Alberta government tells utilities to prove fair costs

Changes by Alberta's provincial government will protect consumers by bringing greater transparency to electricity costs. Under new regulations, the onus is now on electricity transmission companies to prove the cost of transmission lines is reasonable. Under the old regulations, it was up to consumer groups to challenge the cost - a cost that is ultimately passed on to Albertans.

“We have taken action to ensure that Albertans aren’t on the hook for unjustified costs associated with building transmission lines,” said Alberta's Energy Minister Ken Hughes. “Transmission companies now must defend every cent they charge consumers. This brings more transparency and delivers on promises made following the retail market review.”

As part of its broader powers to scrutinize the cost of new transmission projects, the Alberta Utilities Commission will be able to assess information earlier in the process, so it can ensure that all costs are necessary.

In January 2013, government announced changes to transmission cost oversight and struck an MLA Implementation Team to protect Alberta consumers from volatile electricity costs.

An estimated $14 billion in new transmission infrastructures will be built over the next decade to meet the growing electricity demands Albertans and industry within the province.