Direct Energy Regulated Services

Direct Energy Regulated Services

July 28, 2011 14:36 ET

Direct Energy Regulated Services Announces Electric Rates for August 2011

CALGARY, ALBERTA--(Marketwire - July 28, 2011) - Direct Energy Regulated Services (DERS) has announced default electric rates for August 2011. The Regulated Rate Option (RRO) sets the rate per kilowatt hour that regulated customers pay for electric energy in the ATCO Electric service territory. The rates are adjusted each month to reflect the price that DERS pays to buy energy on behalf of customers. The method DERS uses to set the RRO rates have been verified and approved by the Alberta Utilities Commission.

Depending on the rate class, the energy rate for August is approximately 34% higher than the energy rate charged last month, except the lighting rate class which is 26% higher. A typical residential customer consuming 600 kWh per month would see approximately a $20.95 or a 13.6% increase in the total amount of their bill compared to last month.

Rate Class August Rate (cents/kWh)
Residential 13.079
Commercial 13.194
Industrial 12.362
Farm (Includes REA) 13.214
Irrigation 12.348
Oil & Gas 12.212
Lighting 4.665

Further information on regulated rate option and a complete list of competitive retailers can be found on the Alberta government's customer choice website at:


How will a typical bill this month compare to previous months based on 600 kWh's per month?

  • August 2011, a typical residential bill will be $175

  • August 2010, a typical residential bill was $133

  • July 2011, a typical residential bill was $154

When was the last month that a typical residential rate been this high?

In April 2011, the residential rate was 0.12095 $/kWh. A typical residential bill for April 2011, based on 600 kWh's was $169.14.

How does this month's rate compare to previous months?

The graph below shows regulated electricity rates each month for the past year.

To view the graph, please visit the following link:

How is the RRO transition rate determined?

DERS does not own any electricity generating capacity. Therefore, under a Price Setting Plan approved by the AUC, DERS purchases blocks of electricity for the upcoming month for its customers. Representatives of consumer groups, as well as an independent advisor, participate in purchase decisions with DERS. The rates to consumers represent a blended price of the electricity purchased, and include costs related to DERS' procurement activities and compensation for the consumer groups' and advisor's participation. The rates are filed with the AUC for acknowledgement, as are details supporting their derivation.

What is the Energy Price Setting Plan?

DERS negotiated with consumer groups in arriving at the Energy Price Setting Plan. These negotiations were conducted under the Commission's Negotiated Settlement Rules, and all meetings were attended by a Commission observer. Upon completion of negotiations, DERS filed the Settlement Agreement, including the Energy Price Setting Plan, with the Commission, and received approval on May 5th, 2011. The Energy Price Setting Plan sets out the details of how DERS is to acquire electricity for consumers, what costs are included, and how the RRO transition rate is to be calculated. The Energy Price Setting Plan also specifies the involvement of consumer groups throughout the process.

Why do Electricity prices fluctuate?

Electricity prices are set in an open and competitive market, and are influenced by many variables including and not limited to supply and demand, natural gas prices, weather, pricing and availability of competing energy sources, availability of imports and exports into the province, and market analyst's views of future trends in any of these variables.

For more information, please view the August 2011 regulated electricity rate applications on DERS' website at

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