Frequently Asked Questions

Information about ATCO Gas delivery rates.

What do delivery charges cover?
How are delivery rates set?
What is a conversion factor?
Why do I pay a delivery charge even when I use no gas?
What is the annual consumption for an average residential home?
What are the Production Rider and the Storage Rider and What is the Production and Storage Charge? (South Only)
What is a municipal franchise fee/charge?
What is the Transmission Service Charge Rider?
What is the Interim Placeholder Rider (Rider "H" (North) and Rider "K" (South))?
What is the Load Balance Deferral Account Rider (Rider L)
What is the Interim Shortfall Rider (Rider S)?
What is the Weather Deferral Account Rider (Rider W)

What do delivery charges cover?
Delivery charges recover the costs ATCO Gas incurs to provide the delivery, customer care and distribution systems that ensure natural gas is available when you need it. Our delivery costs – among the lowest in Canada – are reviewed and approved by the Alberta Utilities Commission. Delivery costs include:

• Installing, operating and maintaining pipelines across Alberta. The ATCO Gas delivery system includes more than 34,000 km of pipelines.
• Providing 24-hour response to natural gas emergencies.
• Responding to requests to check natural gas furnace and gas appliances for safe and efficient operation.
• Metering customers’ use of energy and providing data to the customer's retailer.
• Safety and energy efficiency programs and services as ATCO EnergySense.
   

How are delivery rates set?

All our delivery costs are reviewed and approved by the Alberta Utilities Commission. A public review/process is held before any change in our rates. Different customer groups cross-examine our witnesses on every aspect of our costs. The board then decides how much of our costs can be recovered from customers, and approves the rates that will be charged to customers.

ATCO Gas recovers a portion of the allowed revenue from all customers through a fixed charge applied to each day within a charge period. The remainder of the allowed revenue is collected through a variable and demand charge collected per gigajoule of natural gas consumed.

What is a Conversion Factor?

ATCO Gas uses meter readings to calculate your consumption. Meters measure gas consumption, or gas volume, in units of cubic feet. The volume of natural gas you use is converted into gigajoules, a measure of energy provided by natural gas. Your natural gas bill is calculated in part based on gigajoules, and gas rates are stated on a price per gigajoule basis.

A Conversion Factor is used to convert meter readings (volume measured in MCF) into billed energy (gigajoules). To convert volumes to gigajoules, multiply the volume of natural gas you used (your present meter reading less your previous meter reading) by the Conversion Factor. The Conversion Factor used for most residential customers is impacted primarily by the heat value of the natural gas supply and by the meter pressure. The calculation for converting volume into billed energy is stated in the Regulations of the Electricity and Gas Inspection Act of Canada.

Why do I pay a delivery charge even when I use no gas?

If you don't use any natural gas during a billing period, you will not pay a variable delivery charge. You will pay the fixed delivery charge because ATCO Gas still has to read your meter, provide consumption information to your retailer, operate your local service office, provide emergency response, and have all the facilities there to ensure natural gas is available when you need it. Like cable television and telephone lines, there are costs for the infrastructure whether you watch TV or not.

What is the annual consumption for an average residential home?

An average residential single family dwelling uses approximately 120 GJ annually. Actual consumption will vary based on:

• size of home
• age of home
• quality of insulation in the attic, basement and walls
• energy efficiency of appliances (natural gas furnace, hot water heater, etc.)
• energy conservation practices

An average residential home will use more natural gas for home heating during the period of late fall through early spring as shown in the table below. Actual annual consumption for your home may vary and can only be confirmed through accurate measurement. For energy saving information and tips, visit www.atcoenergysense.com or call toll free at 310-7283.

What are the Production and the Storage Riders? What are the Production and Storage Charges? (South Only)

As a result of an application filed by ATCO Gas which is currently under review by the AUC, the Production and Storage Riders and the Production and Storage Charge have been suspended until such time as the Commission provides further direction on this matter.

What is a Municipal Franchise Fee/Charge?

This fee is set by your municipality, partly as a charge for locating facilities on municipal rights of way. ATCO Gas remits this amount to your local town or city.

What is the Transmission Service Charge Rider?
The Transmission Service Charge Rider collects from customers the difference between the forecast of transmission costs included in current delivery rates and the actual costs for this service. ATCO Gas has no control over the amounts charged by pipeline companies for transmission service. The AUC recognizes there is uncertainty around this cost and therefore has approved implementation of the Rider to recover a shortfall associated with an increase in transmission costs. The rider will be in effect from September 1, 2008 to August 31, 2009.

What is the Interim Placeholder Rider ("H" (North) and Rider "K" (South))?
Rider H (North) and Rider K (South) enable ATCO Gas to collect approved costs related to Call Centre and Billing Services provided to customers for the period 2003-2007. The riders are implemented on an interim basis pending resolution of a Benchmark process currently underway with the Alberta Utilities Commission to determine final costs for these services. The riders will be in effect from December 1, 2008 to November 30, 2009.

What is the Load Balance Deferral Account Rider (Rider L)?
Rider L relates to the balancing of ATCO Gas’ distribution system. A rider related to this can require a recovery of costs from customers or can result in a refund to customers from time to time, based on the rules established by our regulator.

What is the Interim Shortfall Rider (Rider S)?
Rider S is a temporary rider implemented November 1, 2009 to recover the balance of approved revenue shortfalls from 2008 and 2009 that are not recovered through current AG Interim Rates. The north Rider S will be in place from November 1, 2009 to April 30, 2010. The south Rider S will be in place from November 1, 2009 to December 31, 2009.

What is the Weather Deferral Account (Rider W)?

The Weather Deferral Account was created to account for the effect of temperature fluctuations on billings to customers.  Rider W (North) is being applied because the Actual natural gas delivery revenue was higher than the normal natural gas delivery revenue, due to colder than expected temperatures.