Overview
Electricity delivery charges include energy components (transmission and distribution) and non-energy components (local access fees and service charges).
- Transmission charges cover the cost of moving electric energy from generating facilities through high-voltage transmission lines to distribution substation transformers.
- Distribution charges cover the cost of moving electric energy from these transformers through local, lower-voltage lines that carry electricity to the consumer’s meters.
Rate riders associated with distribution and transmission charges are included in the monthly energy delivery charges. Rate riders are used to reconcile previously forecasted costs that were incorporated with rates with the actual costs of operation. Rate riders may be credits or additional charges.
Transmission charges
Transmission rates are approved and regulated by the Alberta Utilities Commission (AUC). The transmission charge on an electricity bill is based on the customer’s energy consumption (kWh). For farm consumers in the ATCO Electric transmission service areas, in addition to energy consumption, the transmission charge is also based on the required demand level (kV.A).
As shown in the transmission charges graph, Alberta has seen an increase in transmission charges since 2014. In 2025, the average farm consumer with approximately 1,328 kWh of consumption and 7.5 kV.A power demand paid monthly transmission charges of $50.41 in ATCO Electric’s service area and $56.53 in FortisAlberta’s service area. Transmission charges constitute around 15 % of a farm consumer’s total bill.
Source: Compiled by the UCA based on data provided by the AUC and Alberta Electric System Operator (AESO).
Distribution charges
The distribution charges include energy charge ($/kWh), fixed charges ($/day), and demand charges ($/kW/day for ATCO and Fortis Alberta). The Alberta Utilities Commission (AUC) regulates farm distribution rates for FortisAlberta and ATCO Electric areas. Distribution rates for Red Deer, Lethbridge, Cardston and Ponoka are approved by local municipal governments and town councils. Rural Electrification Associations (REAs) have boards of directors that approve distribution rates on behalf of members.
As shown in the distribution charges graph, distribution costs have increased during the period of 2014 to 2025. In 2025, the average farm consumer with 1,328 kWh of consumption and 7.5 kV.A power demand paid monthly distribution charges of $66.25 in ATCO Electric’s service area and $137.82 in FortisAlberta’s service area. Distribution charges constitute approximately 30% of a farm consumer’s total bill.
Source: Compiled by the UCA based on data provided by the AUC and Alberta Electric System Operator (AESO).
