Load settlement rules - an important element in electricity market settlement

"The constant is change". This has never been truer than now, as we move into the 21st century, utility regulators have had a central role in implementing the infrastructure needed for increased competition and the opening up of customer choice. In Alberta, Canada, prior to industry de-regulation, a mix of investor owned and municipally owned utilities served customers. Each utility was a regulated monopoly and had the right, as well as the obligation, to provide distribution and energy services to customers in a particular geographical area. However, in a competitive market environment, multiple retailers provide energy services to customers, and their changing customer loads must be financially settled with the generators who provide power. This paper provides an overview of the market situation in Alberta, load settlement, how it works and why load settlement rules are important in the competitive market.