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Alberta Electric System Operator 2020 Deferral Account Reconciliation, AUC Decision 26541-D01-2021

Link to Decision Summarized

Electricity – Rates

In this decision, the AUC approved the request from the Alberta Electric System Operator (“AESO”) to settle its 2020 net deferral account surplus of $17.3 million with market participants.


The AESO provides system access service to the transmission system through the Independent System Operator (“ISO”) tariff. The AESO may undercollect or overcollect its forecasted revenue requirement through the ISO tariff for three of its rate classes due to factors such as changing AUC directions or billing determinants. In the event of an overcollection or undercollection, the AESO ensures that no loss or profit result from its operation on an annual basis through the deferral account.


The AUC accepted the AESO’s submission regarding significant variance thresholds. It noted that the 9.2 per cent increase to AESO staff and benefit costs in 2020 falls below the 10 per cent limit of the general and administrative expenses component of the AESO’s revenue requirement. As the AUC found this variance insignificant, and as the application indicated a net surplus, and because it was sufficiently detailed, the AUC found it unnecessary and inefficient to hear from further participants.

The AUC found the AESO’s costs to be prudent in the application. Accordingly, the AUC approved the accuracy of deferral account amounts and the calculation of the net deferral account surplus of $17.3 million.

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