Edmonton... A natural gas rebate of $1.50 per gigajoule (GJ) will be issued by the Alberta government for December because the price of natural gas has exceeded the first tier threshold of $5.50/GJ.

The Alberta Energy and Utilities Board (EUB) has verified the December rates for Direct Energy Regulated Services South, Direct Energy Regulated Services North and AltaGas Utilities as:

Regulated gas companies must recover their gas costs from customers with no mark-up, so each month they must apply to the EUB for approval of rates that reflect projected North American market prices and include any accrued surpluses or deficits from the prior two months.

Under the Alberta Natural Gas Rebate Program, all eligible Albertans will receive per gigajoule (GJ) rebates if the majority of Albertans are being charged more than $5.50 per GJ on their gas bills for that month during the winter period (November - March).

For gas consumed in December, all three of the regulated gas companies will be charging their customers a gas rate over $5.50/GJ.

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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Cathy Housdorff
Alberta Energy Communications
Tel: (780) 422-3667
Cathy.Housdorff@gov.ab.ca

Backgrounder

• Consumers receive rebates when two out of the three major gas companies
  (Direct Energy Regulated Services North, Direct Energy Regulated Services South and AltaGas Utilities) are charging regulated rates over $5.50 per gigajoule (GJ) for natural gas in a month.
• The program is in effect for the second year of a three-year term, from November 2004 to March 2005. Eligible agriculture consumers may apply for an alternate five-month rebate period over the government's 12-month fiscal year ending March 31, 2005.

• Equivalent rebates are provided to eligible users of propane, heating oil and kerosene, based on volumes purchased during the month in which a rebate is declared.

• Rebates are funded through the Sustainability Fund.

• Rebates are provided to residential, commercial and eligible industrial consumers served by investor-owned gas utilities, municipally owned gas utilities and rural gas co-operatives, and those with contract gas supply. This includes homeowners, condominium associations, landlords, farms, businesses, municipal and community buildings, as well as non-profit operations.
• Industrial consumers are limited to 5,000 GJ per month per meter, or the equivalent amount for other fuels. The oil and gas sector is not eligible.
• Some non-industrial consumers may be eligible to receive an additional rebate for their consumption over 5,000 GJs. An application is required.
• Electricity used to heat residential dwellings may be eligible for a rebate where natural gas or other fuels are not available or cannot be used due to medical reasons. A medical certificate is required to determine eligibility. Electricity rebates will apply to consumption over 600 kilowatt hours (kWh) per month.

Include those that use natural gas, propane or heating oil for:

• Transportation fuel
• Exploring, producing, processing, re-processing, refining, upgrading, storing or transporting natural gas, oil, or oil sands
• Feedstock purposes
• Consumption outside of Alberta
• Resale

• All agriculture natural gas consumers are eligible for rebates. With few exceptions, most will see the rebates applied directly to their natural gas bills during the winter period (November - March). Others will have to apply and submit receipts (details follow).
• Certain agriculture natural gas consumers are eligible for rebates outside of the normal November to March rebate period, recognizing their highest consumption may occur at other times of the year. These are commercial greenhouses, agricultural irrigators, forage dehydrators and grain dryers.
• These consumers may select a five-month period that best fits their consumption patterns or select the default period chosen for their particular sector.
• Eligible agriculture consumers have until March 31, 2005 to identify their preference for a five-month period for the 2004-05 rebate year outside the normal winter period.
• To select the five alternative months, an application must be made by June 30, 2005.

Most Albertans will have their rebates applied directly to their natural gas bills, including many with contract gas supply. However, some will have to apply, including:

• Residents who heat their homes with propane, kerosene, heating oil, and in very limited cases electricity. These consumers must submit their fuel receipts and an application in order to receive their rebate.
• Non-industrial customers who use over 5,000 GJ of natural gas in a month.
• In some cases, large consumers who buy directly from natural gas producers and competitive retailers.
• Those agriculture consumers who are eligible for rebates outside of the normal November to March time frame.

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

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Cathy Housdorff
Alberta Energy Communications
Tel: (780) 422-3667
Cathy.Housdorff@gov.ab.ca

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