Direct Energy Regulated Services Files December Rates



    CALGARY, Nov. 27 /CNW/ - Direct Energy Regulated Services (DERS), a
business unit of Direct Energy Marketing Limited, has filed with the Alberta
Energy and Utilities Board (EUB) proposed Gas Cost Flow-through Rates (GCFRs)
for December 2007. Upon approval, these rates will apply to customers who have
not chosen a competitive supplier within the ATCO Gas North and South service
territories.

    
    North Service Territory
    -----------------------
    The North territory includes customers living in and north of the City of
Red Deer.

    -   For customers in the ATCO Gas North service territory, the proposed
        December GCFR is increasing from the November rate of $5.449 per GJ
        to $6.326 per GJ.

    -   This GCFR reflects a market price for December supplies of
        approximately $6.270 per GJ as reported by the NGX, and incorporates
        an adjustment of $0.056 per GJ for November and prior months.

    -   The typical residential gas bill for December including rebates based
        on an average 22 GJ of consumption would be approximately $178 in the
        North.

    South Service Territory
    -----------------------
    The South territory includes customers living south of the City of Red
Deer.

    -   For customers in the ATCO Gas South service territory, the proposed
        December GCFR is increasing from the November rate of $5.181 per GJ
        to $6.150 per GJ.

    -   This GCFR reflects a market price for December supplies of
        approximately $6.270 per GJ as reported by the NGX, and incorporates
        an adjustment of ($0.12) per GJ for November and prior months.

    -   The typical residential gas bill for December including rebates,
        based on an average 22 GJ of consumption would be approximately $175
        in the South.
    

    DERS is regulated by the EUB, and passes through to customers only the
actual incurred cost of natural gas supplies purchased on behalf of those
customers.
    According to the Natural Gas Price Protection Regulation, the GCFR rates
that have been applied for would qualify for rebates of $1.50 per GJ. The
government rebates are triggered during the months of October through March
when the approved rate for two of the three major regulated gas providers in
Alberta exceed the $5.50 per GJ threshold.

    Further information on regulated gas supply 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
    ------------
    In the North Service Territory, how will a typical bill this month compare
to previous months based on 22 GJs (including rebates, where applicable)?

    -   December 2007, a typical residential bill will be $178

    -   December 2006, a typical residential bill was $205

    -   November 2007 (based on 18 GJ), a typical residential bill was $161


    In the South Service Territory, how will a typical bill this month compare
to previous months based on 22 GJs (including rebates where applicable)?

    -   December 2007, a typical residential bill will be $175

    -   December 2006, a typical residential bill was $215

    -   November 2007 (based on 18 GJ), a typical residential bill was $154


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

    To see the graph showing the twelve month regulated gas rates, please
visit: http://files.newswire.ca/475/DirectEnergyDecRate.doc.


    How much natural gas does a typical residential customer use?

       Natural gas consumption for a typical residential customer - GJ
      -----------------------------------------------------------------
      Jan  Feb  Mar  Apr  May  Jun  Jul  Aug  Sep  Oct  Nov  Dec  Total
      -----------------------------------------------------------------
       23   18   16    9    5    3    3    4    5    9   18   22  135
      -----------------------------------------------------------------


    How does this month's market price compare to last month?

    The regulated rate is based in part on the current market view of natural
gas prices for the month, as reported by NGX:

    -   As of the time the rate application was filed, the market price for
        December is $6.27 per GJ.

    -   The market price last month at the time of filing was $5.75 per GJ.

    -   Last month's actual market price was approximately $5.77 per GJ.


    Why are there adjustments this month?

    Direct Energy Regulated Services is required to collect no more or less
than the actual cost of getting the natural gas to the consumers who use it.
The formula used to calculate the regulated rate accounts for any over- or
under-recoveries of actual gas costs arising from differences in:

    -   normal and actual weather, which affects the volume of natural gas
        consumed; and

    -   forecast and actual market prices occurring in November and prior
        months.
    

    Why do natural gas prices fluctuate?

    Natural gas prices are set in an open and competitive market, and are
influenced by many variables throughout North America and the world. These
variables include supply and demand, production and exploration levels,
storage injections and withdrawals, continental weather patterns, pricing and
availability of competing energy sources, and market analysts' views of future
trends in any of these or other variables. Natural gas prices in Alberta are
not typically a function of localized weather.


    Why are North and South GCFRs different?

    DERS is required by the EUB to purchase natural gas for ATCO Gas' North
and South systems separately. Each system has slightly different load,
weather, and supply characteristics that result in a different mix of Monthly
and Daily Index purchases.

    For more information, please view the December 2007 GCFR Applications on
DERS' website at www.directenergyregulatedservices.com.





For further information:

For further information: Lisa Frizzell, Director, Corporate
Communications, Direct Energy, (403) 290-6835, Lisa.frizzell@directenergy.com


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