The default electricity rate for Calgary will rise to 10.03 cents per kilowatt hour (kWh), effective May 1, 2008. Consumers who have chosen a fixed price energy plan will not be affected by this price change.

As a result, the electricity bill for a typical Calgary household (using 625 kWh per month) will increase by 2.9 per cent compared with the previous month to $98.84.

What can customers do?
Customers have options regarding their energy bill.  They are:

• Choose to do nothing and receive the default rate, which fluctuates each month.
  
• Choose an energy plan that offers control over energy costs and fixed prices over longer terms.  Information on these is available at www.ucahelps.gov.ab.ca, or call 310-4822.

What is the default rate?
The technically correct name for the default rate is the Regulated Rate Option (RRO).  It applies when no choice is made by a consumer. The owner of the local distribution system is required by legislation to provide the RRO to eligible customers (residential and small commercial customers who consume less than 250,000 kWh of electricity each year) in their service area.  ENMAX Power is the local distribution company in Calgary and fully supports the competitive market for electricity and consumers' rights to choose their own energy plan.  Anyone who has not chosen to enter into an energy plan with a retail supplier receives the RRO by default.

The default rate is calculated each month from prices in the wholesale electricity market using a process approved by the Alberta Utilities Commission.  Forty percent of the rate comes from purchases made from sellers into the wholesale electricity market of supply contracts for the month of May, and the remainder comes from longer-term purchases made at market prices.

As of July 1, 2007 this default rate reflects a higher percentage of shorter-term market prices in accordance with provincial government regulations introduced in 2006.  This could potentially cause the default rate to fluctuate more than it has in the past.  Prices change with the energy market, depending on changing weather, seasonal consumption demands and fuel costs such as natural gas prices.  A new price for the default rate is set each month that reflects current market price conditions. 

This change in regulation increases the importance of consumers examining their own energy cost control choices.

ENMAX Power Corporation, a subsidiary of ENMAX Corporation, and its predecessors have provided Albertans with safe and reliable electricity for more than 100 years. One of the most reliable urban utilities in Canada, ENMAX Power owns, operates and maintains the distribution and much of the transmission network in and around Calgary, which are activities regulated by the Alberta Utilities Commission. Non-regulated subsidiaries provide engineering, procurement, construction and maintenance for electrical servicing of residential and commercial developments and light rail transit systems as well as fiber optic networks for high speed data and internet communications. Visit our website at enmaxpower.com.