Smart energy choices: How Alberta farmers can manage electricity costs

Rising electricity rates in Alberta are putting pressure on farmers, making energy cost management a growing concern. With the recent Rate of Last Resort (RoLR) transition, many agricultural operations have been placed on a fixed-rate electricity plan. However, while this may seem like a safe choice, some electricity plans provide more competitive rates—if farmers take the time to explore their options.

Energy costs are a significant factor in farm profitability, and selecting the right plan can lead to long-term savings. From choosing between fixed and variable rates to improving energy use on the farm, understanding your options is key to managing expenses.

Now is the time to review your current plan and take control of your costs. Let’s explore the best strategies for managing electricity expenses on your farm.

Understanding the Rate of Last Resort (RoLR)

In response to the volatility of electricity prices experienced in recent years, the Government of Alberta introduced the Rate of Last Resort (RoLR) on January 1, 2025, replacing the previous Regulated Rate Option (RRO). This initiative aims to give consumers greater price stability and predictability in their monthly costs—but that stability comes at a higher price.

Why was the RoLR introduced?

The primary motivation behind the RoLR’s implementation was to shield consumers from the unpredictability of the energy market. In 2023, Alberta experienced unprecedented electricity rate spikes, with the RRO reaching as high as 32.26 cents/kWh in August. Such fluctuations posed significant challenges for consumers, prompting the government to establish a more stable and predictable default rate.

Fixed-rate stability at a higher cost

While the RoLR’s fixed rate offers protection against market volatility, it is set at a higher rate compared to many competitive plans. As of early 2025, the RoLR rate exceeds most available fixed-rate options in Alberta. For example, in November 2024, the average RRO rate was approximately 9.907 cents/kWh, notably lower than the RoLR rate of 12.01 cents/kWh.

How DNE helps farmers

Rising Alberta power rates make picking the right plan hard for farmers. DNE offers custom fixes to control energy costs. We help farmers understand their choices, check their usage, and find the best power plan for their needs.

Our assessment process

DNE takes a data-driven approach to energy management, ensuring farmers make informed decisions. Our process includes:

• Evaluating consumption: We analyze historical electricity usage to identify trends and inefficiencies.
• Finding the right rate plan: Whether it’s a fixed or variable electricity rate, we compare available plans to match each farm’s energy profile and financial goals.

By partnering with DNE, farmers can save time, avoid overpaying for electricity, and improve financial predictability. We navigate complex contracts and market fluctuations, allowing farmers to focus on what matters most—running their operations.