ISO Tariff Update
The Alberta Electric System Operator (“AESO”) applied to the AUC, pursuant to section 30 and 119 of the Electric Utilities Act, for approval of its 2015 Independent System Operator tariff (“ISO Tariff”) update. The AESO normally files annual tariff updates as approved in Decision 2010-606.
The AESO requested that the tariff update be approved effective January 1, 2016, and further requested that if a final approval could not be granted prior to that date, that the tariff update be approved on an interim refundable basis on the same date. The AESO noted that it would require an approval by no later than November 16, 2015 in order to test the rates in the AESO’s billing system in advance of the proposed January 1, 2016 effective date.
The AESO submitted that its 2015 updated forecast costs represented an increase of $74.9 million (or 4.1 percent) over its 2014 recorded costs, driven primarily from an increase of $136.5 million in wires costs from recent transmission facility owner tariffs. These increases were offset by decreases in other cost components such as ancillary services and other impacts derived from the decreased pool price.
The AESO submitted that the updated forecast costs were made in accordance with the methodologies approved in Decision 2010-606 and in Decision 3473-D01-2015. No objections were raised by parties to the application in respect of the AESO’s calculation methods.
The AUC noted that it was not likely to be in a position to issue any decision on a final basis in respect of the AESO’s 2015 ISO tariff update in time for the AESO to implement the decision effective January 1, 2016. Accordingly, the AUC approved the application on an interim refundable basis to be effective January 1, 2016, noting that no parties objected to the approval on an interim refundable basis.
The AUC’s final decision on the AESO’s 2015 ISO tariff update will be provided in due course.
