Electricity and related services have been deregulated in the province of Alberta. Electricity is now bought and sold on the open market at prices that are set hourly by the Alberta Electric System Operator (AESO). These prices can be extremely volatile and can have a significant impact on your bottom line. Valeo Power addresses the needs for sophisticated purchasing and professional management of your electricity purchases.

Valeo Power is the leading electricity retail service company for industrial and commercial electricity consumers in Alberta. Valeo currently provides our services to customers representing 15% of the electricity consumed in the province of Alberta. If your company is a large power consumer and want to take control of your electricity costs, choose an electricity retail company that works for you -Valeo Power.

Retailers such as Valeo Power compete to offer retail electrical services to consumers. Under this system, qualified retailers purchase electricity and sell it to consumers in Alberta; opening retail sales to competition and ensuring customers can choose an electricity provider based on price and service levels. All customers greater than 250,000 kWh of annual electricity usage must chose an electricity retailer, otherwise you are assigned to the Default Supply Tariff.

Default Supply is not an appropriate choice for larger power consumers. Although Default Supply customers receive a pass-through of the AESO hourly spot market electricity price, customers on default supply have significantly higher Billing and Administrative costs. By electing the self-retail option or choosing an alternative electricity retailer, customers can significantly reduce their delivered electricity costs. To learn more about default supply and the associated costs, click here.

Smaller electricity consumers that do not choose an alternative retailer are served under the Regulated Default Supply Regulation. This regulation outlines the terms and conditions that govern the provision of the Regulated Rate Tariff (RRT). Currently the RRT is a transition rate that provides a fixed price energy charge, transmission and distribution charges, as well as retail services fees. The RRT is schedule to become a flow through of the AESO hourly electricity price by July 1, 2006.

Who Qualifies?
Consumers with annual consumption of less than 250,000 kWh qualify to be served under the RRT. Most homes, small businesses and farms qualify for the regulated rate.

Who Provides the RRT?
The wires owners (distribution companies) are responsible for providing the RRT to consumers. The wires services providers typically have assigned the provision of the RRT to an affiliate retailer.

How long will the fixed price RRT be in effect?
The fixed price transition rate will be available to eligible consumers until July 1, 2006. There is significant pressure and momentum to extend the fixed price option for smaller consumers.

Are there any risks associated with the RRT?
Yes. Price and term risk as well as exit restrictions are associated with the RRT. Please contact your Valeo Power account manager to see if the Regulated Rate tariff is appropriate for your smaller facilities.