Natural gas rate rises while Medicine Hat electricity rate stays at minimum

Oct 1, 2026 | 11:20 AM

Medicine Hat residents will pay a higher default rate for natural gas in October, while the City’s default electricity rate for residential customers remains at the provincial minimum.

The City of Medicine Hat has set its energy commodity rates for October 2026, with the natural gas rate increasing to $1.907 per gigajoule from $1.250 per gigajoule in September.

The natural gas rate is based on the weighted average cost of the City’s gas purchases for the month of consumption, plus seven cents per gigajoule to cover transactional costs and a small rate of return.

For residential, farm, small and medium commercial, unmetered services and rental lighting customers, the calculated electricity rate for October through December is 4.19 cents per kilowatt-hour.

However, under the City’s Electric Utility Bylaw, the default rate is subject to a minimum of seven cents per kilowatt-hour, meaning eligible customers will pay the seven-cent rate.

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The electricity rate is based on a 12-month, volume-weighted forecast of the wholesale electricity market. The rate is recalculated at the beginning of January, April, July and October and cannot exceed 11 cents per kilowatt-hour or fall below seven cents.

Large commercial, industrial and street lighting customers will continue to pay a default electricity rate of 12.025 cents per kilowatt-hour.

That rate is based on the average of regulated electricity rates posted by the Alberta Utilities Commission under the province’s Rate of Last Resort regulations.

The City said the rate is expected to remain in place through Dec. 31, 2026.

Customers also have a “Going Green” surcharge on their electricity bills to cover the cost of renewable energy purchased for residential, farm, small and medium commercial customers.

The surcharge for September was 0.50 cents per kilowatt-hour.

More information about Medicine Hat’s energy rates and plans is available through the City’s website.

by Jesse Gill

Natural gas rate rises while Medicine Hat electricity rate stays at minimum

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