Transforming the utilities system

Overview

The Energy and Utilities Statutes Amendment Act, 2025 (formerly Bill 52), will enable key regulatory changes to Alberta’s utilities system that will allow hydrogen blending in the natural gas distribution system, and support critical updates to Alberta's power market rules and transmission policies to help meet growing demand, stabilize utility bills, prioritize reliability and affordability and encourage investment in the province.

The act will also strengthen the power grid by implementing a day-ahead reliability market which will ensure there is enough power available at all times, significantly reducing the risk of future grid alerts. Alberta’s government is working closely with industry and the Alberta Electricity System Operator (AESO) on a new market structure that prioritizes reliability and investment to be implemented in 2027. 

This change is required because the electricity system was originally designed for a smaller number of power plants. The transition away from coal to add more power from natural gas and renewables has added to system complexity. Demand has also increased with population and thriving industries.

The legislation will also support the implementation of the 'Rate of Last Resort', which was introduced earlier this year to protect Albertans not on a competitive electricity contract from unpredictable power price spikes.

Key changes

The Energy and Utilities Statutes Amendment Act, 2025 will:  

• remove barriers to allow hydrogen blending in the natural gas distribution system for residential and commercial heating to support new technologies while ensuring the safety and reliability of the system
• implement the necessary legislative framework to support the implementation of a Restructured Energy Market to prioritize reliability, strengthening the grid so that Albertans can get the power they need regardless of the weather
• update transmission policies to maximize the use of lines already in service and implement a cost-causation model, so Alberta ratepayers no longer have to pay the full cost of new transmission lines
• streamline the process to connect with other jurisdictions, reducing red tape and enabling critical improvements
• amend the Petroleum Marketing Act to increase the number of board members for the Alberta Petroleum Marketing Commission
• strengthen the authority of the Minister of Affordability and Utilities to support the ongoing implementation of the Rate of Last Resort 

Next steps

The amendments to the acts will come into force on various dates.

The Restructured Energy Market is expected to begin in 2027. In the meantime, temporary measures were put in place on July 1, 2024 to ensure Albertans have reliable power and predictable utility bills.

News

• Fueling innovation, strengthening Alberta’s grid (April 10, 2025)