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The proposed bill is intended to restore investor confidence in Alberta’s electricity system.
Legislation enacted by the previous government would have seen the transition to a capacity market in 2021. In July, government followed through on a platform commitment to review this planned transition and – after consulting with a cross-section of stakeholders – announced the decision to maintain the province’s energy-only market.
During the consultation process, stakeholders voiced strong support for the energy-only market, saying it offers structural and administrative simplicity, and has a proven track record for providing both affordable electricity and a reliable supply of electricity. Investors expressed confidence and a willingness to invest in an energy-only market, saying it is established and understood, which offers greater certainty regarding its future performance.
“We promised we would act quickly to amend the necessary legislation to return to an energy-only market and bring back investor stability, and we are delivering on that promise.”
If passed, Bill 18 would amend the Alberta Utilities Commission Act, Electric Utilities Act and Hydro and Electric Energy Act to remove reference to the capacity market.
Subsequently, various regulations that extended existing electricity policies to the capacity market would be amended and the Capacity Market Regulation would be repealed.
Alberta has been operating an energy-only market for electricity since 1996. Maintaining an energy-only market does not have direct costs to government.