Response to DOE's call for comments on its discussion paper on wholesale and retail market design

The options available to the Government of Alberta concerning retail electricity policy were reviewed by the Office of the Utilities Consumer Advocate. The Council claims that the deregulation of Alberta's electricity market has been a success because competition has added new generation and removed inefficient generation from service. However, the Council is concerned that the transition to competitive retail electricity market can impose additional costs and risks on small consumers. Therefore, it proposes that electricity be bought on a central basis for small consumers using a suitable mix of 3 to 5 year hedges; that competitive and regulated retailers be given full access to a centrally purchased hedge supply; that regulated retailers be offered a small customer service margin price incentive per kWh over the hedged energy rate; and that the regulated rate option be reviewed in 4 years. 1 fig