The Supervisory Jurisdiction of the Alberta Utilities Commission Over Municipally Owned Utilities

The primary approach in Alberta has been that the distribution of utility services delivered by investor-owned utilities are subject to full economic regulation by the Alberta Utilities Commission, whereas if public utility services are delivered by municipalities it has been recognized that the services should be principally regulated by the municipal council rather than the Commission. Affording the municipal council, or its equivalent, regulatory jurisdiction over municipally owned utilities involves a more politically responsive form of regulation. The role of the Commission in this context is limited. The Commission has exercised narrow jurisdiction to ensure that rates established for municipally owned utilities are internally and externally consistent, and to ensure that such rates are not unreasonably discriminatory.