(Bob Schneider/CHAT News)

By Adrian St.Onge

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Medicine Hat homeowners experiencing lower natural gas prices as downward trend continues, city says

Feb 8, 2024 | 4:38 PM

Homeowners in Medicine Hat and area should experience some relief in their utility bills.

Natural gas prices have been trending downward drastically since 2022, cutting the cost by over half.

Costs have dropped from over $4 per gigajoule in February 2022 to just over $2 per gigajoule earlier this month.

That’s due to the warmer weather, leading homeowners to use less heating, experts say.

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That has resulted in larger reserves, something that could be a continued trend for the rest of the year, city staff said.

Travis Tuchscherer from the city’s energy department said Thursday other utilities could be affected by the lower gas prices.

“Gas is an input to lots of [energy] generation in Alberta right now, so as gas prices change, that affects the variable cost to generators,” Tuchscherer told CHAT News.

“There’s also a lot of renewables coming on which wouldn’t be exposed to those gas prices,” he said.

“Some generators will be affected and it might have a trickle down effect, but it all depends on what generators are online serving the power at that time.”

Tuchscherer said that a tentative Canadian LNG project as well as American projects currently underway could also affect the cost of natural gas in Alberta.

READ MORE: Medicine Hat natural gas rates up for February

In February, natural gas rates in Medicine Hat were set at $2,494 per gigajoule, 27 per cent more than in January but still less than the December rate.