Balancing Pool Allocation Rate Rider
In this decision the AUC considered an application filed on October 21, 2019 by ENMAX Power Corporation (“EPC”) requesting approval of its 2020 Balancing Pool allocation rider. The AUC approved EPC’s 2020 Balancing Pool allocation rider as filed, effective January 1, 2020.
Background
Under the Electric Utilities Act (“EUA”), the benefits and costs associated with the Balancing Pool are shared among all electricity customers in Alberta. Accordingly, each year the Balancing Pool is required to forecast its revenues and expenses to determine any excess (or shortfall) of funds. Based on this forecast, the Balancing Pool determines an annualized amount that will be remitted to or collected from electricity consumers over the year. Pursuant to Section 82 of the EUA, these distributions or charges are made through the Alberta Electric System Operator (“AESO”) tariff, by way of Rider F.
The allocation among participants is based on the amount of electric energy consumed annually. Because the AESO’s Rider F is calculated at the substation point of delivery (“POD”) level and a utility’s Balancing Pool allocation rider is applied at the customer meter level, in calculating a utility’s Balancing Pool allocation rider, the AESO’s charge rate must be adjusted to account for distribution losses.
AUC findings
The AUC found that, consistent with the methodology used and approved in Decision 24091-D01-2018, EPC calculated its 2020 Balancing Pool allocation rider based on the AESO’s 2020 Rider F consumer allocation charge of $2.50/MWh, adjusted for EPC’s estimated 2020 distribution losses. This resulted in a slightly higher Balancing Pool charge at the EPC distribution level than the $2.50/MWh charge under the AESO’s Rider F.
The AUC reviewed the calculations of the 2020 Balancing Pool allocation rider rates based on the 2020 energy forecast at the customer meter from the 2020 annual performance-based regulation filing, and the POD forecast based on the applied-for line loss factor in Proceeding 24820, and found these assumptions to be reasonable and the calculations correct.
The AUC approved EPC’s 2020 Balancing Pool allocation rider, effective January 1, 2020. In making this determination, the AUC noted it is mindful that EPC’s 2020 Balancing Pool allocation rider would eventually be trued up to ensure the approved amounts were collected from customers.
