Financial efficiency

Financial efficiency

The Alberta Utilities Commission’s vision is to be a trusted leader that delivers innovative and efficient regulatory solutions for Alberta.

The AUC focuses on innovative ideas to improve efficiency in its own operations and develops regulatory solutions aimed at encouraging efficiency among Alberta’s utilities providers to provide safe and reliable utility service at just and reasonable prices.

Receives NO government funding

• The AUC recovers its operating and capital costs through a consumer fee charged to regulated utilities (based on the utility’s number of ratepayers), market participants and transmission owners based on their related regulatory demands.
• The total AUC 2021-2022 administration fee was $31.4 million, which is about $8.56 per year, per site. AUC costs are highly scrutinized and the AUC is accountable and prudent with its expenditures.

Strict accountability in staff resourcing

• The AUC reviews its staff complement at least annually to ensure every position is required and all resources provide maximum benefit to the AUC.
• Since 2008, the AUC has continuously reduced its staff complement in areas where the regulatory environment has evolved and certain work was no longer required or was consciously streamlined.
• The AUC closely monitors staffing levels and business cases are required to fill any vacated positions.
• The AUC’s staff complement has remained 10-15 per cent below the target set by Alberta Treasury Board, during our entire existence.​

Diminishing costs per ratepayer/utility site

The AUC works actively to conduct its activities in the most financially efficient way, while ensuring appropriate scrutiny of applications, full input from affected parties that choose to participate, serving the public interest and general regulatory excellence.

• Since the AUC was established in 2008 the costs of the organization on a per-site basis have declined from about $13 per site to approximately $8.56 per site, representing a 35 per cent decrease.
• In this period, the number of regulated sites in Alberta has risen 31.1 per cent to approximately 3.2 million sites.
• At the same time, the administration fee collected by the AUC from Alberta ratepayers fell by 15 per cent.
• Inflation during this total period was approximately 26 per cent.
• Since 2008, the AUC’s careful ability to spend less than budgeted has resulted in savings of 11 per cent of our budget over this period, or an amount equal to the AUC’s budget for an entire year.

Performance-based organization planning, budgeting and staff evaluation

• The AUC Operational Plan directly guides development of divisional operational plans for each of Rates, Facilities, Market Oversight and Enforcement, Corporate Services, legal and the office of the Chief Executive. The AUC Operational Plan and the AUC Strategic Plan are developed and evaluated concurrently with the AUC’s annual budget.
• Individual (AUC staff personnel) performance plans are derived from division operational plans.
• Performance against the AUC Operational Plan, the AUC Strategic Plan, individual performance plans and the AUC budget are tracked, monitored and assessed throughout the year. Adjustments and resource allocation shifts are shaped by performance results.
• The AUC reaches its decisions in a fair, efficient manner that produces timely decisions. The AUC is accountable for measurable performance timelines outcomes, and commits to issuing decisions within predetermined deadlines.