Utilities Affordability Statutes Amendment Act, 2024

Summary#

Bill 19 changes several Alberta laws to make utility bills more stable and to clarify who provides the default electricity rate. It also shifts more oversight to the Alberta Utilities Commission (AUC), the independent utilities regulator, and changes how some city utility fees are set.

Key changes:

• Renames the “Regulated Rate Option (RRO)” to “Rate of Last Resort” and updates laws to use the new term.
• Keeps the default electricity provider as the local wire owner (or its agent), now called the “rate of last resort provider.”
• Stops cities and utilities from tying certain fees and payments to wholesale market prices for power or gas.
• Requires AUC approval for municipal grants or agreements that let a company distribute electricity or gas. Existing, unapproved grants must be submitted for approval within about 9 months or they end.
• Updates rules so service standards, codes of conduct, and enforcement continue under the new “Rate of Last Resort” name.

What it means for you#

• Electricity customers

  • The default electricity rate is now called the “Rate of Last Resort.” Your service and how the rate is set do not change because of the name.
  • If you are not signed with a retailer, your local wires company (or its agent) will still supply you under a regulated rate tariff.

• Natural gas customers

  • City or utility agreements that affect gas delivery now face AUC approval if they were not approved before. This is paperwork and oversight; it should not interrupt service. But existing grants that are not approved within the set window will end.

• Everyone who pays city utility charges or franchise fees on bills

  • Cities can no longer base certain fees on a price per kWh or per gigajoule that moves with market prices. This is meant to reduce big swings in these line items when energy markets spike.
  • For electricity wires companies, “gross revenue” used in some city tax agreements will be based on revenue from the distribution tariff, not on a formula tied to commodity prices.

• Municipally owned or affiliated utilities and cities

  • All new municipal grants to distribute electricity must be approved by the AUC. Old grants to city-controlled companies must be submitted for approval; if not approved within about 270 days after the law takes effect, they end.
  • Some existing agreements to provide power or fuel by city-controlled corporations must be sent to the AUC for approval.
  • Fee and tax agreement rules change: you cannot calculate payments using variable power or gas prices.

• Energy retailers and utilities

  • Terminology and compliance references change from “RRO” to “Rate of Last Resort,” but the default-service role remains with the distribution owner (or its authorized provider).
  • Codes of conduct, service standards, and oversight continue under the updated terms.

• Timing

  • Several parts take effect on a later date set by the government (by Proclamation). The 270‑day deadline for approvals starts once those parts take effect.

Expenses#

No publicly available information.

Proponents' View#

• Renaming to “Rate of Last Resort” makes it clear this is a backstop service, not a long‑term plan, which may help people shop for competitive retail plans.
• Preventing city fees from moving with market prices helps steady bills and avoids extra cost spikes during price surges.
• More AUC oversight of municipal grants and agreements protects consumers and ensures fair, consistent rules across Alberta.
• Using distribution‑tariff revenue (not commodity price formulas) for some city payments is clearer and more predictable.
• The bill mostly updates wording and cross‑references, keeping existing consumer protections in place under the new name.

Opponents' View#

• Requiring AUC approval for municipal grants and agreements may reduce local control and add red tape for cities and their utilities.
• The 270‑day approval deadline could strain smaller municipalities and create uncertainty if approvals take time.
• Banning fee formulas tied to market prices may limit municipal revenue tools and shift budget risks onto cities.
• The name change alone may confuse customers without delivering real savings on bills.
• More regulatory steps could slow utility planning and add administrative costs that might be passed on to ratepayers.