How are the gas rates set?

The first is the cost of gas. This is the total cost that Gas Alberta charges to purchase your natural gas on the open market. It is commonly called the wholesale rate to the Co-op.

The second is the distribution fees. These fees are the fees the Co-op charges to distribute the natural gas through its pipeline system. It includes all the operation, maintenance, administration, unaccounted for gas loss and payments to the capital reserve fund. These fees are typically set annually by the Board of Directors after the yearly operational budget is passed.
 
The last charge is the monthly fixed charge. This charge is a monthly fee that is charged to all customers. It is a revenue generating fee to ensure the Co-op has a fixed amount of income each month to ensure all members pay a fair portion of the costs of operating the Co-op. This fee is set annually by the Board of Directors.