EPCOR Announces Electricity Rates for 2004

EDMONTON - - EPCOR residential regulated rate electricity customers will pay 5.9 cents/kWh (kilowatt hours) for electricity to begin2004. This applies to customers both within and outside the Edmonton service territory.

The first quarter 2004 energy rate represents a slight decrease in electricity charges compared to the fourth quarter 2003 rate in Edmonton of 6 cents/kWh and 6.1 cents/kWh outside the city. The average residential customer using 600 kWh of electricity in a month will see energy charges in the first quarter of about $35.50.

The more significant change will be to customer bills overall. A typical bill will decrease $8 - 15 per month due to the end of rate riders that paid for energy consumed in 2000 and 2001.

"Our customer's bill will be lower because the 2000 and 2001 Rate Riders are completed," explains Brian Gerdes, EPCOR's General Manager of the Regulated Rate Tariff and Default Operations.

"Excluding the Rate Riders, delivery charges are the same and energy charges are very similar."

EPCOR has procured a portion of the 2004 electricity requirement in advance with the remainder to be purchased throughout the year. Customers will see their rates change each quarter, as affected by market prices. A similar strategy was implemented by EPCOR in 2003 and resulted in stable electricity rates throughout the year.

"It's a way of providing the customer with stability and still providing the opportunity to leverage market conditions throughout the year," says Gerdes.

2004 Electricity Rates Backgrounder

In Edmonton, what's changing?

The average Edmonton residential customer will see a decrease to their bill overall for the first quarter of 2004.

- The energy rate is slightly lower (-24 cents per month)

- Rate Riders are ending (-$18 per month)

- Distribution and Transmission rates are decreasing 1% (-9 cents per month)

- City of Edmonton land drainage fees are increasing 2% (+50 cents per month)

- City of Edmonton Waste Disposal fee is increasing (+$1.50 per month) The net result is the average residential customer in Edmonton will receive a bill from EPCOR that is about $16.33 lower per month.

Isn't there a new Fire Protection Fee going on the EPCOR bill in 2004?

Yes. The City of Edmonton will add a line item to the bill in April of 2004. The Fire Protection Fee will add 60 cents to the average residential customer's bill.

Outside Edmonton, what's changing?

The average residential customer outside Edmonton will see a decrease to their bill overall to begin 2004.

- The energy rate is slightly lower (-$1.56 per month)

- Rate Riders are ending (-$7.47 per month)

The net result is the average residential customer outside Edmonton will receive a bill from EPCOR that is about $9.03 lower per month.

If the energy rates are the same for customers in Edmonton as well as outside Edmonton, why will Edmonton customers see a greater decrease to their bills?

The biggest change to the bills in 2004 is the removal of the Rate Riders. Currently Edmonton customers pay about $18 per month in Rate Riders while customers outside Edmonton pay $7.47. This is why Edmonton customers will see a greater decrease to their bills to begin 2004.

What will the average EPCOR residential customer in Edmonton and outside Edmonton pay for electricity Q1 2004?

The average residential customer in Edmonton will see electricity charges of about $63.13 per month to begin 2004. This compares to $78.75 per month to end 2003.

The average residential customer outside Edmonton will see electricity charges of about $68.73 to begin 2004. This compares to $78.39 to end 2003. It's important to remember that bills which arrive in January are still collecting for December consumption, and bills to customers outside Edmonton will collect Aquila delivery charges for December into February. Customers should expect to see the full effect of the 2004 savings in February and March.