Electricity 101

Generation

With deregulation of the electric industry in Alberta, the price paid for electric generation is no longer regulated. Generators sell their power to the Alberta Electric System Operator (AESO) following the concept which is called an “Energy Only Market.”

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Transmission

Electricity is sent from the generating plants over high-voltage transmission lines to substations that use transformers to reduce the voltage level. Regulated rates for transmission are set by the Alberta Utilities Commission (AUC) and are managed by the Alberta Electric System Operator (AESO).

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Distribution

Once the transformers have reduced the high-voltage electricity from the transmission lines, the electricity then travels over the utility’s low-voltage distribution wire lines to customers.

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Retailer / Marketer

In Alberta, customers can choose to buy electricity from a Regulated Retailer whose rates are set based on a government formula or a Competitive Retailer. Competitive Retailers are licensed by Alberta Government Services (AGS).

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Consumer

This is you!

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