The gas market in Alberta

Alberta has had a deregulated gas market since 1985. Some of the players on this list predate that, but others were created because of deregulation. Here are some organizations that participate in the natural gas market in Alberta. 

The Alberta Utilities Commission

The Alberta Utilities Commission (AUC) regulates Alberta's natural gas and electricity markets. It also regulates the utilities sector to protect Alberta's social, economic, and environmental interests. When multiple companies are competing, sometimes, those important things are overlooked.

The AUC administers its regulatory functions through written and oral proceedings. For example, if a utility provider wants to change its rates, it goes through the AUC first through a formal and legal proceeding. The AUC also monitors how electric facilities are built, operated and decommissioned to ensure minimal environmental impact.

Alberta Energy Regulator

The Alberta Energy Regulator (AER) and the Department of Environment regulate the production of natural gas in Alberta. They also regulate the more than 440,000 kilometres of oil and gas pipelines throughout Alberta, as well as all other energy infrastructure. The AER ensures that energy resource activities are safe, environmentally responsible and actively managed.

Gas Producers

Gas producers are responsible for just that: producing the gas that is sold on the energy market. Gas producers sell the gas at the wellhead, a gas processing plant, a gas transmission system, a storage facility or directly to the consumer.

NOVA

NOVA is the gas pipeline network that transports natural gas from the wellhead to processing plants. The network extends across the province. The AUC regulates the rates and tariffs on the system following the Gas Utilities Act and the Pipeline Act.

Natural Gas Exchange (NGX)

Future gas prices are set based on supply and demand at the NGX in Alberta and the New York Mercantile Exchange (NYMEX) in the United States. These platforms don't set the prices themselves. Instead, they provide an open exchange floor for prices to be determined.

Utilities Consumer Advocate

The Utilities Consumer Advocate (UCA) acts as the consumer’s representative. It is responsible for handling complaints made against utility companies or energy retailers. They help consumers by giving them helpful information so they can make wise choices in the deregulated energy market.

Natural Gas Retailers

Your natural gas retailer provides your home or business with your natural gas service. When you sign a contract with a natural gas retailer, you will pay a fixed or variable rate per gigajoule (GJ) of energy used for the length of the contract.

Your retailer purchases gas from the gas supplier, delivers it, and bills for it while providing customer service. At the end of your contract, you can sign up for a new contract or shop around for a new provider in the deregulated or regulated gas market.

The electricity market in Alberta

The AUC also regulates the electricity market in Alberta, and the UCA represents consumers. However, there are other players unique to the electricity market. Here is a list of those you should know.

Alberta Electricity System Operator (AESO)

The AESO is responsible for operating power pool in the province. Power pool is the wholesale energy market where the price is set each hour based on supply and demand metrics. The AESO was established by the Alberta Electric Utilities Act, and most of the electricity in the province flows through the pool it operates.

Power Generators

Power generators are responsible for generating the electricity we use in Alberta. They are regulated by the AUC but are allowed certain freedoms. For example, the AUC makes sure power generators comply with environmental, design and safety standards, but they are free to generate power where they please and set their own rate of return. Power generators must compete against one another to sell their electricity in the power pool. This competition helps control prices.

Power Distributors

The power-generating companies create the power, but the power distributors and transmitters make sure it gets to your home. They’re in “the wires business,” and they work together to make sure electricity reaches consumers.

Power transmitters harness power from the generators and transfer it to load centers. From there, power distributors provide the electricity to your homes or businesses. Most of the grid is owned by private, for-profit companies, but the AESO handles planning and operation. Municipalities and their public utilities departments often own distribution systems.

Retail Electricity Providers

Electricity retailers make sure your home or business is getting its electricity service. Your retail electricity provider handles your billing, sets up your service, and provides customer service for any questions you have along the way. If you live in Alberta, you can sign up for a fixed energy plan with a retail electricity provider or get electricity service from your region’s default supplier.

Market Surveillance Administrator

The Market Surveillance Administrator (MSA) in Alberta ensures the natural gas and electricity markets play fair and operate correctly so you, the consumer, benefit. The purpose of the MSA is to establish, support, and promote cooperative competition in the province's energy markets.

These are the major players in the gas and electricity markets in Alberta. You can learn more about the deregulated Alberta energy market by visiting the Utilities Consumer Advocate website.