How do we determine our regulated natural gas rate?

We have a small but mighty team of buyers and schedulers who forecast how much natural gas we need to serve our customers each month. They also forecast the expected price of that natural gas based on marketing conditions. Every month, that team also considers the number of customers we serve and the 10-year average weather across Alberta for that time of year. For example, customers will need more gas in February than in July.

Once we’ve figured that out, we make daily adjustments based on the wholesale market throughout the month. All this forecasting and calculating ensures we can provide the natural gas you need to keep your home warm and cozy in the winter or fuel up your grill for a delicious meal this summer.

What if the expected market prices change?

The prices you pay for the gas you use are forecast one month ahead. While we have a very skilled team creating these price forecasts, market conditions can and do change each month.

So what if we expected higher prices, but the market price ended up being lower? Do you have to pay more for lower-priced energy? Of course not! We adjust the following month's rate to account for any variance in this month’s rate. Any extra we collect from you this month will be subtracted from the next month’s rate.

Keep in mind that the opposite is also true! So, if we charge you less than the actual market rate, that amount will be added to next month’s bill. Remember, we are regulated. That means that government legislation and AUC direction ensure fair adjustments are made and you continue to pay fair market prices for your natural gas.

Here’s what goes into your regulated natural gas price:

We calculate our natural gas rates as close to the month you need the gas. Then, we submit those rates to the AUC five days before the start of the month. That gives you as close to real-time market prices as possible. The AUC then looks at our submission and makes sure our numbers are accurate. This process ensures you’re always getting the best, fair market rate for your energy.

How is gas measured?

Gas is measured in gigajoules (GJs), and how much we use is very seasonal. For example, the average Albertan household uses around 120 GJs of natural gas per year, but most of that is used in the winter months as seen below.