Interim Refundable Approval – Settlement of Net Deferral Account Shortfall
In this decision, the AUC approved, on an interim and refundable basis, the Alberta Electric System Operator’s (“AESO”) request to settle its 2019 net deferral account shortfall with market participants, in the amount of $41.6 million.
On July 31, 2020, the AESO filed an application requesting approval of its 2019 deferral account reconciliation and for changes to deferral account balances from 2012 through 2019. The AESO requested approval of the determination and allocation of a $41.6 million net deferral account shortfall and approval to collect and refund the allocated amounts.
The schedule established for IRs did not permit the AUC to issue a final decision, prior to the requested deadline for an interim decision of September 3. 2020. The AUC planned to issue information requests (“IR”s) to the AESO before making a decision on a final basis. The AUC recognized that approval of the application, on an interim refundable basis, would enable the AESO to settle its outstanding net deferral account shortfall on invoices issued in September 2020.
The AUC agreed with the AESO’s statements that interim approval would result in rate stability, intergenerational equity and will minimize accrued interest. For these reasons, the AUC found that the AESO’s request to settle its 2019 net deferral account shortfall with market participants, in the amount of $41.6 million, on an interim and refundable basis, was in the public interest and was therefore approved.