Alberta is a powerhouse—both in the literal and figurative sense of the word. It is one of the big suppliers of energy, and its energy industry has long shaped Canada’s economy in its entirety; but how did the province that made a career of its energy resources—and one that now hosts enough energy companies to be able to offer the lowest electricity rates in Alberta—go from burning candles to flipping (and supplying energy to) a light switch?
It’s an interesting history, especially when you consider the fact that Alberta was a late-bloomer to the phenomena of electricity. It is one of Canada’s youngest established provinces, and because of that, it took a lot longer for the need for energy to come to the province. It wasn’t until the late 1880s and 1890s that large enough urban centres developed to create the demand that would finally bring electricity into the province—and there was no turning back from there.
Calgary, Edmonton, and Lethbridge were the big three. Each city welcomed electricity by striking a deal with local entrepreneurs. Then, in the 1900s, there was the population boom, so beginning the controversy surrounding public versus private ownership of utilities that would eventually lead to the deregulation of the energy market, and the resulting availability of the lowest electricity rates in Alberta.
Calgary was the first to jump on board the electricity bandwagon. It all started with a street light—or rather, with 10 street lights. In 1887, the Calgary Electric Lighting Company won a contract that would enable them to install and power 10 streetlights, right downtown. Those 10 lights didn’t just light up the downtown core, they also illuminated a contentious issue when it comes to the availability of the lowest electricity rates in Alberta. Peter Prince had already been selling the surplus electricity he had been producing in his steam-powered electric generator from burning his sawmill’s scrap wood and sawdust. He had his sights on holding a monopoly on electricity, but the Calgary Electric Lighting Company was in the way. In 1892, the Calgary Electric Lighting Company went bankrupt, and Prince picked up the contract to provide electricity to the streetlights, becoming Calgary’s dominant energy provider.
A similar thing was happening in Edmonton and Lethbridge. Private enterprises were running a monopoly on the industry, but soon the population would get to be too much, leaving all three companies struggling to power their respective cities. In addition, the Edmonton Electric Lighting Company had to deal with the 1899 and 1900 flooding of its plant, which left customers (quite literally) in the dark. The result? In 1902, the city’s electricity became publicly owned. A public mandate caused the City of Edmonton to buy out the Edmonton Electric Lighting Company, making it the first municipally-owned electric utility of its size in all of Canada, and becoming a catalyst for the lowest electricity rates in Alberta.
The City of Calgary was also an important player in the creation of the lowest electricity rates in Alberta. In 1904, the City refused to renew Prince’s 10-year monopoly contract. A coal-fueled power plant was built in 1905, and other partners were actively sought out by the City. Calgary Power, not TransAlta, became one of the dominant private corporations, but opening the energy market to multiple providers still enabled the city to come up with some of the lowest electricity rates in Alberta.
Lethbridge took advantage of its dominant position in the coal industry in 1907, and by 1913 was offering some of the lowest electricity rates in Alberta to its citizens. In 1911, Horseshoe Falls became the first hydroelectric project in Alberta. Diversification of the energy market had begun. Alberta was on its way to becoming the industry-rich energy powerhouse it is known to be today.
