Alberta approves 50% hike in natural gas prices

WebPosted Thu Jan 25 00:22:47 2001 EDMONTON - Hundreds of thousands of people in Alberta are in for a shock when they get their next natural gas bill.

The province has approved a 50-per-cent increase in natural gas prices for the next year – effective immediately.

It's the biggest rate hike in the province's history.

Alberta is just the latest province to see gas prices rise, for several reasons including colder temperatures, higher shipping costs and a rise in demand across North America.

ATCO Gas – the company that supplies most of Alberta's natural gas – says it needs the increase to offset skyrocketing prices. The company is also trying to pay off a $250-million debt.

Since ATCO announced plans to apply for the increase, angry consumers have been phoning to complain. The company says it has received 5,000 to 8,000 calls a day, and it expects that number to rise after Wednesday's announcement.

More than 800,000 affected

A consumers group says the increase will add about $1,000 to each residential gas bill this year.

Jeffrey Jodoin of the Consumers Coalition told Canadian Press, "It is really going to create significant hardship to low income, fixed income and even middle income families. The level of the increase is unprecedented."

The increase will affect more than 800,000 customers.

Although the hike takes effect now, it will be reviewed at a public hearing to be held in Edmonton next month.

http://cbc.ca/cgi-bin/templates/view.cgi?/news/2001/01/24/altagas010124

-- Martin Thompson (mthom1927@aol.com), January 25, 2001

Answers

My typical monthly bill has averaged, on the budget scheme, around $40. Today the bill for the past month arrived: $250. It was due on January 24 and dated January 5, so I cannot tell whether Atco had already raised amounts, then waited to send it to customers until they had received provincial gov approval for the latest increase, or whether the latest 100% increase will appear on the next bill.

The increase is 100%, not 50% as stated in the article, to supposedly cover the increased rate for the cold winter months (our temps have been very warm for the past month.) They're spreading it out over the next 12 months at the rate of 50%, with interest added in. Nice, eh?

-- Rachel Gibson (rgibson@hotmail.com), January 27, 2001.