energy commodity rates.

Natural Gas – all customers

The January natural gas default rate is $1.9506 per gigajoule (GJ), down from the previous month of $2.827 per GJ. On Nov. 20, 2023, City Council passed bylaw 4798 that amends the gas utility bylaw in order to provide consumers with a single natural gas rate starting Jan. 1, 2024. The rate is based on the weighted average cost of the City’s natural gas purchases for the month of consumption, plus $0.07/GJ to recover transactional costs and a small rate of return.

The variable rate for December 2023 is $2.783 per GJ (including the $1.00 premium), calculated based on the AECO (Alberta Energy Company) average market reference price plus $1.00 per GJ.

Fixed and Variable natural gas contracts are no longer offered, and all customers have been transferred to the default rate effective Jan. 1, 2024. However, customers who have a pre-existing Fixed or Variable natural gas contract before Jan. 1, 2024 and wish to remain on contract have one month to reinstate their contract for the remainder of their existing term by contacting customer_accounts@medicinehat.ca by the end of day on Jan. 31, 2024.

Electricity
Residential, Farm, Small and Medium Commercial, Unmetered Services and Rental Lighting

On Oct. 16, 2023, City Council passed an amendment to the Electric Utility Bylaw 2244 to establish a single best-of-market electricity rate for Residential, Farm, Small and Medium Commercial, Unmetered Services and Rental Lighting customers, not to exceed a maximum of 11 cents per kWh or go below a minimum rate of seven cents per kWh. The rate is based on a twelve-month, volume weighted forecast as per the ICE-NGX wholesale electricity energy market and will be recalculated on the first business day of January, April, July, and October.

Under the new formula, the January electricity default rate for Residential, Farm, Small and Medium Commercial, Unmetered Services and Rental Lighting customers is $0.09232 per kilowatt hour (kWh), down from the previous month of $0.10875/kWh for December.

On December 15, 2022, the Government of Alberta passed The Regulated Rate Option Stability Act through Bill 2: Inflation Relief Statutes Amendment Act which placed a temporary price ceiling of $0.13500 per kilowatt hour in January, February and March 2023 for Albertans who purchase power on the Regulated Rate Option (RRO). As of April 1, 2023, the cost difference between the RRO electricity rate from January – March 2023 and the temporary price ceiling will be added to the current default rate to recover costs until December 2024. The January recovery rate of $0.00812 per kWh will be added to the current default rate of $0.0842 per kWh for a total billable rate of $0.09232 For more details about the recovery rate, visit medicinehat.ca/EnergyPlans.

January 2024 (per kilowatt hour)Rate per kWh
Default City of Medicine Hat electricity rate $0.0842
+ City of Medicine Hat recovery rate + $0.00812
City of Medicine Hat billed rate $0.09232

 

Large Commercial, Industrial and Street Lighting Customers

The January default electricity rate for Large Commercial, Industrial and Street Lighting customers is $0.16897 per kilowatt hour. The rate is based on the average of the rates for owners whose regulated rate tariffs are approved by the Alberta Utilities Commission under section 103(2) of the Electric Utilities Act for that calendar month as posted by the Alberta Utilities Commission on its internet page under Regulated Rate Option Regulation.

January 2024 (per kilowatt hour)Rate per kWh
Direct Energy Regulated Services $0.17350
ENMAX Energy Corporation $0.16311
EPCOR Energy Alberta GP (Edmonton) $0.17010
EPCOR Energy Alberta GP (outside Edmonton) $0.16917
City of Medicine Hat default rate for LC&I (based on the average) $0.16897

The January variable contract 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. The rate for December 2023 is $0.07205 per kWh.

Going Green Charge

Customers also have a “Going Green” surcharge on their bill. This surcharge is for renewable energy purchased for residential, farm, small and medium commercial customers.

The Going Green surcharge is calculated monthly to recover costs incurred to purchase renewable energy.

The Going Green surcharge for January is $0.002 per kilowatt hour.


For further information, please contact:
media@medicinehat.ca