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The AUC is reviewing applications bulk and regional rate designs and a modernized demand opportunity service rate design
Decision: 26911-D01-2022, issued November 10, 2022
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The AUC has denied an application from Alberta Electric System Operator (AESO) to change the rate design (Rate DTS) for bulk and regional rates. The bulk and regional rate design, reflected in rate demand transmission service, relates to the recovery of wires costs for both the bulk and regional portions of the Alberta transmission system. The application sought to modernize the AESO’s demand opportunity service (DOS) rate design, a non-firm rate that allows additional use of available transmission capacity that would otherwise not be used. The AUC issued Decision 26911-D01-2022 on November 10, 2022.
The current rate design is only available to a limited number of market participants and an application needs to be made to the AESO and approved by the AESO before a market participant can obtain this rate. The rate design represents approximately 75 per cent of wires costs and 60 per cent of the AESO’s total revenue requirement. The rate design aims to recover these costs based on the principles of cost causation where costs driven by a customer class are ultimately paid by those customers utilizing the system.
The current bulk and regional rate design was established nearly 15 years ago on the premise that the majority of transmission costs are driven by system peak load. Accordingly, the current bulk and regional rate design recovers a large proportion of costs through the monthly coincident peak charge.
The AUC’s decision on the application aims to ensure that the delivery of Alberta’s utility service takes place in a manner that is fair, responsible and in the public interest and was completed through an open and transparent review process.
The eFiling System should be accessed to view the applications and the other documents the AUC will be considering in this proceeding. The system is also used to file submissions and evidence to participate in the proceeding.
To create an account, select “New account” and follow the steps to create a user ID and password. If you have any questions about how to use the system please contact us at email@example.com or 310-4AUC.
Documents considered in this proceeding can be found in the eFiling System (which requires log in). Once you have logged in, enter 26911 in the “go to” section at the top left corner of your screen.