breadcrumb trail link
columnist
Published May 8, 2024 • 3 minute read
Register for free here to save this article. Or sign in if you have an account.
The sun sets as the sky casts a reddish glow behind power lines along Anthony Henday Dr. on May 5, 2021 in Edmonton. Photo by Ed Kaiser/Postmedia
Article content
In Japan, when a Shinkansen bullet train arrives at its destination more than a minute late, an investigation is immediately launched, the results of which are quickly made public, and an apology and plan to address the problem are announced.
But when Alberta's power grid was pushed to the brink for three nights in January, prompting emergency alerts warning consumers to conserve power or face the consequences, the response that followed was nothing short of rhetorical. There were many, and accountability was low.
Advertisement 2
This ad has not yet loaded, but article continues below.
This content is only for subscribers
Subscribe today to read the latest news in your city and across Canada.
Exclusive articles from David Staples, Keith Gerein and more, Cult of Hockey's Oilers news, Ask EJ Anything feature, Noon News Roundup and Under the Dome newsletter. Get unlimited online access to the Edmonton Journal and his 15 news sites with one account. The Edmonton Journal ePaper, an electronic replica of the print edition that you can view, share, and comment on on any device. Daily puzzles including the New York Times crossword. Support local journalism.
Subscribe to unlock more articles
Subscribe today to read the latest news in your city and across Canada.
Exclusive articles from David Staples, Keith Gerein and more, Cult of Hockey's Oilers news, Ask EJ Anything feature, Noon News Roundup and Under the Dome newsletter. Get unlimited online access to the Edmonton Journal and his 15 news sites with one account. The Edmonton Journal ePaper, an electronic replica of the print edition that you can view, share, and comment on on any device. Daily puzzles including the New York Times crossword. Support local journalism.
Register/Sign in to unlock more articles
Create an account or sign in to continue your reading experience.
One account gives you access to articles across Canada. Share your thoughts and join the conversation in the comments. Enjoy additional articles every month. Receive email updates from your favorite authors.
Sign in or create an account
or
Article content
Article content
Politicians were quick to use the event as evidence for or against renewable energy, but their biggest failure after the outage was to ignore the place that hurt electricity consumers the most: their wallets. That was it. While residents across Alberta did their part to keep their neighbors safe and switched to 250 megawatts of electricity generation, electricity prices hit a $1,000/MWh cap, 10 times the average price.
A review of the technical documentation for this event shows that Alberta's pricing mechanism and the Alberta Electricity System Operator's (AESO) own operating procedures were in place despite the grid's own forecast showing a potential shortage two days in advance. It seems like it may have made the situation worse. caveat. But have you heard an apology or a plan to fix it?
It's important that Alberta's electricity consumers have real power and resources to influence decisions about the electricity sector that directly impact their finances and quality of life.
The sad truth is that this situation is just one example in a series of ways that Alberta's power system has treated consumers, and it's an afterthought. Albertans already pay some of the highest electricity rates in Canada. This is twice his national average. As spring approaches, we expect new research and policy announcements regarding changes in the electricity sector, largely due to the lack of consumer input.
headline news
Thank you for registering!
Article content
Advertisement 3
This ad has not yet loaded, but article continues below.
Article content
It wasn't always like this. Prior to deregulation in 2000, the government consulted with consumer groups ranging from large industrial, commercial, and institutional users to specialized agricultural organizations. For organizations with limited resources, the government provided financial assistance to help them participate.
Unfortunately, consumer opposition to some of the electricity industry's initiatives has led the government to scrap this support and establish its own consumer advocacy group. But given its constrained mandate and ever-shrinking budget (currently less than 0.05 per cent of Alberta's $15 billion annual spending on electricity supply, transmission and distribution), it's not exactly the champion consumers need.
For Alberta electricity consumers in 2024, there are two main barriers to asserting their interests. The first barrier to participation in the average Alberta power system is its complexity. This is due to a complex web of players operating in regulated or deregulated spaces, each with their own priorities and agendas, market design, and the Alberta Public Utilities Commission (AUC). Hearing process involving consumers.
Advertisement 4
This ad has not yet loaded, but article continues below.
Article content
The second is the ultimate inability to effect change. Other than attending meetings where clients cannot participate or reading after-action reports where they cannot influence the outcome of an investigation, there is no way to ensure that clients represent their interests or exercise power over the decision-making process. There is no meaningful way to do this. .
Additionally, in 2008, the AUC was directed by the government to severely limit eligible consumer engagement and has also been constrained in assessing the impact of its decisions on consumer costs. Taken together, these actions have deprived average Albertans of an effective voice at the table in making important decisions about the grid. Even worse, it suggests that the government is actively undermining them, while frequently touting their intentions to “protect Albertans.”
As January 13 showed, Albertans are willing to support the power system through financial and conservation efforts. It's time for them to be rewarded with transparency, accountability and a seat at the decision-making table.
This is what Alberta's most diverse and representative coalition of electricity system stakeholders put forward in Leading the Charge: A Vision for Alberta's Electric Future. (https://energyfutureslab.com/publications/leadingthecharge/).
Advertisement 5
This ad has not yet loaded, but article continues below.
Article content
The time has come for governments to realize that without consumers there is no electricity market. Consumers deserve a voice and influence that reflects their investments and commitments. It's time to give them that power.
Sheldon Fulton is an energy market consultant based in Calgary who has played an active role in the development of Alberta's electricity market since 1996. He also participates in the Energy Futures Lab (https://energyfutureslab.com)'s “The Future of Electricity in Alberta.” (https://energyfutureslab.com/innovation-challenges/albertas-electricity-future) Initiative.
Article content
Share this article on your social networks
