Energy and Utilities Statutes Amendment Act, 2025

Summary#

Bill 52 overhauls how Alberta’s power market works and sets rules for adding small amounts of hydrogen to natural gas service. It also creates a new fee to fund electricity customer education and expands the provincial petroleum marketing board.

Key changes:

• Replaces the single “power pool” with two markets: a day‑ahead market (for next‑day power) and a real‑time market (same day).
• Gives the system operator more tools to handle grid bottlenecks (called transmission constraints), including changing how power is dispatched or priced during those periods.
• Lets the Minister set special market rules for the transition, which can take effect faster than normal approval processes.
• Allows a consumer awareness surcharge on power bills to fund customer education about electricity options.
• Creates a framework for gas utilities to supply hydrogen‑blended natural gas, with limits, local consent, and separate billing for the hydrogen part.
• Expands the Petroleum Marketing Commission board from up to 7 to up to 13 directors.

What it means for you#

• Households and small businesses

  • You may see a small new line on your electricity bill for a “consumer awareness” program, collected by default electricity providers. The amount will be set by regulation.
  • Power prices will come from two markets (day‑ahead and real‑time). Prices could be more stable if next‑day scheduling works well, but can still change by time and place.
  • In some areas, prices may differ by location when lines are congested. This is meant to reflect actual grid costs.
  • If your community adopts hydrogen‑blended natural gas, you will pay a separate rate for the hydrogen portion, and only if you receive the blended gas.

• Large power users (farms, plants, data centers)

  • You will be able to buy/sell in a day‑ahead and a real‑time market, and hedge against both prices.
  • During transmission constraints, dispatch and pricing may be prioritized or adjusted by rule. Expect more location‑specific signals.
  • New market pricing frameworks (such as offer caps/floors and market power safeguards) may change bidding strategies.

• Electricity generators and retailers

  • Operations shift to a two‑market structure with possible location‑based prices. Day‑ahead commitments and real‑time balancing will matter more.
  • The system operator can procure grid support services (ancillary services) through markets or other means, with cost recovery through tariff and/or fees.
  • Minister‑made transition rules (REM ISO rules) can override some existing ISO rules and take effect without Commission approval.

• Gas customers in areas considering hydrogen blending

  • A gas utility needs Alberta Utilities Commission approval and local consent before supplying hydrogen‑blended natural gas.
  • The government will set the maximum hydrogen percentage. Billing for hydrogen will be separate, and only customers receiving blended gas will pay for it.
  • Existing pilot projects started before Feb 25, 2025 may be exempt or follow modified rules.

• Local governments

  • Transmission planning must be efficient, reliable, and fair, but the operator is not required to remove all grid constraints.
  • Municipal input may matter where hydrogen blending is proposed; consent processes will be set by regulation.

Expenses#

No publicly available information.

Proponents' View#

• Two‑stage markets can improve planning and reliability, reduce last‑minute price spikes, and better match supply with demand.
• Allowing prices to reflect location during grid congestion can lower overall system costs by sending clearer signals on where and when to produce or use power.
• Stronger tools to buy grid support services and manage constraints can keep the lights on at lower cost.
• Customer education helps people choose better power plans and understand options, which can lower bills over time.
• Hydrogen blending offers a controlled, consent‑based path to lower‑carbon heating, with costs limited to customers who opt in.
• Faster rulemaking for the market transition lets Alberta move quickly and avoid delays.

Opponents' View#

• Letting the Minister set key market rules with limited independent review could reduce transparency and confidence in the market.
• Location‑based prices and constraint management could raise bills in some areas or for certain users.
• The new customer awareness surcharge adds another fee to electricity bills without a clear cost cap.
• More complex rules (day‑ahead plus real‑time, new pricing limits, new fees) increase compliance costs for retailers and generators, which may be passed to customers.
• Hydrogen blending may raise gas costs for participating customers, and consent thresholds set by regulation could be contested.
• Not requiring the removal of transmission constraints may leave some regions facing ongoing bottlenecks and higher local prices.