Alberta Government Unveils Reforms to Cut Electricity Costs, Improve Grid Reliability

The Alberta government has announced a series of reforms aimed at reducing electricity costs and improving grid reliability, though consumers may not see immediate relief on their power bills for some time.

Nathan Neudorf, Minister of Affordability and Utilities, outlined the measures in a release Monday, noting the importance of modernizing Alberta’s electricity system to address not only affordability, reliability, and sustainability, but also the continued population growth in the province.

The reforms include shifting the costs of new transmission infrastructure from consumers to companies that require the lines. The government hopes this will encourage power plants to be built in locations where they can use existing infrastructure.

A new day-ahead market system is also being introduced, requiring power producers to commit to their grid costs one day before generation rather than at the time of production. This change is intended to reduce price volatility and ensure greater reliability in the electricity system.

Other measures include streamlining the process of building new transmission lines to speed up critical infrastructure projects and improving grid connections with British Columbia and Saskatchewan to enhance efficiency and stability.

The UCP government placed much of the blame for high electricity costs on the previous NDP government, accusing it of rushing a transition to natural gas and weather-dependent renewable energy sources without adequate infrastructure to support them. These decisions, the UCP claims, led to increased costs for consumers and significant price volatility.

“Albertans deserve a modern electricity system that prioritizes affordability and reliability,” said Neudorf. “As our electricity supply mix evolves so should our policies.”

The province has been working with the Alberta Electric System Operator (AESO) on a Restructured Energy Market, with plans to introduce supporting legislation in 2025. Until then, temporary measures introduced in July 2024 will remain in place to stabilize utility bills.