Edmonton... Natural gas prices in February will activate a $1.50 per gigajoule (GJ) Alberta government rebate on the gas bills of most consumers in the province.

"For the second and consecutive winter month, the Natural Gas Rebate Program will help over a million Alberta residential, commercial and industrial consumers with their bills," said Energy Minister Murray Smith. "Alberta households usually consume between 12 and 32 GJ in February and can therefore expect a rebate of about $18 to $48, depending on their usage."

The Alberta Energy and Utilities Board has verified February's gas utility rates for ATCO Gas South, ATCO Gas North, and AltaGas Utilities. All rates exceed the $5.50 per GJ threshold and all are less than $7.50/GJ, triggering a "step one" rebate of $1.50 per GJ on the rebate program's tiered scale. The after-rebate gas utility rates for most consumers are:

The rebate is for natural gas used in February. However, due to monthly billing cycles, consumers may see their February consumption and the related rebate spread between their February and March bills. The same $1.50 per GJ rebate will be provided to all eligible 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.

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. Industrial consumers will be limited to 5,000 GJ per month per meter, or the equivalent amount for other eligible fuels. The oil and gas sector is not eligible.

As previously announced, commercial greenhouses, irrigation farmers, forage dehydrators and farmers with grain dryers may select five alternate months for rebate purposes due to high natural gas consumption outside of winter months. Applications for the 2003-2004 optional rebate period must be postmarked or fax stamped to the program office by midnight January 31, 2004.

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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> or by calling Service Alberta at 310-4455.

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

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 amount per gigajoule.

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. 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 must request their five alternate months for 2003-04 by midnight January 31, 2004. If no application to select an alternate five months is made, the November to March period will apply. After selecting their alternate rebate period, agricultural producers have until June 30, 2004 to apply for rebates relating to their selected months.
• The deadline for all other applications is also June 30, 2004 for the 2003-04 year.
• Receipts for all programs are due August 31, 2004.

• Application forms are 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.

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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