COLD LAKE – City of Cold Lake councillors unanimously passed a motion to send a letter to the Alberta Minister of Affordability and Utilities, Nathan Neudorf, expressing the municipality’s concerns regarding the growing disparity in electricity distribution charges between northern and southern Alberta communities.
The motion, passed during the Oct. 22 regular council meeting, follows discussions at the Oct. 15 Corporate Priorities Committee meeting where officials highlighted a need to address the rising costs for customers in ATCO territories.
“This item comes to us by way of Grande Prairie, who is spearheading a campaign in an attempt to equalize electricity distribution charges across Alberta,” said Andrew Jabs Manager of Land Use, Planning, and Development with the City of Cold Lake.
Jabs explained that the disparity is particularly acute for northern Alberta, where customers in ATCO territory pay two to three times the distribution charges of those in other areas.
Grande Prairie representatives had first raised these concerns at the Alberta Municipalities Fall Convention, noting the discrepancy places significant financial strain on residents and businesses.
Jabs detailed the source of the issue, explaining, “These distribution charges are divided between customers based on a cost recovery model that is set by the Alberta Electrical Systems Operator, or AESO, and this means that rural customers do pay more to offset the increased unit cost of servicing rural locations.”
He added, “Grand Prairie is arguing that the disparity puts residents and businesses in the ATCO territory, which tends to be in the north of the province, at a significant disadvantage.”
Grande Prairie’s advocacy has intensified, as other provinces - namely British Columbia, Saskatchewan, and Manitoba - have already moved toward equalized distribution charges. "They also argue that since about 60 per cent of the energy used in the ATCO service area is used by industry . . . distribution costs should be shared equally across the province," Jabs shared, reflecting Grande Prairie’s position that the north’s industrial output contributes to the province’s economic stability and should be met with equitable costs.
Several councillors expressed support for pursuing a more fair system, highlighting the impact it could have on Cold Lake residents.
Coun. Chris Vining voiced his support, stating, “I support a better plan for within the province. I’m not exactly sure which way this goes but considering that your rural areas . . . especially in northern Alberta, are providing so much of the energy and stuff that goes into the southern municipalities.”
He emphasized that northern Alberta’s economic contributions, including resource development and agriculture, benefit the whole province and should be factored into the distribution model. “You can’t do these things without power and electricity . . . so much of what happens up here . . . originates up in our areas.”
Coun. Ryan Bailey also shared personal insight on how the charges affect residents, explaining, “I just did the quick math on mine, my distribution charges were 44 per cent of my bill on the last utility bill.”
He added, “I only used $40 worth of energy, but I paid $130 worth of distribution . . . there’s got to be a better way to help people out.”
Council approved a motion to send a letter to the Alberta Minister of Affordability and Utilities.
