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Alberta

Alberta relaunch moves into Stage Two on Friday

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8 minute read

From the Province of Alberta

Alberta moves to stage two of relaunch

Strong testing data shows active COVID-19 cases in Alberta are lower than expected, meaning stage two of the relaunch strategy can safely begin on June 12, a week sooner than expected.

Albertans can enjoy additional activities in their daily lives while the province continues to open up the economy.

“Albertans have demonstrated the care and common sense needed to move forward with our relaunch earlier than initially planned. Our data tells us our active cases are low, hospitalizations are trending downward and people are taking action to protect those most vulnerable and prevent the spread of the virus. We will continue to move forward together to overcome any tough times ahead, but responsible Albertans should be proud of the vigilance they have shown to date.”

Jason Kenney, Premier

Current data from June 8 show only 355 active cases and 44 people in hospital across Alberta. This is a decrease of almost 70 per cent in active cases since May 14 – when the province began stage one of the Alberta Relaunch Strategy. With its robust approach to testing, Alberta has performed more COVID-19 tests per capita than most other jurisdictions in the world.

As the province enters stage two of relaunch, safety remains the top priority. More businesses, sport and recreation services can open if they are ready. Some larger gatherings for seated audience events will be permitted. In all cases, public health guidance must be followed.

A new interactive map will help Albertans understand the level of risk in their community and learn about any enhanced health measures at the local level, giving additional information on what they need to do to keep themselves and their loved ones safe and protected. Currently, no communities in Alberta need locally targeted enhanced measures.

“More Albertans can now return to work and to the activities so many of us enjoy. However, I encourage you to do it safely. Think of the people in your life who may be at high risk from COVID-19 and protect all those around you as you would want your loved ones protected. Stay home if you are sick. Stay two metres apart and wear a non-medical mask if you can’t. Consider downloading the ABTraceTogether app, and wash your hands often.”

Dr. Deena Hinshaw, Chief Medical Officer of Health

What can open with restrictions

  • K-12 schools, for requested diploma exams and summer school, following guidance
  • Libraries
  • More surgeries
  • Wellness services such as massage, acupuncture and reflexology
  • Personal services (esthetics, cosmetic skin and body treatments, manicures, pedicures, waxing, facial treatment, artificial tanning)
  • Indoor recreation, fitness, and sports, including gyms and arenas
  • Movie theatres and theatres
  • Community halls
  • Team sports
  • Pools for leisure swimming
  • VLTs in restaurants and bars
  • Casinos and bingo halls (but not table games)
  • Instrumental concerts

The 50 per cent capacity limit for provincial campgrounds is also being lifted. Over the coming days, the online reservation system will be updated and sites will come online in phases. By July 1, all camping sites will be open for reservations. First-come, first-served sites may open sooner. Information on additional sites will be added to alberta.parks.ca when they become available.

Events and gatherings can be larger in stage two

Maximum 50 people:

  • Indoor social gatherings – including wedding and funeral receptions, and birthday parties

Maximum 100 people:

  • Outdoor events and indoor seated/audience events – including wedding and funeral ceremonies

No cap on the number of people (with public health measures and physical distancing in place):

  • Worship gatherings
  • Restaurants, cafés, lounges and bars
  • Casinos
  • Bingo halls

There is more flexibility for ‘cohort’ groups – small groups of people whose members do not always keep two metres apart:

  • A household can increase its close interactions with other households to a maximum of 15 people
  • Performers can have a cohort of up to 50 people (cast members or performers)
  • Sports teams can play in region-only cohorts of up to 50 players (mini leagues)
  • People could be part of a sports/performing and household cohort

Everyone is encouraged to follow public health guidelines and notify others in the cohort(s) if they have symptoms or test positive for COVID-19. If they do test positive or have symptoms, mandatory isolation is required.

Still not approved in stage two

  • Social gatherings that exceed above listed maximums
  • Regular in-school classes for kindergarten to Grade 12. Classes will resume September 2020
  • Vocal concerts (as singing carries a higher risk of transmission)
  • Major festivals and concerts, large conferences, trade shows and events (as these are non-seated social events and/or vocal concerts)
  • Nightclubs
  • Amusement parks
  • Hookah lounges (permitted for food and drink only)
  • Major sporting events and tournaments
  • Non-essential travel outside the province is not recommended. This recommendation will not be lifted until stage three of the relaunch strategy.

The success of stage two will determine when Alberta progresses to stage three. Factors are active cases, health-care system capacity, hospitalization and intensive care unit (ICU) cases, and infection rates. For more information, visit alberta.ca/RelaunchStrategy.

Quick facts

  • Relaunch stages include an evaluation and monitoring period to determine if restrictions should be adjusted. Triggers that will inform decisions include active cases, hospitalizations and intensive care unit (ICU) occupancy.
  • Active cases, the percentage of positive results and the rate of infection will be monitored to inform proactive responses in localized areas of the province.
  • Decisions will be applied at both provincial and local levels, where necessary. While restrictions are gradually eased across the province, an outbreak may mean that they need to be strengthened temporarily in a local area.
  • Physical distancing and good hygiene are the most important measures to prevent respiratory illnesses, including COVID-19.
  • Clean your hands regularly for at least 20 seconds, avoid touching your face, cough or sneeze into your elbow or sleeve, and dispose of tissues appropriately.

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After 15 years as a TV reporter with Global and CBC and as news director of RDTV in Red Deer, Duane set out on his own 2008 as a visual storyteller. During this period, he became fascinated with a burgeoning online world and how it could better serve local communities. This fascination led to Todayville, launched in 2016.

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Alberta

Alberta government should create flat 8% personal and business income tax rate in Alberta

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From the Fraser Institute

By Tegan Hill

If the Smith government reversed the 2015 personal income tax rate increases and instituted a flat 8 per cent tax rate, it would help restore Alberta’s position as one of the lowest tax jurisdictions in North America

Over the past decade, Alberta has gone from one of the most competitive tax jurisdictions in North America to one of the least competitive. And while the Smith government has promised to create a new 8 per cent tax bracket on personal income below $60,000, it simply isn’t enough to restore Alberta’s tax competitiveness. Instead, the government should institute a flat 8 per cent personal and business income tax rate.

Back in 2014, Alberta had a single 10 per cent personal and business income tax rate. As a result, it had the lowest top combined (federal and provincial/state) personal income tax rate and business income tax rate in North America. This was a powerful advantage that made Alberta an attractive place to start a business, work and invest.

In 2015, however, the provincial NDP government replaced the single personal income tax rate of 10 percent with a five-bracket system including a top rate of 15 per cent, so today Alberta has the 10th-highest personal income tax rate in North America. The government also increased Alberta’s 10 per cent business income tax rate to 12 per cent (although in 2019 the Kenney government began reducing the rate to today’s 8 per cent).

If the Smith government reversed the 2015 personal income tax rate increases and instituted a flat 8 per cent tax rate, it would help restore Alberta’s position as one of the lowest tax jurisdictions in North America, all while saving Alberta taxpayers $1,573 (on average) annually.

And a truly integrated flat tax system would not only apply a uniform tax 8 per cent rate to all sources of income (including personal and business), it would eliminate tax credits, deductions and exemptions, which reduce the cost of investments in certain areas, increasing the relative cost of investment in others. As a result, resources may go to areas where they are not most productive, leading to a less efficient allocation of resources than if these tax incentives did not exist.

Put differently, tax incentives can artificially change the relative attractiveness of goods and services leading to sub-optimal allocation. A flat tax system would not only improve tax efficiency by reducing these tax-based economic distortions, it would also reduce administration costs (expenses incurred by governments due to tax collection and enforcement regulations) and compliance costs (expenses incurred by individuals and businesses to comply with tax regulations).

Finally, a flat tax system would also help avoid negative incentives that come with a progressive marginal tax system. Currently, Albertans are taxed at higher rates as their income increases, which can discourage additional work, savings and investment. A flat tax system would maintain “progressivity” as the proportion of taxes paid would still increase with income, but minimize the disincentive to work more and earn more (increasing savings and investment) because Albertans would face the same tax rate regardless of how their income increases. In sum, flat tax systems encourage stronger economic growth, higher tax revenues and a more robust economy.

To stimulate strong economic growth and leave more money in the pockets of Albertans, the Smith government should go beyond its current commitment to create a new tax bracket on income under $60,000 and institute a flat 8 per cent personal and business income tax rate.

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Alberta

Province to stop municipalities overcharging on utility bills

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Making utility bills more affordable

Alberta’s government is taking action to protect Alberta’s ratepayers by introducing legislation to lower and stabilize local access fees.

Affordability is a top priority for Alberta’s government, with the cost of utilities being a large focus. By introducing legislation to help reduce the cost of utility bills, the government is continuing to follow through on its commitment to make life more affordable for Albertans. This is in addition to the new short-term measures to prevent spikes in electricity prices and will help ensure long-term affordability for Albertans’ basic household expenses.

“Albertans need relief from high electricity costs and we can provide that relief by bringing in fairness on local access fees. We will not allow municipalities – including the city of Calgary – to profit off of unpredictable spikes in electricity costs while families struggle to make ends meet. We will protect Alberta families from the extreme swings of electricity costs by standardizing the calculations of local access fees across the province.”

Danielle Smith, Premier

Local access fees are functioning as a regressive municipal tax that consumers pay on their utility bills. It is unacceptable for municipalities to be raking in hundreds of millions in surplus revenue off the backs of Alberta’s ratepayers and cause their utility bills to be unpredictable costs by tying their fees to a variable rate. Calgarians paid $240 in local access fees on average in 2023, compared to the $75 on average in Edmonton, thanks to Calgary’s formula relying on a variable rate. This led to $186 million more in fees being collected by the City of Calgary than expected.

“Albertans deserve to have fair and predictable utility bills. Our government is listening to Albertans and taking action to address unaffordable fees on power bills. By introducing this legislation, we are taking yet another step towards ensuring our electricity grid is affordable, reliable, and sustainable for generations to come.”

Nathan Neudorf, Minister of Affordability and Utilities

To protect Alberta’s ratepayers, the Government of Alberta is introducing the Utilities Affordability Statutes Amendment Act, 2024. If passed, this legislation would promote long-term affordability and predictability for utility bills by prohibiting the use of variable rates when calculating municipalities’ local access fees.

Variable rates are highly volatile, which results in wildly fluctuating electricity bills. When municipalities use this rate to calculate their local access fees, it results in higher bills for Albertans and less certainty in families’ budgets. These proposed changes would standardize how municipal fees are calculated across the province, and align with most municipalities’ current formulas.

“Over the last couple of years many consumers have been frustrated with volatile Regulated Rate Option (RRO) prices which dramatically impacted their utility bills. In some cases, these impacts were further amplified by local access fees that relied upon calculations that included those same volatile RRO prices. These proposed changes provide more clarity and stability for consumers, protecting them from volatility in electricity markets.”

Chris Hunt, Utilities Consumer Advocate

If passed, the Utilities Affordability Statutes Amendment Act, 2024 would prevent municipalities from attempting to take advantage of Alberta’s ratepayers in the future. It would amend sections of the Electric Utilities Act and Gas Utilities Act to ensure that the Alberta Utilities Commission has stronger regulatory oversight on how these municipal fees are calculated and applied, ensuring Alberta ratepayer’s best interests are protected.

“Addressing high, unpredictable fees on utility bills is an important step in making life more affordable for Albertans. This legislation will protect Alberta’s ratepayers from spikes in electricity prices and ensures fairness in local access fees.”

Chantelle de Jonge, Parliamentary Secretary for Affordability and Utilities

If passed, this legislation would also amend sections of the Alberta Utilities Commission Act, the Electric Utilities ActGovernment Organizations Act and the Regulated Rate Option Stability Act to replace the terms “Regulated Rate Option”, “RRO”, and “Regulated Rate Provider” with “Rate of Last Resort” and “Rate of Last Resort Provider” as applicable.

Quick facts

  • Local access fees are essentially taxes that are charged to electricity distributors by municipalities. These fees are then passed on to all of the distributor’s customers in the municipality, and appear as a line item on their utility bills.
    • The Municipal Government Act grants municipalities the authority to charge, amend, or cap franchise and local access fees.
  • Linear taxes and franchise fees are usually combined together on consumers’ power bills in one line item as the local access fee.
    • The linear tax is charged to the utility for the right to use the municipality’s property for the construction, operation, and extension of the utility.
    • The franchise fee is the charge paid by the utility to the municipality for the exclusive right to provide service in the municipality.
  • Local access fees are usually calculated in one of two ways:
    • (1) A percentage of transmission and distribution (delivery) costs, typically 10-15 per cent.
    • (2) A fixed, cents per kilowatt-hour of consumed power charge (City of Edmonton).
  • Calgary is the only municipality that employs a two-part fee calculation formula:
    • 11.11 per cent of transmission and distribution charges plus 11.11 per cent of the Regulated Rate Option multiplied by the consumed megawatt hours.

Related information

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