The Issue
Many residents in northern, east-central and southern Alberta are paying some of the highest electricity distribution fees in the province. Households can pay, on average, $118 a month in distribution costs compared to just $34 in non-impacted service areas. For industry, the gap is even more severe. An industrial facility with a 4,000kW demand can pay around $31,250/month, while a similar operation in a non-impacted service area might pay as little as $11,237/month. Municipalities also pay significantly higher distribution fees, which can consume a large share of a municipality's electricity bill and divert dollars away from local priorities.
why it matters
Alberta’s prosperity depends on strong, competitive communities. But unequal electricity distribution rates are holding us back. Other provinces, including British Columbia, Saskatchewan, and Manitoba, have already taken action to equalize distribution rates.
Households
Many residents in northern, east-central and southern Alberta are paying significantly higher distribution rates than the rest of the province. This means tighter household budgets, less disposable income and more pressure during this time of rising costs and inflation.
Business
Companies operating in this region face distribution charges that can be up to five times higher than elsewhere in Alberta. These costs discourage growth, make retaining and attracting workers more challenging, and limit new investment opportunities.
The Region
Unfair distribution rates threaten the strength of one of Alberta’s most important regions for resource extraction. Higher costs weaken local economies, discourage international investment and undermine the long-term sustainability of municipalities.
LAying the groundwork
Over the past two years, momentum has been building to address the unfair disparity in electricity distribution rates. Communities, businesses and municipalities have been raising their voices and many regulators, elected officials and local leaders have acknowledged the problem: unequal distribution rates are unfair and unsustainable.
2023
The Alberta Utilities Commission orders ATCO to repay $71 million to customers for inappropriate charges.
2024
ATCO announces a planned rate reduction. Rates remain far higher than other service areas.
Regional partners secure support from local MLAs, Alberta Municipalities, and Rural Municipalities of Alberta.
2025
Letter sent to the province urging legislative action of distribution rate equalization.
While some corrective steps have been taken, costs remain significantly higher for many northern, east-central and southern Albertans. The growing coalition behind this issue demonstrates broad recognition that change is necessary.