The agency's earthquake monitoring website says the earthquake hit at 9:28 a.m. MT and was lightly felt in Rocky Mountain House, a town of roughly 7,000 people that is located west of Red Deer between Edmonton and Calgary.
"There are no reports of damage, and none would be expected," the agency said on its website.
Clearwater County, the municipal district to which Rocky Mountain House belongs, issued a statement on its website saying that it had been made aware of the earthquake by the Provincial Operations Centre of the Alberta Emergency Management Agency.
There are power losses throughout the area and Fortis, the local electricity provider, is working to restore power.
Earthquakes above a magnitude of 3.5 are unusual in the area.
Since 1985, fewer than 15 have been recorded anywhere in Alberta, according to the Alberta Geological Survey's website.
There has been an increase in small earthquake activity since the 1960s, the organization says.
Earthquakes Canada recorded 471 earthquakes in the province between 1985 and 2010 and the Alberta Geological Survey says the vast majority of those have been natural.
However, the organization says some of them may have been triggered by oil and gas production.