Over 1,200 delegates from across the province have gathered in Calgary this week as part of the 2025 Alberta Municipalities Convention and Trade Show.The annual convention includes workshops and a chance to network for representatives from over 260 cities, towns, and villages across the province.On Thursday, 14 resolutions on issues of concern and interest for local representatives were put forward.One that caused a large debate was a motion moved by the City of Grande Prairie and seconded by the Town of Drumheller, calling on the provincial government to review electricity distribution regulations and “eliminate the disparity in pricing” across the province.The motion argued that wide differences in distribution fees — which vary by region — unfairly penalize residents and businesses in certain areas, such as those served by providers like EPCOR.The resolution comes amid growing pressure on the provincial government to address disparities in electricity distribution fees.Minister of Affordability and Utilities Nathan Neudorf has previously acknowledged the issue, attributing the high costs in rural areas to Alberta’s vast geography and the legacy of its rural electrification system, such as REAs (Rural Electrification Associations).“There’s a lot of math behind how we do rate calculations,” he told the Western Standard in October..EXCLUSIVE: Neudorf tasked with revamping Alberta’s electricity market under new Smith mandate.“We have a unique history with how electricity was developed — getting to people's farms and residences, particularly in the north, where we have vast geography and a relatively small population. That math just means high distribution costs.”According to data from the Utilities Consumer Advocate included in the resolution, the average residential customer using 600 kWh per month paid $387.48 in EPCOR’s service area, compared to $1,211 in ATCO’s — a more than threefold difference.Supporters of the resolution said these legacy rate structures have created massive inequities between urban and rural communities.Grande Prairie Mayor Jackie Clayton, who introduced the motion, said the current system is outdated and inequitable.“Whether you're from a large urban centre, a midsize city, or a rural county, we are all plugged into the same grid,” Clayton told attendees.“But the way distribution charges are currently structured is uneven — not because any of us chose it, but because the system was built on legacy boundaries that no longer reflect how Alberta lives, grows, or does business.”She argued that residents and businesses in northern and rural Alberta pay up to four times more for the same service as urban areas, which hinders investment and drives up the cost of living.“When regions struggle to attract investment, Alberta as a whole loses opportunities,” Clayton said.“This resolution isn’t about winners or losers. It’s about recognizing that our grid is one system serving one province — and the cost should reflect that.”However, some delegates, such as Edmonton City Councillor Erin Rutherford, spoke against the motion, warning that equalizing rates could unfairly shift costs to urban residents.“This resolution would significantly impact urban and mid-sized municipalities,” Rutherford said.“While we appreciate that this resolution benefits approximately 16,000 residents, there is a potential to raise utility rate spreads for 40% or more — over 2 million people.”.Alberta showcases energy sector at ADIPEC, opens Abu Dhabi office .Rutherford cited a critical regulatory principle being cost causation — the idea that those who use a service should pay for it.“Grids are localized, and only customers that use and benefit from them pay for them,” she said.“Moving away from this principle risks creating inefficiencies and inequitable cost-shifting. The alternative is a taxpayer-funded option for a rebate. It meets the needs but preserves the regulatory framework. It is also consistent with supporting the northern economic engine that benefits Alberta. This benefit is jobs and provincial tax revenue; that revenue can help us offset higher costs.”Rural leaders such as Vegreville Mayor Tim MacPhee voiced support for the resolution.MacPhee, who is also a member of the Northeastern Alberta Alliance for Growth and Opportunities (NAAGO), said high distribution costs are stifling economic development in communities such as his.“It’s very unfair,” he said.“The toughest kilometres of line to maintain are in the northeast — the same region that generates much of Alberta’s resource royalties. Urban centres share in those benefits, but not in the costs.”Former Fort McMurray Mayor Don Scott, now a councillor in Fort McMurray–Wood Buffalo, agreed with MacPhee’s points.“Rural Alberta shouldn’t continue to be punished with higher electricity rates that are completely unfair,” Scott said.“The big cities benefit from the goods that come out of rural Alberta. It’s time for something to be equalized across the province.”An amendment was introduced later in the debate, which proposed that Alberta Municipalities advocate instead for a government-funded rebate to address near-term affordability challenges for northern residents while reviewing the rate structure for long-term reform.At the close of the debate, 594 people cast their vote: 445 (74.9%) were in favour of the resolution, and 149 (25.1%) were opposed.
