Natural Gas Service in Alberta
Purchases and deliveries of natural gas to Alberta’s consumers may involve one company that performs both the purchasing and delivery functions, or two separate companies – one that supplies the natural gas and the other that owns the distribution pipeline system and delivers the gas to consumers.
Natural Gas Purchasing
Organizations in Alberta that purchase natural gas supplies for eventual sale to end-use consumers are as follows:
- Gas Alberta Inc. purchases natural gas supplies on behalf of its utility customers and maintains a diversified gas supply portfolio, including daily and monthly indexed supplies and direct purchases from producers. The Company also carries out a prudent hedging program to minimize price volatility and lower its gas costs. Gas Alberta sets monthly pooled gas rates to recover its total cost of natural gas.
- Direct Energy Regulated Services (DERS) is a regulated retailer that purchases daily and monthly indexed supplies for sale to consumers in franchise areas owned by ATCO Gas North and ATCO Gas South. Consumers may contract with DERS under their default gas rate that is regulated by the Alberta Utilities Commission (AUC).
- AltaGas Utilities Inc. (AUI) is a regulated retailer that purchases and delivers natural gas to consumers in its franchise areas. Consumers may contract with AUI under their default gas rate that is regulated by the AUC.
- Since 1998, competitive retailers have been offering their natural gas products to consumers in Alberta where customer choice is allowed, such as franchise areas served by ATCO Gas and AltaGas Utilities. These retailers offer both fixed-price supplies and market-priced supplies (including a premium) at rates they believe will be attractive to Alberta’s consumers.
Gas Rate Comparisons
The following charts show the monthly gas rate set by Gas Alberta versus the regulated retailers and published gas price indices. The weighted average rate for DERS and AltaGas Utilities is determined using a percentage of the Alberta market supplied by each regulated retailer.