Helping To Understand The Electrical Market In Alberta




Although it is early in 2021, the cost of electricity in Alberta has gone up. Understanding the dynamics of the electrical market in Alberta is complex with many ‘players’ involved. 


Alberta Electric System Operator (AESO) is a not-for-profit entity with no financial investment in the industry. On behalf of Albertans, AESO works with industry partners and the government to make sure reliable power is available when needed. 


The Alberta Minister of Energy appoints the members of AESO’s board. The 8-member Board’s governance strategy is founded on balancing the interests of a diverse set of stakeholders, while at the same time providing benefit for the overall industry stakeholder needs. 


In Alberta, for-profit companies own generation, transmission and distribution facilities. AESO dispatches the power sold by generators, using the lowest-priced electricity first and then the next lowest until the need for power has been satisfied. 


Alberta’s electricity market consists of 6 fundamental components and features. 


  • Firms supply electricity into the grid. Five of those providers - ATCO Power, Enmax, Capital Power Corporation (previously EPCOR), TransAlta and TransCanada Corp - in the past have supplied about 80% of the province’s generation capacity. 


-Alberta’s transmission grid, owned in sections by companies like AltaLink , ATCO Electric and FortisAlberta then carries electricity produced by generating providers to wholesale electricity purchasers or retailers. 


-AltaLink is one of Canada’s largest electricity transmission companies. Based in Alberta, AltaLink is responsible for the maintenance and operation of approximately 12,000 kilometres of transmission lines and 280 substations in Alberta. AltaLink is owned by Berkshire Hathaway Energy (Warren Buffet).


-Enmax Corporation is a vertically integrated utility that generates and distributes electricity, natural gas, renewable energy to customers in Alberta. 


-ATCO is an example of another vertically integrated company involved in generating, distribution and retailing electricity.


-The Alberta Electric System Operator (AESO) leads the planning and operation of the power system


-There are approximately 160 wholesale electricity purchasers, many of which are also resellers to other end-users like ENMAX, EPCOR, Fortis Alberta and Direct energy


- Retail consumers have the option to buy electricity at competitive prices from third-party sellers or at regulated prices through the local utility like ENMAX and EPCOR


  • The Market Surveillance Administrator (MSA) ensures that Alberta’s electricity markets are fair, efficient and competitive 


Historically, much of Alberta’s electricity has been generated by coal-fired plants, followed by natural gas and renewable and alternative sources (wind, solar). 


The cost of electricity is influenced by many factors, which makes forecasting and predictability difficult and challenging. Weather and extreme temperatures can impact supply and consumption; transition from coal-fired to natural gas plants; plant maintenance schedules; economics and alternate source supply to the grid are all factors that can individually impact power pool prices. 


The following multi-year wholesale historical pricing chart indicates a trend that the $/MWH price may have ‘bottomed out’ in 2016-2018 and Alberta electrical prices may be heading higher or, at the very least, becoming more volatile compared to the period 2014-2019. 



If you are nervous about the trend of future electricity prices or simply want the peace-of-mind and certainty of knowing what your electrical cost will be, Mountain View Power can help. Consider a fixed 1 or 2 year term: Mountain View Power 1 year fixed term with prudential is 6.95 cents/KWH and the 2 year fixed rate with prudential is 7.15 cents/KWH. The 1 and 2 year base rates without prudential are 7.39 cents/KWH and 7.45 cents/KWH, respectively. Call Mountain View Power today @ 877-403-0259 or visit our website at www.mountainviewpower.com.

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