Natural gas price plummets
 
Next month, Alberta's natural gas prices are set to be the lowest in almost four years
 
By TARINA WHITE, CALGARY SUN
 
2006-05-29 08:48:30
After skyrocketing to historic highs in the wake of last year’s devastating hurricane season, Alberta’s natural gas prices next month are set to be the lowest in almost four years.

Direct Energy Regulated Services will apply for a sharp reduction in the price charged for natural gas in June compared to May.

The application with the Alberta Energy and Utilities Board seeks a rate of $2.68 per gigajoule in southern Alberta in June, down from $5.92 this month.

That should translate into an average household gas bill in southern Alberta of $34 next month, considering each residence typically consumes three gigajoules of gas in June.

“It’s certainly the lowest prices that regulated consumers have seen in Alberta since August 2002,” said Direct Energy spokeswoman Lisa Dornan today.

The average natural gas bill in southern Alberta last June was $47.

Close to a dollar difference between the forecast and actual price for natural gas in May resulted in a credit adjustment of $2.72 for next month’s rate, said Dornan.

Cheaper natural gas prices in June are attributed to reduced wholesale costs and warmer weather driving down demand, she said.

But that doesn’t mean consumers should bank on low gas prices to continue throughout summer.

“We are heading into hurricane season so there’s no guarantees one way or the other,” said Dornan.
 

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