September 13, 2001

Rebate Allocation

To retailers and self-retailers:

In order to provide clarification, the Balancing Pool would like to address some concerns that have been raised recently regarding the electricity rebates.

• Balancing Pool electricity rebates are calculated on "eligible consumption", which is defined in the Balancing Pool Allocation Regulation. The regulation states that 'eligible consumption' refers to only 'electric energy' that is consumed at the customer site. UFE and distribution losses cannot be consumed at the customer site and are therefore not included in the rebate calculation.
  
  
• As outlined in the Balancing Pool Rules, the rebate is calculated on the same schedule as the Power Pool settlement statements. Any resettlements for Interim and Final Periods will be calculated at the same time as the Power Pool adjusts consumption for the resettlement periods on the Pool Statement. The 2001 Settlement Dates are available on www.powerpool.ab.ca/Participants/Settlement/Settlement Dates.
  
  
• The Balancing Pool was unable to query the LSA files that exclude losses and UFE until June 2001. Since January and February were not adjusted for losses and UFE with their Interim resettlements, those months will be recalculated from Initial to Final Settlement. March interim rebate adjustments were included on the June Final Pool Statement and the adjustments for April and May will be reflected accordingly.
  
  
• On January 29th, 2001 all Commercial Retailers as well as Self-Retailers received a prepayment based on the estimated January consumption, which was later adjusted to actual January consumption. The Balancing Pool's intent is to allocate 12 payments in the calendar year. Since the Balancing Pool works in conjunction with the Pool Statements issued by the Power Pool of Alberta, the true-up on the initial payment from January will be adjusted on the December Final Pool Statement, which is payable on January 29th, 2002. Please also note that the rules currently being proposed to Council would require retailers to report monthly any differences between the amount paid by the Balancing Pool and the amounts paid to their customers (as it relates to the customer's eligible consumption.) There is no proposal to change the reporting requirements for self-retailers.
  

If you have any questions or concerns about the rebate allocation, please contact Daniela Hops at (403) 233-6499.