Photo by Curtis Galbraith.

By Curtis Galbraith

City Hall

City Hall continues pushing for equitable costs for electricity distribution

Feb 15, 2024 | 6:00 AM

Grande Prairie city hall will continue advocating for more equitable costs for electricity distribution.

Mayor Jackie Clayton says the city has heard from consumers and industry that these costs are “a top concern.”

“The disparity across the province continues to be an advocacy priority as we see across the province significant disparity between what the distribution rates are in our region compared to the south and Edmonton and Calgary.”

Councillors heard a report compiled by administration during a Council Committee of the Whole meeting Wednesday afternoon.

It found the average ATCO residential customer paid over $1,100 in electricity distribution costs last year.

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Fortis Alberta customers, which takes in most of central and southern Alberta, paid just over $540.

EPCOR customers in Edmonton paid just over $362, while ENMAX subscribers in Calgary paid a little over $330.

Clayton says the city has been talking to the provincial government and industry.

“Speaking with electrical providers to talk about where the opportunities are. The distribution (costs) we see in our region is three times what an Edmonton or Calgary house would pay, and so when you look at your utility bill, it is a significant portion of that.”

The report also says the high costs impact property taxes. The city paid $2.4 million in distribution fees in 2023, more than a third of its total electric bill.

It also says a large industrial development in the area served by ATCO would pay over $319,000 per year in distribution costs, compared to between $67,000 and $152,000 in the Fortis Alberta service area.

The report argues since the whole province benefits from such developments, that these costs could be shared by all customers.

It also says for a 10-storey building, this cost would be $93,000 per year in the ATCO Alberta area compared to $35,000 in the area served by Fortis Alberta.

Clayton says while city officials understand it costs more to live in the north, but should not cost three times as much.

She adds B.C. has the same cost province-wide while Saskatchewan has a rural and urban distribution price.

“There are opportunities, knowing that there are (a) significant amount of resources (that) come from this region that help generate power that, in turn, this region shouldn’t be penalized because it does become a concern in future economic growth, the cost of living, and all the important things for our residents.”

The report also says to make rates equal, the average residential customer in Alberta would need to pay $41 per month.

This would lower the cost for ATCO customers by $50 a month and Fortis Alberta customers by $4. ENMAX users would see a $14 per month increase, EPCOR customers an $11 per month hike.

Clayton says the city is not pushing for a system like this, as officials understand that there are greater distances between users in the north.

“It’s about having what’s fair and makes sense and is still equitable for the provider, but still not prohibitive to future growth (and) investment in our region.”

The report also says wildfires last year led to over $100 million in losses for ATCO’s distribution system.

The city has previously taken a resolution calling of more equal costs to the 2022 fall convention of Alberta Municipalities, where it passed with 88 per cent support.

Rural Municipalities of Alberta also supported the same resolution in 2022.

The full report can be found here, starting at page 23.