Alberta files court challenge against unconstitutional net-zero power rules

Smith and her government formally launched a constitutional court challenge on Thursday, filing a reference case against the federal government’s Clean Electricity Regulations.

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Alberta Premier Danielle Smith and her government formally launched a constitutional court challenge on Thursday, filing a reference case against the federal government’s Clean Electricity Regulations with the Alberta Court of Appeal.

“The federal government refused to work collaboratively or listen to Canadians while developing these regulations. The results are ineffective, unachievable and irresponsible, and place Albertans’ livelihoods – and more importantly, lives – at significant risk,” said Smith. “Our government will not accept unconstitutional net-zero regulations that leave Albertans vulnerable to blackouts in the middle of summer and winter when they need electricity the most.”

The province previously threatened a court battle in March 2025.

The United Conservative government has referred the regulations to the Alberta Court of Appeal, arguing they threaten energy reliability, drive up electricity costs, and intrude on Alberta’s exclusive authority over power generation under Section 92 of the Constitution.

“Our government will not blindly accept unconstitutional net-zero regulations that put Albertans in harm’s way,” said Smith at a press conference on Thursday. “We will always stand up and fight for our province, and we will not let Albertans freeze in the dark.”

The most recent court challenge comes after years of failed negotiations with Ottawa and warnings from the Alberta Electric System Operator, which concluded the regulations would make Alberta’s grid more than 100 times less reliable than the province’s supply adequacy standard.

Smith previously used Alberta’s Sovereignty Within a United Canada Act in Nov. 2023 to oppose the regulations and warned in Dec. 2024 that a court challenge was imminent despite the feds shifting their target from 2035 to 2050.

The regulations, finalized by the Liberals in December 2024, set strict emission limits on fossil fuel power generation to push provinces toward a net-zero grid by 2050.

Smith cited a previous report from the electricity regulator, which highlighted that the regulations would cost Albertans $30 billion between 2024 and 2049, adding that the rules would increase electricity costs by 35 per cent.

She added that Albertans would see hundreds of dollars more in electricity costs annually — money they could not afford to lose amid a worsening cost-of-living crisis.

Alberta’s Justice Minister Mickey Amery explained that the Constitution clearly gives exclusive jurisdiction to the provinces to manage their electrical energy to account for the unique needs of each province.

“It is clear that the federal government's new regulations are not actually about reducing emissions. Instead, just like with the ill-conceived carbon tax, families, businesses, and the province will be punished. The courts have agreed with us on similar questions of federal overreach, and we are confident that they will agree with us in this,” he said.

Smith highlighted the realities of an unreliable power grid.

“If Ottawa had its way, Albertans would be left to freeze in the dark in the depths of a -40 degree winter cold snap, families would be bundled up in their winter coats while sitting down for dinner, a dinner lit by flashlight or candle as they wait for the rolling blackouts to move on to the next community,” said Smith. “There would be no street lights working to light up your way home through the blinding blizzard as you squint to see the dimly lit brake lights of the car ahead of you in the heat of summer. You would be left worrying if the groceries left in your fridge and freezer will spoil before the blackouts end, and hospitals would be overwhelmed by the influx of patients suffering from heat stroke while trusting that their generators keep the lights on for their life-saving equipment.”

She cited Spain and Portugal, which experienced blackouts only days ago.

Alberta has repeatedly raised concerns with the federal government, trying to work collaboratively to adjust the legislation, but the concerns raised appear to have fallen on deaf ears.

“Industry groups, businesses and regular Canadians from coast to coast told the federal government that these regulations were reckless, that they would drive up costs, that they would kill jobs. Again, Ottawa didn’t listen,” said Alberta’s Environment Minister Rebecca Schulz.

She added that China was building more coal-fired power plants at a record rate to power its AI data centres.

“And I think we have to be very clear about what happens if China wins the race to manufacture intelligence — that is what AI is. We cannot allow China to win that race,” said Smith. “That has to be a race that we win in the free countries of the world, in North America in particular, and we have the ability to do that, along with our friends in Quebec, who have been at the absolute lead in developing data centres.”