Understanding Your Utility Bill

If you own a car, you will have incurred fixed prices just to have it, even if you let it sit in your garage and don't use it. You can think of your fixed charges as:

• Price you paid for the car
• Insurance
• License and registration

With regard to utilities, the fixed charge recognizes that much of the cost of operating and maintaining the utility infrastructure isn’t dependent on how much of the commodity is used. The fixed charge considers the potential demand that a customer places on the system, so large customers typically pay a higher fixed charge than small customers do which is why there are seven different classes in fixed charges. For simplicity, this page references the residential utility class.

The terms on your bill related to fixed charges are:

• Service Charge (electricity, gas, water, sewer, solid waste)
• Administration Charge (electricity, gas)
• Municipal Consent and Access Fee (electricity, gas)
• Waste Diversion Charge (solid waste)
• Residential Recycling (solid waste)

The following table outlines the fixed portion of an average residential monthly bill in January 2026, assuming 31 days, 675 kWh/month (electricity), 18 GJ/month (natural gas), and 12 m3/month (water).

Fixed Utility Charge

This is the maintenance on your car. You can think of it as the wear and tear that would include things like oil, mechanical maintenance, washer fluids, antifreeze, tires.

In terms of utilities, the usage charge recognizes that some costs are related to consumption and encourages consumers to use less. Even though only a portion of utility operating costs are related to usage in any particular year, overall reduction in use will reduce system demand and allow future capacity increases to be deferred. In the long term, this reduces the cost to operate the utility.

If usage charges were eliminated, fixed charges would have to increase. The usage charges on your bill include:

• Capacity Charge (electricity)
• Environmental Conservation Charge (electricity, gas)
• Facilities Usage (electricity) and Delivery Charge (gas)
• Going Green (electricity)
• Federal Carbon Charge (gas)

The following table outlines the variable portion of an average residential monthly bill in January 2026, assuming 31 days, 675 kWh/month (electricity), 18 GJ/month (natural gas), and 12 m3/month (water).

Variable Utility Charge (based on usage)

In our analogy, this is the gas in your car. It is the thing you "consume" to get from point A to point B.

On your bill, the commodity charges are how much you pay for the amount of natural gas and water you take from the pipes and the amount of electricity you take from the wires. The terms are:

• Energy Charge (electricity)
• Commodity Charge (gas)
• Commodity Charge (water)

In 2009, the City implemented a market based price for the electric and natural gas commodity. Since that time energy prices have been calculated based on the average of the provincial rates approved by the AUC.

In 2012, the City implemented a fixed rate option to provide customers with a choice to lock in their energy rates

In 2022, the City offered default, fixed, and variable contracts, and required contracts to be renegotiated upon expiry.

In 2023, the City commissioned a third-party Energy Business Review, and removed all contracts and options in exchange for an interim 'best-of-market' rate for electricity. This 'best-of-market' approach was also applied to natural gas commodity charges in 2024.

The following table outlines the commodity portion of an average residential monthly bill in January 2026, assuming 31 days, 675 kWh/month (electricity), 18 GJ/month (natural gas), and 12 m3/month (water).

Commodity Charge

Revenue generated by utility charges is used to cover the cost of providing a number of services for City and regional customers, including:

• Safe and reliable delivery of electric and natural gas energy to homes and businesses in the community and surrounding area
• Treatment and distribution of safe, reliable water for households, businesses, and fire protection
• Collection and treatment of wastewater from households and businesses to protect the health of our citizens, the river habitat, and downstream users
• Collection and disposal of garbage and solid wastes in an environmentally responsible manner, with emphasis on recycling and reuse

Utility rates are re-evaluated each year and rates are adjusted to generate sufficient revenue to meet budget needs. Budget changes are affected by inflation, growth, and the services provided.

Fluctuations in market conditions will impact commodity rates and, subsequently, your bill. The City works hard to maintain the “Medicine Hat Advantage”.

Variations may be due to visitors, more days spent at home, and/or additions such as a hot tub, home office, or new electronics and appliance. Try to recall if there have been any significant renovations, lifestyle changes, or events within your home over the last few months.

In the summer, we tend to use our air conditioners for longer periods of time. Try fans to help move around the cool air. Contact a qualified professional to service the a/c and furnace and remember to replace filters regularly.

Were you keeping your lawn green during a dry summer? Outdoor water consumption can account for up to 50% of water use in the summer month. Ensure that you use water wisely to save.

Heating can account for up to 50% of your home's electricity bill. To save energy, close vents in rooms that are used less often and make sure that you check and replace weather stripping and caulking around doors and windows.

A dripping faucet or leaky toilet can be the main cause for significant water consumption and high utility bills. Toilets are notorious for hidden leaks and if gone undetected they can waste thousands of litres per day. You may not always be able to hear the leak, so it is important to check the toilet and parts periodically.

Contact Customer Service with any questions or concerns about your utility bill.

Viewing usage details and your consumption history can help you understand where your energy is going and the best ways to improve.

eUtility

The HAT Smart program offers incentives to help residential customers make smarter energy conscious home upgrades.

Current Rebates

Learn more about your home by checking out a Self-Audit Toolkit and an Infrared Thermography Camera from the Medicine Hat Public Library