Regulation by Any Other Name: Electricity Deregulation in Alberta and the Power Purchase Arrangements

Abstract

The Power Purchase Arrangements (PPAs) were one of the significant mechanisms of Alberta’s deregulation of the electricity generation sector. This paper argues that the PPAs represent an attempt to mirror by contractual means some of the purpose and effects of the pre-restructuring regulatory scheme. After introducing the background of electric industry regulation in Alberta, this paper discusses the motivations for deregulation. It then reviews electricity deregulation in an international context, looking at the United States and the European Union, to provide a global context for the discussion of Alberta’s deregulation experience. Then, after a description of the progression of Alberta’s deregulation, the paper explains the method by which Alberta effected the PPAs and offers a perspective on how they are intended to be ‘regulation by any other name’, in particular looking at the force majeure and change in law clauses and understanding the effects of the dispute resolution provision. Finally, the success of this attempt to echo the regulatory scheme is analysed, and its impact on industry players and the public is reviewed.