Cost of Gas
Learn more about how the cost of gas is calculated.
Natural Gas RatesPrior to the start of each month, Gas Alberta Inc. designs a natural gas rate (on a $ per GigaJoule (GJ) basis) to cover its estimated gas costs to supply FedGas utilities for the upcoming month (to see current and past Gas Alberta rates: Gas Rates in Alberta). This monthly pooled rate is then forwarded to the utilities to charge their customers. This rate is affected by market forces. As the market price for natural gas increases or decreases, so does the cost of gas for residents and businesses. |
On top of the monthly pooled rate, Gas Alberta Inc. charges to the utilities a small variable rate to cover the costs of administration and goods and services relating to the safe and reliable supply of natural gas to consumers. The Co-op and Community gas utilities may charge additional fees to cover the costs of administering, operating, and maintaining the gas utility and supply. |
Fixed Delivery ChargeThe fixed delivery charge (or Monthly Service Charge) is designed to recover the costs that do not vary with consumption of gas including administration, design/installation of pipelines and meters. These show up on a bill as a single line item and the dollar value may not change from month to month. |
Variable Delivery ChargeThe variable delivery charge is designed to recover the costs that vary with consumption of gas. These are principally related to capital and operating costs, including labour, materials and supplies. The utility may break this out on a bill separate from the cost of gas or included as part of a gas consumption line item. The cost will vary dependent on how much natural gas a customer consumes in a given month. (i.e. a $3/GJ gas rate, plus a $1/GJ variable rate = $4/GJ. If that customer uses 10 GJ of gas in a month, their consumption charge would be $40 that month.) |