Project Initiation – Project Need
On November 30, 2021, the Alberta Electric System Operator (“AESO”) filed an application seeking approval of its compliance with directions 13 and 14 issued in Decision 22942-D02-2019.
In the relevant sections of Decision 22942-D02-2019 the AUC addressed concerns raised by EPCOR Distribution & Transmission Inc. that the classification of transmission project costs as between system-related and participant-related costs may be determined by whether the project has been initiated by the AESO or by the market participant. The classification influences the amount of any required construction contribution.
The AUC determined that it would be helpful if the AESO more clearly outlined the circumstances under which it would determine that a system need existed that required the AESO to initiate a system transmission project rather than requiring a distribution facility owner to make a system access service request. The AESO was directed to develop a set of criteria for the initiation of system transmission projects.
The AUC considered the consultative process undertaken by the AESO and found that the resulting application complied with the requirements of directions 13 and 14 from Decision 22942-D02-2019. The AESO’s compliance with directions 13 and 14 was therefore approved.