2009 Energy Market Trading Charge
The AESO has set the 2009 energy market trading charge at 25.7 cents per megawatt hour traded, including charges from the Alberta Utilities Commission (AUC) and the Market Surveillance Administrator (MSA). The overall energy market trading charge in 2009 has been increased by 11.6 cents from the 2008 rate of 14.1 cents per megawatt hour traded.
| AESO Energy Market Trading Charge |
2009 Budget |
2008 Budget |
|
AESO Component General and administrative costs, interest and Energy market deferral surplus Total |
(2.6¢) 13.1¢ |
11.1¢ |
| AUC Component | 10.1¢ | - |
| MSA Component | 2.5¢ | 3.0¢ |
| Total AESO Energy Market Trading Charge | 25.7¢ | 14.1¢ |
AESO Component
The AESO’s component of the 2009 energy market trading charge has been set at 13.1 cents per megawatt hour traded compared to 11.1 cents in the last five years. The increase in the AESO’s component of the energy market trading charge is the result of additional resource costs (both staff and consultants) and the amortization of capital assets which are offset by surplus trading charge collections from prior years.
AUC Component
Under the provision of the Alberta Utilities Commission Act (effective January 1, 2008), AUC operating and capital costs are recovered from natural gas and electricity market participants under its jurisdiction or any person to whom the AUC provides services. Accordingly, the AUC apportions all of its costs related to its wholesale electric market activities to the AESO as an AUC administration fee.
The AUC administrative fee for 2008 was $5.2 million and had not been incorporated into the 2008 energy market trading charge. In 2009, the AESO has estimated a cost of $7.2 million for the AUC administrative fee. Based on the aggregate $12.4 million in AUC administrative fees this represents 10.1 cents per megawatt hour of the 2009 energy market trading charge.
MSA Component
In accordance with the Electric Utilities Act, the energy market trading charge will also recover the costs required by the MSA. The MSA's budgeting process is a separate activity, and their budget is approved by the Chair of the AUC. The AESO receives the cost recovery requirement determined by the MSA and must include that amount net of any over/under-collection from a megawatt hour volume variance in the prior years in the energy market trading charge. In 2009, the MSA's costs represent 2.5 cents per megawatt hour traded compared to 3.0 cents in 2008.
If you have questions or would like to discuss this topic further, please contact:
Nicole Boulet
403.539.2634
nicole.boulet@aeso.ca
Marina Jagbandhansingh
403.539.2587
marina.jagbandhansingh@aeso.ca
Updated: December 22, 2008