Gas Rate Predictions for 2021/2022 Winter
Fixed vs Variable Rates
Meota Gas Co-operative Association Ltd. (Meota Gas) has experienced an increase in member inquiries regarding the anticipated increase in Natural Gas prices and the options available for fixed option pricing for the upcoming winter season.
Current Market Situation
The natural gas industry has seen pricing volatility throughout Canada and USA for a variety of reasons; increasing exports of Liquid Natural Gas (LNG), hurricane season impacts on US production and increased export demands; to name a few.
Our wholesaler, Gas Alberta Inc., procures natural gas on behalf of most natural gas co-operatives in Alberta. Combined, these member-owned natural gas utilities create one of the largest natural gas distribution systems in Canada.
Gas Alberta’s mandate is to procure reliable natural gas supplies for its’ shareholders at rates that are lower than the average of Alberta’s regulated retailers. They achieve this through a mix of indexed gas supplies that are actively managed on a day-to-day basis and a prudent hedging practice that limits the exposure to price volatility.
Gas Alberta has outperformed the average of some of the regulated suppliers 80% of the time since July of 2018.
What does this mean for Meota Gas members and customers?
When comparing fixed price options for natural gas, it’s important to note that fixed prices have rarely been the most economical option over time. Current forecasts indicate that fixed prices may become more competitive than market rates in the short-term. This trend is expected to reverse quickly next year.
According to our gas wholesaler, the average rural consumer has saved approximately $1,200.00 since November of 2018 through our wholesaler rates as compared to the average of the fixed rate options over the same period.
Why are Gas Co-operatives Different?
Meota Gas operates as a not for profit, member-owned entity. Rates on natural gas delivery are established to ensure our system is maintained and operates safely and reliably. In addition to competitive market gas rates, our monthly fixed rates are substantially lower than the larger regulated natural gas providers which results in a substantial monthly savings for our members and customers.
Locking in rates for customers can result in a negative impact on the financial stability of the
co-operatives supplying natural gas. As a member owned co-operative, Meota Gas continues to operate with reliability and safety as a priority in delivering natural gas to your homes and operations, while ensuring the financial responsibility to its’ members and customers.
To learn more about gas rates, please visit:
Gas Alberta - www.gasalberta.com/gas-market/gas-rates-in-alberta
To learn more about Gas Co-operatives in Alberta, please visit:
Source: Gas Alberta Inc.
Welcome to Meota Gas Co-operative Association Ltd.
Provincial Regulations require that each meter set must be inspected at least once annually. To ensure the safety of the gas system, we require 24 hour access to all meter sets and URW's.
Meota Gas Co-operative Association Ltd. (Meota) was established in 1962 and is the first natural gas cooperative formed in Alberta.
Together with other Alberta Natural gas co-ops, we are one the world's largest rural gas distribution systems.
Our goal is to deliver natural gas to our members and customers in the most safe and reliable manner.
The Board of Directors of Meota would like to welcome you to our web site. Please have a look around. If you can’t find what you’re looking for please contact us.
Meota Gas Co-operative Association Ltd. offers many services in our service area, from setting up gas service to new homes, maintaining and upgrading existing gas accounts, installing secondary gas services to managing safety issues.