Almost every Alberta electricity plan — whether it's the default RoLR or a competitive retailer's offer — falls into one of two buckets: fixed or variable. The names are self-explanatory, but the real-world trade-off is worth spelling out.

Fixed-rate plans

A fixed plan locks your per-kWh rate for a set term, commonly 1 to 5 years in Alberta. Your rate doesn't move even if wholesale power prices spike. The trade-off: you're committing to a term, and most fixed plans carry some form of early-termination condition if you leave before it's up — always worth reading before you sign, not after.

Variable-rate plans

A variable plan (including Alberta's RoLR) moves with the wholesale market, usually recalculated monthly. Some months it'll beat a comparable fixed rate; other months — especially cold snaps when Alberta demand spikes — it can swing well above it. No long-term commitment, but no predictability either.

Questions worth asking before you choose

• How much does an unpredictable bill actually bother you? If a $40 swing in a winter month would stress your budget, that alone is a reason to lean fixed.
• What's the fixed rate actually being offered right now, compared to your current rate? A fixed plan only pays off if the locked-in number beats what you'd likely average on variable over the same term — not just "fixed sounds safer."
• What happens if you need to leave early? Check the cancellation terms, not just the headline rate.
• Is a "transaction fee" or admin fee layered on top? Some variable plans add a per-kWh or per-GJ fee on top of the market price — that changes the real comparison.