Continued Need, Benefit & Approaches Consultation | March 6-April 21, 2023
The purpose of this consultation is to seek feedback from interested stakeholders on their perspectives as it relates to the continued need and benefit of the AMP and potential approaches to implementing the AMP in light of AUC Decision 27047-D01-2022, as well as any questions stakeholders may have on content areas they continue to find confusing or unclear and require further clarification.
Thank you to all stakeholders who added or voted on the questions in the Question Board, as well as to all stakeholders who attended the Q&A Session. View the Q&A Session & Question Board Summary and AESO Replies, Q&A Supplemental Material and Stakeholder Questions here.
We value stakeholder input and thank you for sharing your perspectives with us on the continued need and benefits of the AMP and potential approaches to implementing AMP. View Stakeholder Comments here including formatted comments from DCG Consortium and AltaLink.
The materials have been divided into five content sections with section summaries presented below to provide additional clarity when reviewing materials. The materials can be accessed via the links provided and have been published in the AESO Materials section. View the Acronyms and Terms document to see the list of acronyms and short-form terms used throughout the AMP Engagement materials.
Section 1: Background & Ongoing Need
Under the AESO’s current measurement practice, the increase of energy flowing into the transmission system caused by DCG installed on distribution systems has caused an artificial erosion of ISO tariff billing determinants, leading to higher rates and misallocations of recovered costs. DCG production has increased over 400 per cent in the last 15 years, resulting in an increase in energy inflows that travel through a substation and back out to feed distribution loads, a use of the transmission system unaccounted for in ISO tariff bills. The AMP will address this issue by measuring flows individually, leading to billing determinants that reflect actual transmission system usage, and correctly allocated costs. View the Background & Ongoing Need material here.
Section 2: DCG Credits and the AMP
The Commission’s approved phase-out of DCG Credits does not resolve billing determinant erosion or eliminate any causes of billing determinant erosion. The artificial billing determinant erosion that is caused by the netting of energy flows is resolved either by changing the AESO’s current measurement practice to eliminate the netting of energy flows (i.e., implementing the AMP); or by eliminating the reversals themselves (i.e., limiting the flows on lines, which the AESO does not consider to be a reasonable solution). The existence of DCG Credits does not impact how the AESO measures flows in order to bill market participants. Put another way, the phase-out of DCG Credits has no impact on the need for the AMP. View the DCG Credits and the AMP material here.
Section 3: Impact Analysis
To quantify the benefit of the AMP, the AESO performed an indicative impact analysis to estimate the impacts to billing determinants, rates, and market participant bills with the AMP in place. This impact analysis supports the need for the AMP discussed in the Background & Ongoing Need materials. The impact analysis shows that implementation of the AMP could reduce ISO tariff rates for some billing determinants by approximately 3%, resulting in the reallocation of approximately $16M across market participants. View the Impact Analysis material here.
Section 4: Moving Forward With the AMP
As the AESO believes that there is value in implementing the AMP, the AESO intends to file an application to confirm approval of the AMP with the Commission in April 2023, following the completion of stakeholder engagement. As part of this application, the AESO will address the costing direction provided by the Commission in AUC Decision 27047-D01-2022. The AESO will be applying for approval to move forward with the AMP, and seeking direction on whether implementation could include some form of legacy treatment. View the Moving Forward With the AMP material here.
Section 5: Totalized Billing
Provisions for totalized billing have been included in the ISO tariff for a long time. When the AESO updated the totalized billing provisions as part of its 2018 general tariff application in AUC Proceeding 22942, the changes, which were meant to only be administrative in nature, created a gap in the applicability of totalized billing. Instead of being broadly applicable to all points of delivery and points of supply, the current totalized billing provisions specify that they apply to points of delivery and points of supply at separate substations. The AESO is proposing amendments to the totalized billing provisions to ensure that it is clear in the ISO tariff that totalized billing could apply to all points of delivery and points of supply, as was previously the case. View the Totalized Billing material here.
ISO Tariff Billing Course
This eLearning course is an introduction to the billing determinants and the charges in the Independant System Operator (ISO) tariff rates that recover the AESO’s annual revenue requirement. This course will cover the mechanics of how ISO tariff services are billed to market participants.
This eLearning course is hosted on the AESO’s Continuing Education learning platform located here. To register for an account on the AESO Continuing Education learning platform, please email firstname.lastname@example.org with the following information:
- First and last name
- Email address
- Company (optional)
You will receive a confirmation email reply with instructions to access our learning platform within 1-5 business days.