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Alberta Rate of Last Resort streamlines electricity regulations to stabilize the default rate, curb price volatility, and protect rural communities, low-income households, and seniors while preserving competition in the province's energy market.

Key Points

Alberta's Rate of Last Resort sets biennial default electricity prices, curbing volatility and protecting customers.

✅ Biennial default rate to limit price spikes

✅ Focus on rural, senior, and low-income customers

✅ Encourages competitive contracts and market stability

The Alberta government is overhauling its electricity regulations as part of a market overhaul aimed at reducing spikes in electricity prices for consumers and businesses. The new rules, set to be introduced this spring, are intended to stabilize the default electricity rate paid by many Albertans.

Background on the Rate of Last Resort

Albertans currently have the option to sign up for competitive contracts with electricity providers. These contracts can sometimes offer lower rates than the default electricity rate, officially known as the Regulated Rate Option (RRO). However, these competitive rates can fluctuate significantly. Currently, those unable to secure these contracts or those who are on the default rate are experiencing rising electricity prices and high levels of price volatility.

To address this, the Alberta government is renaming the default rate as the Rate of Last Resort designation (RoLR) under the new framework. This aims to reduce the sense of security that some consumers might associate with the current name, which the government feels is misleading.

Key Changes Under New Regulations

The new regulations, which include proposed market changes that affect pricing, focus on:

• Price Stabilization: Default electricity rates will be set every two years for each utility provider, providing greater predictability by enabling a consumer price cap and reducing the potential for extreme price swings.
• Rural and Underserved Communities: The changes are intended to particularly benefit rural Albertans and those on the default rate, including low-income individuals and seniors. These groups often lack access to the competitive rates offered by some providers and have been disproportionately affected by recent price increases.
• Promoting Economic Stability: The goal is to lower the cost of utilities for all Albertans, leading to overall lower costs of living and doing business. The government anticipates these changes will create a more attractive environment for investment and job creation.

Opposition Views

Critics argue that limiting the flexibility of prices for the default electricity rate could interfere with market dynamics and stifle market competition among providers. Some worry it could ultimately lead to higher prices in the long term. Others advocate directly subsidizing low-income households rather than introducing broad price controls.

Balancing Affordability and the Market

The Alberta government maintains that the proposed changes will strike a balance between ensuring affordable electricity for vulnerable Albertans and preserving a competitive energy market. Provincial officials emphasize that the new regulations should not deter consumers from seeking out competitive rates if they choose to.

The Path Ahead

The new electricity regulations are part of the Alberta government's broader Affordable Utilities Program, alongside electricity policy changes across the province. The legislation is expected to be introduced and debated in the provincial legislature this spring with the potential of coming into effect later in the year. Experts expect these changes will significantly impact the Alberta electricity market and ignite further discussion about how best to manage rising utility costs for consumers and businesses.

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Build Back Better Act Energy Savings curb volatile fossil fuel heating bills by accelerating electrification and renewable electricity, insulating households from natural gas, propane, and oil price spikes while cutting emissions and lowering energy costs.

Key Points

BBBA policies expand clean power and electrification to curb volatility, lower bills, and cut emissions.

✅ Tax credits for renewables, EVs, and efficient all-electric homes

✅ Shields households from natural gas, propane, and heating oil spikes

✅ Cuts methane, lowers bills, and improves grid reliability and jobs

Experts are forecasting serious sticker shock from home heating bills this winter. Nearly 60 percent of United States’ households heat their homes with fossil fuels, including natural gas, propane, or heating oil, and these consumers are expected to spend much more this winter because of fuel price increases.

That could greatly burden many families and businesses already operating on thin margins. Yet homes that use electricity for heating and cooking are largely insulated from the pain of volatile fuel markets, and they’re facing dramatically lower price increases as a result.

Projections say cost increases for households could range anywhere from 22% to 94% more, depending on the fuel used for heating and the severity of the winter temperatures. But the added expenditures for the 41% of U.S. households using electricity for heating are much less stark—these consumers will see only a 6% price increase on average. The projected fossil fuel price spikes are largely due to increased demand, limited supply, declining fuel stores, and shifting investment priorities in the face of climate change.

The fossil fuel industry is already seizing this moment to use high prices to persuade policymakers to vote against clean energy policies, particularly the Build Back Better Act (BBBA). Spokespeople with ties to the fossil fuel industry and some consumer groups are trying to pin higher fuel prices on the proposed legislation even before it has passed, even as analyses show the energy crisis is not spurring a green revolution on its own, let alone begun impacting fuel markets. But the claim the BBBA would cost Americans and the economy is false.

The facts tell a different story. Adopting smart climate policies and accelerating the clean energy transition are precisely the solutions to counter this vicious cycle by ending our dependance on volatile fossil fuels. The BBBA will ensure reliable, affordable clean electricity for millions of Americans, in line with a clean electricity standard many experts advocate—a key strategy for avoiding future vulnerability. Unlike fossil fuels subject to the whims of a global marketplace, wind and sunshine are always free. So renewable-generated electricity comes with an ultra-low fixed price decades into the future.

By expanding clean energy and electric vehicle tax credits, creating new incentives for efficient all-electric homes, and dedicating new funding for state and local programs, the BBBA provides practical solutions that build on lessons from Biden's climate law to protect Americans from price shocks, save consumers money, and reduce emissions fueling dangerous climate change.

What’s really causing the gas price spikes?
The U.S. Energy Information Administration’s winter 2021 energy price forecasts project that homes heated with natural gas, fuel oil, and propane will see average price increases of 30%, 43%, and 54%, respectively. Those who heat their homes with electricity, on the other hand, should expect a modest 6% increase. At the pump, drivers are seeing some of the highest gas prices in nearly a decade as the U.S. energy crisis ripples through electricity, gas, and EV markets today. And the U.S. is not alone. Countries around the globe are experiencing similar price jumps, including Britain's high winter energy costs this season.

A closer look confirms the cause of these high prices is not clean energy or climate policies—it’s fossil fuels themselves.  

First, the U.S. (and the world) are just now feeling the effects of the oil and gas industry’s reduced fuel production and spending due to the pandemic. COVID-19 brought the world’s economies to a screeching halt, and most countries have not returned to pre-COVID economic activity. During the past 20 months, the oil and gas industry curtailed its production to avoid oversupply as demand fell to all-time lows. Just as businesses were reopening, stored fuel was needed to meet high demand for cooling during 2021’s hottest summer on record, driving sky-high summer energy bills for many households. February’s Texas Big Freeze also disrupted gas distribution and production.

The world is moving again and demand for goods and services is rebounding to pre-pandemic levels. But even with higher energy demand, OPEC announced it would not inject more oil into the economy. Major oil companies have also held oil and gas spending flat in 2021, with their share of overall upstream spending at 25%, compared with nearly 40% in the mid-2010s. And as climate change threats loom in the financial world, investors are reducing their exposure to the risks of stranded assets, increasingly diversifying and divesting from fossil fuels. 

Second, despite strong and sustained growth for renewable energy, energy storage, and electric vehicles, the relatively slow pace to adopt fossil fuel alternatives at scale has left U.S. households and businesses tethered to an industry well-known for price volatility. Today, some oil drillers are using profits from higher gas prices to pay back debt and reward shareholders as demanded by investors, instead of increasing supply. Rising prices for a limited commodity in high demand is generating huge profits for many of the world’s largest companies at the expense of U.S. households.

Because 48% of homes use fossil gas for heating and another 10% heat with propane and fuel oil, more than half of U.S. households will feel the impact of rising prices on their home energy bills. One in four U.S. households continues to experience a high energy burden (meaning their energy expenses consume an inordinate amount of their income), including risks of pandemic power shut-offs that deepen energy insecurity, and many are still experiencing financial hardships exacerbated by the pandemic. Those with inefficient fossil-fueled appliances, homes, and cars will be hardest hit, and many families with fixed- and lower-incomes could be forced to choose between heat or other necessities.

We have the solutions—the BBBA will unlock their benefits for all households

Short-term band-aids may be enticing, but long-term policies are the only way out of this negative feedback loop. Clean energy and building electrification will prevent more costly disasters in the future, but they’re the very solutions the fossil fuel industry fights at every turn. All-electric homes and vehicles are a natural hedge against the price spikes we’re experiencing today since renewables are inherently devoid of fuel-related price fluctuations.

RMI analysis shows all-electric single-family homes in all regions of the country have lower energy bills than a comparable mixed fuel-homes (i.e., electricity and gas). Electric vehicles also save consumers money. Research from University of California, Berkeley and Energy Innovation found consumers could save a total of $2.7 trillion in 2050—or $1,000 per year, per household for the next 30 years—if we accelerate electric vehicle deployment in the coming decade.

The BBBA would help deliver these consumer savings by expanding and expediting clean energy, while ensuring equitable adoption among lower-income households and underserved communities. Extending and expanding clean energy tax credits; new incentives for electric vehicles (including used electric vehicles); and new incentives for energy efficient homes and all-electric appliances (and electrical upgrades) will reduce up-front costs and spur widespread adoption of all-electric homes, buildings, and cars.

A combination of grants, incentives, and programs will promote private sector investments in a decarbonized economy, while also funding and supporting state and local governments already leading the way. The BBBA also allocates dedicated funding and makes important modifications (such as higher rebate amounts and greater point-of-purchase availability) to ensure these technologies are available to low-income households, underserved urban and rural communities, tribes, frontline communities, and people living in multifamily housing.

Finally, the BBBA proposes to make oil and gas polluters pay for the harm they are causing to people’s health and the climate through a methane fee. This fee would cost companies less than 1% of their revenue, meaning the industry would retain over 99% of its profits. In return return we’d see substantial reductions of a powerful greenhouse gas and a healthier environment in communities living near fossil fuel production. These benefits also come with a stronger economy—Energy Innovation analysis shows the methane fee would create more than 70,000 jobs by 2050 and boost gross domestic product more than $250 billion from 2023 to 2050.

The facts speak for themselves. Gas prices are rising because of reasons totally unrelated to smart climate and clean energy policies, which research shows actually lower costs. For the first time in more than a decade, America has the opportunity to enact a comprehensive energy policy that will yield measurable savings to consumers and free us from oil and gas industry control over our wallets.

The BBBA will help the U.S. get off the fossil fuel rollercoaster and achieve a stable energy future, ensuring that today’s price spikes will be a thing of the past. Proving, once and for all, that the solution to our fossil fuel woes is not more fossil fuels.

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Ontario Electricity Export Retaliation signals tariff-fueled trade tensions as Doug Ford leverages cross-border energy flows to the U.S., risking grid reliability, higher power prices, and escalating a Canada-U.S. trade war over protectionist policies.

Key Points

A policy threat by Ontario to cut power exports to U.S. states in response to tariffs, leveraging grid dependence.

✅ Powers about 1.5M U.S. homes in NY, MI, and MN

✅ Risks price spikes, shortages, and legal challenges

✅ Part of Canada's CAD 30B retaliatory tariff package

In a move that underscores the escalating trade tensions between Canada and the United States, Ontario Premier Doug Ford has threatened to halt electricity exports to U.S. states in retaliation for the Trump administration's recent tariffs. This bold stance highlights Ontario's significant role in powering regions across the U.S. and serves as a warning about the potential consequences of trade disputes.

The Leverage of Ontario's Electricity

Ontario's electricity exports are not merely supplementary; they are essential to the energy supply of several U.S. states. The province provides power to approximately 1.5 million homes in states such as New York, Michigan, and Minnesota, even as it eyes energy independence through domestic initiatives. This substantial export positions Ontario as a key player in the regional energy market, giving the province considerable leverage in trade negotiations.

Premier Ford's Ultimatum

Responding to the Trump administration's imposition of a 25% tariff on Canadian imports, Premier Ford, following a Washington meeting, declared, "If they want to play tough, we can play tough." He further emphasized his readiness to act, stating, "I’ll cut them off with a smile on my face." This rhetoric underscores Ontario's willingness to use its energy exports as a bargaining chip in the trade dispute.

Economic and Political Ramifications

The potential cessation of electricity exports to the U.S. would have profound economic implications. U.S. states that rely on Ontario's power could face energy shortages, leading to increased prices, particularly New York energy prices, and potential disruptions. Such an action would not only strain the energy supply but also escalate political tensions, potentially affecting other areas of bilateral cooperation.

Canada's Retaliatory Measures

Ontario's threat is part of a broader Canadian strategy to counteract U.S. tariffs. Prime Minister Justin Trudeau has announced retaliatory tariffs on U.S. goods worth approximately CAD 30 billion, targeting products such as food, textiles, and furniture. These measures aim to pressure the U.S. administration into reconsidering its trade policies.

The Risk of Escalation

While leveraging energy exports provides Ontario with a potent tool, it also carries significant risks, as experts warn against cutting Quebec's energy exports amid tariff tensions. Such actions could lead to a full-blown trade war, with both countries imposing tariffs and export restrictions. The resulting economic fallout could affect various sectors, from manufacturing to agriculture, and lead to job losses and increased consumer prices.

International Trade Relations

The dispute also raises questions about the stability of international trade agreements and the rules governing cross-border energy transactions. Both Canada and the U.S. are signatories to various trade agreements that promote the free flow of goods and services, including energy. Actions like export bans could violate these agreements and lead to legal challenges.

Public Sentiment and Nationalism

The trade tensions have sparked a surge in Canadian nationalism, with public sentiment largely supporting tariffs on energy and minerals as retaliatory measures. This sentiment is evident in actions such as boycotting American products and expressing discontent at public events. However, while national pride is a unifying force, it does not mitigate the potential economic hardships that may result from prolonged trade disputes.

The Path Forward

Navigating this complex situation requires careful diplomacy and negotiation. Both Canada and the U.S. must weigh the benefits of trade against the potential costs of escalating tensions. Engaging in dialogue, seeking compromise, and adhering to international trade laws are essential steps to prevent further deterioration of relations and to ensure the stability of both economies.

Ontario's threat to cut off electricity exports to the U.S. serves as a stark reminder of the interconnectedness of global trade and the potential consequences of protectionist policies. While such measures can be effective in drawing attention to grievances, they also risk significant economic and political fallout. As the situation develops, it will be crucial to monitor the responses of both governments and the impact on industries and consumers alike, including growing support for Canadian energy projects among stakeholders.

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Hydro-Qubec Electricity Theft Ring exposed after a utility investigation into identity theft, rental property fraud, and conspiracies using stolen customer data; arrests, charges, and a tip line highlight ongoing enforcement.

Key Points

A five-year identity-theft scheme defrauding Hydro-Qubec through utility accounts leading to arrests and fraud charges.

✅ Five arrests; 25 counts: fraud, conspiracy, identity theft

✅ Losses up to $300,000 in electricity, 2014-2019

✅ Tip line: 1-877-816-1212 for suspected Hydro-Qubec fraud

Five people have been arrested in connection with an electricity theft ring alleged to have operated for five years, a pattern seen in India electricity theft arrests as well.

The thefts were allegedly committed by the owners of rental properties who used stolen personal information to create accounts with Hydro-Québec, which also recently dealt with a manhole fire outage affecting thousands.

The utility alleges that between 2014 and 2019, Mario Brousseau, Simon Brousseau-Ouellette and their accomplices defrauded Hydro-Québec of up to $300,000 worth of electricity, highlighting concerns about consumption trends as residential electricity use rose during the pandemic. It was impossible for Hydro-Québec’s customer service section to detect the fraud because the information on the accounts, while stolen, was also genuine, even as the utility reported pandemic-related losses later on.

The suspects are expected to face 25 counts of fraud, conspiracy and identity theft, issues that Ontario utilities warn about regularly.

Hydro-Québec noted the thefts were detected through an investigation by the utility into 10 fraud cases, a process that can lead to retroactive charges for affected accounts.

Anyone concerned that a fraud is being committed against Hydro-Québec, or wary of scammers threatening shutoffs, is urged to call 1-877-816-1212.

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Ontario Global Adjustment Deferral offers COVID-19 electricity bill relief to industrial and commercial consumers not on the RPP, aligning GA to March levels for Class A and Class B manufacturers to improve cash flow.

Key Points

A temporary GA deferral easing electricity costs for Ontario industrial and commercial users not on the RPP.

✅ Sets Class B GA at $115/MWh; Class A gets equal percentage cut.

✅ Applies April-June 2020; automatic bill adjustments and credits.

✅ Deferred charges repaid over 12 months starting January 2021.

Manufacturers welcome the Government of Ontario's decision to defer a portion of Global Adjustment (GA) charges as part of support for industrial and commercial electricity consumers that do not participate in the Regulated Price Plan.

"Manufacturers are pleased the government listened to Canadian Manufacturers & Exporters (CME) member recommendations and is taking action to reduce Ontario electricity bills immediately," said Dennis Darby, President & CEO of CME.

"The majority of manufacturers have identified cash flow as their top concern during the crisis, "added Darby. "The GA system would have caused a nearly $2 billion cost surge to Ontario manufacturers this year. This new initiative by the government is on top of the billions in support already provided to help manufacturers weather this unprecedented storm, while other provinces accelerate British Columbia's clean energy shift to drive long-term competitiveness. All these measures are a great start in helping businesses of all sizes stay afloat during the crisis and, keeping Ontarians employed."

"We call on the Ontario government to continue to consider the impact of electricity costs on the manufacturing sector, even after the COVID-19 crisis is resolved," stated Darby. "High prices are putting Ontario manufacturers at a significant competitive disadvantage and, discourages investments." A recent report from London Economics International (LEI) found that when compared to jurisdictions with similar manufacturing industries, Ontario's electricity prices can be up to 75% more expensive, underscoring the importance of planning for Toronto's growing electricity needs to maintain affordability.

To provide companies with temporary immediate relief on their electricity bills, the Ontario government is deferring a portion of Global Adjustment (GA) charges for industrial and commercial electricity consumers that do not participate in the Regulated Price Plan (RPP), starting from April 2020, as some regions saw reduced electricity demand from widespread remote work during the pandemic. The GA rate for smaller industrial and commercial consumers (i.e., Class B) has been set at $115 per megawatt-hour, which is roughly in line with the March 2020 value. Large industrial and commercial consumers (i.e., Class A) will receive the same percentage reduction in GA charges as Class B consumers.

The Ontario government intends to keep this relief in place through the end of June 2020, alongside investments like smart grid technology in Sault Ste. Marie to support reliability, subject to necessary extensions and approvals to implement this initiative.

Industrial and commercial electricity consumers will automatically see this relief reflected on their bills. Consumers who have already received their April bill should see an adjustment on a future bill.

Related initiatives include developing cyber standards for electricity sector IoT devices to strengthen system security.

The government intends to bring forward subsequent amendments that would, if approved, recover the deferred GA charges (excluding interest) from industrial and commercial electricity consumers, as Toronto prepares for a surge in electricity demand amid continued growth, over a 12-month period beginning in January 2021.

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Wave Energy Converters can deliver marine power to the grid, with DOE-backed PacWave enabling offshore testing, robust designs, and renewable electricity from oscillating waves to decarbonize coastal communities and replace diesel in remote regions.

Key Points

Wave energy converters are devices that transform waves' oscillatory motion into electricity for the grid or loads.

✅ DOE's PacWave enables full-scale, grid-connected offshore testing.

✅ Multiple designs convert oscillating motion into torque and power.

✅ Ideal for islands, microgrids, and replacing diesel generation.

Waves off the coast of the U.S. could generate 2.64 trillion kilowatt hours of electricity per year — that’s about 64% of last year’s total utility-scale electricity generation in the U.S. We won’t need that much, but one day experts do hope that wave energy will comprise about 10-20% of our electricity mix, alongside other marine energy technologies under development today.

“Wave power is really the last missing piece to help us to transition to 100% renewables, ” said Marcus Lehmann, co-founder and CEO of CalWave Power Technologies, one of a number of promising startups focused on building wave energy converters.

But while scientists have long understood the power of waves, it’s proven difficult to build machines that can harness that energy, due to the violent movement and corrosive nature of the ocean, combined with the complex motion of waves themselves, even as a recent wave and tidal market analysis highlights steady advances.

″Winds and currents, they go in one direction. It’s very easy to spin a turbine or a windmill when you’ve got linear movement. The waves really aren’t linear. They’re oscillating. And so we have to be able to turn this oscillatory energy into some sort of catchable form,” said Burke Hales, professor of cceanography at Oregon State University and chief scientist at PacWave, a Department of Energy-funded wave energy test site off the Oregon Coast. Currently under construction, PacWave is set to become the nation’s first full-scale, grid-connected test facility for these technologies, a milestone that parallels U.K. wind power lessons on scaling new industries, when it comes online in the next few years.

“PacWave really represents for us an opportunity to address one of the most critical barriers to enabling wave energy, and that’s getting devices into the open ocean,” said Jennifer Garson, Director of the Water Power Technologies Office at the U.S. Department of Energy.

At the beginning of the year, the DOE announced $25 million in funding for eight wave energy projects to test their technology at PacWave, as offshore wind forecasts underscore the growing investor interest in ocean-based energy. We spoke with a number of these companies, which all have different approaches to turning the oscillatory motion of the waves into electrical power.

Different approaches
Of the eight projects, Bay Area-based CalWave received the largest amount, $7.5 million. 

″The device we’re testing at PacWave will be a larger version of this,” said Lehmann. The x800, our megawatt-class system, produces enough power to power about 3,000 households.”

CalWave’s device operates completely below the surface of the water, and as waves rise and fall, surge forward and backward, and the water moves in a circular motion, the device moves too. Dampers inside the device slow down that motion and convert it into torque, which drives a generator to produce electricity, a principle mirrored in some wind energy kite systems as they harvest aerodynamic forces.

“And so the waves move the system up and down. And every time it moves down, we can generate power, and then the waves bring it back up. And so that oscillating motion, we can turn into electricity just like a wind turbine,” said Lehmann.

Another approach is being piloted by Seattle-based Oscilla Power, which was awarded $1.8 million from the DOE, and is getting ready to deploy its wave energy converter off the coast of Hawaii, at the U.S. Navy Wave Energy Test site.

Oscilla Power’s device is composed of two parts. One part floats on the surface and moves with the waves in all directions — up and down, side to side and rotationally. This float is connected to a large, ring-shaped structure which hangs below the surface, and is designed to stay relatively steady, much like how underwater kites leverage a stable reference to generate power. The difference in motion between the float and the ring generates force on the connecting lines, which is used to rotate a gearbox to drive a generator.

″The system that we’re deploying in Hawaii is what we call the Triton-C. This is a community-scale system,” said Balky Nair, CEO of Oscilla Power. “It’s about a third of the size of our flagship product. It’s designed to be 100 kilowatt rated, and it’s designed for islands and small communities.”

Nair is excited by wave energy’s potential to generate electricity in remote regions, which currently rely on expensive and polluting diesel imports to meet their energy needs when other renewables aren’t available, and similar tidal energy for remote communities efforts in Canada point to viable models. Before wave energy is adopted at-scale, many believe we’ll see wave energy replacing diesel generators in off-the-grid communities.

A third company, C-Power, based in Charlottesville, Virginia, was awarded more than $4 million to test its grid-scale wave energy converter at PacWave. But first, the company wants to commercialize its smaller scale system, the SeaRAY, which is designed for lower-power applications. 

″Think about sensors in the ocean, research, metocean data gathering, maybe it’s monitoring or inspection,” said C-Power CEO Reenst Lesemann on the initial applications of his device.

The SeaRAY consists of two floats and a central body, the nacelle, which contains the drivetrain. As waves pass by, the floats bob up and down, rotating about the nacelle and turning their own respective gearboxes which power the electric generators.

Eventually, C-Power plans to scale up its SeaRAY so that it’s capable of satellite communications and deep water deployments, before building a larger system, called the StingRAY, for terrestrial electricity generation.

Meanwhile, one Swedish company, Eco Wave Power, is taking another approach completely, eschewing offshore technologies in favor of simpler wave power devices that can be installed on breakwaters, piers, and jetties.

“All the expensive conversion machinery, instead of being inside the floaters like in the competing technologies, is on land just like a regular power station. So basically this enables a very low installation, operation, and maintenance cost,” explained CEO Inna Braverman.

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