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Your Guide to Alberta Electricity Bills: RRO vs ROLR

· · Leave a Comment Consumer Info, Electricity

Navigating electricity bills in Alberta can be confusing, especially with options like the Rate of Last Resort (ROLR) and the Regulated Rate Option (RRO). This post aims to clarify these terms and help you understand your Alberta electricity bill better.

What is the Regulated Rate Option (RRO)?

  • The RRO was a regulated price for electricity set by RRO providers and approved by the Alberta Utilities Commission (AUC).
  • It was created to as a default option provide a reasonable market based price option for electricity.
  • However, the RRO price changed every month based on electricity market conditions and exposed consumers on the RRO to market volatility.

What is the Rate of Last Resort (ROLR)?

  • The ROLR is a safety net for consumers who are unable to find a competitive electricity contract in the deregulated market.
  • It is a default Fixed price option that will allow consumers who have not or are not able to choose a plan from a competitive retailer a reasonable market based price option for electricity.
  • The ROLR is intended as a temporary measure until consumers can find a more suitable electricity plan.

Key Differences:

FeatureRROROLRPark Power
PriceGenerally more competitive than ROLRTypically higher than RRO and other competitive ratesMore competitive than RRO and ROLR.
StabilityA Variable style rate that changed every month.A Fixed rate that will remain the same for longer periods.Fixed and Variable Rates plans available.
AvailabilityWas vailable to all Alberta residential customersPrimarily for consumers who cannot find a competitive contractAvailable to homes, businesses, and farms across Alberta.

What the ROLR will cost depends on which ROLR/RRO provider. The below rates are set for 2 years.

  • Epcor: 12.01 cents/kWh
  • Enmax: 12.06 cents/kWh
  • Direct Energy: 12.02 cents/kWh

Albertan’s can compare the ROLR to Park Power’s rates by viewing our current rates.

What Albertans Need to Know:

  • Shop around for competitive rates: The Alberta electricity market is deregulated, meaning you have the freedom to choose your electricity provider.
  • Understand your contract terms: Carefully review your electricity contract, including the term length, price, and any applicable fees.
  • Monitor your electricity usage: Track your energy consumption to identify areas for potential savings.
  • Consider energy-efficient options: Explore energy-efficient appliances and lighting to reduce your electricity consumption and costs.
  • Stay informed: Keep up-to-date on any changes to electricity rates and regulations by visiting the AUC website.

By understanding the differences between the RRO and ROLR and by actively managing your electricity usage, you can make informed decisions about your electricity plan and keep your energy costs under control.

Understanding the Rate of Last Resort (ROLR) in Alberta

· · Leave a Comment Consumer Info, Electricity

Here at Park Power, we know navigating the world of electricity plans can be confusing. A recent change from the Alberta government aims to make things clearer for consumers. As of January 1, 2025, the default electricity rate will be called the Rate of Last Resort (ROLR), replacing the old “Regulated Rate Option (RRO)”.

This blog post will explain what the ROLR is and why it’s important for you to be aware of it.

What is the Rate of Last Resort (ROLR)?

The ROLR is the electricity rate you’ll automatically be placed on if you haven’t chosen a specific plan with a different retailer and for consumers whose credit history does not qualify them for competitive rate plans.. Think of it as a safety net. It ensures everyone has access to electricity, even if they haven’t actively selected a competitive plan from a provider like Park Power.

Why is the name changing?

The new name, Rate of Last Resort, more accurately reflects the nature of the rate. It’s intended as a backup option, not necessarily the most cost-effective choice.

Should I be on the Rate of Last Resort?

The ROLR may end up being more expensive than other options available from utility providers like Park Power. The Alberta electricity market is competitive, meaning retailers can offer a variety of plans with different rates and features. By choosing a plan that suits your needs, you can gain peace of mind and be able to save money on your electricity bill.

What are my options?

Park Power offers a variety of electricity plans to fit your budget and lifestyle. We have fixed-rate plans that lock in your price for a set term, offering peace of mind and predictability. We also offer variable-rate plans that fluctuate with the market but can sometimes be more cost-effective.

**Empowering Your Choice **

Park Power believes in transparency and informed decision-making. We encourage you to explore the different electricity plans available before January 1, 2025. By comparing options, you can choose the plan that best suits your needs and helps you manage your energy costs.

Here’s what you can do:

Stay Informed:

We encourage you to stay informed about the latest energy news and developments. Park Power will continue to provide updates on our website and social media channels.

Don’t be left in the dark! Take control of your electricity costs and choose a plan that works for you with Park Power.

What happened April 5, 2024 to Alberta’s Electricity System?

· · 1 Comment Consumer Info, Electricity

Many Albertans are questioning what is happening to Alberta’s electricity system after the few grid emergencies we have experienced over the past few months.

Below is an excellent recap of the situation in Alberta by Jason Doering of oHmland. Jason’s Substack has some great info about the Alberta Electricity Market and you should consider subscribing.

“The Alberta Electric System Operator (AESO) held a media briefing on Apr 5th to explain the supply shortfall event that took place that morning.  There are many media articles and pundits interpreting the event (including me :)), but I urge anyone who wants to understand what really happened to listen to the webinar the AESO has posted on its website.  Here is a link: AESO Media Briefing on Apr 5th Event

We should all be grateful to the AESO’s System Controllers for the work they did on Apr 5th and every day of the year to keep the electrons flowing.  They are trying to manage a very fragile system and are faced with numerous challenges every week that are making their jobs increasingly difficult and stressful, so we owe them a debt of gratitude.

My summary of the facts – but please also listen to the AESO’s explanation:

  • many generators were on planned maintenance outages, which is normal during the spring season in Alberta when our demand is low
  • some dispatchable capacity was offline because they were uneconomic due to low pool prices over the preceding days, which is also normal in our market design
  • wind generation forecast error (lower than forecast) combined with an approximately 400 MW thermal unit trip during the morning load ramp resulted in an Energy Emergency Alert 3 at 6:49 AM on Apr 5, 2024
  • the AESO directed all operating reserves to provide energy, all available dispatchable generators to provide as much energy as possible, and tried to get as much energy from the interties as possible
  • this was insufficient to meet demand, so the AESO directed the transmission and distribution system operators to perform controlled load shedding of about 250 MW for about 20 minutes to rebalance supply and demand until the system was stabilized

My observations, but please also listen to the AESO’s explanation to draw your own conclusions:

  • the Jan 13, Apr 3, and Apr 5 events were all supply adequacy problems.  A power system with sufficient dispatchable generation capacity in reserve (reserve margin) should be able to handle forecast errors, planned outages, and generation and transmission contingencies (aka “trips”).  The Alberta system has insufficient reserve margin due to many years of policy/social preference for renewables over thermal generation and we are now experiencing the effects of over-investment in renewables and under-investment in dispatchables.
  • this is not the AESO’s fault, it is the outcome of a market and policy framework designed for a different context in which economics alone were relied upon to provide resource adequacy.  The AESO is doing the best it can to manage the system within their legislated authourities, which do not include resource adequacy.  Blaming and shaming is a waste of time – the solution is policy and market design change and we should use this as motivation to address these.
  • this problem is not unique to Alberta, it is happening in all jurisdictions to varying degrees.  The difference in Alberta is that we are essentially an electrical island with very little intertie capacity, so our resource adequacy problems and our over-exposure to weather-dependent resources are very visible because we cannot mask them with energy from interties to compensate for our problems, like other jurisdictions can.  We have nowhere to hide.
  • this was a resource adequacy problem, not a reliability problem.  I hear the media calling this a reliability issue, but it was not, and the difference is important because it determines the solutions we need.  I’ve provided the NERC definitions of adequacy and reliability below – the language we use matters.

Adequacy – the ability of the electric system to supply the aggregate electrical demand and energy requirements of the end-use customers at all times, taking into account scheduled and reasonably expected unscheduled outages of system elements.

Reliable Operation – operating the elements of the Bulk-Power System within equipment and electric system thermal, voltage, and stability limits so that instability, uncontrolled separation, or cascading failures of such system will not occur as a result of a sudden disturbance, including a cybersecurity incident, or unanticipated failure of system elements.

Pictures tell better stories than words, so here is the situation the AESO was dealing with on Apr 5th. The maroon “Capacity Available for Dispatch” line tells the resource adequacy story…

Source – AESO Daily Market Report Apr 5 2024

Final Thoughts

The solution for our power system problems in Alberta is market and transmission policy change, not blame and recrimination. The Alberta government is already moving down this path in collaboration with the power system agencies and industry and I hope this event provides the motivation to expedite those efforts.”

Again, if you found this information useful, check out oHmland and throw some $$$ his way.

Alberta’s Natural Gas Rebate Program

· · Leave a Comment Consumer Info, Natural Gas

The natural gas rebate in Alberta: dates and amounts

From October 2022 to March 2023, eligible Albertans will see a rebate applied directly to their natural gas bill if the conditions of the rebate are met.

When the regulated natural gas rate offered by one of three of Alberta’s regulated utility providers (which are ATCO North, ATCO South and APEX Utilities) surpasses $6.50 per gigajoule, eligible Albertans will have the difference returned to their pockets.

Rebates will cover the difference between $6.50 and the regulated rate that calendar month. For example, if the rate is $7.50/GJ, eligible consumers would get a rebate on their bill covering $1 for every gigajoule used.

The rebates will start in fall 2022 and will last throughout winter 2023. While we have already seen sharp spikes in energy bills in the last year, the colder weather of these months combined with increased demand mean that natural gas – relied on by many Albertans to heat their homes – typically sees its price spike during the colder months. Offering rebates during this period makes sense to alleviate our energy bills when they reach their peak. 

Eligibility

Since you will automatically receive the rebate if you are eligible, knowing the eligibility requirements will be important. You are considered eligible for the rebates if you meet the following criteria:

  • You are “connected to the system”.
  • You are on either a regulated plan or a competitive plan for your natural gas.
  • You use less than 2,500 gigajoules of natural gas annually.

Non-natural gas rebates are also applicable if you use alternative fuels to heat your household, small apartment building complex, or small industrial or commercial site. If you use less than the listed limit of the following alternative fuels, you should be eligible for

  • Propane: 16,334 litres per month
  • Heating oil: 10,780 litres per month
  • Kerosene: 11,068 litres per month

How will the natural gas rebate work for Albertans with a competitive retailer like Park Power?

Since the rebate will be triggered by regulated rates in Alberta, many questions started to pop up, including how this would work for households and businesses under competitive retailer plans.

Although the rebate will trigger when the highest default natural gas rate among the three default gas suppliers is above $6.50/GJ, it will be applied to all eligible consumers, including those who have a variable or fixed rate below $6.50/GJ. According to the government, this ensures that customers will not be penalized for taking measures to protect against potential future price spikes by signing contracts.

For example, if the default rate tariff rose to $7.00/GJ in December 2022, then all eligible consumers, competitive contract or on the RRO, would receive a rebate of $0.50/GJ on their bill ($7.00/GJ – $6.50/GJ = $0.50/GJ rebate). The rebate amount would be calculated as above and applied directly to the utility bill by the service provider.

Government of Alberta Electricity Rebate Program

· · Leave a Comment Consumer Info, Electricity

We have recently become aware of several phishing scams related to the Government of Alberta’s Electricity Rebate Program.
To be absolutely clear, the rebates will be applied directly to your invoice; there is nothing you need to do to claim the $150 rebate.

If you receive a text message that refers to Service Alberta, the CRA, or any other government entity, that is a scam, and you should delete the message immediately. You can also report phishing scams to the Government of Canada’s Fraud Reporting System or by calling 1-888-495-8501.Here is an example of one such scam:
On March 7, 2022, the Government of Alberta announced an electricity rebate program in response to rising electricity costs. This program will provide eligible consumers with $150 in total rebates on their electricity bills, with three payments of $50 over three consecutive months.

The rebates will be provided as a reduction to the distribution charges for each eligible consumer’s site. A line item will be set out for each $50 rebate under the heading “GOA Utility Commodity Rebate.” Electricity rebates are expected to go out starting on July invoices.

Again, there is nothing you need to do to claim the rebates. Any request for personal or banking information to claim the rebates is a phishing scam.

If you have any questions or concerns, please do not hesitate to reach out to us.
Email: customercare@parkpower.ca
Phone: 780-640-2128