Frequently Asked Consumer Questions

The Alberta Utilities Commission(AUC) and the Energy Resources Conservation Board(ERCB) regulates exploration, production, processing, transmission and distribution of natural gas within the province. The federal National Energy Board(NEB) regulates interprovincial trade in natural gas, approves transportation charges for interprovincial transportation and issues long-term licences and short-term orders (up to 24 months) authorizing exports from Canada. 

The AUC regulates investor-owned natural gas utilities in Alberta, ensuring that the rates consumers pay are just and reasonable and that the service provided is safe and adequate. The AUC is also required to regulate these utilities in ways that allow them to earn sufficient revenues to recover their costs, which includes a fair return on their investments. Therefore, in setting rates the AUC must balance the needs of consumers, along with the needs of utility companies.

A utility company must apply to the AUC on a regular basis for approval of its distribution rates. Distribution costs are approved either through General Rate Applications, a thorough review which involves many financial aspects of the company, or through a negotiated settlement process.

Gas supply costs are dealt with as a separate component but are also approved by the AUC. Utilities are not allowed to make a profit on the supply cost of gas. It is a flow-through cost that is passed on to consumers.

 

In Alberta, the default regulated rate that consumers pay for their natural gas is called the gas cost flow-through rate (GCFR) for Direct Energy Regulated Services North and South, and the gas cost recovery rate (GCRR) for AltaGas Utilities Inc.  The AUC regulates these rates.

Direct Energy Regulated Services North and South, and AltaGas Utilities Inc. are investor-owned.  The Board does not set rates for municipally owned gas utilities, rural gas co-ops, or competitive natural gas retailers.

The AUC posts recent natural gas rates for residential services of the three major natural gas utilities they regulate.  The Utilities Consumer Advocate website also offers information on how consumers can shop wisely when choosing electrical or natural gas suppliers, it also explains  natural gas bills.

 

Most changes in natural gas rates are due to changing natural gas supply costs. Alberta has a policy that allows the marketplace to determine natural gas prices. Alberta's natural gas prices are influenced by supply and demand throughout North America. Natural gas prices have fluctuated considerably over the past several years, and many experts have acknowledged that it is difficult to predict the future price of natural gas. The GCRR or GCFR that a utility can charge customers is based on monthly gas prices.

 

Under the direction of the AUC, a monthly natural gas rate is charged as a step in helping to develop the province's competitive energy market.  As a result, natural gas rates reflect the full cost for Direct Energy Regulated Services North and South and Altagas Utilities Inc. to provide consumers with market-priced natural gas.  The monthly rate reduces the large adjustments that were needed to collect or refund differences between the market price and a natural gas rate set for the winter and summer periods. 

 

Many consumers concerned about price volatility already may be eligible to enter an equalized billing program through their gas supplier, which averages natural gas bills over the year. Many consumers also have the option of stabilizing their bills by purchasing natural gas at fixed prices from competitive retailers.  The Alberta Programs and Services website also offers a listing of services for lower income earners in Alberta.   

 

The government has programs to assist vulnerable Albertans with housing and rental issues. For more information, visit Alberta Housing and Urban Affairs.

 

The Government of Alberta has Seniors Support programs available to provide assistance to low-income seniors. 

 

The Government of Alberta has Disability Support programs available for eligible adults with disabilities.

 

Close off heat and doors to unused rooms.

Install a programmable thermostat that controls when the home is heated (temperature is automatically lowered at night or when no one is home).

Avoid heating un-insulated areas such as the garage, crawlspace or attic.

Keep the thermostat at 20°C for heating in winter and 26°C for cooling in summer.  

 

Change your furnace filter monthly during the heating season.

Close the damper on your fireplace when not in use.

Install weather stripping around all doors and windows.

Check all windows, doors, light switches and electrical outlets for air leakage. For example, hold a tissue over each to determine if there is a leak. If necessary, upgrade caulking, weather stripping or in the case of switches and outlets, take off the cover only and install specifically designed gaskets.   

 

Switch to a higher efficiency furnace.

Change your furnace filter monthly during the heating season.

Have an energy audit done on your home to pinpoint leaks and suggest the most appropriate energy saving actions.

Replace old windows with energy efficient ones.  

 

• Climate Change Central 
• Utilities Consumer Advocate - energy efficiency contacts 
• One Simple Act
• Alberta Environment - reduce your emissions