With power bills hitting their highest levels earlier this year, electricity has been a big part of the election debate, but Spruce Grove-St. Albert candidates disagree on how to hold back the spikes.
Alberta’s regulated rate option hit its highest rate ever in January and February as cold snaps pushed demand to record levels and supply dwindled due to plant shutdowns.
NDP candidate Rev. J.J. Trudeau said since deregulation it seems consumers have borne all the cost for electricity and the companies generating it have done better and better.
“It is certainly profitable for the companies, but the other thing is that we pay and we pay, we pay for the electricity lines and then we pay again.”
Albertans pay for both the cost of transmission and distribution in fees set by the Alberta Electric System Operator and a regulated rate, which is the cost of actually generating the electricity.
Instead of being susceptible to the regulated rate, which fluctuates on a monthly basis, customers can sign contracts at set rates.
Trudeau said her party would bring the system back to one that worked for consumers and regulated a reasonable profit for the companies.
Even not in government, Trudeau said she would continue to push hard for that option.
“If we were able to be in opposition there would be a little bit more shaking of cages to ensure that there is a fair return for one’s dollar.”
Wildrose candidate Travis Hughes agrees the government has failed on the issue, but said part of the solution is to repeal government legislation that paved the way for several major power lines.
While none of those lines are yet built, they will eventually be added to the transmission cost of power bills.
Hughes said the Wildrose would ensure the generators would also pay the cost of the bills.
“We need to ensure new generators are paying their share of future power lines, instead of all the costs being passed on to consumers.”
Hughes said his party would study the generation part of the power business.
“We need to bring it back to something, maybe it is regulation, we are not entirely sure yet, but a better way to control those costs.”
PC candidate Doug Horner said the government has already taken action on the issue, freezing the costs for transmission and distribution and asking the AUC to study the regulated rate option.
He said that calls for re-regulation ignore that eventually consumers pay for the cost of power.
“In any jurisdiction, where they have said we are going to fix the price or the rate, what it means is that the company has to be compensated in some other way.”
He said those costs eventually end up on the consumer or the taxpayer.
He said the regulated rate option could be changed to set power rates over a longer period of time, better stabilizing the market.
He said the regulated rate sees spikes, but is not the biggest concern consumers have.
“They would be re-regulating the part that is working, because the part that I get the most concern about it is franchise fees, which is controlled by the municipalities and the transmission and distribution.”
Liberal candidate Chris Austin did not return calls before press time.
