SUNDRE — Council had no option but to accept correspondence informing the municipality that Gas Alberta’s gas cost rate will go up by more than a dollar per gigajoule.
The rate will for the month of March go up by $1.20 per gigajoule to $3.90.
“As much as we don’t like it, we don’t have a choice,” said Coun. Rob Wolfe, who during the regular March 8 council meeting conducted by teleconference motioned to accept the letter for information.
“You state the truth,” added mayor Terry Leslie, wondering whether any other members of council sought to further discuss the item.
Following a brief moment of silence, the mayor called a vote on the motion, which carried unanimously.
In the letter dated Feb. 24, 2021 and signed by Carlee Martin, vice-president of Calgary-based Gas Alberta Inc., the increase was attributed to “extreme cold weather and subsequent natural gas price volatility experienced in Alberta and the U.S.
“Alberta Daily Index peaked at $6 per gigajoule as a result of the increased demand which directly impacted the overall cost of purchases made by Gas Alberta to meet the requirements of its shareholders.”
According to the letter, rates set by the regulated retailers for March were Direct Energy at $4.102 per gigajoule and Apex Utilities at $4.073 for a weighted average of almost $4.10.
