Under provisions of the Electric Utilities Act (2003), each year the Balancing Pool is required to forecast its revenues and expenses to determine any excess (or shortfall) of funds. Based on this forecast the Balancing Pool determines an annualized amount that will be remitted to (collected from) electricity consumers over the year. This amount is known as the Consumer Allocation and applies to all market participants who receive system access service from the Alberta Electric System Operator (AESO) in accordance with Rider F of the ISO Tariffs. The allocation is based on the amount of electric energy consumed annually. As such, approximately 80% of the annual allocation goes to commercial and industrial electricity consumers, with the remainder to the residential and farm sector.
The Balancing Pool has had a positive Consumer Allocation payment to consumers each year dating back to 2006.