Direct Energy Regulated Services Announces Electric Rates for February 2014

CALGARY, Alberta, Feb. 1, 2014 /CNW/ - Direct Energy Regulated Services (DERS) has announced default electric rates for February 2014. 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.

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Depending on the rate class, the energy rate for February is approximately 8% lower than the energy rate charged last month, except the lighting rate class which is 13% lower. A typical residential customer consuming 600 kWh per month would see approximately a $4 or a 2% decrease in the total amount of their bill compared to last month.

Rate Class	February Rate (cents/kWh)
Residential	7.319
Commercial	7.281
Industrial	7.125
Farm (Includes REA)	7.215
Irrigation	7.215
Oil & Gas	7.079
Lighting	5.702

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: www.ucahelps.gov.ab.ca.

Backgrounder

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

• February 2014, a typical residential bill will be $157
• February 2013, a typical residential bill was $145
• January 2013, a typical residential bill was $161

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

The link below shows historic regulated residential electricity rates.

http://www.directenergyregulatedservices.com/ELE/Historic-Electricity-Rates-popup.aspx

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 5^th, 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 February 2014 regulated electricity rate applications on DERS' website at www.directenergyregulatedservices.com

SOURCE: Direct Energy

Jeff Lanthier, Manager, External Relations, Direct Energy Regulated Services, 905.943.6260, [email protected]

http://www.directenergy.com

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