Exploring advanced electricity rate options

Learn about EPCOR’s study on advanced electricity rate options and what people in Edmonton said. Advanced rates are pricing options that go beyond the traditional flat rate per kilowatt hour.

About this study

EPCOR carried out a three-phase research project, with support from Natural Resources Canada to:

Figure out what changes are needed to electricity meters so they can measure customer demand (the highest amount of electricity used at one time).
Explore different types of demand-based billing options – different ways to charge customers based on when they use the most electricity.
Learn about how Edmontonians feel about demand based billing options.

Why this matters

EPCOR was directed by the Alberta Utilities Commission to study advanced rate structures and explore the options to demand based billing. This included exploring the cost to build and implement a metering system to measure demand for residential and small commercial customers.

The goal is to better understand the impact advanced rate structures on EPCOR’s systems and understand customer perspectives.

The research also included:

Reviews of advanced rate programs in other parts of the world.
Exploring the different alternatives for providing demand-based rates.
Focus groups with Edmonton residents.
A survey of 641 Edmonton residents who pay electricity bills.

west edge of Haddow looking north toward Cameron Heights

What we learned

As a part of this project, we learned:

Advanced rate structures are technically feasible using EPCOR’s existing Advanced Metering Infrastructure, but has cost and regulatory challenges.
Costs range from under $0.5 million for simpler models to $74 million for complex designs that require hardware replacements.
There are no “perfect” rate designs. Alberta’s non-regulated energy market must be considered when selecting advanced rate options for residents and small businesses.

This study also asked people in Edmonton what they know and what they think about advanced rate options.

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75% know that the time of day they use electricity can affect the grid.

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52% believe the grid is sometimes at risk of becoming overloaded.

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66% know that advanced or smart meters exist, but fewer know what they do.

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50% have heard of rate options where costs change based on when electricity is used.

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85% say they would change their electricity use to save money, but only if they save about 30%.

What makes advanced rate options successful

Along with what we learned about successful advanced rates elsewhere, people in Edmonton also shared what they think is needed for advanced rate options to work in the future.

Clear, easy-to-understand bills

Half of Edmonton residents say their electricity bill is easy to understand. About one-quarter say it is hard to understand.

People who understand their bill are more likely to:

Understand how the electricity system works.
Feel confident comparing new rate options.
Support changes when the benefits are clear.

Education

Clear communication helps people understand how the grid works and what benefits advanced rate options might offer.

Some people see benefits like more control, lower electricity use, and saving money. Others worry the options may not help customers. Many want more transparency and fairness, especially if they find their bills confusing.

Easy to manage, with clear savings

Convenience is the biggest barrier. Even when people want to make better choices, changing electricity use can be hard.

What Edmonton residents want?

Easy‑to‑use tools that show real‑time use and costs.
Flexibility in how they manage their electricity.
Pilot programs that clearly show real savings.

Reassurance of transparency and fairness

Trust and fairness play a big role in whether people would accept these types of rate options.

What we’ve learned from other places in the world that use these options:

Problems often come from unclear communication and weak customer protections, not from the idea of new rate options.
Strong programs use clear bills, phased implementation, opt‑out choices, and customer protections.

What this means for customers

This research shows what customers would need before advanced rate options could be explored.

Customers would need:

Clear, easy‑to‑understand electricity bills.
Simple explanations of how savings work and where they will show up.
Financial incentives that feel meaningful.
Protections for people who cannot easily change when or how they use electricity.
Chances to learn and take part in phased implementations.

These possible rate options are not mainly a technology challenge. They are about trust, understanding, and fairness.

What's not changing

This study explores ideas for rate options in the future, but it does not make any changes for customers. It is only meant to help us learn more about what will be required to implement advanced rates, and what people need and what might work.

No decisions are being made at this stage.
Customers do not need to take any action.
More work and learning will be required before any future steps are considered.

Improving and modernizing the grid

This study shows our commitment to:

Understanding public readiness before making any changes.
Learning from what worked and what did not work in other cities and regions.
Connecting grid modernization with affordability, reliability, and customer trust.

“Through the feasibility study, we are working to better understand if advanced, customer-focused rate options have the potential to reduce peak demand and make better use of the grid we already have, while giving customers clearer information, more choice, and more control.”

- Kirstine Hull, Senior Vice President, Electricity Services, EPCOR

People in Edmonton want electricity to stay affordable and reliable. Many are willing to change how they use electricity to support this. But they will only support changes if there is trust, understanding, and fairness.

This research shows that people need understanding and trust before they are asked to change how they use electricity.

Study documents

These reports share the findings from the feasibility study. They include customer feedback and research from around the world.

Executive Summary (Prepared by Stone Olafson)

EPCOR Demand-Based Rate Consolidated Research Report – Summary of all five reports that support the study on advanced rates

Assessment of System Readiness (Prepared by Power Advisory)

Module A Report – Demand-Based Rates Feasibility Study
Module B Report – Jurisdictional Scan (Rate Types in Market)

Stakeholder Engagement Summaries (Prepared by Stone Olafson)

Summary of Market Readiness Research – Summary of Customer Engagement
Global Jurisdictional Scan
Local Voice: Qualitative Summary
Advanced Wires Rates: Quantitative Summary

Questions

If you have questions about the feasibility study, you can contact us:
Email: epcorprojects@email.com
Phone: 780-412-4200

If you want to learn more about how electricity prices are set, visit the electricity rates page.