ST. PAUL – The Town of St. Paul officially expressed support to a City of Grande Prairie-led effort to address rural electricity distribution rates in the province.
Distribution fees cover local lines that deliver power within a service area to homes and businesses. ATCO is the biggest electricity provider in north and east-central Alberta.
“Unfair electricity distribution rates are one of the most pressing challenges facing those within the ATCO service area,” reads City of Grande Prairie Mayor Jackie Clayton’s Aug. 18 letter to Alberta municipalities.
According to Clayton, the electricity distribution system is set up in a way where different service areas have isolated costs.
Rural areas, with fewer people spread out over larger spaces, end up paying a lot more because they have to maintain long power lines. Urban areas, on the other hand, have more people packed into smaller spaces, so the costs are spread out more evenly and are much lower.
“The ATCO service area has the highest rates in the province, averaging just over $1,300 per household in 2025, compared to $385 in urban areas. This also affects property taxes, as our municipalities must make up for much higher costs from distribution fees,” said Clayton in her letter.
Clayton said the current system resulted in “a cost disparity” affecting affordability in ATCO service areas.
Clayton also said local MLAs, regional partners, Alberta Municipalities, the Rural Municipalities of Alberta, and ATCO supported the idea of lowering prices. “However, the Government of Alberta has yet to act on the disparity,” said Clayton.
During the Town of St. Paul’s council meeting on Aug. 25, Coun. Nathan Taylor said he supports the initiative.
ATCO, the energy provider in northern Alberta, has to provide distribution across the largest portion of the province, while having the least number of paying customers, said Taylor.
“Us paying customers have to pay the highest percentage electricity rates,” he said.
“Distribution rates should be a postal letter rate where all Albertans pay the same cost for distribution, whether in Edmonton, Calgary, or in the ATCO or Fortis area,” said Taylor.
Mayor Maureen Miller said negotiations with the province to lower distribution rate are at a standstill.
“I think it's timely that we continue to push this," she said.
After some more discussion, council approved Taylor’s motion to support the City of Grand Prairie’s efforts of advocating a lower electricity distribution rate.
