Flow-Through vs Sample Clauses

Flow-Through vs. Hedged RROT SPPA stated in argument that it would have proposed the use of a flow through rate for the RRO, similar to that which was recently approved for ATCO Electric in Decision 2002-106. It also stated that would have proposed a different hedging strategy for the EESAI RRO portfolio. The Board is of the view that there is not sufficient evidence to explore the latter issue in this proceeding, but further, given the inclusion of the independent advisor to the RRO negotiations and the experience of the Consultation Parties, that the Consultation Parties and EESAI have been able to design a price hedging strategy that is satisfactory to the majority of EESAI RRO consumers. With respect to the desirability of a flow-through RRO energy charge, the Board made a number of relevant findings in the ATCO Electric 2003 RRO decision: In the final analysis, the Board considers that the matter of whether to approve a flow- through or a hedged program for the 2003 RROT is fully within the Board’s discretion within the existing framework of the EUA and the Regulations. The Board considers that the adoption of either approach in 2003 would be fully consistent with the legislation and Alberta Government policy. . The Board considers the crux of the SPPA concern with the continued use of a hedge program by EESAI for its RROT to be the potential effect on the development of the commercial electricity market. Presumably SPPA’s primary concern in this matter is that its members may somehow be disadvantaged. In that regard the Board notes that in a very significant respect the EESAI RRO has been significantly different from the ATCO Electric RRO. The EESAI RROT has never had a provision for entrance and exit fees for people wishing to enter or exit the regulated rate. The risk of any difference between forecast and actual RRO consumption has been and continues to be borne by EESAI. In Decision 2001-75 regarding gas rates and also in Decision 2002-106 regarding ATCO Electric rates, the Board considered that the use of entrance and exit fees was undesirable from the perspective of encouraging a commercial energy market. However, there is no such difficulty arising from the EESAI RROT. Further, the lack of an exit fees diminishes the potential harm that has been claimed by SPPA. As the Board previously noted in Decision 2001-87: The Board notes SPPA’s indication that: “During the course of 2001, several SPPA Members elected to withdraw their accounts from the RRO. In the absen...
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Related to Flow-Through vs

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