Electricity deregulation in Alberta: a national and international perspective

The Electric Power Industry is undergoing a major structural change. As in companion network industries, i.e., transportation and telecommunications, the market for electric power is evolving from monopoly to competition. The Province of Alberta has taken a leadership role in restructuring its power industry through the introduction of the Electric Utilities Act in 1995. Subsequent consultations between stakeholders led to Bill 27, the Electric Utilities Amendment Act passed in 1998. The old model is one of vertically-integrated, regulated monopoly comprising the 3 elements: generation, transmission and distribution. In the new model, generation, transmission and distribution are treated separately, with generation and retail services set free from the deregulation mechanism. To ensure a level playing field, the “wires” (transmission grid) are spun into a separate entity and governed by an independent transmission administrator. This ensures system access to the pool to all generators and importers on a nondiscriminatory basis irrespective of the “wires” ownership. Customer choice at distribution level is scheduled for January 1, 2001