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Meota Gas Price Changes

Dear Members and Customers,

 

Meota continues to ensure that your natural gas delivery is dependable, continuous and delivered safely. 

 

Effective January 1, 2024, Meota has put in place some pricing changes that you need to be made aware of.

 

Fixed Delivery Charges:

Commercial Customers – will remain the same rate as 2023 to the monthly fixed rate.  Commercial sized meters are substantially higher in cost, have a much higher maintenance cost and require more labour for certification, calibration and servicing.

 

Residential Customers – will see a slight increase to the monthly fixed rate to $ 38.00 per month.  The fixed fee covers the costs of building, operating and maintaining our distribution system.

 

Variable Charges:

                All customers will see an adjusted rate to the variable charge.

                New variable charge $ 2.00/GJ

 

The variable charge covers the costs to maintain the distribution system and ensure compliance to regulatory bodies that govern our operations.  This includes:

  • Safety and compliance reporting,

  • Providing 24 hour emergency response,

  • Measuring natural gas consumption for consumers,

  • Relocating and upgrading our natural gas pipelines and measuring stations.

               

Gas Loss Charge – Meota currently bills a 2% gas loss charge, so this rate will vary month to month with the cost of gas. 

Meota experienced a substantial increase in materials over this past year – some over 30%.  To continue to operate efficiently, pricing updates are reviewed by your board of directors annually to ensure Meota continues to provide the best service to our members and stay compliant to regulatory changes in the environment we operate in.

 

Please direct any inquiries to the office.

                      ___________________________________________________________________________

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 - www.fedgas.com

Source: www.GasAlberta.cawww.open.alberta.ca/factsheet-ng-residential.pdf

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