A new feasibility report shows a municipal utility takeover is almost impossible, leaving residents and businesses to absorb costs.
A home in the community of Draper, located south of Fort McMurray, on October 22, 2020. Photo by File photo /Postmedia NetworkArticle content
From turning on the lights, to charging phones or keeping the fridge cold, most of us depend on electricity in our day-to-day lives.
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But some Albertans are paying three-times the amount others are, just to be able to access electricity in their communities.
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Toddske Bradley Thomas is one of the hundreds of thousands of northern Alberta residents who have had to pay exorbitant fees to power his home.
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A breakdown of Toddske Brady-Thomas’ utility bill for June 2026 shows a total of $394.07, with distribution and transmission fees alone, costing over $200. Image provided by Toddske Bradley-Thomas. Postmedia NetworkArticle content
Between him and his teenage son, their bills average nearly $400 a month and can peak at a staggering $700 during the winter months, with 60 percent of that bill made up of costly transmission and distribution fees.
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In Alberta, distribution and transmission rates are separate from the actual cost of power. They are the fees incurred for the cost of delivering the power from the main electrical grid to the community.
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Power lines east of Calgary in rural Alberta Photo by File photo /Postmedia NetworkArticle content
These costs are fully regulated by the Alberta Utilities Commission (AUC) and subsequently approved to ensure a fair charge (typically, not more than 40% of a customer’s bill combined).
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In larger service areas that are sparsely populated, like Fort McMurray, one kilometer of distribution line may only serve a few customers. While in comparison to an urban centre such as Calgary, that same kilometer can serve a much larger number of customers.
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The Fair Electricity Distribution Alliance (FEDA) reports that communities like Fort McMurray can pay $118 on average, every month in distribution costs. That is over $80 more to the $34 paid by those in larger urban service areas.
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According to FEDA, “industrial customers and municipalities also face much higher costs – sometimes nearly three times more than in other parts of Alberta.”
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A screenshot showing the affected communities in northern Alberta, retrieved from the Fair Electricity Distribution Alliance website. July 27, 2026 Postmedia NetworkArticle content
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But the affected communities have not simply sat back and watched their utility bills drain their pockets. The alliance is backed by nearly 40 municipalities, chambers of commerce, and organizations combined, including the Regional Municipality of Wood Buffalo, City of Grand Prairie, Town of Peace River, Municipality of Jasper, Drumheller Valley and others.
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Alberta Municipalities (ABMUNIS), the coalition representing 264 municipalities in the province, has also condemned this utilities model, citing its unfairness.
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“[Northern communities] could be paying double or two and a half times more and that doesn’t seem fair,” said Scott Lundy, Alberta Municipalities Director of Communications.
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This is because, according to their October 2025 resolution, “60 per cent of energy demand in the [northern] service area is driven by industrial customers.”
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So, while these communities are contributing substantial amounts of revenue to the utility companies, they face the worst price disparities.
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