ISO Line Loss Rule – Electricity – Loss Factor Methodology – Behind-the-Fence Generation
In this decision, the AUC approved the AESO new line loss rule, as filed.
The AUC held that when calculating loss factors, the AESO should use the full range of net-to-grid output of each generating facility.
The AUC further held that a net-to-grid approach should also apply to behind-the-fence generation, such as industrial users and the City of Medicine Hat (“CMH”).
The AUC rejected the submissions of CMH and others that argued the line loss rule should consider gross amounts with respect to behind-the-fence generation. The AUC held that the relevant factor is electric energy that is exchanged with the transmission system (i.e the AIES).
On this basis, the AUC approved the AESO’s net-to-gri approach set out in Section 8: Calculation of Hourly Loss Factors of the new line loss rule, finding that the proposed rule “correctly uses the net generation of a generating facility when calculating loss factors.”