2010 Energy Market Trading Charge
The AESO has set the 2010 energy market trading charge at 29.8 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 2010 has been increased by 4.1 cents from the 2009 rate of 25.7 cents per megawatt hour traded.
| AESO Energy Market Trading Charge | 2010 Budget |
2009 Budget |
|---|---|---|
|
AESO Component |
||
|
General and administrative costs, interest and amortization |
20.1¢ |
15.7¢ |
|
Energy market deferral deficit (surplus) |
1.0¢ |
(2.6¢) |
|
Total |
21.1¢ |
13.1¢ |
| AUC Component |
6.1¢ |
10.1¢ |
| MSA Component |
2.6¢ |
2.5¢ |
| AESO Energy Market Trading Charge |
29.8¢ |
25.7¢ |
AESO Component
The AESO’s component of the 2010 energy market trading charge has been set at 21.1 cents per megawatt hour traded compared to 13.1 cents in 2009. The increase in the AESO’s component of the 2010 energy market trading charge is the result of the combination of higher cost allocations to the energy market function for corporate service and IT costs and overall increases in general and administrative costs and amortization in 2010.
When the 2009 trading charge was established, the AESO costs were offset by the cumulative prior-year collection surplus which reduced the overall collection requirements in 2009 by 2.6 cents per megawatt hour. For 2010, the cumulative prior-year collection is anticipated to be a deficit of one cent per megawatt hour as a result of lower than budgeted revenue collections in 2009 partially offset by lower than budgeted costs for the year.
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’s component of the 2010 energy market trading charge has been set at 6.1 cents per megawatt hour traded compared to 10.1 cents in 2009. For the AUC energy market administration fee in 2009, the 10.1 cents per megawatt hour traded incorporated the fees for two years (2008 and 2009) which in aggregate were $12.4 million. For 2010, only the estimated current year administration fee of $7.2 million has been included.
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 Alberta Utilities Commission (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 2010, the MSA's costs represent 2.6 cents per megawatt hour traded compared to 2.5 cents in 2009.
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 |