Alberta Energy Glossary
Alberta electricity markets can seem like a sometimes incomprehensible alphabet soup of acronyms and specific terms. Here is a glossary of common words and acronyms you will come across when learning about energy in Alberta.
Did you know that you have a choice of your energy supplier in Alberta? Learn more about the retail energy market in Alberta and your energy options
A
Alberta Electric Systems Operator (AESO): the AESO is a not-for-profit corporate entity created under the Electric Utilities Act that is responsible for operating Alberta's energy grid, matching supply to demand throughout the province. It operates Alberta’s wholesale electricity market, and plans and develops the provincial transmission system. Find out more about the AESO and other agencies in Alberta's residential energy markets
Alberta Utilities Commission (AUC): the AUC is an independent, quasi-judicial administrative tribunal created by provincial law . It regulates investor-owned electric and natural gas utilities, and is responsible for ensuring that utility service in Alberta is delivered a safe, reliable, and fair manner. Find out more about the AUC and other agencies in Alberta's residential energy markets
Ampere: an Amp is the unit used to measure electric current. Find out how to calculate an appliance's energy consumption based on Volts and Amps.
B
Balancing Pool: the Balancing Pool is an independent corporate entity that was established to manage certain assets, revenues and expenses (primarily related to generation) that arose from the transition to competition in Alberta's electric industry. It manages these generation assets on behalf of all Albertans
British thermal unit: a Btu is an imperial measurement unit that represents the amount of heat that is needed to raise a pound of water by one degree Fahrenheit. Btu is often used by the HVAC industry to indicate an air conditioner's cooling capacity. Find out how to calculate the energy consumption of an air conditioner based on Btu.
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Competitive price company: an energy marketer in Alberta whose rates are not regulated but who is licenced by Service Alberta under the Fair Services Act.
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Electricity: electricity is the flow of electrical charge or power. The Electric Utilities Act defines electricity as "the capability of electricity to do work, measured in kilowatt hours"
EnerGuide: a government of Canada label that indicates the efficiency of an energy-consuming appliance or product. Learn more about EnerGuide and ENERGY STAR
ENERGY STAR: the ENERGY STAR label, which began in the United States indicates higher-than-average levels of energy efficiency, based on Natural Resources Canada (NRCan) standards.Learn more about EnerGuide and ENERGY STAR
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Floating Rate
Flow-Through Price: the flow through price for electricity is the hourly pool price plus charges that take into account line losses, unaccounted for energy, load shaping charges, and spot trading charges. Learn more about the flow-through price for electricity
Forward Market: a forward market is where a commodity (such as electricity or natural gas) is bought and sold before it is produced. In a physical forward market electricity is delivered in the real-time wholesale market but payments are made outside of it. In a forward financial market financial contracts derived from the electricity commodity are traded.
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Hourly Pool Price: the weighted average of the system marginal prices for electricity.
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Kilowatt (kW): a kW (equal to 1000 Watts) is a measure of the rate at which electric energy is used or generated. Learn about the difference between a kW and kWh)
Kilowatt Hour (kWh): A kilowatt hour is a measure of electricity, equivalent to the amount of energy used at a rate of one kilowatt over an hour. Learn more about the difference between a kW and kWh)
L
Load: the instantaneous amount of electricity delivered or required at any specific point/zone/site in an electricity system. In other words, load refers the demand for power on an electricity system. Load can refer to the amount of electricity consumed within an entire electricity system, or for a specific point within it, such as a service territory, a town, or a house.
Load Limiter: a device (usually connected to a meter) that limits the amount of energy that a site can consume. Learn more about what happens when you don't pay your energy bill in Alberta.
Load Settlement: the process of allocating required hourly energy for consumption at a point/zone/site.
Local Access Fee (LAF): also known as "franchise fees", "municipal consent and access fees", or "municipal franchise fees", this is charged by your local municipality for the electric utility to use the municipal land for the electric distribution system and/or for the right to be the exclusive distributor for the area.Find out more about Local Access Fees in Alberta
Line Loss: the heat energy that is lost when electricity travels along high voltage lines
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Market Surveillance Administrator (MSA): the MSA is an independent enforcement agency that protects and promotes competition in Alberta wholesale and retail electricity markets and in retail natural gas markets. It has the power to recommend fines and penalties to the AUC. Find out more about the MSA and other agencies in Alberta's residential energy markets.
Merit order: the ranking (of lowest to highest bid) that the AESO uses to match electricity demand and supply on the power pool
Meter: a device that measures energy consumption as it is being used by a home or a business. Find out how to read your electricity or gas meter in Alberta
Meter reading type: the type of meter that was taken for a billing period: ACT for actual, EST for estimate, etc
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P
Peak load: the peak load is the period of time when electricity systems experience the highest demand. In Alberta this is usually in the mornings between 6:00 a.m. and 9:00 a.m., and in the evenings between 6:00 p.m. and 9:00 p.m.
Power Pool: this is the wholesale market upon which all electricity in Alberta is bought and sold. It is open-access, and since 2003 has been operated by the AESO
Pool price: the real-time cost of electricity that is bought or sold on the Power Pool
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R
Rate rider: a temporary charge or credit that is approved by the AUC and added to customer bills in order to account for differences between estimated and forecasted prices. Rate riders are used for payment for electricity distribution and transmission, and for gas transport, distribution, and supply.
Regulated rate provider: the default energy supply company for customers who do not choose to purchase a contract for their electricity or gas supply
Regulated Rate Option (RRO): the default rate that Alberta consumers (who use less than 250 000 kWh electricity per year) pay for their electricity supply, when they do not choose to purchase an electricity contract.
Retail energy market: the final sale of electricity or gas to the end-use consumer
Retailer Adjustment to Market: an adjustment made by the AESO to all retailers in a load settlement zone to better reflect updated and accurate consummption data
Rural Electrification Associations (REA): utilities that own and operate electric distribution systems for the benefit of their own members. Learn more about the REA and other actors in Alberta's electricity markets
S
Spot market: the real-time market where commodities are bought and sold for immediate transfer (compare with forward markets
Spot Trading Charge: this is a fee that the AESO charges per Megawatt hour for all electricity that is traded in the power pool
System marginal price: the price at which supply and demand meet in Alberta's power pool. The SMP is calculated every minute, and each hour is averaged to make the Hourly Pool Price
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U
Unaccounted For Energy (UFE): the difference between the total load of a distribution system and the sum of the allocated hourly loads at the customers' meters
Uplift Payment: the term 'uplift' can refer to the services that are a part of electricity markets (such as reactive support and black start capability) but are not priced in the same way as electricity supply and are charged in a different (usually ad-hoc) way. In Alberta, the uplift payment is the difference between the pool price paid to the generator and the generator’s offer price. The AESO charges uplift costs to electricity purchasers.
Utility (electric): an electric utility is any generation unit, transmission facility, or electric distribution system that is used directly or indirectly for the public or for members of a rural electrification association (may also be known as the wires services provider). Find out more about electric utilities in Alberta.
Utility (gas): a natural gas utility refers to any gas pipeline, transmission, or distribution system that is used to provide supply directly or indirectly to any member of the public. Find out more about gas utilities in Alberta.
Utilities Consumer Advocate: the UCA represents the interests of electricity and natural gas consumers by providing information and energy-related services to Albertans. Learn more about the UCA and other agencies in Alberta's residential energy markets
V
Vertical integration: when speaking of a natural gas or electricity utility, vertical integration refers to companies that are involved in multiple stages of the electricity or gas system (generation/exploitation, transmission, distribution, and retail). Most regulated rate suppliers of electricity and gas in Alberta began as vertically-integrated companies before Alberta's retail energy markets restructed
Volt: a volt is a unit of electric potential or electromotive force. Canadian electrical sockets usually supply electricity between 110V and 120V. Find out how to calculate an appliance's energy consumption based on Volts and Amps
W
Watt: a Watt is a measure of power, equal to one Joule/second. When speaking of electricity, it refers to the rate at which electrical energy is used or generated. Learn about the difference between W, kW, and kWh)
Wholesale market: also known as the power pool, this is where electricity is bought and sold in Alberta. It functions as a spot market, and matches demand and supply at the lowest possible price. Buyers pay and suppliers receive the hourly pool price for electricity.
Wire services provider: the owner and operator of the electricity transmission and/or distribution infrastructure in a certain service territory (also known as the utility)
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