AUC's efforts to improve efficiency and reduce​ regulatory burden

The AUC operates on the basis that there is ample opportunity to do things better and to reduce regulatory burden, and the AU​C’s commitment to improvement applies to all aspects of our work.

We are mindful that we serve the public interest. An important consideration of efficiency improvements in the regulation of monopoly electricity and natural gas infrastructure, and the adjudication of market cases is that efficiency must not come at the expense of stakeholder and investor confidence in a fair process, market integrity, or reliably independent and consistent regulation. All are critical to a properly functioning utilities sector.​​​​​​​​​​​​

The timeliness of the regulatory review of rates cases (proceedings to determine utility rates) is of primary importance. Since November 2019 the AUC has achieved a number of material improvements in its regulatory performance. These include:

  • A 48.2 per cent reduction in the regulatory requirements, well ahead of the government’s target of a one-third reduction of mandatory requirements by 2023.
  • A 36.1 per cent decrease in application-review time.
  • A 32.1 per cent reduction in proceeding timelines as a result of assertive case management.
  • A 50.1 per cent reduction in application review time by as a result of negotiated settlements.
  • A 19 to 32 per cent reduction in facilities application processing times as a result of continuous process streamlining and a rationalization of application requirements, achieved as the number of applications received increased by 15 per cent.

As a result, the AUC ranks in the top two quartiles of peer North American utility regulators when measuring the time it takes to review an application.

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​What is different abo​ut regulation in the utilities sector?​

Alberta’s utilities are critical to industry in the province and to Albertans’ high quality of living.​​​

Alberta’s utilities sector is a natural monopoly environment where privately owned utilities operate a network of wires and pipelines. They are profit-driven while operating in exclusive service territories, and are not subject to competition. Recognizing the critical importance of utilities, part of the AUC’s public interest mandate is to ensure there is adequate regulatory oversight of Alberta’s utilities and utilities sector in this monopoly environment.​​​​

The AUC works continually to reduce​ the level and impact of regulatory burden to what is required for​ ratepayers to receive safe and reliable utility service at just and reasonable rates – while allowing utility shareholders a reasonable opportunity to earn a fair return, and attract adequate investment.​​​​​

Improvement is a central part of what we do

The AUC works to adapt and modernize its regulatory practices to ensure its regulation is ready to meet the challenges of an evolving regulatory environment.​ ​The AUC’s 2021-2024 Strategic Plan included a major commitment to efficiency and reducing regulatory burden. This efficiency theme was developed, shaped and confirmed through stakeholder conversations with executives at the most senior level within the utilities sector.

The AUC welcomes the Alberta government's red tape reduction initiative

The AUC continues to focus on streamlining its processes and reducing regulatory burden. The five principles of the​ Red Tape Reduction Act are incorporated within the AUC’s plan for efficient, innovative regulation. The AUC is pleased its detailed, results-driven efficiency and red tape reduction efforts are part of the government’s plan to support jobs and boost productivity.

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