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ARTICLE · 10 SEPTEMBER 2021

Decision To Terminate DCG Credits Could Impact Renewable Energy Projects In Alberta

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Customers may end up paying less for electricity, but a recent decision from the Alberta Utilities Commission ("AUC")

CanadaEnergy and Natural Resources
Brady Chapman
Brady Chapman
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Customers may end up paying less for electricity, but a recent decision from the Alberta Utilities Commission ("AUC") could have a chilling effect on the development of renewable energy projects in the province.

On June 7, 2021, the AUC released decision 26090-D01-2021, an important ruling for Distribution-Connected Generators ("DCGs") across Alberta. DCGs are small electricity generators (80 megawatts or less) connected to low-voltage, local distribution networks. These generators are not connected directly into Alberta's electricity transmission grid. DCGs sell electricity to utility companies, which in turn sell the electricity to ratepayers.

Provincial utilities ATCO Electric Ltd., ENMAX Power Corporation and FortisAlberta Inc. have long been granting Distribution-Connected Generation Credits ("DCG Credits") to DCGs. These credits are intended to compensate small generators that are not connected to Alberta's transmission grid for supplying electricity to

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