Direct Energy Regulated Services Files July Rates



    CALGARY, June 26 /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 July 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.

    -   The proposed GCFR for customers in the ATCO Gas North service
        territory is $5.550 per gigajoule (GJ).
    -   This GCFR reflects a market price for July supplies of approximately
        $6.28 per GJ as reported by the NGX, and incorporates an adjustment
        of ($0.73) per GJ for June and prior months.
    -   The typical residential gas bill for July, based on an average 3 GJ
        of consumption would be approximately $50 in the North.

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

    -   The proposed GCFR for customers in the ATCO Gas South service
        territory is $4.897 per gigajoule (GJ).
    -   This GCFR reflects a market price for July supplies of approximately
        $6.28 per GJ as reported by the NGX, and incorporates an adjustment
        of ($1.38) per GJ for June and prior months.
    -   The typical residential gas bill for July, based on an average 3 GJ
        of consumption would be approximately $44 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.
    The Alberta Government's Natural Gas Rebate Program only applies from
October to March. No provincial rebate will be applied from April to
September.
    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 3 GJs (including rebates, where applicable)?

    -   July 2007, a typical residential bill will be $50
    -   July 2006, a typical residential bill was $52
    -   June 2007 (based on 3 GJ), a typical residential bill was $55

    In the South Service Territory, how will a typical bill this month compare
to previous months based on 3 GJs (including rebates where applicable)?

    -   July 2007, a typical residential bill will be $44
    -   July 2006, a typical residential bill was $45
    -   June 2007 (based on 3 GJ), a typical residential bill was $50

    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/DERS_July_Gas_Rates.doc.

    How much natural gas does a typical residential customer use?

         Natural gas consumption for a typical resident 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
        July is $6.28 per GJ.
    -   The market price last month at the time of filing was $6.95 per GJ.
    -   Last month's actual market price was approximately $6.56 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 June 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 July 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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