Medicine Hat residents will pay a lot more for natural gas in June. The city's default gas rate jumped from $0.979 to $1.721 per gigajoule a 76 percent increase just as council approved more than $1 million to replace gas meters that failed federal compliance testing.
Two separate stories. One bill.
The rate jump
Medicine Hat owns and operates its own natural gas utility. The city buys gas on the wholesale market and passes that cost directly to customers through the default rate, plus $0.07 per gigajoule to recover transaction costs. When wholesale prices rise, the rate rises. When they fall, customers see it immediately.
The June rate reflects what the city paid for gas this month. Here is what the rate has done in 2026:
December 2025: $3.293. January: $2.277. March: $1.641. April: $1.638. May: $0.979. June: $1.721.
May was the lowest rate in years. June's jump is real but the rate is still well below where it started the year. The rate resets July 1.
What it means on your bill
A typical Medicine Hat home uses roughly 90 to 120 gigajoules per year. At May's rate of $0.979 per GJ, a month using 10 GJ cost about $9.79 on the commodity portion. At June's $1.721, the same 10 GJ costs $17.21. That is $7.42 more on the commodity rate alone before distribution charges, the Going Green surcharge, and other fixed costs.
Why Medicine Hat controls its own gas rates
Most Alberta residents get their natural gas through ATCO Gas or a deregulated retail provider. Medicine Hat is different. The city has owned and operated its own natural gas utility since 1904. It built its own distribution system, sources its own supply, and sets its own rates through council-approved bylaws.
When you pay your gas bill in Medicine Hat, the money stays in the city rather than going to a private utility or out-of-province corporation. It also means the city takes on the risk of wholesale price swings directly. When prices spike as they did this June there is no intermediary absorbing the difference. When prices drop, residents benefit immediately. The May rate of $0.979 was possible precisely because the city passed the low wholesale cost straight through. No other Alberta city can do that as quickly or as directly.
The meter problem
Council approved $1,057,000 from capital reserves Monday to replace residential gas meters manufactured and purchased in 2013 that failed annual compliance testing. The issue is wear on internal mechanical parts over time not a manufacturing defect.
The city sells natural gas and must meet all federal requirements administered by Measurement Canada. If the meters are not replaced before the end of 2026, the city faces enforcement penalties of $250 to $1,000 per non-compliant meter.
"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 council meeting.
Three meter groups of the same residential diaphragm type failed compliance testing. The budget amendment brings the total 2026 Gas Custody Meter Transfer Program budget from $679,000 to $1,736,000, funded entirely from capital reserves. Replacement costs nothing for affected homeowners the city covers it.
If you think your meter is one of them
The city has not published a list of affected addresses. Contact City of Medicine Hat utilities at 403-529-8111 if you are concerned. The replacement program runs through the end of 2026.
What HAT Smart actually covers in 2026
If your June gas bill prompted you to think about efficiency upgrades, the city's HAT Smart rebate program is worth knowing about.
Current 2026 rebates for natural gas customers include insulation upgrades for attics, walls, and basements, replacement windows and doors, tankless water heaters, heat recovery ventilators and energy recovery ventilators, and high-efficiency furnaces. Solar PV installations and new energy-efficient home construction also qualify.
Rebates are available to residential customers who receive gas utility service from the City of Medicine Hat. Applications must be submitted before program deadlines. Check individual program pages and submission windows at medicinehat.ca/hat-smart. No late applications are accepted.
Sources:
City of Medicine Hat, Gas electric and wind energy rates set for June 2026 (medicinehat.ca)
City of Medicine Hat, Gas Custody Meter Transfer Program budget amendment, council meeting June 2, 2026
City of Medicine Hat, Energy Plans and Pricing (medicinehat.ca/energy-plans-pricing)
City of Medicine Hat, HAT Smart rebate program (medicinehat.ca/hat-smart)
City of Medicine Hat, Gas utility history (medicinehat.ca/utilities/gas)
