The de-regulation of electricity markets was a cornerstone policy of the Klein years. Recently the government has commenced legal proceedings to roll back a clause in the Power Purchase Agreements (PPAs) known as the “Enron clause.”
It is perhaps under-stating the case that electricity de-regulation in Alberta is “complex”. Historically, electricity rates for both retail and commercial customers were set by the Alberta Utilities Board who determined what rate of return the electricity provider would receive. Underlying regulation was a concept that electricity was central to the well-being of citizens and business enterprises and a stable market supplying electricity was in the public interest. This attitude shifted during the 1980s with the Thatcher reforms in Britain’s electricity and telecommunications industries. A key concern revolved around both the willingness of utility firms to supply electricity and the availability of capital to finance new generation capacity.