Setting the Price
The cost of electrical power changes every hour.
The Alberta Electric System Operator (AESO) watches the supply and demand and sets the price, which is the hourly Pool Price. This is the pure cost of power—the wholesale price. It doesn’t include delivery or other overhead. The wholesale cost of electricity in Alberta changes every hour (based on supply and demand). We use weighted average power pool prices that take into account our customers’ profiled usage each hour. Unaccounted-for energy, distribution line-losses, uplift charges and trading charges are also factored in.
Several factors affect the Pool Price. One is the type of energy firing the powerplant. Coal, wind and solar energy are the cheapest.
When there’s a large supply of energy, the hourly Pool Price drops. During peak hours, the supply may be low and the demand high. In those times, the grid relies on more expensive forms of electricity.