Alberta Utility Providers Comparable Cost Analysis

[GBHeisler]

Is anyone aware of a Comparable Cost Analysis being done on the Utility providers in Alberta?



A few years back a salesman for Direct Energy Essential Services came by, and explained to me that by signing up with them we would streamline our utility bills, and save money by combining the Gas & Electrical billings. I took him at his word, (a mistake in hindsight), and ended up signing up all our properties this way, using the floating rates, (I don't believe in locking in premium pricing contracts)



Now two years later, I discovered we have been paying a premium of 8% using Direct Energy Esssential, over Direct Energy Regulated Services (default provider).



This was discovered, as we recently purchased the 4-Plex next door to our 4-Plex that we have owned since June 2008. The gas for our new purchase was $100 less than the one we owned next door, so I started doing a comparison of the two utility invoices, and discovered we were being charges $8.25 per Gj with Direct Energy Essential Services, and only $6.78 a Gj with Direct Energy Regulated Services.



This ends up being a Premium of $74.59, on a monthly consumption of 46.77 Giga Jules.



Lets just say I wasn't happy :-(



I do think this would be a great report for REIN Investors, as I'm sure Im not the only one that has been sucked into paying the premium.



So I ask again, Is anyone aware of an analysis like this being done, and If not, how many would be interested in one being completed?



Thanks for hearing my vent..........



Sincerely,

Gord Heisler

 

[wgraham]

try having a look at www.bowvalleypower.net



and



https://www.bowvalleypower.net/docs/electricityPriceReport.pdf

 

[GBHeisler]

Thanks Wade,

Any suggestions for Natural gas?

 

[GBHeisler]

Hi Everyone,

So it has taken me awhile, and after reviewing things more, I have come to the conclusion that you save money when you use the Regulated Service Provider for the area your investments are in. (Note: I only researched Calgary, Red Deer, Sylvan Lake, & Ponoka, as this is where we have our properties, so far)



In trying to find the data, I contacted each of the companies, and discovered even their customer service agents had trouble sourcing their pricing history.



Searching each of the providers websites for pricing history was frustrating, as it is my view, what you find is what I refer to as "B.S. Baffles Brains". A confused mind says no, but since you have to make a choice, it's easier to pick the easy choice they put infront of you.



Ultimately, I did find the info, and it can be found at these links, by scrolling down to the very bottom of 2010 data and earlier, an dthere you will find the graphs and data to help you make your choice.

(NOTE: the 2011 data does not provide this overview)



Natural Gas http://www.ucahelps.alberta.ca/historic-rates.aspx



Electricity http://www.ucahelps.alberta.ca/historic-rates-2011.aspx



If you are not using the Regulated Provider, and floating rates, it would be worth your time to do your own analysis, as reducing your expenses is the most efficient way to increase your bottom line.







Sincerely,



Gord Heisler

CASA Properties Inc.

www.casaproperties.ca

 

[GBHeisler]

Hi Gord

FYI, have 13 years experience in the natural gas and electrical transportation and marketing and have sourced the supply for numerous utilities including AltaGas Utilities. I have been involved in regulatory hearings and understand how commodity and transportation prices are set.

After the long intro, what does this mean? I agree. Regulated floating rate for gas and power is the way to go and a great default - utility is not allowed to build in a profit, only recover true market costs. If their commodity cost estimate is over, they must reimburse. If under, then recoup. I have never and will never lock in a fixed rate because you are paying someone else for price risk that might never manifest and it seldom works out. From a market agreegator's perspective (and the utilities when they used to offer fixed rates), it is very difficult to hedge an unknown demand (largely weather driven) and if the utility hedged wrong on behalf of the rate base, everyone screemed that the utility was overcharging - so they quit and went to floating market rates only. Now they are never wrong, no-one bitches, and if you want price/budget protection of a fixed rate, then you will have to pay someone a premium to take that risk for you.
Better to self-insure and float with the market.


Cheers. See you soon.


Regards

-------------------------

Chris Richards

Mortgage Planner

403.877.9556


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