Alberta Libs: Replace Forwards-Based Average Default Service Rate With Rate Based on Settled Prices
January 19,2017
Alberta provincial Liberals announced a proposal to transition the default service electric rate (regulated rate option, RRO) to a rate based on actual settled market prices, rather than a price based on an average of forward prices
Additionally, rather than averaging out the RRO over several months, the Liberals propose to use actual settled prices for one month, which may add volatility but which avoids risk premiums