Out of balance?

[Horse]

I see on the news direct energy is asking for a rate increase to $15/GJ that will put heating bills at or around $400 / mo in winter. Sure is going to be hell on a lot of seniors and low income familys.If you work in the energy sector I guess you are alright.
I think this spread between low and high income earners is getting way out of line.

[silverback]

Are you saying that the people working for the gas companies are getting it cheaper than you are?

I can't see anything stopping you from starting a career at a energy company is there?

[cowman]

I believe the Alberta Government is giving a rebate that brings the actual rate back down to about $8.30/g? They can afford to do this because the money is rolling in from all the NG heading to the States? Golly, Horse I guess you actually are benifitting from the oil and gas industry? About $7.25/gigajoule?
Be happy you aren't paying the American price! The oil and gas industry is subsidizing you!

[cowman]

Even with the subsidies natural gas is costly and certainly a burden to many folks. I had a pellet heater installed in my home and even with the cost of pellets my heating bill is less than last year.
A humidifier is a must with a pellet heater because the fan runs constantly but it is clean smoke free heat and I am happy with it.
Utility costs are certainly an issue, I guess we can be thankful for the warm weather which is a plus.

[cakadu]

Given that we are being paid back with our own money, cowman, I don't really see that as any great consolation. Direct Energy is applying for an increase that will see natural gas rise to $15/gigajoule. Who is really benefitting from the rebate?

Wouldn't it be wonderful if every time producers saw a need to get an increase - whether warranted or not - they could go before a panel, plead their case and get the increase?

[cowman]

Well Direct Energy will get the $15 plus one way or the other? If the utilities board doesn't want to give them that then I guess it could go to the States?
The fact is the Alberta consumer is being subsidized by the government. The gas company sells to the best buyer and it is up to the regulated utility companies to get their money however they can?

[cakadu]

Cowman, yes we are being subsidized by our own money - it is NOT the government's money - it belongs to us. An analogy would be going out and buying your own Christmas present. You might get what you want, but it is still coming from you.

It seems to me that it is like the chicken and egg thing - if they didn't allow the companies to get their asking price every time - they wouldn't need to subsidize us. This seems to be just another way to get us to lock into rates - no matter what it means to us.

Emrald is so right about the fact that no matter how much we get "subsidized" there are those who are hard pressed to make the payments. Think about seniors and those who are on fixed incomes - they need to stay warm too.

Yes, the companies have the right to sell it where they want, but there are things that they always take advantage of i.e. hurricanes, tsunamis etc., whether or not it is justifiable.

[cakadu]

governments love to have people 'think' that the money comes from the generous government but as Linda says, it is the peoples money coming from fact that the province has reaped the benefits from the people's resources. Waving signs that say the Province is DEBT FREE is small consolation to families that are choosing to heat their homes, pay rent or put food on the table, and yes, in this province of plenty, there are those who aren't rolling in wealth.

Working poor, who through no fault of their own aren't making the huge income that many take for granted these days. Single parent families and even many dads that have been forced to leave their homes, are feeling the pinch when support payments are taking most of their income leaving very little to keep a roof over their own head.
I know of many people in this province, including many of our farm families that are struggling to make ends meet, and even with the natural gas rebates are having a very difficult time keeping bills paid. We were all hit with the high cost of gasoline in the fall, many people have no choice but to drive to their workplace and aren't compensated for that cost. High heating bills coming right after high gasoline prices are a hardship that really doesn't make much sense in this province where resources rule !!!!

[Horse]

Cowman what a crock this is a very big money game and we as consumers are the pawns It is not so easy to get a job or contract as the bids are by invitation and they are sure to keep the family as small as posible.
Where it starts to run off the rails is the royalty rate then with 8 or more billion surplus why are we getting only 1.4 bill handout from gov. They think it is thier own to buy votes as they choose and those that draw oil wages and contracts sure arnt going to argue .
If it was as you say and wages are market driven . I am dam sure there are a lot of people that would work for less than the going rate but there is no free market.
Like I have said look at Fort McMuray and see wages are high but so is the cost of living and it is up to all citizens to make a few business people very rich wheather or not we make the big coin.

[cowman]

The price of natural gas is set on a North American market? The Alberta government can NOT sell NG to Albertans cheaper than they can to Californians...its called NAFTA?
The regulated utilities apply for a certain rate? They don't set their price wherever they want? They buy on the open market, add on their expenses, and a profit...and ask the government to approve that rate? The government approves or doesn't approve that rate?
The fact is this: NG is worth $15/gigajoule...that is the going rate? If the government could(and it can't) lower the North American price for Albertans, there would go the gas business in Alberta! Not only would that be unfair to everyone in Alberta but it would send a signal that we are "Saskatchewan west" and not a good business environment! Also consider this: The government of Alberta(the people of Alberta) does not own all the NG coming out of the ground? A fair portion is freehold. Now you are going to dictate what the freeholders get for their gas?
Why not take it a step further down the old communist road and make it mandatory that farmers only recieve 50 cents for their fat steers? After all poor hungry Albertans deserve cheap food, too?
Luckily we still live in a country that has a market economy? Every person has the right to spend their money and time as they basically see fit? Without a doubt some people have a tough time of it...sometimes through no fault of their own. But the fact is if we penalize those who succeed, we will end up with a country of losers where no will will even try? Think of the former USSR or communist Poland...is that where we want to be?

[farmers_son]

Cowman has raised some very good points. NAFTA did take away Canada’s natural advantage of having oil and gas resources under its lands. Before NAFTA Canada did have in place energy policies that in effect created an advantage for Canadians with Canadian oil and gas. NAFTA took that all away. NAFTA in effect moved all the oil and gas under Canada and shifted it into the United States because after all if you have unrestricted access to something you basically own it. The U.S. does not care about the price of energy because the money basically all flows back to them anyway. Albertans and Canadians are really ill informed to think of “their” energy, the Americans have it all. Think of NAFTA as the U.S. directionally drilling into the heart of Alberta and pumping all of what was our energy south of the border.

NAFTA took away Canadians and Albertans birth right, the energy gift we were blessed with has been handed over to the Americans. We did this for free trade and in case you all have forgotten, the Yankees are still not buying our cows and cow beef. Maybe in 2007, this is still 2005.

Is that an example of a market economy? Is it an example of a market economy when an Alberta farmer sells a cow for $400 less than if that same cow was sold by a Montana rancher yet that Montana rancher drives a new pickup powered by gasoline that came from Alberta and pays less for that gas than we do.

Think of Poland or USSR? Better to think of Mexico because we are going to be no better than Mexicans if NAFTA is in place for another 20 years and our energy advantage is gone. Canada’s opportunity to lever our energy resources into a diversified and powerful economy disappeared with NAFTA. Thanks Brian Mulroney.

[cowman]

Farmers son: You astound me! You have to be the only guy in Alberta who thinks the free trade deal didn't benifit Alberta!
Think about it. Before the free trade deal you got the shaft daily! Everything you bought and sold went through the golden triangle! Yes there has been some trade problems brought on by people ...called R-CALF...and some other protectionist groups but you know very well, in the big picture, that we have made a pile of money out of this deal? Look at the trade figures...who has benifitted? Canada as a whole has kicked butt...in a big way?
Instead of condemning Mulrooney you should be thanking him everyday....maybe not as a farmer(right now)...but as a Canadian? It was one of the few things he did that was right for Canada.