CALGARY, Alberta, Aug. 1, 2014 /CNW/ -- Direct Energy
Regulated Services (DERS) has announced default electric rates for
August 2014. The Regulated Rate
Option (RRO) sets the rate per kilowatt hour that regulated
customers pay for electric energy in the ATCO Electric service
territory. The rates are adjusted each month to reflect the price
that DERS pays to buy energy on behalf of customers. The method
DERS uses to set the RRO rates have been verified and approved by
the Alberta Utilities Commission.
Depending on the rate class, the energy rate for August is
approximately 12% higher than the energy rate charged last month,
except the Lighting rate class which is 24% higher. A typical
residential customer consuming 600 kWh per month would see
approximately a $6 or 4% increase in
the total amount of their bill compared to last month.
Rate
Class
|
August Rate
(cents/kWh)
|
Residential
|
8.775
|
Commercial
|
8.826
|
Industrial
|
8.399
|
Farm (Includes
REA)
|
8.611
|
Irrigation
|
7.957
|
Oil &
Gas
|
8.298
|
Lighting
|
4.462
|
Further information on regulated rate option and a complete
list of competitive retailers can be found on the Alberta government's customer choice website
at: www.ucahelps.gov.ab.ca.
How will a typical bill this month compare to previous months
based on 600 kWh's per month?
- August 2014, a typical
residential bill will be $175
- August 2013, a typical
residential bill was $181
- July 2014, a typical residential
bill was $169
How does this month's rate compare to previous
months?
The link below shows historic regulated residential
electricity rates.
http://www.directenergyregulatedservices.com/ELE/Historic-Electricity-Rates-popup.aspx
How is the RRO transition rate determined?
DERS does
not own any electricity generating capacity. Therefore, under
a Price Setting Plan approved by the AUC, DERS purchases blocks of
electricity for the upcoming month for its customers.
Representatives of consumer groups, as well as an independent
advisor, participate in purchase decisions with DERS. The
rates to consumers represent a blended price of the electricity
purchased, and include costs related to DERS' procurement
activities and compensation for the consumer groups' and advisor's
participation. The rates are filed with the AUC for
acknowledgement, as are details supporting their derivation.
What is the Energy Price Setting Plan?
DERS negotiated
with consumer groups in arriving at the Energy Price Setting
Plan. These negotiations were conducted under the
Commission's Negotiated Settlement Rules, and all meetings were
attended by a Commission observer. Upon completion of
negotiations, DERS filed the Settlement Agreement, including the
Energy Price Setting Plan, with the Commission, and received
approval on May 5th,
2011. The Energy Price Setting Plan sets out the details of
how DERS is to acquire electricity for consumers, what costs are
included, and how the RRO transition rate is to be
calculated. The Energy Price Setting Plan also specifies the
involvement of consumer groups throughout the
process.
Why do Electricity prices fluctuate?
Electricity
prices are set in an open and competitive market, and are
influenced by many variables including and not limited to supply
and demand, natural gas prices, weather, pricing and availability
of competing energy sources, availability of imports and exports
into the province, and market analyst's views of future trends in
any of these variables.
For more information, please view the August 2014 regulated electricity rate
applications on DERS' website at
www.directenergyregulatedservices.com
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SOURCE Direct Energy Regulated Services