THE NEW REGULATED RATE OPTION (RRO)
QUESTIONS AND ANSWERS
JULY 2006

What is a Regulated Rate Option (RRO)?
The RRO applies to all households and small businesses that have not chosen to enter into an energy plan with a retailer. The owner of the local distribution system is required by legislation to provide the RRO to eligible customers (residential and small commercial customers who consume less than 250,000 kWh of electricity each year) in their service area. ENMAX Power is the local distribution company in Calgary. Anyone who has not chosen to enter into an energy plan with a retail supplier receives the RRO by default.

Why is the RRO changing?
The change to the RRO is the next step in the Alberta Government’s deregulation plan.  The first stage was introduced July 1, 2006 and the full transition will be completed over the next five years.  These changes are meant to ease customers into a fully deregulated market where they will experience true electricity market prices.

What does the new RRO look like?
The new RRO will contain a variable portion (on the energy component of the bill) that can change each month, similar to how gas prices are set on a monthly basis. As a result customers’ electricity bills may fluctuate month to month rather than quarterly or yearly as they have in the past.

Each year, until 2011, the Regulated Rate Option will contain an increasingly large proportion of the bill that varies monthly, with the remainder being set annually.  By 2011, the variable rate portion of the RRO will be 100%.  At that time, the RRO will reflect true monthly electricity market prices.

What can customers do?
ENMAX Power, through its RRO provider, is the company responsible for providing the RRO in Calgary and fully supports the competitive market for electricity and consumers' rights to choose their own energy plan.

Customers have options regarding their energy bill.  They are:

• Choose to do nothing and receive the default RRO, which may fluctuate each month.
• Choose an energy plan that can offer control over energy costs and fixed prices over longer terms.  Information on these is available at www.ucahelps.gov.ab.ca or call 310-4822.