Stay informed with the LNN Daily Newsletter
Alberta's government says it is updating its electricity market rules in order to help lower consumers' utility bills. Utilities Minister Nathan Neudorf is sworn into cabinet in Edmonton, Friday, June 9, 2023. (Photo: Canadian Press)

Alberta announces new rules for electricity generators

Mar 11, 2024 | 12:31 PM

LETHBRIDGE, AB – Alberta’s government said it is updating its electricity market rules in order to help lower consumers’ utility bills.

Affordability and Utilities Minister Nathan Neudorf said the UCP government is instituting two temporary measures around the practice of “economic withholding,” a strategy regularly used by power generators in the province’s deregulated free-market electricity system.

Economic withholding is when power producers deliberately hold back all or part of their electricity supply by offering it into the market at a high price, with the goal of increasing the overall pool price.

The practice is not illegal, but has been highly criticized recently as one of the factors that has contributed to soaring consumer power bills in the province.

The new rules will limit the offer price of natural gas generating units owned by large providers, if net revenues cross a predefined threshold. They will also require natural gas generating assets to be made available in certain circumstances such as extreme weather and other times of peak demand.

Neudorf said the changes will still allow generators to earn revenue while ensuring Albertans have access to affordable and reliable power.

This report by The Canadian Press was first published March 11, 2024.

READ MORE: Lethbridge News Now

If you have a news tip, question or concern, please email Lethbridge.newsroom@Pattisonmedia.com.

For local news delivered daily to your email inbox, subscribe for free to the Lethbridge News Now newsletter here. You can also download the Lethbridge News Now mobile app in the Google Play and the Apple App Stores.