Alberta Electricity Prices Drop as Saskatchewan Rates Climb

Electricity prices in Alberta decreased by 18 percent during the first three months of 2026, averaging $32 per megawatt-hour. Matthew Davis, vice-president at Capital Power Corp., attributed the decline to an oversupply of power from natural gas and renewables within the province's deregulated market. While current prices are low, industry executives expect a rebound driven by broader electrification and increased demand from data centers.

In contrast, SaskPower in Saskatchewan has requested regulatory approval to increase rates by 7.8 percent over two years. These funds are intended for system investments and maintaining reliability, with Saskatoon Light and Power expected to implement similar increases. Mark Brown, chief operating officer at ATCO EnPower, noted that Alberta's merchant pricing fosters a level of competition that benefits both businesses and consumers, distinguishing it from the utility model used by SaskPower.

Looking forward, the Alberta Electric System Operator is restructuring the province's energy market with changes expected by mid-2027. However, some industry leaders warn that a lack of clarity regarding the new market design could delay future investments and lead to increased price volatility.