Alberta Power Reforms: A $6 Billion Price Tag?

Alberta Power Reforms: A $6 billion Price Tag?

March 24, 2017

Alberta’s planned phase-out of coal-fired power plants, an influx of new renewable electricity, a shift to a new capacity market, a cap on consumer prices, and an ongoing dispute over power purchase arrangements (PPA) could cost between $6.8 billion and $12.4 billion by 2030, said a consultant speaking at the Independent Power Producers Society of Alberta’s recent annual conference in Banff.

Many of the changes are intended to reduce greenhouse gas emissions, introduce more renewable power, and fine-tune the market structure to ensure future reliability.

As reported by Calgary Herald columnist Chris Varcoe, independent electricity consultant EDC Associates estimates that the province’s transition to a cleaner power grid will cost between $486 million and $883 million annually until 2030 — for a total bill of $6.8 billion to $12.4 billion. This price tag includes $1.36 billion in government compensation to coal plant owners to shut their plants early, and between $1 billion and $1.6 billion to settle PPA disputes.

Some costs, such as the coal compensation bill, will come out of revenues from industrial carbon emissions. Others may end up as a charge on consumers’ monthly power bills, wrote Varcoe.

In a panel of power industry executives, Scott Thon, President of Berkshire Hathaway Energy Canada noted the public supports decarbonization, but the cost can’t be ignored. It’s a challenge facing jurisdictions across Canada.

Varcoe quoted EDC chief executive Duane Reid-Carlson, who said in an interview, “We can itemize all the costs… but it’s how they get paid for that we don’t know. “Do they end up in the consumers’ bills? Do they end up in a transmission tariff? Do they end up as an Alberta global adjustment charge like Ontario has? We don’t have the answer to those yet.”

Alberta power prices are near all-time lows, averaging about $23 per megawatt-hour this year.

Read the entire article: http://calgaryherald.com/business/energy/varcoe-as-alberta-power-reforms-could-top-6b-consumers-will-be-watching-bills.

Related Articles


Latest Articles


Changing Scene

  • Intralec Named New Sales Agency Partner for IDEAL Electrical in Central & Southwestern Ontario

    Intralec Named New Sales Agency Partner for IDEAL Electrical in Central & Southwestern Ontario

    July 7, 2025 Intralec Electrical Products is proud to announce our new partnership with IDEAL Electrical as their sales agency for the Central & Southwestern Ontario regions. As a Canadian manufacturer with over 60 years of experience producing quality products—many of which, like the Can-Twist wire connector and Yellow 77 lubricant, are made in Ajax,… Read More…

  • City of Winnipeg Continues to Improve Online Permits System

    City of Winnipeg Continues to Improve Online Permits System

    July 4, 2025 The City of Winnipeg has launched an improved Permits Online web portal. This upgrade aims to make the permit process more convenient for customers. Permits Online is a one-stop shop to manage the permit process. Now, the web portal is easier to use because customers can navigate it using their mobile device. The portal… Read More…

  • Schneider Electric Launches Chapter 3 of Sustainability School

    Schneider Electric Launches Chapter 3 of Sustainability School

    July 4, 2025 Schneider Electric, the leader in the digital transformation of energy management and automation, has launched Chapter 3 of its online Sustainability School, a free training program designed to empower its channel ecosystem partners to become leaders in sustainability. This chapter will focus on teaching businesses how to decarbonize and unlock the competitive… Read More…

  • United Chargers Launches Grizzl-E Club Charger-as-a-Service Subscription Model

    United Chargers Launches Grizzl-E Club Charger-as-a-Service Subscription Model

    July 4, 2025 United Chargers Inc., known for the Grizzl-E line of EV chargers, announces Grizzl-E Club, a first-of-its-kind charger as a service that provides a free EV Charger and pays drivers back for charging. Grizzl-E Club is designed to make EV ownership more rewarding, accessible, and future-ready. Beginning July 1st, Canadians can join the Grizzl-E… Read More…