Council To Review Alberta Electricity Issues

EDMONTON, AB -- - Alberta's Advisory Council on Electricity has been directed to review and make recommendations on consumer concerns related to electricity bills, and to report back to the Energy Minister by August 15, 2003.

In announcing the expanded mandate for the council, Premier Ralph Klein said that his government wants to get to the bottom of consumer complaints about high electricity bills in some parts of the province and the reasons for them.

"For some time, our government has had in place the Advisory Council on Electricity, advising the minister on matters related to electricity deregulation. I've asked the minister to broaden the council's mandate so that it can review, evaluate, and make recommendations on what is happening with the price that ordinary Albertans and Alberta businesses are paying for power," Klein said. "The price of power itself has been reasonably low since deregulation - dropping from over 12 cents a kilowatt hour in early 2001 to about half that today. I want to know why some consumers aren't seeing the benefits of those lower power costs on their bills.

"I want to be clear: our government is not revisiting its decision to deregulate the electricity industry in Alberta," Klein stressed. "In just over two years, deregulation has had many benefits for Albertans, including a 30-percent increase in the amount of power available, the introduction of alternative power such as green power, and an increase in market options and choice for customers. Above all, it has meant security of supply for today and for the future, without the threat of debt dangled over taxpayers' heads.

"But as I've said, there have been some 'bumps in the road' for some customers. Our government wants an arms-length review of these bumps and some advice on how to smooth them out. Therefore, we've asked the council to look at some of these bumps and report back in three months - by August 15," said Klein.

The government has asked the council to review and make recommendations on the following issues:

Why some parts of Alberta are paying higher prices than other areas

Billing practices of utility companies

Fairness of all line items on bills

Consumer accessibility to competitive market options

Long-range forecast for consumer prices

Current and future benefits of deregulation for consumers

Impacts of government and EUB decisions on consumer prices

Other consumer issues identified by the council

The council has also been asked to set up a mechanism to receive public input, such as a website or mailing address, Klein said.

Leduc MLA Albert Klapstein and Whitecourt-Ste. Anne MLA George VanderBurg have been added to the advisory council, noted Klein. "Albert and George have been vociferous advocates for consumers in our Caucus, and I know they will be equally tenacious in ensuring the review asks the right questions and gets the full answers," the Premier said.

"This review should go a great distance to resolve some of the issues that have concerned ordinary Albertans over the last couple of years," said Energy Minister Murray Smith. "I look forward to hearing what the council has to say on these matters that are so important to people in this province."

The Advisory Council on Electricity was established in 2001. It is chaired by Len Bolger, current co-chair of the Alberta Energy Research Institute and a member of the board of directors of the Alberta Science and Research Authority. In addition to new members Klapstein and VanderBurg, the council comprises members affiliated with the Alberta Association of Municipal Districts and Counties, the Alberta Urban Municipalities Association, and various consumer, industrial, and user groups. The council's ongoing mandate has been to advise the minister on high-level issues related to electricity in Alberta.