BACKSTOPPING RISKS RELATED TO POWER PURCHASE ARRANGEMENTS ON BEHALF OF ALBERTA CONSUMERS
The Balancing Pool was created by the Government of Alberta to manage certain assets, liabilities, revenues and expenses arising from the transition to competition in Alberta’s electric industry. The Balancing Pool was originally established in 1998 as a separate financial account of the Power Pool Council and commenced operations in 1999. The Power Pool Council was a statutory corporation established under the Electric Utilities Act of Alberta (1995). The requirement to establish the Balancing Pool and its associated mandate was set out in the Balancing Pool Regulation.
With the proclamation of the Electric Utilities Act on June 1, 2003, the Balancing Pool was established as a separate statutory corporation. The assets and liabilities of the Power Pool Council that related to the duties, responsibilities and powers of the Balancing Pool were transferred to the Balancing Pool.
The Balancing Pool’s mandate can be briefly described as follows:
- Managing the financial accounts arising from the transition to a competitive generation market on behalf of electricity consumers; and
- Meeting obligations and responsibilities relating to Power Purchase Arrangements (PPAs) as defined in Section 1(1)(nn) of the Electric Utilities Act.