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Glossary of electricity and natural gas terms

Updated on April 10, 2024

5-minute read

Glossary of electricity and natural gas terms

Updated on April 10, 2024

5-minute read

To help you better understand the various energy terms, we’ve put together this helpful energy glossary.

Close up of dictionary of the word definition
Close up of dictionary of the word definition
Close up of dictionary of the word definition

Electricity

Administration fee (Fixed)Ìý- This fee is charged by us to cover the costs related to billing you for the electricity and providing customer service.

Cost of electricityÌý- This charge covers the cost of electricity that you used during the billing period.

Distribution charge (fixed/variable)Ìý- This charge is from your distribution company to recover the operating cost of the lower voltage lines that carry electricity from the transformers to your meter.ÌýDistribution and transmission companies set those delivery charges and the Alberta Utilities Commission (AUC), an independent agency, ensures that it is fair and reasonable for the customer.ÌýNo matter who you choose to buy your energy from, these fees won't change.

Energy used (kWh)Ìý- The energy used represents the kilowatt hours of electricity you consumed in the billing period. This can be either an actual or an estimate.

From and To meter readsÌý- The "From" and "To" reads are your last actual meter readings. The difference between the "To" and "From" meter readings will provide you the usage for that period.

Late payment penalty dateÌý-ÌýYour payment must be received by us on or before the late payment penalty date shown on the front of the bill to avoid a late penalty charge. Some financial institutions take up to 4 business days to forward payments to our office. Any balance forward is overdue. There may be a charge for each cheque that is returned due to insufficient funds.Ìý

Local Access Fee (LAF)Ìý-ÌýThis is a surcharge levied by your municipality through your Distributor. It is not approved by the Alberta Utilities Commission. Contact your Distributor, as shown on your energy bill, to find out how this charge is determined.

Meter NumberÌý- This is the number attached to the meter installed on your premise. This number is unique to each meter assigned.

Rate Rider(s)Ìý-ÌýRate riders which are approved by the Alberta Utilities Commission (AUC) enable distribution companies and regulated retailers to recover actual operational costs that are not included in their monthly approved rates.Ìý

Transmission chargeÌý-ÌýThis charge is from your transmission company to recover the costs of owning and operating the high voltage lines that carry electricity to the substation transformers.ÌýDistribution and transmission companies set those delivery charges and the Alberta Utilities Commission (AUC), an independent agency, ensures that it is fair and reasonable for the customer.ÌýNo matter who you choose to buy your energy from, these fees won't change.

Natural gas

Administration fee (Fixed)Ìý- This fee is charged by us to cover the costs related to billing you for natural gas and providing customer service.

Conversion factorÌý- The volume used between meter readings is measured in units of thousands of cubic feet (MCF). This volume is then multiplied by a conversion factor that takes into account the energy content, the pressure at which the gas is delivered, and the conversion from imperial units to metric. The result is the energy consumption that appears on your bill.

Cost of gasÌý-ÌýThis charge covers the cost of natural gas that you used during the billing period.

Delivery charge (fixed/variable)Ìý- All operating costs and revenue for ATCO Gas are recovered through the delivery charges. The fixed charge is a flat daily charge to recover a portion of the total delivery charges. The variable charge covers the remainder of the total delivery charges. The variable charge is based on natural gas consumption for the billing period.

Energy used (GJ)Ìý- The energy used represents the gigajoules you consumed in the billing period. This can either be an actual or an estimate.

Federal Carbon TaxÌý- Government of Canada introduced the federal price on greenhouse gas (GHG) emissions beginning in January 2019 to provinces or territories that have not implemented a carbon pricing regime.ÌýIt took effect in Alberta on January 1, 2020 and was designed to increase every April 1 thereafter until 2030. On April 1, 2024, the Federal Carbon Tax rate increased fromÌý$3.327/GJ to $4.095/GJ. How much you pay is determined by how much natural gas you use.Ìý

From and To meter readsÌý- The "From" and "To" reads are your last actual meter readings. The difference between the "To" and "From" meter readings will provide you the usage for that period.

Late payment penalty dateÌý-ÌýYour payment must be received by us on or before the late payment penalty date shown on the front of the bill to avoid a late penalty charge. Some financial institutions take up to 4 business days to forward payments to our office. Any balance forward is overdue. There may be a charge for each cheque that is returned due to insufficient funds.Ìý

Meter NumberÌý- This is the number attached to the meter installed on your premise. This number is unique to each meter assigned.

Municipal Franchise FeeÌý- This is a surcharge levied by your municipality through your Distributor. It is not approved by the Alberta Utilities Commission. Contact your Distributor, as shown on your energy bill, to find out how this charge is determined.

Rate Rider(s)Ìý-ÌýRate riders which are approved by the Alberta Utilities Commission (AUC) enable distribution companies and regulated retailers to recover actual operational costs that are not included in their monthly approved rates.Ìý


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