Alberta
Premier Smith introduces Alberta Sovereignty Act to battle Ottawa in net-zero battle
“We are left with no choice but to create a shield to protect Albertans from Ottawa’s dangerous and unconstitutional electricity regulations”
Defending Alberta from brownouts, blackouts and soaring costs
Premier Danielle Smith has introduced an Alberta Sovereignty Within a United Canada Act resolution to protect Alberta from the federal government’s proposed net-zero electricity grid regulations to ensure Albertans have access to reliable and affordable power when and where they need it.
Alberta’s government will not put Albertans and their businesses at risk of freezing in the dark at -30 C due to the federal government’s proposed unaffordable, unreliable and unconstitutional Clean Electricity Regulations (CERs).
The federal government has been clear it is unwilling to align its electricity regulations with Alberta’s Emissions Reduction and Energy Development Plan as the province works to achieve carbon neutrality by 2050. Instead, the federal government has continued to indicate it will move ahead with its plan to implement unrealistic requirements for a net-zero electricity grid by 2035, regardless of the costs and risks to Albertans.
To protect Albertans from future brownouts, blackouts and soaring costs, Alberta’s government has introduced the first Alberta Sovereignty within a United Canada Act resolution. This resolution asks the legislative assembly of Alberta for approval to take strong, effective action over the coming months and years to counteract the harms and risks to Albertans posed by the federal CERs.
“We have tried to work with Ottawa to align their emissions-reduction efforts with our provincial plan to achieve a carbon-neutral power grid by 2050. Unfortunately, after months of meetings, they continue to reject this opportunity and remain committed to an absurdly unrealistic and unattainable goal of a net-zero power grid by 2035. We are left with no choice but to create a shield to protect Albertans from Ottawa’s dangerous and unconstitutional electricity regulations. They may be willing to expose Albertans to high costs, blackouts and brownouts, but we are not, and we will continue to ensure Albertans are protected from these destructive and unconstitutional federal policies.”
The CERs propose unrealistic rules with Criminal Code violations to achieve net-zero electricity by 2035. Alberta’s grid needs more baseload power from natural gas, but these regulations have created uncertainty and are driving away investment. This threatens the reliability and economic well-being of Alberta’s homes and businesses.
Alberta does not have enough applications for new natural gas power plants to provide the substantial new generation of power the province needs, primarily due to the investor uncertainty caused by the federal government’s extreme policies.
“The courts are on our side, science and logic are on our side, the Constitution is on our side – electricity generation is the jurisdiction of the provinces, not the federal government. It is our responsibility to provide safe, reliable and affordable electricity to all Albertans without interference from Ottawa. This is what we are doing and will continue to do.”
“The federal regulations will hurt grid reliability for families and businesses while sending costs soaring. Everything we have seen from Ottawa suggests they simply don’t care how these rules will hurt Albertans. We will not put families at risk of rationing power during the coldest days of the year.”
If passed, the Alberta Sovereignty Within a United Canada Act resolution will help protect Alberta’s electricity grid and ensure that homes and businesses across the province can access reliable, affordable power for decades to come.
The resolution asks Alberta’s cabinet to order all provincial entities not to recognize the constitutional validity of, enforce, nor cooperate in the implementation of the CERs in any manner, to the extent legally permissible. This order would not apply to private companies or individuals. The resolution also asks Alberta’s government to work with the Alberta Electric System Operator, Alberta Utilities Commission and others to implement various reforms to Alberta’s electrical system to ensure grid affordability and reliability.
In addition, the resolution instructs the government to work with industry, regulators and other groups to study the feasibility of establishing a provincial Crown corporation for the purpose of bringing and maintaining more reliable and affordable electricity onto the grid in the event that private generators find it too risky to do so under the CERs.
This Alberta Crown corporation would be a provincial entity and would not recognize the CERs as constitutionally valid. If needed, the Crown corporation would work with industry and other stakeholders to bring on needed electricity onto the grid, either through building new generation or purchasing existing generation assets (i.e. natural gas power plants) that private industry would otherwise not build or shut down due to the uncertainty and penalties established by the CERs. It could also be used as a means of assisting and partnering with industry to de-risk investments in nuclear power and other emerging green generation if needed.
Alberta must be prepared should the CERs lead to divestment in natural gas generation and power plants being turned off in 2035. This initiative would be an important first step towards protecting Albertans’ continued access to reliable and affordable electricity should this occur.
The resolution also urges the government to use all legal means necessary to oppose the federal electricity regulation, including legal challenges.
Quick facts
- According to the Constitution of Canada, legislating and regulating the development of electricity explicitly falls within the jurisdiction of the province (Section 92A (1) (c)).
- Alberta has reduced electricity emissions by 53 per cent since 2005.
- Analysis by the Alberta Electric System Operator determined that Alberta would face disproportionate risk and costs, compared with other provinces, as a result of the federal electricity regulations.
- Alberta’s grid had seven alerts during colder months in 2022 and had three alerts in summer 2023, underscoring the importance of having sufficient stable baseload power sources like gas, hydro and nuclear available year-round. Alberta must continue to rely on a diverse mix of intermittent and baseload options to prevent future brownouts and blackouts and maintain a reliable grid.
- The Public Policy Forum previously indicated that the cost of the federal electricity approach could be more than $1 trillion and as high as $1.7 trillion.
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Better, faster, more affordable auto insurance
Alberta’s government is introducing a new auto insurance system that will provide better and faster services to Albertans while reducing auto insurance premiums.
After hearing from more than 16,000 Albertans through an online survey about their priorities for auto insurance policies, Alberta’s government is introducing a new privately delivered, care-focused auto insurance system.
Right now, insurance in the province is not affordable or care focused. Despite high premiums, Albertans injured in collisions do not get the timely medical care and income support they need in a system that is complex to navigate. When fully implemented, Alberta’s new auto insurance system will deliver better and faster care for those involved in collisions, and Albertans will see cost savings up to $400 per year.
“Albertans have been clear they need an auto insurance system that provides better, faster care and is more affordable. When it’s implemented, our new privately delivered, care-centred insurance system will put the focus on Albertans’ recovery, providing more effective support and will deliver lower rates.”
“High auto insurance rates put strain on Albertans. By shifting to a system that offers improved benefits and support, we are providing better and faster care to Albertans, with lower costs.”
Albertans who suffer injuries due to a collision currently wait months for a simple claim to be resolved and can wait years for claims related to more serious and life-changing injuries to addressed. Additionally, the medical and financial benefits they receive often expire before they’re fully recovered.
Under the new system, Albertans who suffer catastrophic injuries will receive treatment and care for the rest of their lives. Those who sustain serious injuries will receive treatment until they are fully recovered. These changes mirror and build upon the Saskatchewan insurance model, where at-fault drivers can be sued for pain and suffering damages if they are convicted of a criminal offence, such as impaired driving or dangerous driving, or conviction of certain offenses under the Traffic Safety Act.
Work on this new auto insurance system will require legislation in the spring of 2025. In order to reconfigure auto insurance policies for 3.4 million Albertans, auto insurance companies need time to create and implement the new system. Alberta’s government expects the new system to be fully implemented by January 2027.
In the interim, starting in January 2025, the good driver rate cap will be adjusted to a 7.5% increase due to high legal costs, increasing vehicle damage repair costs and natural disaster costs. This protects good drivers from significant rate increases while ensuring that auto insurance providers remain financially viable in Alberta.
Albertans have been clear that they still want premiums to be based on risk. Bad drivers will continue to pay higher premiums than good drivers.
By providing significantly enhanced medical, rehabilitation and income support benefits, this system supports Albertans injured in collisions while reducing the impact of litigation costs on the amount that Albertans pay for their insurance.
“Keeping more money in Albertans’ pockets is one of the best ways to address the rising cost of living. This shift to a care-first automobile insurance system will do just that by helping lower premiums for people across the province.”
Quick facts
- Alberta’s government commissioned two auto insurance reports, which showed that legal fees and litigation costs tied to the province’s current system significantly increase premiums.
- A 2023 report by MNP shows
Alberta maintains a balanced budget while ensuring pressures from population growth are being addressed.
Alberta faces rising risks, including ongoing resource volatility, geopolitical instability and rising pressures at home. With more than 450,000 people moving to Alberta in the last three years, the province has allocated hundreds of millions of dollars to address these pressures and ensure Albertans continue to be supported. Alberta’s government is determined to make every dollar go further with targeted and responsible spending on the priorities of Albertans.
The province is forecasting a $4.6 billion surplus at the end of 2024-25, up from the $2.9 billion first quarter forecast and $355 million from budget, due mainly to higher revenue from personal income taxes and non-renewable resources.
Given the current significant uncertainty in global geopolitics and energy markets, Alberta’s government must continue to make prudent choices to meet its responsibilities, including ongoing bargaining for thousands of public sector workers, fast-tracking school construction, cutting personal income taxes and ensuring Alberta’s surging population has access to high-quality health care, education and other public services.
“These are challenging times, but I believe Alberta is up to the challenge. By being intentional with every dollar, we can boost our prosperity and quality of life now and in the future.”
Midway through 2024-25, the province has stepped up to boost support to Albertans this fiscal year through key investments, including:
- $716 million to Health for physician compensation incentives and to help Alberta Health Services provide services to a growing and aging population.
- $125 million to address enrollment growth pressures in Alberta schools.
- $847 million for disaster and emergency assistance, including:
- $647 million to fight the Jasper wildfires
- $163 million for the Wildfire Disaster Recovery Program
- $5 million to support the municipality of Jasper (half to help with tourism recovery)
- $12 million to match donations to the Canadian Red Cross
- $20 million for emergency evacuation payments to evacuees in communities impacted by wildfires
- $240 million more for Seniors, Community and Social Services to support social support programs.
Looking forward, the province has adjusted its forecast for the price of oil to US$74 per barrel of West Texas Intermediate. It expects to earn more for its crude oil, with a narrowing of the light-heavy differential around US$14 per barrel, higher demand for heavier crude grades and a growing export capacity through the Trans Mountain pipeline. Despite these changes, Alberta still risks running a deficit in the coming fiscal year should oil prices continue to drop below $70 per barrel.
After a 4.4 per cent surge in the 2024 census year, Alberta’s population growth is expected to slow to 2.5 per cent in 2025, lower than the first quarter forecast of 3.2 per cent growth because of reduced immigration and non-permanent residents targets by the federal government.
Revenue
Revenue for 2024-25 is forecast at $77.9 billion, an increase of $4.4 billion from Budget 2024, including:
- $16.6 billion forecast from personal income taxes, up from $15.6 billion at budget.
- $20.3 billion forecast from non-renewable resource revenue, up from $17.3 billion at budget.
Expense
Expense for 2024-25 is forecast at $73.3 billion, an increase of $143 million from Budget 2024.
Surplus cash
After calculations and adjustments, $2.9 billion in surplus cash is forecast.
- $1.4 billion or half will pay debt coming due.
- The other half, or $1.4 billion, will be put into the Alberta Fund, which can be spent on further debt repayment, deposited into the Alberta Heritage Savings Trust Fund and/or spent on one-time initiatives.
Contingency
Of the $2 billion contingency included in Budget 2024, a preliminary allocation of $1.7 billion is forecast.
Alberta Heritage Savings Trust Fund
The Alberta Heritage Savings Trust Fund grew in the second quarter to a market value of $24.3 billion as of Sept. 30, 2024, up from $23.4 billion at the end of the first quarter.
- The fund earned a 3.7 per cent return from July to September with a net investment income of $616 million, up from the 2.1 per cent return during the first quarter.
Debt
Taxpayer-supported debt is forecast at $84 billion as of March 31, 2025, $3.8 billion less than estimated in the budget because the higher surplus has lowered borrowing requirements.
- Debt servicing costs are forecast at $3.2 billion, down $216 million from budget.
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