By CHAT News Today

Provincial power

Minister accepts AESO recommendation on electricity pricing

Aug 28, 2020 | 2:26 PM

Associate Minister of Natural Gas and Electricity Dale Nally has accepted the recommendation of the Alberta Electric System Operator to maintain the province’s existing electricity pricing framework.

“In July 2019, our government made the decision to return to the cost-effective and reliable energy-only electricity market, instead of continuing the former government’s unnecessary transition to a capacity market,” says McNally in a release. “The decision to return to energy-only was widely applauded by stakeholders – including both traditional and renewable power generators, as well as consumers – who wanted to ensure long-term stability of electricity costs and generation.

As part of this decision, AESO was asked to analyze the province’s pricing framework, which sets the maximum and minimum limits that companies can charge for the wholesale price of electricity into Alberta’s power grid.

“Industry expressed that the existing framework is a transparent and efficient system where ratepayers benefit from the cost stability it provides by limiting price hikes,” says McNally.

McNally adds that since the decision to stay with the energy-only market in 2019, Alberta has seen more than $1 billion worth of generation projects announced, including just over 1,200 megawatts of renewable projects.

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“Staying this course will ensure continued stability for Alberta’s electricity market – benefitting power consumers and helping to attract further private investment and innovation.”