The Commission’s Decision regarding the AESO’s Bulk and Regional Transmission Rate Design

In Proceeding 26911, the Alberta Utilities Commission (the “Commission”) issues its decision regarding the proposed regional and bulk transmission rate design of the Alberta Electric System Operator (“AESO”). Alberta’s current regional and bulk transmission rate design recovers transmission costs through energy and coincident peak (“CP”) demand billing determinants. However, most intervenors agree that the associated CP charge overstates the cost of using the grid at peak times, allowing some customers to lower their bills by strategically reducing consumption. The AESO proposed a new rate design that lowers the influence of the CP charge and raises the energy charge to alleviate this issue.

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