Direct Energy Regulated Services Announces Electric Rates for January 2014

Direct Energy Regulated Services Announces Electric Rates for January 2014 
CALGARY, Alberta, Jan. 1, 2014 /CNW/ - Direct Energy Regulated Services (DERS) 
has announced default electric rates for January 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 January is approximately 2% 
higher than the energy rate charged last month, except the lighting rate class 
which is 3% higher. A typical residential customer consuming 600 kWh per month 
would see approximately a $1 or a 1% increase in the total amount of their 
bill compared to last month. 
|                   |January Rate|
|Rate Class         |            |
|                   |(cents/kWh) |
|Residential        |7.939       |
|Commercial         |7.906       |
|Industrial         |7.744       |
|Farm (Includes REA)|7.846       |
|Irrigation         |7.846       |
|Oil & Gas          |7.699       |
|Lighting           |6.582       |
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: 
How will a typical bill this month compare to previous months based on 600 
kWh's per month? 

    --  January 2014, a typical residential bill will be $161
    --  January 2013, a typical residential bill was $155
    --  December 2013, a typical residential bill was $160

How does this month's rate compare to previous months?

The link below shows historic regulated residential electricity rates.

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 

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 5(th), 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 January 2014 regulated electricity rate 
applications on DERS' website at

SOURCE  Direct Energy Regulated Services 
Jeff Lanthier, Manager, External Relations, Direct Energy Regulated Services, 
To view this news release in HTML formatting, please use the following URL: 
CO: Direct Energy Regulated Services
ST: Alberta
-0- Jan/01/2014 16:00 GMT
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