Table of contents

Status: Received royal assent on October 30, 2019
Ministry responsible: Energy


The Electricity Statutes (Capacity Market Termination) Amendment Act stops the implementation of the capacity market by returning to an energy-only market to restore investor confidence and certainty in Alberta’s electricity system.

The energy-only market has been in place for 20 years and has a proven track record of providing affordable and reliable electricity to Albertans.

The decision to return to an energy-only market is the result of overwhelming stakeholder support to remain with a system that is already in place, is familiar to use, and offers greater certainty regarding its future performance.

The key difference between an energy-only market and the capacity market, which was expected to be in place by 2021, is how electricity generators are paid:

  • in an energy-only market, generators are paid only for electricity they produce in real time when it’s required
  • in a capacity market, generators are paid for their ability to produce electricity, as well as for the electricity they produce and sell in real time

Key details

The act amends the Alberta Utilities Commission Act, Electric Utilities Act and Hydro and Electric Energy Act to remove reference to the capacity market.

Various regulations that extended existing electricity policies to the capacity market will be amended and the Capacity Market Regulation will be repealed.

Next steps

The act came into effect on October 30, 2019.


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