DTS Market Participants – DOS Market Participant
In this decision, the AUC approved the application from the Alberta Electric System Operator (“AESO”) for its 2021 Rider F – Balancing Pool Consumer Allocation (“2021 Rider F”). The AUC approved a $2.30 per megawatt hour (“MWh”) Rider F charge to all demand transmission service (“DTS”) and demand opportunity service (“DOS”) market participants, except for the City of Medicine Hat (“Medicine Hat”) and BC Hydro at Fort Nelson, for metered energy from January 1, 2021, through December 31, 2021. The AUC also approved the AESO’s removal of Section 2(2) from the 2021 Rider F.
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 is required to prepare a budget for each fiscal year setting out its estimated revenues and expenses. Based on the forecast revenues and expenses in its budget, the Balancing Pool must determine an annualized amount that would be refunded to (or collected from) electricity market participants over the year. The AESO was required to include this annualized amount in its tariff.
The AESO collects or refunds the Balancing Pool’s annualized amount through Rider F. Rider F applies to system access service (“SAS”) provided under Rate DTS of the Independent System Operator (“ISO”) tariff and Rate DOS of the ISO tariff. Rider F does not apply to SAS provided to Medicine Hat or BC Hydro at Fort Nelson.
Rider F for 2021
The AESO was notified by the Balancing Pool of a negative annual forecast amount of $134,317,470 for 2021 and approved a charge of $2.30/MWh of consumption. The AESO consequently applied for approval of a $2.30/MWh Rider F charge for metered energy from January 1, 2021, through December 31, 2021. The AESO stated that, apart from Section 2(2), the 2021 Rider F would remain substantively unchanged from the Rider F that was in effect for 2020 metered energy.
Section 2(2) of the 2020 approved Rider F required that the ISO determine Rider F to refund or collect an annualized amount estimated by the Balancing Pool and transferred to the ISO under section 82 of the EUA, for the market participants receiving SAS from the ISO under Rate DTS or Rate DOS of the ISO tariff.
AUC Findings
The AUC found it reasonable for the AESO to remove Section 2(2) of the previously approved Rider F. It agreed with the AESO’s statement that this section repeats the requirements set out in sections 30(2)(b) and 82 of the EUA and Section 1 of Rider F.
In the absence of objections to the allocation proposed or any evidence filed to demonstrate that the AESO’s approach to calculating Rider F was unjust, unreasonable or unduly preferential, arbitrary or discriminatory, the AUC approved the annualized amount of negative $134,317,470 and its allocation Rider F charge of $2.30/MWh of metered energy as determined by the AESO.
