Edmonton...Recent increases in natural gas utility prices have activated a $2.50 per gigajoule (GJ) rebate for January 2004 at "step two" of Alberta's tiered Natural Gas Rebate Program (NGRP).

Gas prices for most consumers will be reduced to $5.10 per gigajoule from about $7.60 per gigajoule. As a result, the average Alberta household that consumes about 23 GJ of gas in January will see a reduction of about $57.50 on their bills.

"January's gas rates are high, and, as promised, a rebate has automatically kicked in to help Albertans with their utility bills," Premier Ralph Klein said. "This is a full winter program, so we'll keep a close eye on the prices consumers will pay over the months of February and March as well."

The Alberta Energy and Utilities Board has verified January's gas utility rates for ATCO Gas South, ATCO Gas North, and AltaGas Utilities will all exceed the $7.50 per GJ threshold and be less than $9.00 per GJ. In order to trigger a rebate, two of the three major gas utility companies serving the province must be charging over $5.50 per GJ.

More than one million natural gas users will receive rebates under the revised NGRP. The same $2.50 per GJ rebate will be provided to all eligible residential, commercial and industrial consumers, whether they buy gas from an investor-owned gas utility, a municipally owned gas utility, a rural gas co-operative or have signed a natural gas contract with a retailer or direct marketer. Industrial consumers will be limited to 5,000 GJ per month per meter, or the equivalent amount for other fuels. The oil and gas sector is not eligible.

Homeowners, condominium associations, landlords, farms, businesses, municipal and community buildings, non-profit operations, schools, hospitals, as well as propane, kerosene and heating oil users are all eligible for winter rebates.

Most natural gas consumers who have a gas meter will have their rebate deducted from their bills. Rebates for propane, kerosene and heating oil users will be based on purchases that occur within the month in which a rebate has been activated, rather than on consumption.

"The rebate is for natural gas used in January. However, due to monthly billing cycles, consumers may see their January consumption and the related rebate spread between their January and February bills," Alberta Energy Minister Murray Smith said. "We don't know what February prices will look like, as natural gas is a volatile commodity, but if prices remain over $5.50 per GJ, the rebate program will continue to offset bills."

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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>.

EDITOR'S NOTE: Background information on how the rebate program works is attached.

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.

The rebate program is in effect for a three-year term ending March 31, 2006.

• Natural gas rebates will be applied to bills if and when consumers supplied 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.
• Rebates for industrial consumers are limited to 5,000 GJ per month per meter.

• Non-industrial consumers who use over 5,000 GJ of natural gas in a month.
• Some large industrial consumers who buy directly from natural gas producers and marketers.
• 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, irrigation farmers, forage dehydrators and farmers with grain drying equipment may choose five alternate months for their rebate period.
• Agriculture producers in these four groups listed above must request their five alternate months for 2003-04 by January 31, 2004. If no application to select an alternate five month rebate period is made, the November to March period will apply. After selecting their alternate rebate period, agricultural producers will have until June 30, 2004 to make application for rebates relative to the selected months and until August 30, 2004 to submit all receipts supporting their application.
• The application deadline for all other applications is also June 30, 2004 for the 2003-04 year (receipts due August 30, 2004).

• Application forms are available from MLA offices, Alberta registry agents, Agriculture Financial Services Corporation 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.

How this rebate benefits residential consumers, communities and businesses:

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

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

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