2006 Energy Market Trading Charge
We now have the final energy market trading charge calculation for 2006 which is 12.9 cents per megawatt hour traded, including charges from the Market Surveillance Administrator (MSA). The overall energy market trading charge in 2006 has been reduced by 0.5 cents from the 2005 rate of 13.4 cents per megawatt hour traded.
AESO Charge
The portion of the trading charge required to recover the AESO's costs in 2006 is 11.1 cents per megawatt hour, unchanged from the 2005 AESO trading charge component.
The impact of the implementation of the Department of Energy’s Market Policy has not been included. The AESO continues to work with industry stakeholders on implementation of the policy and we are currently working on defining the scope and cost estimate of this initiative. The AESO’s costs to modify the market and our internal systems will be collected over the life of the assets starting in 2007.
The cost recovery associated with the new System Coordination and Data Centre is not included in the AESO’s 2006 energy market trading charge. While the construction of the facility has begun, the recovery of these costs will begin in 2007.
MSA Charge
In accordance with the Electric Utilities Act, the trading charge will continue to 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 Energy and Utilities Board (EUB). 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 2006, the MSA's costs represent 1.8 cents per megawatt hour traded compared to 2.3 cents in 2005. The MSA previously reported a MSA charge of 1.9 cents per megawatt hour; however that amount was prior to netting the 2004/2005 over-collection from the volume variance.
If you have questions or would like to discuss this topic further, please contact:
|
Ruppa Minhas |
Mary-Beth Hansen (403) 539-2599 marybeth.hansen@aeso.ca |