Medicine Hat sets August energy rates with natural gas increase, electricity unchanged

Aug 4, 2026 | 9:43 AM

The City of Medicine Hat has released its August energy commodity rates, with natural gas customers seeing a month-to-month increase, while electricity rates remain unchanged for most customers.

The default natural gas rate for all customers is now $1.537 per gigajoule, up from $1.362 per gigajoule in July.

The city says the natural gas rate is based on the weighted average cost of its monthly gas purchases, with an additional seven cents per gigajoule added to recover transaction costs and provide a small rate of return, as outlined in the Gas Utility Bylaw.

For residential, farm, small and medium commercial, unmetered services and rental lighting customers, the default electricity rate remains at seven cents per kilowatt-hour.

The city says the calculated electricity market rate for July, August and September was 4.47 cents per kilowatt-hour, based on a 12-month forecast of wholesale electricity prices.

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However, under the Electric Utility Bylaw, the rate cannot fall below the minimum of seven cents per kilowatt-hour or rise above 11 cents.

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

That rate is based on the average of regulated rates approved by the Alberta Utilities Commission and is expected to remain in place through the end of 2026 under the province’s Rate of Last Resort regulations.

The city is also reminding customers about the Going Green surcharge, which helps recover the cost of renewable energy purchases.

The surcharge for August is 0.43 cents per kilowatt-hour for residential, farm, and small and medium commercial customers.

The new rates take effect for energy consumed throughout the month of August.

by Jett Schwaier

Medicine Hat sets August energy rates with natural gas increase, electricity unchanged

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