Energy and Utilities Statutes Amendment Act, 2025 (Unproclaimed Sections Only)

ENERGY AND UTILITIES STATUTES AMENDMENT ACT, 2025 Chapter 8 HIS MAJESTY, by and with the advice and consent of the Legislative Assembly of Alberta, enacts as follows: Electric Utilities Act Amends SA 2003 cE‑5.1 1 (1) The Electric Utilities Act is amended by this section. (2) Section 1(1) is amended (a) by repealing clause (b) and substituting the following: (b) “ancillary services” means those services necessary to support the transmission and supply of electricity while maintaining reliable operation of the interconnected electric system; (b) by adding the following after clause (h): (h.1) “day‑ahead market” means a forward market operated by the Independent System Operator for the sale and purchase of either or both of the following, to be exchanged on the next day: (i) electric energy; (ii) certain ancillary services, as specified in the regulations or as otherwise required for system operations; (h.2) “day‑ahead market price” means the prices determined through the day‑ahead market for the sale and purchase of electric energy or certain ancillary services for a specific settlement interval; (c) by repealing clauses (p.1) and (p.2) and substituting the following: (p.1) “electricity market” means any type of market through or under which an offer, trade, exchange, purchase, sale or forward transaction of electricity or electricity services takes place in relation to the production, consumption, transmission or financial settlement of electricity or electricity services; (p.2) “electricity market participant” means (i) a person who supplies, generates, transmits, distributes, stores, discharges, trades, exchanges, purchases or sells electricity or electricity services, or (ii) a broker, brokerage, forward exchange or other entity that trades, facilitates the trading of, or participates in an electricity market, but does not include the Independent System Operator; (d) by repealing clause (q)(ii) and substituting the following: (ii) making financial arrangements to manage financial risk associated with the day‑ahead market price, the real‑time market price or transmission constraints; (e) by repealing clause (s) and substituting the following: (s) “exchange”, unless the context indicates otherwise, means (i) to provide or receive electric energy or ancillary services by means of the interconnected electric system, or (ii) to enter into a financial transaction related to the purchase of, sale of or financial arrangements associated with electric energy or ancillary services; (f) in clause (cc) by striking out “power pool” and substituting “day‑ahead market and real‑time market”; (g) by repealing clauses (ll) and (mm); (h) by adding the following after clause (pp): (pp.1) “real-time market” means a market operated by the Independent System Operator for the exchange of electric energy and certain ancillary services, as set out in the regulations or as otherwise required for system operations, to meet the operational needs of the interconnected electric system; (pp.2) “real‑time market price” means the prices determined through the real‑time market for the exchange of electric energy or certain ancillary services for a specific settlement interval in real time; (j) by repealing clause (xx.1) and substituting the following: (xx.1) “settlement interval” means one or more periods for which the financial settlement of transactions for electric energy or an ancillary service is calculated, as determined by (i) any REM ISO rules established by the Minister under section 20.01, or (ii) if no REM ISO rules are in force, the ISO rules; (3) Section 5 is amended (a) in clause (a) by adding “and reliable” after “efficient”; (b) by repealing clauses (b) and (c) and substituting the following: (b) to provide for competitive electricity markets, including a day‑ahead market and a real‑time market, enabling electricity market participants to exchange electric energy on terms that are fair, economically efficient and aligned with the operational requirements of the transmission system; (b.1) to facilitate financial arrangements that allow electricity market participants to manage financial risks associated with electricity market prices and transmission constraints; (c) to establish rules for efficient and reliable electricity markets, based on fair and open competition, that prevent distortions to electricity markets or the structure of the Alberta electric industry that arise from unfair advantages of any electricity market participant, including government‑owned electricity market participants; (5) Section 17 is amended (a) in clause (a) by striking out “power pool” and substituting “day‑ahead market and real‑time market”; (b) by adding the following after clause (b): (b.1) to prioritize, restrict or vary the dispatch or pricing of electric energy during periods of transmission constraints in accordance with the regulations; (c) by repealing clauses (c) and (d) and substituting the following: (c) to determine the order of dispatch of electric energy and ancillary services in Alberta and from scheduled exchanges of electric energy and ancillary services between the interconnected electric system in Alberta and electric systems outside Alberta in a manner that (i) satisfies the requirements for electricity in Alberta, and (ii) can reasonably be expected to minimize the overall cost of dispatching electricity; (d) to carry out financial settlement for the electricity market at the respective market prices, unless this Act or the regulations provide otherwise; (7) Section 18 is repealed and the following is substituted: Operation of electricity market 18 (1) The Independent System Operator must operate the electricity market in a manner that is fair, efficient and open to all electricity market participants exchanging or wishing to exchange electric energy through the electricity market and that gives all electricity market participants a reasonable opportunity to participate. (2) Notwithstanding subsection (1), the Independent System Operator must operate the electricity market in a manner that accounts for transmission constraints. (3) All electric energy entering or leaving the interconnected electric system must be exchanged through the day‑ahead market or real‑time market, except (a) where section 39(1.1) or 105(1.1) applies, or (b) as prescribed by the regulations. (4) A person shall not intentionally cause or permit electric energy or ancillary services to enter or leave the interconnected electric system except in accordance with ISO rules. (5) The Independent System Operator must, in accordance with ISO rules, (a) establish day-ahead market and real-time market prices for each settlement interval, excluding any portion of ISO fees, and (b) make these prices publicly available. (6) Subject to the regulations, the prices established under subsection (5) (a) must include the costs of recovering transmission line losses, and (b) may vary by location. (7) The Independent System Operator may, in accordance with ISO rules, establish and amend one or more pricing frameworks applicable to the electricity market, including (a) minimum and maximum offer prices, (b) processes for reviewing and updating prices, and (c) safeguards to limit the exercise of excess market power and ensure transparency. (8) When exercising its authority under subsection (7), the Independent System Operator must ensure that any pricing framework aligns with the objectives of economic efficiency and reliability for Albertans. (8) Section 19(2)(c) is amended by striking out “a price other than the pool price” and substituting “ a price other than a price established in the day‑ahead market or real‑time market ”. (9) Section 20(1) is amended (a) by repealing clause (b) and substituting the following: (b) the operation of the day‑ahead market and real‑time market and the exchange of electric energy through these markets, subject to any REM ISO rules established by the Minister under section 20.01; (b) by adding the following after clause (c): (c.1) the managing of transmission constraints, including rules that prioritize, restrict or vary the dispatch or pricing of electric energy during periods of transmission constraints; (11) Section 21(1)(a) is amended by striking out “power pool” and substituting “day-ahead market and real-time market”. (14) Section 32 is amended by adding the following after clause (f): (g) pay the costs of managing transmission constraints, subject to the regulations. (17) Section 41 is amended (a) in subsection (1) by adding the following after clause (a.2): (a.3) for the management of transmission constraints by the Independent System Operator, including (i) prioritizing, restricting or varying the dispatch or pricing of electric energy, and (ii) providing for financial arrangements to manage risks associated with transmission constraints; (a.4) specifying the ancillary services that may be included in the markets referred to in section 1(1)(h.1) and (pp.1), including regulations authorizing the Independent System Operator to determine additional ancillary services as required for system operations; (a.5) establishing REM ISO rules for the operation of the restructured energy market; (a.6) respecting the management and recovery of the costs of transmission line losses by the Independent System Operator; (b) by adding the following after subsection (1): (1.1) For greater clarity, any regulations made under subsection (1)(a.4) prevail over ISO rules made by the Independent System Operator under section 20(1) to the extent of any conflict, subject to the Minister’s authority under section 20.01(2)(c) and (e) to amend or rescind, respectively, ISO rules. (20) Section 111(2)(b) is amended by striking out “power pool” and substituting “day‑ahead market and real‑time market”. (21) Section 122(1)(g) is repealed and the following is substituted: (g) the costs and expenses associated with financial arrangements to manage financial risk associated with the day‑ahead market and real‑time market prices if the arrangements are, in the Commission’s opinion, prudently made, and (25) This section, except subsections (4), (5)(d), (6), (18), (19) and (22), comes into force on Proclamation. (26) Subsections (18) and (19) are deemed to have come into force on January 1, 2025. 2025 c8 s1;2025 c26 c3 Gas Distribution Act Amends RSA 2000 cG‑3 2 (1) The Gas Distribution Act is amended by this section. (2) Section 1 is amended (a) by adding the following after clause (g): (g.1) “hydrogen gas” means molecular hydrogen in its gaseous form that is intended for use as an energy carrier or a fuel; (g.2) “hydrogen‑blended natural gas” means hydrogen‑blended natural gas as defined in the Gas Utilities Act ; (b) in clauses (h)(i), (m)(ii) and (n) by striking out “gas” and substituting “propane, natural gas or hydrogen‑blended natural gas”; (c) in clause (p) by striking out “delivery of gas” and substituting “delivery of propane, natural gas or hydrogen‑blended natural gas”. (3) This section comes into force on Proclamation. 2025 c8 s2;2025 c26 s3 Gas Utilities Act Amends RSA 2000 cG‑5 3 (1) The Gas Utilities Act is amended by this section. (2) Section 1(1) is amended (a) in clause (g)(ii) by adding “or hydrogen‑blended natural gas” after “supplying of gas”; (b) by adding the following after clause (g.1): (g.2) “hydrogen gas” means molecular hydrogen in its gaseous form that is intended for use as an energy carrier or a fuel; (g.3) “hydrogen‑blended natural gas” means natural gas into which hydrogen gas has been blended at a concentration that does not exceed the maximum blending limit; (g.4) “maximum blending limit” means the maximum percentage of hydrogen gas by volume established in the regulations that may be blended with natural gas in a gas distribution system as defined in Part 2.1; (3) Section 16 is amended (a) in the portion preceding clause (a) by adding “or hydrogen‑blended natural gas” after “the gas”; (b) in clause (a) by adding “or hydrogen‑blended natural gas” after “gas”; (c) in clause (b) by striking out “service or gas” and substituting “service, gas or hydrogen‑blended natural gas”. (4) Section 17 is amended by striking out “supply of gas” wherever it occurs and substituting “supply of gas or hydrogen‑blended natural gas”. (5) Section 25(a) and (b) are amended by adding “, hydrogen‑blended natural gas” after “any gas”. (6) Section 35(a) is amended by striking out “supplied or service” and substituting “supplied, any hydrogen‑blended natural gas supplied or any service”. (7) Section 36 is amended (a) by striking out “The Commission” and substituting “Subject to Part 4.1, the Commission”; (b) in clause (e) by adding “or hydrogen‑blended natural gas” after “deliver gas”. (8) Section 40 is amended by striking out “In fixing” and substituting “Subject to Part 4.1, in fixing”. (9) Section 41 is amended by striking out “In fixing” and substituting “Subject to Part 4.1, in fixing”. (10) Section 45(1) is amended by striking out “Instead” and substituting “Subject to Part 4.1, instead”. (11) Section 46 is amended (a) in subsection (1) (i) in clause (a) by adding “or hydrogen‑blended natural gas” after “which gas”; (ii) in clause (b) by adding “or hydrogen‑blended natural gas” after “gas” wherever it occurs; (b) by repealing subsection (2) and substituting the following: (2) If the council of a municipality in its application or by a subsequent application requests it, the Commission shall, when in its opinion the supply of gas or hydrogen‑blended natural gas is inadequate for the demand of consumers of gas or hydrogen‑blended natural gas within the municipality, prescribe reasonable rules and regulations requiring the gas utility conveying gas or hydrogen‑blended natural gas to, or distributing it within, the municipality to augment the supply of gas or hydrogen‑blended natural gas so conveyed or distributed, when in the judgment of the Commission it is practicable to do so. (c) in subsection (3) by striking out “gas” wherever it occurs and substituting “gas or hydrogen‑blended natural gas”. (12) The following is added after section 48: Part 4.1 Hydrogen Blending Definitions 48.1 In this Part, “gas distribution system” means a gas distribution system as defined in Part 2.1. Approval for hydrogen blending 48.2 (1) The owner of a gas utility shall not provide hydrogen‑blended natural gas services to consumers without the approval of the Commission under this Part. (2) The owner of a gas utility may apply, in accordance with the regulations, to the Commission for approval to provide hydrogen‑blended natural gas services to specified consumers. (3) The Commission may not approve an application unless the Commission is satisfied that (a) the application meets the criteria and requirements established in the regulations, and (b) the owner of the gas utility has received consent in accordance with the regulations. Hydrogen gas costs 48.3 The owner of a gas utility may only recover costs related to the provision of hydrogen-blended natural gas services (a) through just and reasonable rates, tolls or charges, or schedules of them that are fixed by the Commission separately from the rates, tolls or charges, or schedules of them fixed under Part 4 for the natural gas component of the hydrogen‑blended natural gas, and (b) from consumers who receive hydrogen‑blended natural gas services. Regulations 48.4 (1) The Minister may make regulations (a) defining any terms used but not defined in this Part; (b) respecting the maximum percentage of hydrogen gas by volume that may be blended with natural gas in a gas distribution system; (c) respecting applications under section 48.2; (d) establishing criteria the Commission shall use to consider an application from the owner of a gas utility for approval to provide hydrogen‑blended natural gas services to consumers by means of a gas distribution system; (e) respecting the consent required before the Commission may approve an application from an owner of a gas utility to add hydrogen‑blended natural gas to its gas distribution system, including but not limited to regulations respecting (i) the process for determining the eligibility of persons who are residents of a region or who are consumers of the owner of a gas utility to consent to an application, (ii) the process by which consent must be ascertained, (iii) the percentage of eligible persons who need to consent before an application can be approved, (iv) the documents, records and proof of consent that an owner of a gas utility shall provide to the Commission, and (v) the timelines for implementation if the requirements for consent are met and the application is approved; (f) respecting the procurement of hydrogen gas for the purposes of this Part, including regulations respecting (i) the entity responsible for procuring hydrogen gas for use in hydrogen‑blended natural gas, (ii) the process that must be used for the procurement of hydrogen gas, (iii) the determination of the price to be paid for the procured hydrogen gas by consumers receiving hydrogen‑blended natural gas services, (iv) how consumers will be billed for the hydrogen gas component of the hydrogen‑blended natural gas, and (v) how the money paid by consumers for the hydrogen gas component of the hydrogen‑blended natural gas will be remitted to the entity that procured the hydrogen gas; (g) respecting the costs incurred by an owner of a gas utility that shall be considered by the Commission as costs related to hydrogen‑blended natural gas services; (h) respecting any other matter or thing that the Minister considers necessary or advisable to carry out the intent of this Part. (2) Despite anything in this Act, regulations under subsection (1) may, with respect to a pilot project for hydrogen-blended natural gas services that was initiated before February 25, 2025, (a) exempt the pilot project from this Part or any provision of it, or (b) vary or substitute any provision of this Part in respect of the pilot project, with or without conditions. (3) A regulation made under this Part may (a) be specific or general in its application and include conditions, restrictions and limitations, (b) apply to all of Alberta or any part of Alberta, and (c) adopt or incorporate, in whole or in part or with modifications, documents that set out standards, codes, guidelines or other rules relating to any matter in respect of which a regulation may be made under this Part. (4) If a standard, code, guideline or other rule is adopted or incorporated by regulation under this Part, the Minister shall ensure that a copy of the standard, code, guideline or other rule is made available to a person on request. (13) The heading preceding section 49 is repealed and the following is substituted: Part 5 Miscellaneous (14) Section 59 is amended by adding “or hydrogen‑blended natural gas” after “sale of gas”. (15) This section comes into force on Proclamation. 2025 c8 s3;2025 c26 s3 Hydro and Electric Energy Act Amends RSA 2000 cH‑16 4 (1) The Hydro and Electric Energy Act is amended by this section. (2) Section 29(4)(e) is amended by striking out “pool price” and substituting “ day‑ahead market price and real‑time market price, as defined in the Electric Utilities Act ,”. (3) This section comes into force on Proclamation.