Edmonton...A natural gas rebate will not be issued for December because the price of natural gas has not reached the $5.50 per gigajoule (GJ) threshold.

The EUB has verified the December rates for ATCO Gas South, ATCO Gas North and AltaGas Utilities as:

Under the Alberta Natural Gas Rebate Program, rebates will be provided on a per GJ consumption basis if the majority of Albertans are being charged more than $5.50 per GJ on their monthly gas bills during winter months.

In December, none of the three utilities will be charging consumers a gas utility rate over $5.50/GJ. Regulated utilities must flow their gas costs to consumers with no mark-up, so each month they must apply to the EUB to pass any accrued surpluses or deficits on to their customers.

More information on the Alberta government's Natural Gas Rebate Program can be found on the Alberta government's web site at: <www.gov.ab.ca>.

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Revised: This news release was amended on November 27, 2003.

Gordon Vincent
Alberta Energy Communications
Tel: (780) 422-3667

Backgrounder

Alberta's Natural Gas Rebate Program is in place to provide protection from high gas prices when consumers need it most. For the majority of Albertans this is over the winter months of November to March, when natural gas prices and consumption needs are traditionally highest. If during any of these months, a rebate is activated due to high natural gas prices, all eligible natural gas consumers will receive the same $ per gigajoule rebate.

• Natural gas rebates will be applied to bills if and when consumers served by two of the three major gas utility companies serving the majority of the province (ATCO Gas North, ATCO Gas South, AltaGas Utilities) are paying regulated gas prices over $5.50 per gigajoule (GJ).
• To provide consumer price protection while encouraging energy efficiency and conservation, rebates will be provided on a $ per GJ consumption basis. This reduces per unit gas costs while keeping consumers accountable for total usage.
• Some natural gas purchasers, such as large industrial consumers or those buying gas from a direct marketer, may have to apply for the rebate and would get their rebate by cheque.
• Those who heat with propane, kerosene and heating oil may apply for equivalent rebates based on purchases during months a rebate is activated.

• Alberta natural gas is sold at market prices set in an integrated North American marketplace.
• Changes in market prices are quickly reflected in Alberta's regulated gas utility rates because they are set monthly, based on a combination of upcoming monthly and daily spot prices. Each month, the Alberta Energy and Utilities Board verifies regulated rates.
• For each winter month, the Alberta Department of Energy will announce whether a rebate will be applied to bills for the coming month, based on approved regulated natural gas utility rates.

• Rebates will be provided to residential, commercial and eligible industrial consumers served by investor-owned gas utilities, municipally owned gas utilities and rural gas co-operatives.
• This includes homeowners, condominium associations, landlords, farms, businesses, municipal and community buildings as well as non-profit operations.
• Renters who pay the heating bills directly will see the rebate on their gas bills. Where units share a gas meter, it is anticipated that the rebate program will shield occupants from rate increases due to high winter gas costs. Property managers and condominium associations can take the rebate into account when they establish rental rates and condo fees.

• The oil and gas sector is not eligible.
• Transportation use, gas for resale, gas used outside of Alberta and gas used for feedstock are also not eligible.
• Industrial consumers will be limited to 5,000 GJ per month per meter.

• Equivalent rebates will be provided to eligible users of propane, kerosene and heating oil; however, an application and receipts for purchases during months rebates are activated are required.
• Due to high natural gas needs outside of winter months, commercial greenhouses, agricultural irrigators, forage dehydrators and grain dryers may apply for an alternate five-month rebate period.
• Agriculture producers in these four groups must request their alternate rebate period for 2003-04 by January 31, 2004. If no application is made, the November to March period will apply.

  How to Apply

  • Applications will be available from MLA offices, Alberta registry agents, AFSC offices, direct marketers, natural gas suppliers and propane and heating oil dealers.
  • Application forms may also be downloaded from the Alberta government's Web site at www.gov.ab.ca, or can be requested by calling 310-4455.
  • The application deadline is June 30, 2004 for the 2003-04 year.

   

  For further information, contact:

  Gordon Vincent
  Alberta Energy Communications
  Tel: (780) 422-3667

  For more information on the Alberta Natural Gas Rebate Program, go to www.gov.ab.ca

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