Everything you need to know about REAs and Natural Gas Co-ops in Alberta

Although Alberta is the least regulated energy market in Canada, its rural areas don’t have competitive retailer options. As such, rural customers have to stick to their area’s default provider or obtain their electrical services from Rural Electrification Associations and Natural Gas Co-ops. In contrast, urban customers have various energy retailers to select from and don’t require an REA power contract if they wish to not receive services from the default utility.

How do Alberta’s Rural Electrification Associations (REAs) work?

REAs provide power for consumers in rural communities within specific geographic boundaries. There are two kinds of REAs in Canada.

Operating REAs manage their lines, deliver electricity to their members, and use their own distribution lines.

The other type of REA is a non-operating REA which offers electricity contracts for members in collaboration with electricity marketers that operate within their geographic boundaries/territory.

For consumers that are looking to obtain service from an REA, entering a Member Service Contract with an REA that serves your area will allow you to receive electrical services from that REA. This contract will outline the regulated rate for electricity that you’ll need to pay.

How do Alberta’s natural gas co-ops work?

Alberta natural gas co-ops are made up of several natural gas utilities that work together to provide centralized Alberta natural gas services while also saving co-io members costs in the process. You can read more about Alberta’s natural gas co-ops below.

What is the Alberta Federation of Rural Electrification Associations (AFREA)?

The Alberta Federation of Rural Electrification Associations represents member REAs that provide rural electricity services throughout Alberta. AFREA assists REAs in gaining self-sufficiency while also providing professional representation to government and industry stakeholders.

Rural Electrification Associations list

You can see a list of the current available REA electricity providers in Alberta on the Utilities Consumer Advocate site.

Map of Services

You can view a map of services for REAs here.

When to contact an REA board?

A few reasons you may want to contact your REA board for include:

• REA specific changes on your power bill
• Questions about your Electric Service Contract
• Questions or concerns about your REA membership

What are natural gas co-ops?

Alberta’s natural gas co-ops represent a movement in rural Alberta that has resulted in the formation of the world’s largest rural natural gas distribution system.  It’s a system that continues to be built by, owned by, and also to serve rural Albertans, and for more than 50 years, Alberta’s natural gas co-ops have been one of the most significant contributors to Alberta’s economy.

How does it work?

The Federation of Alberta Gas Co-ops, a not-for-profit umbrella organization that is governed by an eight-member board of directors, is based in Sherwood Park.  It is made up of 81 natural gas utilities with more than 119,000 members throughout Alberta, members who, in an average year, consume close to 25 million gigajoules of Alberta natural gas.  The Federation’s role involves providing members with centralized Alberta natural gas services, and by pooling the resources of its membership base, it is able to save its members costs in the process.

What is a co-operative?

A co-operative occurs when an autonomous association decides voluntarily to unite in order to better serve the common need, whether that be economic, social, or cultural needs.  By joining together into one democratically controlled alliance or enterprise, the association is better able to meet those common needs of the community.   The Federation of Alberta Gas Co-ops, otherwise known as Alberta’s natural gas co-ops, was formed through this process as a means of better addressing Alberta’s common natural gas needs.

In order to maintain the association, and in order to ensure that the cooperative continues to address Alberta’s common natural gas needs, the Federation brought seven principles into effect.  These include:

• 1st Principle: Voluntary and Open Membership—the co-operative must remain open to all persons who are willing to accept the responsibilities of membership, regardless of gender, social, racial, political, or religious status.
• 2nd Principle: Democratic Member Control—the co-operatives must remain democratic, must have elective representatives who are accountable to the membership, and must allow members to actively participate in policies and decisions.
• 3rd Principle: Member Economic Participation—members all contribute equally to capital, and all members have democratic control over capital, reserves, and surpluses.
• 4th Principle: Autonomy and Independence—the co-operatives must remain autonomous, self-controlled, self-help organizations.
• 5th Principle: Education, Training and Information—the co-operatives must train members, elected representatives, managers, and employees, and must inform the general public about the benefits of co-operation.
• 6th Principle: Co-operation among Co-operatives—the co-operatives must function to strengthen their movement by serving members, and must maintain co-operation through national, regional and international structures.
• 7th Principle: Concern for Community—the co-operatives must enact and approve policies to ensure they are working towards achieving the sustainable development of their communities.

What are the benefits?

Alberta’s natural gas co-operative is an important movement across Alberta.  It strengthens the economy by creating a united distribution system that is deeply embedded in the rural spaces it simultaneously employs and is employed by.  The co-operation ensures closer interaction with the distribution system to ensure all community needs are met and all concerns are approached.  It also introduces a strengthened economic network that contributes to Alberta’s economy as a whole while also offering members cost-saving benefits, including access to programs like farm insurance enhancement, travel insurance, home and auto insurance benefits, and even group life and dental policies.

List of Natural Gas Co-Ops

You can view a list of natural gas co-ops for Alberta here.