CHAT News File Photo

By Chris Brown

City releases September utility rates

Sep 1, 2023 | 11:07 AM

MEDICINE HAT, AB – Energy rates for September have dropped slightly from last month but locals will still pay more than 26 cents per kilowatt hour.

The new utility rates were released by the City of Medicine Hat on Friday in the midst of growing anger in the city that bubbled over in August after the billed price was a record 30.5 cents per kWh.

A citizen-organized utility meeting drew about 400 people to Higdon Hall on Tuesday afternoon where Mayor Linnsie Clark and three councillors faced questions and the wrath of ratepayers.

VIDEO: Livestream of the citizen utility meeting

That came the day after council directed city staff to present options for immediate community utility and other cost pressure relief at the regular Sept. 5 council meeting.

WHAT'S ON

Here is what's on this weekend in Medicine Hat and area: Nov. 15-17

Nov 15, 2024

LIVE UPDATES

Road construction, detours and traffic in Medicine Hat

Nov 15, 2024

In the community

Medicine Hat public library screening movie to open discussion on addiction and recovery

Nov 14, 2024

A peaceful assembly to protest rates is planned for 6 p.m. that day outside city hall prior to the meeting.

The city’s September default regulated rate (RRO) for Residential, Farm, Small and Medium Commercial, Unmetered Services and Rental Lighting customers is set at $0.25068 per kWh. The city sets its rate at the average of the private provider rates approved by the Alberta Utilities Commission.

With the added recovery rate of $0.01215 per kWh, the total billed price for City of Medicine Hat customers is $0.26283 per kWh.

The recovery rate is needed due to the removal of a temporary price cap and deferral system the province installed for January, February and March and the subsequent recovery of those funds. The funds that were deferred in the first three months of this year will be recovered over the 21 months from April 2023 until the end of 2024. For more details about the recovery rate, visit medicinehat.ca/RegulatedRate.

The third quarter fixed contract electricity rate is $0.16944 per kilowatt hour. Customers who sign a fixed contract between July 1 and Sept. 30 are guaranteed this fixed rate for 12 billing cycles (months).

The August variable rate is $0.2068 per kWh (including the $0.02 premium). The rate for September will be released on the first business day of October.

Natural gas

The September natural gas default regulated rate (RRO) is $2.849 per gigajoule (GJ), down from the previous month of $3.215 per GJ. The rate falls between the $2.724 set by Direct Energy and the $2.973 set by Apex (formerly AltaGas).

The third quarter fixed contract natural gas rate is $4.226 per GJ. Customers who sign a fixed contract between July 1 and Sept. 30 are guaranteed this fixed rate for 12 billing cycles (months).

The variable contract offering is based on the AECO (Alberta Energy Company) average market reference price plus $1 per GJ. The August rate is $3.596 per GJ (including the $1 premium). The rate for September will be released on the first business day of October.