Assessment of AESO Transmission Cost of Service Analysis

31 October 2006
By Dr. Hethie Parmesano, Veronica Irastorza, et al.

The Alberta Electric System Operator (AESO) is in the process of updating its transmission cost-of-service methods and rate structures to reflect the evolving industry structure and transmission system conditions. In this report for AESO, a NERA team led by Special Consultant Dr. Hethie Parmesano reviews the latest AESO transmission cost-of-service studies, analyzes stakeholder comments on particular issues addressed in the AESO studies, and provides recommendations on sub-functionalization, classification, and cost recovery methods for bulk and local transmission wires costs. The report also provides information on cost-of-service methods and rate structures adopted for transmission wires costs in other jurisdictions, including regions with transmission systems similar to those in Alberta.