Gas energy rates amended for May
Medicine Hat – Due to modified rates approved by the Alberta Utilities Commission, on which the City of Medicine Hat bases its average calculations, the City of Medicine Hat‘s natural gas commodity rate has been amended for the month of May.
Natural gas
The May natural gas commodity rate is now set at $6.4410 per gigajoule (GJ), down from the previous advisory of $8.5460 per GJ for all customers. The rate is based on the average of the monthly gas charges set by Alberta gas distribution (pipes) owners and approved by the Alberta Utilities Commission (AUC).
| May 2022 - Amended | Rate per GJ |
|---|---|
| Direct Energy Regulated Services (North and South) | $6.399 |
| APEX Utilities Inc. (formerly AltaGas Utilities Inc.) | $6.482 |
| City of Medicine Hat Rate (based on the average) | $6.441 |
The revised rates approved by the AUC are meant to lower the rate to a level that better represents the forecast market prices for May 2022. The change represents a deviation to the industry-established deferral mechanism.
Direct Energy Regulated Services and APEX Utilities Inc. gas commodity rates are designed to include what is known as a “true-up” of over- or under-collected amounts from the previous month. Large variances from higher-than-expected price and load going into April 2022 caused a large opening balance in their respective deferral accounts. To reduce the effect of this increase on consumers, the deferral balances will be carried forward and applied to future rate filings.
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For further information, please contact:
media@medicinehat.ca
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