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Natural Gas - The Choice is Yours

Gas Alberta Energy (GAE) believes that Alberta consumers should take a cautious approach to the market.  Our program gives you control, knowing that when good prices are available, you can lock in for the months and volume you’ve specified.  By combining the natural gas requirements of our members, the AHLA can obtain better pricing than any one member could on their own.

1.  Maximum Price

Natural gas supply will be purchased at the Daily Index Price until an opportunity to purchase natural gas contracts at or below C$7.50/GJ is available on monthly terms up to five years.

Although you do not have the option to change this price, this does not mean that as soon as the market dips below $7.50/GJ, GAE will secure all of your natural gas requirements. Our price target is below $7.00/GJ. Since its inception, GAE has not put a hedge in place on behalf of its customers at a price higher than $6.99/GJ.

2.  Choice of Quantity

You choose the percentage of your property's load for which you want to purchase natural gas contracts - 25%, 50%, or 75% of your consumption.

GAE recommends that AHLA members who wish to lock in a fixed price do so at 50% of their natural gas consumption requirements during the period of October through April.  By locking in only 50% of your monthly or yearly natural gas requirements, you can still take advantage of lower daily index prices on the remaining 50%.  In adverse market conditions your property is cushioned from higher prices. 

3.  Choice of Term

You choose any or all months for which you want to purchase natural gas contracts - up to September 2013.

To participate in the program, members will sign a contract and complete a ballot which indicates their preferred purchasing options.

Start Saving! Complete and return the Letter of Interest to get on the AHLA's natural gas program.  For more information, email mvp@ahla.ca.

If you have questions about Alberta's electrical energy and natural gas markets, feel free to call the AHLA office at 1-888-436-6112, or visit the Government of Alberta's Utilities Consumer Advocate's website.