Why Do Rural Albertans Pay More for Power? Let’s Talk About That!
- Larry Peters
- Jun 26
- 3 min read
Updated: Jul 5
Hot Take: Distribution charges penalize farmers and small towns, and nobody’s fixing it.
Alberta’s rural communities are the backbone of the province, powering agriculture, industry, and small-town life. Yet, when it comes to electricity bills, rural Albertans are hit with a hidden penalty that’s rarely discussed: distribution charges. These fees, which cover the cost of delivering power from substations to your home or business, are significantly higher in rural areas than in cities, and the gap is only growing.
The Hidden Penalty: Distribution Charges Explained
Your electricity bill isn’t just about how much power you use. In fact, “distribution charges” can account for as little as 30% to as much as 70% of a typical bill. These charges pay for the upkeep of the poles, wires, and infrastructure that stretch across Alberta’s vast countryside.
In cities, the cost of maintaining this network is spread across thousands of customers. But in rural areas, where homes and farms are far apart, the same infrastructure serves far fewer people, driving up the per-customer cost.
Rural vs. Urban: The Real Numbers
The disparity is clear in the numbers:
In 2023, residents in ATCO Electric’s rural service area paid about $1,100 per household annually in delivery charges, compared to just $350 in urban centres like Calgary or Edmonton.
For the same 600 kWh of monthly power:
Urban (Calgary): Distribution & transmission fees were $68.34; total bill $130.12.
Rural (Southern Alberta farm): Distribution & transmission fees were $139.71; total bill $201.86.
That’s a $71 difference every month for the same amount of electricity.
According to the Utilities Consumer Advocate, distribution charges for 600 kWh/month in 2024 were $32.29 in EPCOR’s (urban) area and $100.94 in ATCO’s (rural) area.
Farmers and Small Towns: Carrying the Weight
This isn’t just a line on a bill, it’s a real drag on rural economies. Farmers, ranchers, and rural businesses face higher costs that cut into their margins and competitiveness. For example, farm customers in ATCO’s area pay an average of $72.44/month in distribution charges, and those in FortisAlberta’s area pay $173.16/month. This is a major portion of a farm’s entire electricity bill. Small businesses in rural towns also pay significantly more, making it harder to attract and retain workers.
Compounding the issue, a large share of rural infrastructure also serves industrial sites that benefit the whole province, yet the cost burden falls disproportionately on rural residents.
Why Isn’t This Fixed?
Despite years of complaints and advocacy from rural municipalities, successive governments and regulators have failed to meaningfully address the gap. While Alberta’s “cost causation” principle says users should pay for the cost of service, the result is a geographic penalty that hits rural communities hardest. Other provinces, like British Columbia and Saskatchewan, have adopted fairer models that spread these costs more evenly.
A Call for Equity and Action
With Alberta investing billions in grid upgrades, now is the time to rethink the system. Should rural Albertans pay more for the same essential service? Or should distribution charges reflect fairness, not geography? A more equitable model could mean a small increase for urban users, but a life-changing reduction for rural families, farms, and businesses.
Where Big Rock Power Fits In
At Big Rock Power, we believe no one should pay more just because they live in the country. Our mission is to help rural Albertans take control of their energy future, through our solar club program, and policy advocacy for fairness. Because where you live shouldn’t determine how much you pay for power.
Let’s ignite the conversation on power equity. Rural Alberta deserves a fair deal.
Sources:All figures and comparisons in this article are substantiated by the Utilities Consumer Advocate, City of Grande Prairie reports, and Alberta Municipalities advocacy documents.
See below for detailed breakdowns and links to primary data sources.
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