The Alberta government has implemented a four-year cap on power prices. The price cap ensures Albertans on the regulated rate option (RRO), rural electrification associations (REAs) and those in Medicine Hat (where residential customers are billed on Medicine Hat specific rates) will pay no more than 6.8 cents per kilowatt hour for electricity from June 1, 2017 to May 31, 2021. For RRO providers regulated by the AUC, if their rate exceeds the cap, the government will pay the provider the difference between the actual price and the cap for each kWh of electricity consumed by their price cap eligible customers. For RRO providers not regulated by the AUC, REAs and the City of Medicine Hat, if their rate exceeds the cap, the government will pay the provider the difference between the lower of the actual price or the reference rate, and the cap for each kWh of electricity consumed by their price cap eligible customers. The price cap applies only to the energy portion of a bill. Distribution and transmission charges are not covered by the cap.
More information on the electricity price cap can be found on the Alberta government’s website.
The government has determined it will compensate rural electrification associations, other RRO providers not regulated by the Alberta Utilities Commission and the City of Medicine Hat for amounts not collected from customers due to the rate cap. The applicable reference rates are available below.
Reference rate is the average of the AUC regulated residential regulated rate option rates, plus 10 per cent.
Reference rate is the average of the AUC regulated residential RRO rates.