2004-2005 Deferral Account Reconciliation

Section 14 of the Electric Utilities Act requires that "on an annual basis, no profit or loss results from its [the AESO's] operation."  As a result, any variances arising between the actual costs the AESO incurs and the forecast amounts recovered in rates are refunded to or recovered from customers by the use of deferral accounts.  On December 1, 2007, the AESO filed a comprehensive deferral account reconciliation application for 2004 and 2005 with the Alberta Energy and Utilities Board (EUB).  The application also included a second deferral account reconciliation for 2003, as well as deferral account adjustments for 1999 to 2002.  The application will be reviewed and approved through a regulatory proceeding in accordance with a schedule set by the EUB.