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Government of Alberta Electricity Rebate Program

· · Leave a Comment Consumer Info, Electricity

We have recently become aware of several phishing scams related to the Government of Alberta’s Electricity Rebate Program.
To be absolutely clear, the rebates will be applied directly to your invoice; there is nothing you need to do to claim the $150 rebate.

If you receive a text message that refers to Service Alberta, the CRA, or any other government entity, that is a scam, and you should delete the message immediately. You can also report phishing scams to the Government of Canada’s Fraud Reporting System or by calling 1-888-495-8501.Here is an example of one such scam:
On March 7, 2022, the Government of Alberta announced an electricity rebate program in response to rising electricity costs. This program will provide eligible consumers with $150 in total rebates on their electricity bills, with three payments of $50 over three consecutive months.

The rebates will be provided as a reduction to the distribution charges for each eligible consumer’s site. A line item will be set out for each $50 rebate under the heading “GOA Utility Commodity Rebate.” Electricity rebates are expected to go out starting on July invoices.

Again, there is nothing you need to do to claim the rebates. Any request for personal or banking information to claim the rebates is a phishing scam.

If you have any questions or concerns, please do not hesitate to reach out to us.
Email: customercare@parkpower.ca
Phone: 780-640-2128

Some Thoughts on Natural Gas in Alberta in 2021

· · 4 Comments Consumer Info, Natural Gas

Listening to the mainstream media talk about the energy market during the last months caused a mad rush of consumers to sign up for fixed energy prices.  Some people are in panic mode to lock into a fixed contract and get off the variable rate.  It seemed like an eerie feeling of déjà vu, almost like those consumers in the past who were out hoarding toilet paper last year for fear of running out during the early days of the Covid Pandemic. 

The local press isn’t doing customers a favor by painting a picture of natural gas shortages and skyrocketing natural gas prices.  

We are not at risk of running out of natural gas.  Understand that the media frenzy is driven by problems being faced by consumers in Europe, not Alberta. Yes, it is true, prices in Alberta are going up, but not as significantly as elsewhere in the world. 

Let’s keep things in perspective.  As always: what goes up also comes down, and consumers on the Variable Rate plan are typically the winner in the long run.  Most importantly, it should also be remembered the actual cost of gas represents only 25% of the customers’ total invoice. If the cost of gas goes up by a dollar per GJ, it will result in a 5 to 6% increase in the customer’s utility invoice.  Invoices are not going to double. A change in the usage rate for natural gas does not affect any of the distribution or government regulated charges (the bottom half of your bill).

As mentioned, the reports in the media, for the most part, are focused on Europe and other Global markets.  While the challenges facing those markets are real, they are not causing prices to spike here in Alberta.

Nevertheless – the stories will scare some consumers here in believing the sky is falling and they better lock into fixed energy rates to protect themselves.  Price protection is a good consumer strategy for utilities but it is important to understand what is feeding the frenzy.

Why has there been a surge in gas prices in other markets?     

  • There is not one single cause for the shortage, but people, companies, and countries generally have to compete with each other to buy up gas.
  • Demand is also high as the world comes out of successive lockdowns and businesses try to make up for lost time – many will need lots of gas for this.
  • Meanwhile, gas production is also lower, and the weather was less windy over the summer – meaning more gas was burned for electricity.
  • EU policy is being blamed as “poorly thought-through decisions” by Brussels officials for creating “serious imbalances” in European energy markets.
  • Gas price rises in Europe are just one sign of a broader energy crunch that is playing out around the world.

Focus on what is happening here in Alberta?     

  • We put up a ‘Sold Out’ sign on our fixed rates for Natural Gas.  
  • The sign will be flipped over in about three weeks as we enter November, and new rates will be posted.
  • Do not panic.  Here are indicative numbers.  Look at the actual numbers over the summer months. Our costs ranged from $4.092/GJ to a high of $4.678/GJ.  Based on indicative prices posted by Shell Energy, AECO prices will move into the $5/GJ range and by April fall back down to $3.47/GJ.
  • The energy portion of a consumers bill represents about 25% of the total invoice – as such, when the cost of natural gas increases, the real impact is dampened by the fact that 75% of the other charges are regulated and relatively flat.      

The media should be focused on the volatility in the electricity market, not the gas market. Another blog post of ours address the current electricity market.

In Alberta, overall most consumers, whether on Fixed or Variable Rates for natural gas should not be in for too big of a price shock this winter. Conversely, for electricity, this year’s price increases and volatility make switching to a Fixed Rate the better option.

Alberta Electricity Market Heading into 2022.

· · Leave a Comment Consumer Info, Electricity

Without question, the increase in the cost of Natural Gas will impact Power Pool prices of electricity, as the Alberta fleet of generators uses more gas as a fuel source.  With this said – the cost of electricity will go up and is far more volatile than the cost of natural gas.  But, you need to look at the bigger picture and consider the following to help you understand what is going on in the market.  Understanding the electricity market is far more complex and has many more moving parts. 

Overview

As a general rule, when forecasting the cost of electricity, the demand/supply curve is the driver of Alberta’s energy market. 

  • The load forecast (Demand) in Alberta will be impacted by: the 2021/22 economic recovery, the landscape of our energy sector, plus seasonal volatility in our weather conditions.  
  • The supply side of the equation (Generation) is subject to a Rubik’s Cube puzzle of different permutations and issues, including; government policies, clean-tech transformation initiatives as the market shifts toward more renewables, natural-gas generation built to replace retired coal facilities, co-generation, carbon tax, technology costs, industry trend, foreign investment s and long term additions to the supply change based on economics as well as planned and unexpected plant closures (Outages).  

Load Forecast

We looked at various scenarios published in AESO’s lastest Long Term Outlook.  The load is projected to increase, ranging from 0.5% to 2.0%, depending on the impact of Clean Tech initiatives and the rate of economic recovery in the province.

  • Today, the average load is running on average in a band ranging from 6,869 MW to 7,036 MW. 
  • Looking out five years (2026): the demand is forecasted to range from a low of 7,014 MW to a high of 7,504 MW.  
  • Peak Demand, driven by seasonal temperature swings pushing up consumption to a forecasted high of 11,899 MW in 2021 to a possible high of 12,536 MW by 2026.

Generation

Alberta is in a state of flux with many moving parts, which impact the power pool prices.   

Renewables:

o    New solar farms are being built and added to the fleet in Alberta.  Production today is running at 284 MWh. Market Capacity (MC) will increase from 796.5 MW in 2022 and possibly to 1,203.5 MW by 2026.

o    New wind generation will be brought online.  The generation today is running at the peak of 1368 MWh. MC will increase from 2,353.5 MW to a potential of 4,167.3 MW by 2026.

o    Remember generation is intermittent and will never achieve the rated MC. See chart on UNET home page web site (https://www.utilitynet.net/).  

Mothballing

  • Keephills 1 (MC 395 MW) is retiring effective December 31, 2021
  • Sundance 4
    • Effective January 1, 2022, capacity to be reduced from 406 MW to 113 MW
    • Will be retired effective April 1, 2022

New Generation:

  • Cascade (MC 900 MW) slated to open in 2023
  • Suncor Cogen (MC 806 MW) slated to open Q4 2024
  • Heartland Petrochemical (MC 116 MW) to open October 29, 2021
  • Genesee 1 & 2 – current maximum capacity is 800 MW
    • Both units are getting repowered to gas-fired combustion turbines and heat recovery steam generators
    • Will add an additional 560 MW combined
    • Genesee 1 upgrade slated to be completed by Q4 2023
    • Genesee 2 upgrade slated to be completed by Q4 2024

Monthly Outages :

  • Planned outages are scheduled to peak in April, 2022 at almost 3,000 MW.
  • Major coal outages of approximately 1,000 MW are scheduled through 2022 

Power Pool Prices

When you factor all of the above into the impact on the market – the Power Pool Price during 2021 is running at a 20-year high point.  Electricity is what consumers should be concerned about … not Natural Gas prices. The wholesale cost of energy during the first week of October has spiked by more than 50% compared to last month. 

Fixed Electricity Prices

Our current retail prices are in the 8 cent range, which represents significant savings when compared to the RRO rates in the 10.5 cent/kWh range.   Our EMs and growth in the market should be focused on converting RRO customers to our Fixed Rates. And, if customers are concerned about the volatility in the energy market – we have fixed rates to help keep their utility bills as low as possible.  Our fixed rates are 25% lower than the government’s RRO. It is a good deal, especially when 50% of consumers in the province are stuck on the RRO.  This is where the opportunity lies

High Electricity Prices: It’s Time to Look at Your Bill.

· · 2 Comments Consumer Info, Electricity

If you are like a lot of people, pushing off small nagging tasks is a common occurrence. Repainting that wall in the kitchen? That will have to wait until next weekend. Taking out the trash? I’ll get that done tomorrow. Analyzing the monthly electricity bill? Don’t have time for that today.

Let’s face it, even with the best intentions these lower priority tasks often get pushed to the backburner. Life just gets in the way sometimes. 

Unfortunately, this can allow a low-priority task to grow into a real problem. If you put off taking out the trash for too long, for example, eventually you end up with a pile of smelly garbage in your home. The same can be said about analyzing your monthly electricity bill. While ignoring this task doesn’t equal flies and bad odours, it does mean less money in your pocket each month, which also stinks… just in a different way. 

As much as I love my job and find the electricity market in Alberta exciting, I know that not everyone feels the same way. For most, digging into past utility bills and figuring out if they have the best rate doesn’t sound like a fun evening or weekend activity, so they avoid it. But if you are still on the Regulated Rate Option (RRO), pushing off this task has cost you some money this summer. Below I have laid out why you should stop putting this off and take out the trash today.

If you aren’t familiar with the acronym RRO, here’s a recap. The Regulated Rate Option (RRO) is the default provider of electricity for consumers in Alberta. If you haven’t shopped around for the best price for your electricity, you are most likely on the RRO. This is a variable rate that changes on a monthly basis, varies depending on your location in Alberta, and is approved by the Alberta Utilities Commission (AUC). RRO providers, which we like to call “The Big Three”, include ENMAX, EPCOR, and Direct Energy. With the RRO, you cannot be refused service for reasons such as poor credit, but it’s not necessarily your best cost option.

Here is a look at what the RRO prices have been over the last three months. 

RRO ProviderJuly 2021August 2021September 2021
ENMAX10.071 ¢/kWh12.024 ¢/kWh10.518 ¢/kWh
EPCOR (Edmonton)10.582 ¢/kWh12.288 ¢/kWh10.608 ¢/kWh
EPCOR (Outside Edmonton)10.442 ¢/kWh12.13 ¢/kWh10.435 ¢/kWh
Direct Energy9.769 ¢/kWh12.002 ¢/kWh10.078 ¢/kWh

Compare that to a fixed rate of 7.95 ¢/kWh being offered by Park Power and it only takes a few minutes to realize that putting off reviewing your utility bills has cost you.

Let’s look at an example customer … let’s call her Jane. Jane lives in a single-family home that uses about 800 kWh of electricity each month. Jane is like 50% of Albertans who are still on the RRO. She lives in Edmonton, which means she is serviced by EPCOR. Below we have calculated what Jane would have paid over the last three months on the RRO and compared it to what she could have paid if she had switched to a fixed rate with Park Power. (Energy Cost = kWh used per month x monthly rate)

RRO CostsPark Power CostsOvercharge Amount
July 2021$84.66$63.60$21.66
August 2021$98.30$63.60$34.70
September 2021$84.86$63.60$21.26
Total$267.82$190.80$77.62

Poor Jane paid $77.62 more than she needed for electricity over the last three months. That’s equivalent to one whole Internet bill payment, or 13 Pumpkin Spiced Lattes, or a movie date night with her partner. 

In the amount of time it would take Jane to crumple up her last month’s RRO utility bill and toss it in the trash, she could have gone online and switched her services to a competitive retailer like Park Power. It’s that simple to switch and start saving. 

Not only is this a smart move to help Jane save money, but she can also feel good knowing that Park Power’s profits are shared with local charities.

Lastly, supporting local companies is essential for the health of Alberta’s economy and Jane does her best to shop local when she can. Park Power is 100% locally-owned and operated, so Jane can rest easy knowing that when she needs help with her account or has questions, she will never be transferred to someone overseas. 

Don’t put switching off of the RRO on the back burner. It’s time to take out the trash. Save money, support local charities and keep jobs in your own backyard by signing up with Park Power.

Eco-Solar Home Tour Edmonton

· · Leave a Comment Electricity, Solar Power

Park Power is proud to be a sponsor of the Eco-Solar Home Tour Edmonton.

The Eco-Solar Tour is an organization that organizes free open house style tours of homes and businesses that display practical and timely examples of sustainability including: renewable energy (solar, wind, and geothermal), energy security, energy efficiency, water efficiency, low emission technologies and natural landscaping. You can see how homes and businesses are reducing their utility bills while increasing the quality of our air.

The Eco-Solar Tour is organized by a group of volunteers who have a passion for the environment and sustainability. Through the tour they are able to share this passion and educate and encourage others to consider the sustainable choices in new technologies and building practices. In 2003 we incorporated ourselves as the non-profit Eco-Solar Home Tour Society of Alberta.

Who Should Attend?

The tour is open to everyone and anyone looking to see examples of energy efficiency innovation in practice.

Their Mission

The tour informs and encourages home and business owners to make knowledgeable decisions from among the numerous choices in new technologies and building practices. The tour includes homes and businesses that demonstrate a variety of approaches to energy efficiency, water efficiency, sustainable building practices and renewable energy.

Terms of Reference

The Eco-Solar Home Tour is a pro-active annual tour that:

1. Illustrates a wide variety of choices for improved and sustainable technologies, materials and building practices available in the housing and building market today.

2. Provides practical examples, through open house tours, of choices that have been successfully integrated into homes and buildings.

3. Demonstrates a range of approaches that go beyond traditional solutions, which challenge home and building owners to consider new and innovative approaches that reduce: energy consumption, embodied energy, water consumption, material consumption, and lifestyle impacts on the environment.

4. Encourages the large-scale adoption of these practical solutions in homes and businesses within our communities.

5. Celebrates the successes of home and business owners who are demonstrating vision.

6. Encourages other communities to adopt this initiative to help their residents realize these possibilities and make better choices.

Scope

  • The Eco-Solar Home Tour
    • Audience: The general public of Edmonton, Calgary, and surrounding regions
    • Focus: Technologies that can help people reduce their environmental impact
  • The Eco-Solar Tour of Energy Efficient Buildings
    • Audience: Owners, designers, contractors and equipment suppliers
    • Focus: Technologies that reduce the life cycle costs of commercial buildings

Funding

Funding for the Eco-Solar Home Tour is accepted from people and organizations that agree with this vision, mission and terms of reference. No other environmental, social, or commercially competitive issues will limit or restrict the participation of organizations. The focus and efforts of these tours will solely be directed towards the illustration, demonstration and encouragement of better technologies, materials and building practices.

The call is out for buildings to be showcased on the 2021 tour. If your home, business, or gathering place is a great example of energy efficiency then why now show it off so that others may learn and behind inspired to reduce the energy consumption of their buildings.