Provincial cap needed for power price in July

Power prices will be capped across the province in July while the cost of natural gas in Medicine Hat also jumped, according to rates posted Tuesday by the city-owned utility.

Local electricity rates that are set against a provincial average moved up for the month with customers paying a maximum legislated rate of 6.8-cents per kilowatt hour.

That’s up from 5.795-cents in June, though without the provincial cap, distribution companies’ straight rate would put the Alberta average regulated rate figure at 7.969cents.

Gas jumps from $1.567 per gigajoule in June to $2.354 in July, though major marketers whose rates determine the average are building forecasting corrections into that price.

The high price for natural gas in Alberta this month is $4.223 per gigajoule from Direct Energy. AltaGas, on the other hand, is charging $1.485.

All power producers with a regulated rate option are showing prices above the 6.8cent cap level for the second time this year.

The Enmax price is the highest in the province at 8.418-cents, while Epcor’s rural rate, 7.775-cents, is the lowest. All Albertans will pay no more than 6.8-cents. The difference is paid to generation companies from Alberta Carbon Levy funds.

Last year the province set the cap rate at 6.8 cents as it is the average price of power paid by consumers since 2008.