More stability for electricity consumers

Alberta, Canada -

Proposed legislation would further reduce price volatility in the electricity system and support the province’s made-in-Alberta transition to a stable and reliable system that puts consumers first.

Bill 34, the Electric Utilities Amendment Act, would allow the Balancing Pool to borrow money from the province to manage its funding obligations. This change, in conjunction with Ministerial Orders that allow the Balancing Pool to smooth price volatility over a longer period of time, would support electricity costs remaining low and stable.

Currently, the average electricity consumer receives a Balancing Pool credit of $1.95 on their monthly bill.

Without the changes proposed in Bill 34, the Balancing Pool would have to remove that credit and apply a charge of $8.40 per month (approximately $100 per year) starting Jan. 1, 2017, with similar charges applied until the end of 2020.

With the changes proposed in Bill 34 and with supporting regulations that give the Balancing Pool until 2030 to meet its net zero obligation, the charge would instead be 67 cents per month for the average consumer. That’s the equivalent of a
0.1 cent/KWh increase in electricity prices, and $7.73 less per month than if the government hadn’t acted. The amount will be reviewed annually and adjusted as necessary based on the wholesale price of electricity.

The changes – which allow the Balancing Pool to manage the cost of the power companies’ return of PPAs earlier this year – in conjunction with reaching a settlement with one of the PPA buyers and tentative settlements with two others, would protect consumers and provide price stability as the province transitions its electricity system.

By extending the operations of the Balancing Pool, providing a loan and setting the initial consumer charge, the province is ensuring that consumers do not see an immediate and disproportionate increase to power bills from the companies returning their power contracts. These changes complement the government’s work with the companies to settle the PPA disputes. The government will continue to work with the Balancing Pool to understand what steps the Balancing Pool could take to further reduce the cost impact on consumers.

Additionally, Robert Bhatia has been appointed to chair the Balancing Pool’s Board of Directors. The appointment is effective November 29, 2016.

Mr. Bhatia brings a wealth of knowledge and experience to the Balancing Pool, particularly in the areas of financial and fiscal management, strategic leadership, policy and legislation, governance, and operations. During his more than 30 years working for the Government of Alberta, Mr. Bhatia worked in government ministries responsible for finance and revenue, most notably in deputy minister roles.

Source: Energy Alberta

Related News

uk-energy-industry-divided-over-free-electricity-debate

UK Energy Industry Divided Over Free Electricity Debate

LONDON - In recent months, the debate over free electricity in the UK has intensified, revealing a divide within the energy sector. With soaring energy prices and economic pressures impacting consumers, the discussion around providing free electricity has gained traction. However, the idea has sparked significant controversy among industry stakeholders, each with their own perspectives on the feasibility and implications of such a move.

The Context of Rising Energy Costs

The push for free electricity is rooted in the UK’s ongoing energy crisis, exacerbated by geopolitical tensions, supply chain disruptions, and the lingering effects of the COVID-19 pandemic. As energy…

READ MORE
bee keeper

Maine Governor calls for 100% renewable electricity

READ MORE

Energy Efficiency and Demand Response Can Nearly Level Southeast Electricity Demand

Energy Efficiency and Demand Response Can Nearly Level Southeast Electricity Demand for More than a Decade

READ MORE

tesla powerwall

Tesla’s Powerwall as the beating heart of your home

READ MORE

vladimir putin inspects computer terminal

Russian hackers had 'hundreds of victims' as they infiltrated U.S. power grid

READ MORE