The Alberta government has implemented a four-year cap on power prices. The price cap ensures Albertans on the regulated rate option (RRO) will pay no more than 6.8 cents per kilowatt hour for electricity from June 1, 2017 to May 31, 2021. If the rate exceeds the cap, the government will pay the RRO provider the difference between the actual price and the cap for each kWh of electricity consumed by its 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.
Regulated rate option price cap reference rate for rural electrification associations and other regulated rate option providers not regulated by the AUC
Rural electrification associations and other RRO providers not regulated by the Alberta Utilities Commission are also eligible for the rate cap. The government has determined that it will also compensate these RRO providers for amounts not collected from customers due to the rate cap. However the amount of compensation will be governed by a reference rate that is the average of the AUC regulated residential RRO rates, plus 10 per cent.