Beyond the energy you use, you can also see charges that help support infrastructure maintenance and upgrades, as well as other fees related to energy.
Distribution Charge
Pays
for: The costs related to building and maintaining the distribution system as well as general utility operations. Distribution fees support networks or pipelines that move energy around the communities to your home or business where it will be used.
Details: This charge is collected on behalf of the local wires owner to help cover delivery related costs. It is charged regardless of which retail company you choose to supply electricity or natural gas. These charges are reviewed and approved by the regulator for your service area.
Transmission Charge
Pays for: Upgrades and maintenance for the wires and infrastructure that moves electricity from generation facilities to the Alberta communities where it’s used.
Details: This charge is collected on behalf of the Alberta Electricity System Operator. All Albertans and industry pay transmission fees, which can vary based on several factors. These charges are reviewed and approved by the regulator for your service area.
Balancing Pool Allocation
Pays for: Balancing cash flow associated with power purchase arrangements (PPA) and related events resulting from deregulation.
Details: Created by legislation, the balancing pool allocation hands back the costs and benefits of PPAs and related events resulting from deregulation to ratepayers.
Rate Riders
Pays for: Adjustments to compensate for differences between the actual cost of electricity or natural gas and the approved rate for the service.
Details: Riders can be either a credit or a charge depending on the market conditions and are set by the Alberta Utilities Commission.
Local Access/Municipal Franchise Fee
Pays for: Use of municipal land for electricity or natural gas equipment or the right to be the exclusive distributor for an area.
Details: This fee is collected by electricity or natural gas companies but is set by municipalities and can be based on a percentage of the energy or the delivery charge.