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Alberta Electric System Operator 2020 Balancing Pool Consumer Allocation Rider F Application, AUC Decision 24982-D01-2019

Link to Decision Summarized

Rates – AESO Balancing Pool Consumer Allocation Rider F


In this decision, the AUC considered the application by the Alberta Electric System Operator (“AESO”) for its 2020 Balancing Pool consumer allocation Rider F. The AUC approved the AESO’s requested $2.50 per megawatt hour (“MWh”) Rider F charge to all demand transmission service (“DTS”) and demand opportunity service (“DOS”) market participants, with the exception of the City of Medicine Hat and BC Hydro at Fort Nelson, for metered energy from January 1, 2020, through December 31, 2020.

Background

The Balancing Pool is a corporation established by Section 75 of the Electric Utilities Act (“EUA”) to carry out the powers and duties set out therein. Pursuant to Section 82 of the EUA, the Balancing Pool must prepare a budget for each fiscal year setting out its estimated revenues and expenses. Based on this forecast, the Balancing Pool determines an annualized amount that will be refunded to (or collected from) electricity market participants over the year.

Following receipt of the Balancing Pool’s “annualized amount,” the AESO is required to include this amount in its tariff. The AESO collects (refunds) from (to) market participants the Balancing Pool’s annualized amount through Rider F.

Rider F for 2020

On October 2, 2019, the Balancing Pool notified the AESO of a negative annual forecast amount of $160,182,500 for 2020 and approved a charge of $2.50/MWh of consumption.

The AESO applied for approval of a $2.50/MWh Rider F charge to all DTS and DOS market participants, with the exception of the City of Medicine Hat and BC Hydro at Fort Nelson, for metered energy from January 1, 2020, through December 31, 2020.

AUC Findings

The AUC approved the method by which the AESO determined the Rider F charge, and ordered that the annualized amount of negative $160,182,500 provided to the AESO by the Balancing Pool, without modification, is approved for 2020.

It further ordered that the applied-for Balancing Pool Consumer Allocation Rider F charge of $2.50/MWh of metered energy is approved effective January 1, 2020, to December 31, 2020.

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