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Part of Development

Premier’s Review of the Alberta Energy Regulator

Report with recommendations to support continuous improvement of the Alberta Energy Regulator (AER).

Background

Based on the 2023 Energy and Minerals mandate letter, the Government of Alberta (GoA) conducted a review of the Alberta Energy Regulator (AER) as part of continuous improvement to help ensure public and environmental protections, and provide the certainty required by industry to responsibly develop Alberta’s resources.

The AER regulates one of the world’s most dynamic energy sectors with an ongoing focus on improvement. As the energy industry evolves, it’s important that the regulatory processes in the province keep pace with these changes in the best interest of Albertans.

Review Process

The internal review was led by Bob Curran and included cross-ministry interface and coordination, and analysis of the activities of AER personnel relative to its mandate and the expectations of government and external partners.

The external review was led by David Yager and included specific programs, policies, directives and procedures, and their suitability to the challenges, needs, and expectations of Alberta and external stakeholders in 2023 and beyond.

Read the Final report: Premier’s review of the Alberta Energy Regulator

Recommendations

In total, 40 recommendations were made and the following recommendations have been completed:

  • Re-established the AER as an independent, arm’s-length regulator, including the appointment of a new chief executive officer (CEO) and new board members. Formal engagement between the AER Board and the Minister of Energy and Minerals has been re-established to ensure effective policy guidance.
  • Reconstituted the AER Board of Directors with the addition of members with more directly-related experience and technical qualifications. In April 2024, four new board directors were appointed.
  • Created a dedicated Board Secretariat to support board initiatives.
  • Strengthened long-term planning and strategic alignment through scheduled meetings and formalized interactions between the AER and the GoA:
    • The AER CEO and Board Chair meet monthly with the Ministers of Energy and Minerals and Environment and Protected Areas.
    • The full AER Board meets quarterly with the Ministers to review progress, alignment, and strategic direction.
  • Adjusted board compensation levels in November 2024 to better align remuneration with board member qualifications, experience and responsibilities.
  • Enhanced the CEO and Executive Engagement by developing and implementing a comprehensive annual stakeholder engagement plan, involving industry partners, environmental non-governmental organizations, and other key stakeholders.
  • AER Board drafted a long-term strategy and budget for 2025–26, including increased funding for technical staff and development to keep current on technology and best practices.
  • Reviewed and enhanced the AER technical excellence plan to meet evolving organizational capabilities.
  • Evaluated the Integrated Decision Approach (IDA) to enhance risk-informed decision making.
  • Reviewed and strengthened the Engagement and Communications framework in alignment with the report recommendations.
  • Initiated review of legislation and policy gaps to help enhance AER performance.
  • Continued to reduce regulatory burden and streamline regulatory requirements to improve responsiveness to industry while maintaining public and environmental safety.
  • Committed to developing AER strategic performance metrics aligned with GOA mandate to help measure and maintain a high standard of regulation.
  • AER Board reaffirmed alignment with its mandate to provide leadership in the development of Alberta’s resources in the interest of all people in Alberta.
  • Identified areas to refine Indigenous Relations work to better reflect AER’s regulatory role. Updates will be captured in the revised strategy.
  • The AER is no longer restricted to the non-union compensation framework and parameters provided through the Public Sector Employers Act and its Ministerial Orders, to reflect fair market value in order to compete for skilled and experienced staff. 

Next Steps

The Government of Alberta is assessing its next steps on the other recommendations.

This page will be updated as further recommendations are implemented.