A Review of Alberta's Default Rate for Electricity

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2016-09
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Abstract
This paper is an analysis of the costs and benefits of the government’s chosen rate design for the Regulated Rate Option (RRO) post-2006. The historical performance of the monthly forward market price setting used by Alberta’s three major RRO providers is evaluated by way of counter-factual analysis; specifically, its costs and benefits relative to monthly Pool price flow-through price setting are estimated over the course of the “New” RRO. This analysis indicates that the government’s chosen rate design resulted in a relative cost of approximately $1 billion, with no relative benefits.
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Citation
Jansen, N. (2016). A review of Alberta's default rate for electricity (Master's thesis, University of Calgary, Calgary, Canada). Retrieved from https://prism.ucalgary.ca.