Medicine Hat's natural gas rate spiked 76 percent in June. In July it is coming back down but not all the way.
The City of Medicine Hat set its July natural gas default rate at $1.362 per gigajoule on July 2. That is down 20.9 percent from June's $1.721 per GJ. It is still 39 percent above May's $0.979 per GJ, the lowest rate of the year.
The rate is based on the weighted average cost of the city's natural gas purchases for the month, plus $0.07 per GJ to recover transactional costs and a small rate of return under Gas Utility Bylaw 2489. It applies to all customers residential, farm, small and medium commercial.
The full 2026 rate history
Every confirmed rate from the City of Medicine Hat's own monthly announcements:
December 2025: $3.293 per GJ. January 2026: $2.865 per GJ. February: $2.277 per GJ. March: $1.641 per GJ. April: $1.638 per GJ. May: $0.979 per GJ. June: $1.721 per GJ. July: $1.362 per GJ.
The story of 2026 so far is a long steady decline from winter highs, bottoming out at May's historic low, followed by a sharp June spike that July is now partially unwinding. July's $1.362 sits between May's floor and June's peak — partial relief but not a return to the lowest rate of the year.
What these numbers mean on your bill
The commodity rate is one line on your utility bill. In summer, most Medicine Hat homes use between 5 and 10 gigajoules per month since heating demand is low.
At July's $1.362 per GJ, a month using 10 GJ costs $13.62 on the commodity portion before distribution charges, the Going Green surcharge, and fixed costs are added. At May's $0.979 that same 10 GJ cost $9.79. At June's $1.721 it cost $17.21. July lands between the two — $3.59 less than June on every 10 GJ used.
In winter when a typical home uses 15 to 20 GJ per month, the rate difference between months is significantly larger. That is when these monthly swings really show up on the bottom line.
The electricity rate also reset in July
The calculated electricity rate for July, August, and September 2026 is $0.0447 per kilowatt-hour. Under the city's bylaw that defaults to the minimum rate of $0.07000 per kWh for residential, farm, small and medium commercial customers — the same floor rate that applied April through June.
Large commercial, industrial, and street lighting customers pay $0.12025 per kWh, set as the average of regulated rates from ENMAX, Direct Energy, and EPCOR as approved by the Alberta Utilities Commission. That rate holds until December 31, 2026.
The Going Green surcharge for July is $0.0043 per kWh.
The faulty meter situation
While rates were moving in June, council also approved a $1,057,000 budget amendment for the 2026 Gas Custody Meter Transfer Program, bringing the total program budget to $1,736,000, funded entirely from capital reserves.
Annual compliance sampling found three groups of residential diaphragm meters manufactured and purchased in 2013 failed federal compliance criteria under Measurement Canada due to deteriorating internal mechanical parts. These meters must be replaced before the end of 2026. If the city misses that deadline it faces enforcement penalties of $250 to $1,000 per non-compliant meter.
Replacement costs nothing for affected homeowners the city covers it entirely.
"The downside is, of course, if one of these meters is in your house, you may be charged incorrectly," said Councillor Ted Clugston at the June 2 council meeting.
If you think your meter may be affected, contact City of Medicine Hat utilities at 403-529-8111.
Why Medicine Hat controls its own rates
Most Alberta residents pay for natural gas through ATCO Gas or a deregulated retail provider. Medicine Hat has owned its own gas utility since 1912, when residents voted down a private company's bid to buy the gas franchise.
The city buys gas on the wholesale market and sells it directly to residents. The commodity rate reflects what Medicine Hat actually paid for gas that month, plus $0.07 per GJ. No intermediary, no markup beyond that.
In 2025, Medicine Hat residential customers paid an average of $1,029 less than customers in other Alberta cities. $875 of that came from lower distribution costs alone.
What to expect going forward
Natural gas rates reset on the first business day of every month. August's rate will reflect what the city pays for gas in August and will be published at medicinehat.ca. Summer months typically run lower than winter given reduced heating demand, but June proved that month-to-month jumps can be significant.
The full rate history and current pricing are always at medicinehat.ca/EnergyPlans.
Sources:
City of Medicine Hat, Gas electric wind energy rates set for July 2026, July 2, 2026 (medicinehat.ca/news/posts/gas-electric-wind-energy-rates-set-for-july-2026)
City of Medicine Hat, monthly rate announcements January through June 2026 (medicinehat.ca/news)
City of Medicine Hat, Energy Plans and Pricing page (medicinehat.ca/home-property-utilities/utilities/energy-plans-pricing)
City of Medicine Hat, Gas Custody Meter Transfer Program budget amendment, council meeting June 2, 2026
City of Medicine Hat, Utilities page, average savings comparison 2025 (medicinehat.ca/home-property-utilities/utilities)
Councillor Ted Clugston, council meeting statement, June 2, 2026
