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founded 2 years ago
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Credit: /u/Anabiotic on Reddit

Most people don’t understand how their natural gas bill works. They tend to think everything but the energy charge is fixed and that they have no control over almost all of the bill. However, the variable component of the bill is more than just the energy charge (example below). This distinction is important when considering conservation of energy, and the economics of doing various energy-saving upgrades such as improved windows, a tankless hot water heater, or insulation.

For reference, the typical AB home uses 135 GJ/year, according to the AUC. My guess is that these are old numbers with less efficient furnaces and insulation, and modern usage is lower than this despite the increasing average house size.

Components of your gas bill:

How can you control each component of your bill?

  • Deregulated variable: Use less gas or change retailers
  • Deregulated fixed: Change retailers
  • Regulated variable: Use less gas
  • Regulated fixed: Can't do anything unless you disconnect from gas altogether, for example by using an electric hot water heater and heat pump rather than a gas heater/tank and furnace.

You can read about how regulated charges are set here. Essentially, they are approved by the Alberta Utilities Commission (a government body) based on rate applications from the providers, where they have to justify all their costs and then are granted an 8.5% rate of return. You can read all of the rate decisions yourself as they are public . This way of approving rates is essentially the same as it was pre-deregulation. The D&T network is regulated because it's a natural monopoly (does not make sense to have multiple sets of pipes running to your house because of the enormous capital cost).

The actual variable cost of a GJ of gas is not just the energy charge. Below I lay it out using an assumed contract price of $5/GJ. Your rate may be different depending on your contract or if you are on the default regulated rate option (RRO) [more info on this below].

Variable components

Cost of 1 GJ:

So for each GJ your use in this example, 45% ($5.00) is deregulated, 19% ($2.18) is regulated, and 36% ($4.01) is taxes. Of the above the only one that would change based on your retailer is the energy charge. However, for every GJ you don't burn, you would save $11.19, so in that sense all variable gas is within your control.

Fixed components

Fixed costs typically vary only by the number of days in the billing period. Below I show a typical 30-day billing period with a retailer who charges $6/month as an admin fee. Retailers’ admin fees may vary from $5-$10/month.

​ So even if you use no gas, it will cost you $52.95 to maintain service in this example. This is made up of 11% deregulated fees ($6.00), 28% taxes ($15.03), and $31.92 regulated D&T (60%).

Summer bill example

If you have a light summer bill where you only use 2 GJs, it would be something like this: $52.95 + $11.19x2 GJ = $75.33; 70% fixed, 30% variable.

  • Regulated charges of $36.28 (48%)
  • Deregulated charges of $16.00 (21%)
  • Taxes of $23.05 (31%)

Heavy winter bill example

A heavy winter bill with 20 GJs of usage would be $52.95 + $11.19x20 GJ = $276.74; 19% fixed, 81% variable.

  • Regulated charges of $75.48 (27%)
  • Deregulated charges of $106.00 (38%)
  • Taxes of $95.26 (34%)

Choosing a retailer

Changing retailers is very simple. You can simply sign up with any retailer and your service will automatically move to the new retailer - typically, signing up takes 5-10 minutes online. Changing retailers only affects the deregulated components of your bill (admin fee and energy charge).

Use the UCA's bill comparison tool to choose a retailer. The UCA website in general is good to understand utility bills. Gas is currently a very volatile commodity, and given the high usage during the winter, I would suggest locking into a low fixed rate that you are able to exit from at any time (read your T&Cs carefully to make sure you can do this).

There are several types of gas rates for the energy component of your bill:

  • Variable contracts: You are charged the market price of gas plus a margin for the retailer. I don't recommend this as the RRO is very similar in structure but the margin is a lot less.
  • Fixed contracts: You pay the fixed contract rate for the duration of the contract.
  • Regulated rate option (RRO): This is the rate you are automatically on if you have never signed a contract or if you old contract expires. The RRO retailer in Edmonton is Direct Energy Regulated Services (DERS). The RRO is essentially a type of floating rate except the rate is set in advance of the month. The markup on the actual gas cost is low, so when gas prices are low this is usually the best option, though DERS does have a high admin fee. You can view RRO rates here and see the volatility: https://ucahelps.alberta.ca/regulated-rates.aspx Each retailer you sign with will also have an admin fee, as shown above in the "fixed" section. This varies by retailer but is almost always a fixed charge per month. This will be in your contract.

A rebate is currently in place when natural gas goes above $6.50/GJ.

TL;DR:

  • The variable cost of a GJ of gas is about 2x-2.5x what your energy price is once you include items like various taxes and distribution/transmission
  • You have control over a large proportion of your gas bill (at least in the colder months when usage is the highest) since more of it is variable than people typically assume; conservation and energy-saving upgrades may be economic depending on your individual circumstances
  • A large portion of the non-energy charges on your bill are taxes to either the federal or municipal government
  • Deregulated charges are typically a relatively small portion of your bill but you can affect them through careful choosing of a retailer and paying attention to changes in the offered rates. If you are not on a fixed-rate contract, you can expect large fluctuations in the cost of gas that can drastically affect your bill, especially in the winter. In today's high-cost and volatile gas market, I suggest getting on a low-cost fixed rate contract with no exit penalty so you can switch to a variable rate or the RRO if/when prices drop.
  • Even if you use no gas, you should expect a bill of $50-55 - about a third of this is taxes, and most of the rest is regulated (government-approved) charges to maintain the distribution infrastructure.
  • Use ucahelps.alberta.ca to find a low-cost retailer for the deregulated part of your bill
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Credit: /u/Anabiotic on Reddit

EPCOR has a monopoly on water, drainage and wastewater services in Edmonton. All rates (fixed and variable) are regulated by the City of Edmonton, who is also the sole shareholder of EPCOR; EPCOR applies to the City with a cost-of-service application, and the City approves it, which sets the next period’s rates. You can read a summary of their rate application here, and the detailed applications here.

Water services consist of three different streams: water, drainage (including stormwater) and wastewater. Each of these three streams has a separate rate application and separate fixed and variable rates. In essence, the same cubic metre of water is charged for three times, once by each service, to cover the water’s round trip to and from the North Saskatchewan River. Despite their name and function, drainage and wastewater charges do not depend on the actual volume of wastewater sent down the drain, as they're based on your metered water usage.

Water is billed by the cubic metre (1,000 L). EPCOR estimates the average Edmonton home will use 13.2 m³ per month in 2023 (page 25). Given the average household size is approximately 2.6, that suggests average usage of about 5m³ per person per month, though is not exactly linear. Per capita water consumption has dropped and EPCOR forecasts it to continue to drop in the coming years.

Differences between water and power/gas bills

EPCOR’s water bills are easier than understand than utility bills from power and gas retailers, and generally do a fair job of breaking down fixed and variable costs, which are the most important things to understand about the bill.

Unlike power and gas, GST is not charged on water, wastewater or drainage services. EPCOR also does not charge a separate administration fee for water services as that cost is rolled into the rates.

Overview of fees/charges

Water is the only utility where the rate changes based on usage, as there are three cost tiers based on consumption level (<10m³/month, 10-35m³/month, and over 35m³/month).

Like power and gas, the City of Edmonton levies a franchise fee, which is a municipal tax, on water bills. Currently, that charge is set at 8% of water/wastewater/drainage/stormwater charges. Unlike the gas and power franchise fees, this is not separated out on your bill, and is hidden in the base rates charged by EPCOR.

EPCOR also charges a rate of return for providing water services, which presumably forms part of the dividend paid to the City of Edmonton. The rate of return is currently set at 5.5% for drainage and 9.95% for water/wastewater until April 2023, though EPCOR argues it should be 9.95% for all utilities (the rate of return the AUC allows for electric and gas utilities is currently 8.5%, but EPCOR believes water services are riskier to provide and therefore deserve a higher rate of return); the “discount” is being phased out over the next several years, which will lead to increasing drainage rates beyond costs/inflation. Overall markups above the strict cost of service total ~16% for 2022-23 (8% franchise fee and average 8% EPCOR rate of return across all three water utilities).

The fire protection item above was covered by property taxes until 2022, when the City moved it onto utility bills as an additional charge.

Stormwater above is treated as fixed as it’s same month to month for the same lot, but will vary from property to property based on lot size, as shown by the calculation in the table.

Variable

Below is a calculation of variable costs of water:

Each cubic metre of water costs about $5 (or $0.0045/L), depending on usage level.

Fixed

The total fixed components of the water bill (with a lot size of 400 square metres) is:

This means you would pay $43.30 per month for water services before using any water.

Usage

A low-usage household using 6 m³ per month with a 400m² lot would pay $43.30 + $4.53/m³ x 6m³ = $70.49, of which fixed charges are 61%.

A high-usage household using 20 m³ per month with a 400m² lot would pay $43.30 + $4.53m³ x 10m³ + $4.72/m³ x 10m³ = $135.82, of which fixed charges are 32%.

Managing your bill

Unlike power and gas, there is only one way to reduce your water bill – use less water. This could include water-efficient appliances, limiting watering lawns, using rainwater for gardens, taking shorter showers, making sure appliances are in good repair (no running toilets), etc.

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Credit: /u/Anabiotic on Reddit

One of the most common questions on /r/edmonton is about utility costs, either by those moving to the city or those wanting to compare their usage/costs with others. As one comprehensive data point, below was my usage and costs for the 2022 calendar year. I have specific comments below the table as context.

On average my utilities were just under $300/month for 2022.

Methodology:

  • All monthly $ figures are rounded to the nearest $5
  • Gas usage rounded to the nearest GJ, power usage rounded to the nearest 10 kWh, water is rounded to the nearest m³
  • Bills crossing over two months are time-weighted across both months - i.e. the below represents the calendar months of the usage, not the month it was billed (this is not exactly accurate but a good approximation)

Gas comments

  • Upgraded attic and basement header insulation over the summer
  • Mid-efficiency furnace (~80%)
  • Inefficient 50-gallon gas-fired hot water tank
  • $3.79/GJ fixed rate until November, then $4.99/GJ. Consumer carbon tax increased April 1.
  • Temp settings low, 16°C overnight, 17-18°C during the day
  • Attic insulation is R60; walls are R20
  • House is ~2,000 square feet with an inefficient layout (e.g. high ceilings)
  • December was much colder than usual, while September was much warmer than usual - see next table for details

Power comments

  • 2-person household
  • Total AB government rebates of $300 received over the year, starting in July (same as every customer with a site ID)
  • $0.06/kWh fixed power rate until July, then $0.08/kWh rate
  • Have A/C, but rarely run it

Water comments

  • 2-person household, large lot (stormwater is based on lot size)

Garbage comments

  • The city has two bin sizes; I have the smaller one

More info on the year and averages for those who are curious - this can help you see where you stack up. Numbers from different sources are slightly different.

¹Per Alberta Utilities Commission - note: AUC does not give a monthly shape for power, but usage will actually be higher in the winter and lower in the spring/fall rather than flat as shown here.

² StatCan Household Energy and the Environment 2019 survey for detached houses (applied AUC monthly shape for gas).

³ https://edmonton.weatherstats.ca/download.html

StatCan Household Energy and the Environment 2019 survey for detached houses (converted from GJs to kWh - no monthly data available, but will actually be higher in the winter and lower in the spring/fall rather than flat as shown here)

Page 25 of EPCOR's PBR reader's guide

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“The real opportunity is innovation and recognizing that, as much as it is quite controversial, the traditional 50-foot lot is probably dead in the region.”

I do find it sad when walking around the older neighborhoods and between all the interesting looking houses and gardens there's this growing number of bauhaus style houses squashed into lots that used to have single homes. Sure, I get that there is a need for more homes, there absolutely is, but seeing the future is going to be more density and less individual personality is saddening.

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@Daveography@yeg.bike 🔗

(From my front yard out my home office window earlier today.)

#yeg #yegWildlife #hare #jackrabbit #rabbit #BunAlert

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Actually though. I kinda like the sideways rain we were getting this afternoon. I walked across a parking lot and only one side of me was wet :D

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I'm looking for a hand to build out this community and raise awareness. The r/Edmonton mods on Reddit are not interested in supporting this community nor did they shut down during the Reddit Blackout, so it looks like we're on our own.

I'd love to see a thriving community full of interactions, events, stories, and updates. News articles, festivals, and even garage sales would be great!

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Nice thunder crackles near downtown so far at 8:30 in the morning. I was already at work typing away when it happened, but I'm guessing some folks got a startle!

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We have pride month, indigenous peoples month, sustainival, drag fest, blues fest, and pride week in Fort Saskatchewan. There's lots going on!

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From the OP on Reddit (u/jcalayo)

Hey everyone,Here is my updated neighbourhood crests map from 2015! As Edmonton continues to grow, so will the number of neighbourhoods. The crests below reflect the stories and histories of Edmonton's neighbourhood. Please share your stories of your neighbourhoods below (these crests are not final and should evolve too!). If you neighbourhood is not on here let me know and let's collaborate on a crest! If you want to see more of my project you can visit https://www.wherewearefrom.com/

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Mine is that we have the largest stretch of urban parkland in North America

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Heatwave (lemmy.serverfail.party)
 
 

How are folks doing so far with the heatwave? I'm lucky enough to have AC (installed it early on just in case) but I figure it's been bad in some places!

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What do you think of this list? Feel free to add places you love!!

  1. OTTO
  2. Swagat
  3. Rge Rd
  4. Bodega
  5. Northern Chicken
  6. Izakaya Tomo
  7. Tony's Pizza Palace
  8. Bar Bricco
  9. Albert's Family Restaurant (proper diner food)
  10. Hanjan

Holy... it's hard to stop at 10.

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submitted 2 years ago* (last edited 2 years ago) by JCSpark@lemmy.ca to c/edmonton@lemmy.ca
 
 

🥈With a mean wind of 28km/h, yesterday was #Edmonton-Airport's 2nd windiest Jun 10th since records began in 1961. #YEG #YegWx