Direct Energy Regulated Services Announces Natural Gas Rates for January 2014

Direct Energy Regulated Services Announces Natural Gas Rates for January 2014 
CALGARY, Alberta, Jan. 1, 2014 /CNW/ - Direct Energy Regulated Services has 
announced default natural gas rates for January 2014. These rates will apply 
to customers who have not chosen a competitive supplier within the ATCO Gas 
North and South service territories. The rates have been verified by the 
Alberta Utilities Commission. 
(Logo: http://photos.prnewswire.com/prnh/20121004/MM87276LOGO) 
North Service Territory The North territory includes customers living in and 
north of the City of Red Deer. 


    --  For customers in the ATCO Gas North service territory, the
        January regulated natural gas rate is increasing from the
        December rate of $3.301 per GJ to $4.085 per GJ.
    --  This rate reflects a market price for January supplies of
        approximately $3.631 per GJ as reported by the NGX, and
        incorporates an adjustment of $0.454 per GJ for December and
        prior months.
    --  The typical residential gas bill for January based on an
        average 20 GJ of consumption would be approximately $183 in the
        North.

South Service Territory The South territory includes customers living south of 
the City of Red Deer.
    --  For customers in the ATCO Gas South service territory, the
        December regulated natural gas rate is increasing from the
        December rate of $3.294 per GJ to $4.107 per GJ.
    --  This rate reflects a market price for January supplies of
        approximately $3.631 per GJ as reported by the NGX, and
        incorporates an adjustment of $0.476 per GJ for December and
        prior months.
    --  The typical residential gas bill for January based on an
        average 20 GJ of consumption would be approximately $157 in the
        South.

Further information on regulated gas supply and a complete list of competitive 
retailers can be found on the Alberta government's customer choice website at: 
www.ucahelps.gov.ab.ca.

Backgrounder

In the North Service Territory, how will a typical bill this month compare to 
previous months based on 20 GJs?
    --  January 2014, a typical residential bill will be $183
    --  January 2013, a typical residential bill was $145
    --  December 2013 (based on 18 GJ), a typical residential bill was
        $156

In the South Service Territory, how will a typical bill this month compare to 
previous months based on 20 GJs?
    --  January 2014, a typical residential bill will be $157
    --  January 2013, a typical residential bill was $128
    --  December 2013 (based on 18 GJ), a typical residential bill was
        $130

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

The link below shows historic regulated natural gas rates.

http://www.directenergyregulatedservices.com/GAS/Historic-Natural-Gas-Rates.asp
x

How much natural gas does a typical residential customer use?

A typical residential customer uses 119 GJ per year.

How does this month's market price compare to last month?

The regulated rate is based in part on the current market view of natural gas 
prices for the month, as reported by NGX:
    --  As of the time the rate application was filed, the market price
        for January was $3.631 per GJ.
    --  The market price last month at the time of filing was $3.179
        per GJ.
    --  Last month's actual market price was approximately $3.46 per
        GJ.

Why are there adjustments this month?

The formula used to calculate the regulated rate accounts for any over-or 
under-recoveries of actual gas costs arising from differences in:
    --  normal and actual weather, which affects the volume of natural
        gas consumed; and
    --  forecast and actual market prices occurring in November and
        prior months.

Why do natural gas prices fluctuate?

Natural gas prices are set in an open and competitive market, and are 
influenced by many variables throughout North America and the world.  These 
variables include supply and demand, production and exploration levels, 
storage injections and withdrawals, continental weather patterns, pricing and 
availability of competing energy sources, and market analysts' views of future 
trends in any of these or other variables.  Natural gas prices in Alberta are 
not typically a function of localized weather.

Why are North and South regulated natural gas rates different?

DERS is required by the Alberta Utilities Commission to purchase natural gas 
for ATCO Gas' North and South systems separately. Each system has slightly 
different load, weather, and supply characteristics that result in a different 
mix of Monthly and Daily Index purchases.

For more information, please view the January 2014 regulated natural gas rate 
applications on DERS' website at www.directenergyregulatedservices.com



SOURCE  Direct Energy Regulated Services 
Jeff Lanthier, Manager, External Relations, Direct Energy Regulated Services, 
905.943.6260, Jeff.Lanthier@directenergy.com 
http://www.directenergyregulatedservices.com 
http://photos.prnewswire.com/prnh/20121004/MM87276LOGO 
To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/January2014/01/c6949.html 
CO: Direct Energy Regulated Services
ST: Alberta
NI: UTI OIL NP  
-0- Jan/01/2014 16:01 GMT
 
 
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