Preparing for Alberta's capacity market

Electric industry

Preparing for Alberta's capacity market

Alberta is developing a capacity market in electricity generation as one of a number of changes announced by government to Alberta's electricity sector. The changes are intended to ensure consumers are provided with a reliable supply of electricity at stable and affordable prices while supporting Alberta’s Climate Leadership Plan to reduce carbon emissions and transition to cleaner power.

The Alberta Utilities Commission has an advisory role in the development of Alberta's capacity market and will have a key regulatory and adjudicative role when it is established. The AUC has been, and is, closely involved in multi-organization and stakeholder discussions on capacity market development being led by the AESO.

To better prepare for the establishment of an Alberta capacity market and the regulatory obligations that will accompany it, the Alberta Utilities Commission established a dedicated capacity markets group to centralize, coordinate, expand and strengthen its expertise in this area.

The AUC's capacity markets group is headed by Carl Fuchshuber, who brought more than 30 years' experience in the electricity sector including transmission, generation, electricity market and regulatory matters to the table. Carl was previously the vice-president of regulatory and strategic planning at a major Alberta generating and transmission company.

The AUC continues to enhance and strengthen its expertise to capably address the regulatory dimensions of developments, evolution and policy decisions in Alberta's electricity sector, and generally in the province's broader utilities sector. With a regulatory and public interest history that stretches back more than 100 years, the AUC is committed to being a trusted leader that delivers innovative and efficient regulatory solutions for Alberta now - and in the future.

More information about the foundations, rationale, and design elements of capacity markets is available in the AUC-commissioned Charles River report The Economic Foundations of Capacity Markets.

More information about the Alberta capacity market design is available on the AESO website.

The AUC will be consulting shortly on amendments required to AUC Rule 017 as a result of Bill 13, An Act to Secure Alberta’s Energy Future. Market participants and interested parties are asked to direct comments and feedback to capacitymarket@auc.ab.ca.

 

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