Last winter’s record cold that put Albertans in the deep freeze also cost them more money.
Natural gas bills almost doubled for some when the winter rate for gas went to $2.492 per gigajoule despite protests from consumers at an Alberta Energy and Utilities Board hearing Feb. 14.
The energy and utilities board which approves rates said the rate for Jan. 16 to March 31, 1997 is final.
In a statement May 8, the board suggested gas companies offer a payment plan to those most affected by high gas costs.
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The board regulates Northwestern Utilities Limited, Canadian Western Natural Gas Limited and Centra Gas Limited. Gas prices are influenced by supply and demand throughout North America. The colder than normal weather increased consumption and consequently drove up prices throughout the continent.
The summer rate running from April 1 to Oct. 31 might also be higher. This has a major effect on high use groups like irrigation farmers.
An irrigation farmer pays $25 to $30 per acre each year for energy, said Stan Klassen, manager of the Alberta Irrigation Projects Association in Lethbridge.
This year irrigation sprinklers are already going full tilt in mid-May because of dry, windy weather.
Input costs are anticipated to be higher than average although farmers likely won’t know final energy bills until the end of the season.
“The longer the season, the higher energy costs at year end,” said Klassen.
If gas costs are too high, farmers switch their pumps to electrical power in an effort to save.
A gas bill carries two charges: a fixed charge that covers costs such as installation and financing of gas pipes and metres, and a charge for the gas and to deliver it to consumers.
