Government regulation changes have led to regulatory scrutiny of our operations by the Alberta Energy and Utilities Board (EUB). We continue to work through this evolving process and the results of recent EUB decisions.
Regulation In Calgary
Starting in January 2004, regulatory approval of ENMAX Power was transferred from The City of Calgary to the fully independent Alberta Energy & Utilities Board (EUB), a part of the Alberta government. This is the regulated side of ENMAX’s business, and involves filing regulatory applications with associated tariffs to the EUB. These are examined and challenged in hearings that are open to the public.
ENMAX Power charges electricity retailers for the delivery of power. Retailers pass these charges on to their customers. These charges are outlined in our Distribution Tariff. The Regulated Rate Tariff is offered to residential and small business consumers that consume less than 250,000 kWh/year. ENMAX Energy administers this service on behalf of ENMAX Power.
The EUB regulates the safe, responsible, and efficient development of Alberta’s energy resources, including electrical energy – and the pipelines and transmission lines that move the sources to market. A primary EUB role is to adjudicate and regulate energy developments and utility rates, providing a public forum for people who may be interested by proposed developments and rate changes.
The EUB sets a standardized approach to the rate of return for ENMAX Power and all other gas and electric distribution companies. In 2004, that rate of return is set at 9.6 per cent. The margin the EUB sets for the regulated rate tariff (RRT) is less than two per cent.