What is the RRO or Regulated Rate Option?
As a Regulated Retailer, EPCOR provides the Regulated Rate Option (RRO). The RRO is a government approved rate that is available to residential, farm, irrigation and small commercial customers that consume less than 250,000 kWh/year. The RRO regulates that the energy charge be set monthly based on month ahead energy purchases.
- EPCOR Energy Alberta Inc. is the RRT provider in the EPCOR Distribution & Transmission Inc. service area (within Edmonton) and the FortisAlberta service area (outside Edmonton).
EPCOR purchases electricity for the RRO based on a plan approved by the AUC. The plan was developed to comply with RRO regulation that required a percentage of the RRO rate to be composed of month ahead purchases. The RRO rate includes a blend of long term and month ahead energy products purchased on the Alberta wholesale energy market.
What is the Administration Charge?
The Administration Charge is paid by customers each month. It covers the customer service costs for EPCOR (your Regulated Retailer) to provide you with the Regulated Rate Option (RRO). This includes producing your bill, and maintaining the necessary administration functions. It is a monthly charge for each site (service location) on your EPCOR statement and does not include the cost of electric energy or the cost to deliver it to you. The Administration Charge is regulated by the Alberta Utilities Commission (AUC). For more information, please visit Administration Charge.
What are "Electric Energy Charges"?
Your Wire Services Provider delivers electricity to your home, farm or business. They own and maintain the poles and wires, respond to power outages and read your meter. The costs associated with providing these services are found on your EPCOR bill under Delivery Charges. As your Retailer, EPCOR bills these charges on behalf of your Wire Services Provider.
For a detailed description of each charge on your bill, EPCOR is pleased to offer Edmonton and FortisAlberta customers an online interactive bill with detailed explanations on charges associated with power, water, waste water, and drainage services.
What is a Regulated Rate Rider/Deferral Charge?
A rate rider is a temporary credit or charge approved by the regulator.
Deferral accounts are widely used within regulated businesses in Alberta and within the electricity industry. A deferral charge represents the difference between the actual cost incurred by your electricity company to provide electricity to customers and the approved regulated rate paid by consumers during a time period. Deferral accounts provide a means to ensure that no more or less is collected from customers on a regulated rate than was approved by the regulator.
A deferral account adjustment is commonly called a regulated rate rider. The fairest method of cost allocation for a rate rider has been to assign cost responsibility by location or site, as we call them, and not necessarily to the individuals who used the power at the site. This is because individuals are highly mobile, which makes collection difficult, while sites are not. This has proven to be the most equitable basis for collecting a balance or providing a refund from a prior year.
Who approves a Regulated Rate Rider?
As the regulator, the Alberta Utilities Commissioner (AUC) must approve rate riders. If your electricity company needs to collect or refund a deferral, the AUC must approve the collection or refund method, as well as the amount to be collected from or returned to the customer.