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“It is the right time for us to bring the low-cost solution and superior quality of service.”

She said establishing the company would cost less than $100 million but in the “10s of millions” and that it should begin delivering profits in five to seven years. She said it will create jobs, though not enough to make up for a round of layoffs ATCO confirmed in November without giving specific numbers.

According to the Alberta government’s Utilities Consumer Advocate website, there are more than 30 companies in Calgary offering competitive electricity, gas or combined retail contracts.

Southern said ATCO will compete on price and service, touting its natural gas-fired generators — versus “a coal fleet that’s going to be extinct within the next three years” — and disparaging competitors whose salesmen knock on the door or call in the middle of dinner, an apparent reference to Direct Energy.

Jessica Michan, a spokesman for Direct Energy, said her company intends to keep its more than one million Alberta customers.

“We embrace additional competition and will continue to lead the way in market and industry changes for the benefit of our customers in the future,” she said in an e-mail.

Steven Landry, chief development officer for ATCO, said the new product was launched internally to employees three weeks ago and a number of staff have signed up. He said the company’s monthly $7 administration fee is the lowest in the province, pointing out the highest is about $12.