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An important part of understanding your utility bill is providing insight into what factors contribute to the total amount you pay each month. Here’s a look at how electricity rates are set.
EPCOR files rate applications with the Alberta Utilities Commission (AUC), a quasi-judicial agency established under the Alberta Utilities Commission Act.
Once the AUC receives a rate application, a review process is initiated through which they and other participating organizations or individuals have the opportunity to ask questions and for more information. The intent is to ensure customers receive the services they require at reasonable rates.
Our rates reflect the cost to provide you with safe, reliable electricity. We work with the Alberta Utilities Commission (AUC) to ensure our rates are fair and enable us to operate, maintain and upgrade infrastructure to respond to the needs of mature and growing communities.
At EPCOR, our electricity rates are made up of two parts – one for transmission and another for distribution. Let’s take a look at the transmission or System Access Service (SAS) rates first.
The transmission rate covers the cost of moving electricity from the various generators that are connected to the Alberta Interconnected Electric System to substations within EPCOR’s power grid. The cost of transmission EPCOR pays to the Alberta Electric System Operator is passed along to customers without mark-ups.
Sometimes customers see rate riders applied to their bills. These are applied when it’s necessary to either credit customers or collect from customers amounts paid to the Alberta Electric System Operator for transmission costs.
Distribution ratesNow let’s take a look at the distribution rate, called the Distribution Access Service or DAS. This rate recovers the cost of moving electricity from the power substations to homes and businesses within Edmonton. Since 2013, EPCOR has been required to file a rate application for distribution rates every five years. In the years between rate applications, rates are adjusted based on inflation using a formula the Alberta Utilities Commission approves. This annual method of adjusting rates is called Performance Based Regulation, which encourages efficiency and cost reduction while ensuring the safe, reliable delivery of electricity.
