The AUC released Decision 22942-D02-2019 on the Alberta Electric System Operator (AESO)’s 2018
Independent System Operator (ISO) tariff on September 22, 2019. The ISO tariff sets out the rates to be charged for, and the terms and conditions that apply to, each class of system access service provided by the AESO.
The AUC has
examined and reviewed the billing and cost allocation approaches of the AESO, who plans and runs Alberta’s transmission
system. As Alberta’s independent utilities regulator, the AUC reviews the
AESO’s tariff to ensure the billing and cost-allocation approaches are fair and
just and serve the public interest of Alberta by promoting a fair, efficient
and openly competitive system.
The AUC's decision,
based on submissions made to it and in-depth review of the evidence, reduces
certain overall customer contribution costs for connecting distribution to
transmission that are ultimately borne by ratepayers. This is expected to save
Alberta ratepayers approximately $40 million over five years.
changes to the AESO’s terms and conditions will exert greater discipline on
decisions to build transmission. Further, changes to metering of distributed
generation projects will level the playing field between distribution- and
represents significant progress on mitigating or improving AESO practices or approaches
that had previously raised concerns of the AUC.
Directionally, the decision also reduces costs that are
ultimately paid for by ratepayers by:
- Ensuring fewer transmission-distribution connection projects are classified as system related and as a result are paid for by all ratepayers.
- Requiring payments by generation developers, called a generation unit owner’s contribution (GUOC) to be made earlier.
- Denying $20 million in costs requested by TransAlta for reliability compliance costs.
General information on the ISO tariff can be found on the transmission rates page.
Accessing proceeding documents
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