Alberta Utilities Commission

The Alberta Utilities Commission (AUC) is an independent body created by the 2008 Alberta Utilities Commission Act that is responsible for regulating utilities in Alberta, namely electric and natural gas utility service.

What is the AUC?

The AUC is a quasi-judicial administrative tribunal that 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. In its own words,

What Does the AUC Do?

The AUC works in the following areas:

The AUC and Regulatory Policy

The AUC makes rules and establishes standards of practice for retail electric and natural gas service through a consultative process with stakeholders and other interested parties. Consumers are typically represented in these processes by the Utilities Consumer Advocate. It also conducts research on regulatory policy and practice in order to stay up to date with current and emerging policy issues.

The AUC and Utility Rates & Terms of Service

The electricity transmission and distribution sections of the electricity market in Alberta are fully regulated, as the economies of scale make them natural monopolies. The role of the AUC is to act as a substitute for competition when approving their rates. The AUC must be satisfied that prices proposed by utilities reflect the cost of providing service (not market prices), including a reasonable opportunity for utilities to recover costs and receive a fair return on investment.

The AUC takes a slightly different approach in setting the regulated rate option (RRO) for residential electricity supply. RRO rates must be just, prudent, and market-based, and the AUC must be satisfied that RRO providers’ expenditures in providing service are reasonable.

The AUC and New Utility Facility Construction

All proposals for new electric generation, transmission, or distribution facilities in Alberta must be approved by the AUC before they are built. The AUC considers the siting of the facility, as well as the social and environmental impacts, and the econoomic implications for rate payers when making its approval for new projects. This also applies to new natural gas transmission pipelines.

The AUC can also investigate in any disputes encountered relating to microgeneration.

The AUC and Markets

The AUC is responsible for hearing objections and complaints regarding market rules and standards, and adjudicates in the event of contraventions of electric or gas utility legislation.

The AUC and Consumer Concerns

The AUC will hear of any consumer concerns with regards to the areas of its work. Find out more about the AUC's role in resolving disputes with utilities.

Who Does the AUC Regulate?

Electricity Markets

The AUC regulates both the Alberta Electric System Operator (AESO) and the Market Surveillance Administrator (MSA). Among other tasks, the AUC has established penalties that the MSA is able to impose and adjudicates cases brought to it by the AESO and the MSA. The AESO also approves the rates and terms of conditions of the AESO's service.

Electric Generation and Transmission Facilities

The AUC regulates the transmission rates charged by AltaLink Management Ltd, as well as plans for new generation and decommissioning of old generation (which includes TransAlta Corporation and Micro-Generation facilities).

Electricity Utilities

Rates for electricity distribution and RRO electricity supply from both investor-owned distribution companies (such as ATCO Electric Ltd., Direct Energy Regulated Services, FortisAlberta Inc., and EPCOR Energy Services) and municipally-owned electric utilities (ENMAX Power Corp., ENMAX Energy Corp., EPCOR Distribution Inc., & EPCOR Energy Services) are regulated by the AUC. The AUC also regulates their terms and conditions of service.

Natural Gas Utilities

The AUC regulates the terms and conditions of service as well as the rates for natural gas utilities in Alberta (AltaGas Utilities Inc., ATCO Gas, and Direct Energy Regulated Services).

Natural Gas Pipeline Transmission

The AUC regulates tariffs, terms and conditions and new construction of pipeline transmission in Alberta (ATCO Gas & Pipelines Ltd., AltaGas Utilities Inc., & NOVA Gas Transmission Ltd.)

Water Utilities

The AUC also regulates investor-owned water utilities, including CU Water Ltd., Langdon Waterworks Ltd, Regional Water Service Ltd, and Westridge Utilities Inc., setting their rates and terms of service.

The AUC Does Not Regulate The Following:

• Rural Electrification Associations (REA)
• Municipally-owned utilities: such as The City of Medicine Hat Electric & Gas Utilities, the City of Lethbridge Electric Utility, the City of Red Deer Electric Utility, and others. The AUC does, however, regulate ENMAX in Calgary and EPCOR in Edmonton
• Natural Gas Co-ops
• Competitive retailers

History of the AUC

The AUC's origins lie in the Alberta Public Utilities Board (PUB), which was created in 1915. The PUB was the first regulatory agency in Alberta that had the primary responsibility of regulating utility service and rates. At the time the PUB had a fairly broad jurisdiction, and regulated not only energy utilities but also other matters such as provincial railway tariffs, the sale of shares and securities within Alberta, and telecommunications rates. This changed over time as Alberta energy legislation developed, and in 1995 the PUB was merged with the Alberta Energy Resources and Conservation board to form the Alberta Energy & Utilities Board (EUB), in order to streamline the regulatory process. After the Alberta electricity markets restructured (1996-2004), the EUB also changed, and in 2008 was split into two new bodies: the Alberta Utilities Commission and the Alberta Energy Regulator.

Find out more about the history of Alberta energy regulation

Contact the AUC

AUC Customer Relations

Phone 780-427-4903

To call toll-free, dial 310-000, then enter the 10-digit number (780-427-4901), and press 1

Email: [email protected]

AUC Calgary Head Office

Fifth Avenue Place
Fourth Floor, 425 First Street S.W.
Calgary, AB T2P 3L8
Phone: 403-592-8845 (UTIL)
Fax: 403-592-4406

Hours of operation: 8:00 a.m. to 4:30 p.m.

AUC Edmonton Head Office

10th Floor, 10055 106 Street
Edmonton, AB T5J 2Y2
Phone: 780-427-4901
Fax: 780-427-6970
Hours of operation: 8:00 a.m. to 4:30 p.m.