Recommendations from the RMRC

The Alberta government is taking actions to protect electricity consumers by increasing scrutiny of transmission costs, reducing volatility in month-to-month electricity prices and making it easier for consumers to exercise better retail choices.

The Retail Market Review Committeeexternal link icon made recommendations to strengthen the electricity market. The report was released in January 2013 with 41 recommendations. Thirty-three recommendations were accepted in principle and referred to an MLA implementation team (Terms of ReferencePDF icon). The team will work with consumers, industry, regulators and others to ensure that we put effective, affordable and sensible solutions in place.

    Key Recommendations

  • Giving the AUC greater authority to scrutinize new power line costs

The Alberta Utilities Commission will receive more information earlier in the process and transmission companies will have the burden of proof to justify costs if challenged by consumers. To further protect consumers, the minister asked the AUC to determine the best process to amortize paying for transmission lines over the long term.

  • Keeping the regulated rate option (RRO) for Albertans

Right now, a majority of Albertans have chosen to stay on the RRO.  Recognizing the choice made by Alberta consumers, the government rejected all six recommendations made by the Retail Market Review Committee (RMRC) Report associated with eliminating the RRO.

  • Extending the regulated rate option (RRO) window from 45 to 120 days.

Previously, retail electricity providers could only purchase power 45 days in advance for the RRO. The province has extended that to 120 days to bring more stability and predictability in the marketplace.

    Retail Market Review Committee (RMRC) Report

Government is acting immediately on two recommendations, approving 33 more in principle and rejecting six.  The recommendations accepted in principle will be referred to an MLA implementation team.

Retail Market Review Committee (RMRC) ReportPDF icon (5 MB) HighlightsPDF icon

The recommendations accepted in principle focus on increasing competitiveness in the market, providing greater information to consumers, protecting vulnerable Albertans and representing consumer interests. The MLA implementation team will further consult with stakeholders and determine how best to implement these recommendations.

The RMRC also recommended lifting the freeze on applications for new distribution charges put in place at the request of government in 2012, and government has asked the AUC to lift the freeze. Applications will need to go through the AUC process to ensure any distribution costs charged to consumers are reasonable and levied fairly.

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