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Calculating the rate

The default supply rate is the monthly rate for electricity automatically provided to all eligible customers who have not entered into a contract with a competitive retailer and consume more than 250,000 kilowatt hours per year.

The following default supplier formulae are used to calculate the fixed rate energy charge (FREC) and variable rate energy charge (VREC) for default supply rate customers in Calgary, Red Deer, Ponoka and Cardston.

= MXCh x  FEE

VREC($) = HR x AECO 'C' bpavg x  TC bp

 = Maximum consumption in any hour during the billing period

Fee = $/kVA/billing period

HR = Heat Rate

AECO 'C' bpavg = Average of AECO 'C' Daily Index in the billing period

TC bp = Total consumption, in Mwh, in the billing period


Additional charges, as determined by the owners of the electricity distribution system including, but not limited to, distribution, transmission and franchise charges, will be shown separately on the customer's bill and not included in the above calculations.

All customers are free to purchase natural gas services from the default supply provider or from a retailer of their choice and to purchase electricity services from the regulated rate provider or from a retailer of their choice. The delivery of natural gas and electricity to you is not affected by your choice. If you change who you purchase natural gas services or electricity services from, you will continue receiving natural gas and electricity from the distribution company in your service area. For a current list of retailers you may choose from, visit www.ucahelps.gov.ab.ca or call 310-4822 (toll free in Alberta).

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