Balancing Pool FOIPS

Barb LeClaire Freeborn
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Sent:
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Attachments:
Ben Chappell
Tuesday, October 20, 2015 4:08 PM
Michelle Manuliak
Recommendation of 2016 Consumer Allocation vl.doc
Recommendation of 2016 Consumer Allocation vl.doc
Hi Michelle,
I made some changes to the wording and paragraph organization, but left your points largely the same. I think the graph
really conveys the message well. Feel free to accept or reject any edits you like.
Ben
i
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Audit and Finance Committee
Topic Summary
DECISION ITEM
2016 Allocation to Consumers
Date: November 12, 2015
Recommendation:
I Management recommends that the 2016 consumer allocation paid to Alberta electricity
| consumers in calendar yeaf 201-6-be set at $2 50/MWh.
Background:
As prescribed by the Electric Utilities Act (Section 82), ihe Balancing Pool is required to forecast its
revenues and expenses and to then calcu'ate an "annualized amount" The annualized amount is
| the estimated amount received from or paid-eet to annually to consumers through the annua)
AESO tariff.
Each year the Balancing Pool must notify the AESO and the AUC of the annualized amount in
November so that the amount can be included in the AESO's General Tariff Application for the
upcoming year Neither the AESO nor the AUC have any discretion or influence over setting the
allocation.
The recommended 2016 consumer allocation of $2.50/MWh represents a $3.00/MWh decrease
from the previous consumer allocation rate of S5.50/MWh. which has remained constant for the
previous four years,
Attached to this recommendation are two supporting appendices Appendix A provides a brief
description of our 2016 forecast assumptions. Appendix B provides sensitivity analysis and
contingency plans.
Submitted by: Bruce Roberts

Michelle Manuiiak
Benjamin Chappell
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Appendix A
2016 Consumer Allocation Forecast
October 20, 2015
2016
2 017
2 018
2 01 9
2 02 0
Awrage Pool price per MWh
09
*43
$52
*55
556
$49
Operating Cash Flow

Genesee PPA (net o* PPA payments)
MAP stop revenue
Hydro PPA {net d PPA payments)
PILOT Re*n>e
Small Power Producer Contracts
(88)
72
40
6
(5)
(75)
74
52
6
(4)
43
65
86
6
"
7
146
343
30
(13)
Total Operating Cash Flow
25
54
124
154
157
514
103
Disbursements
Operating
Isolated Generation Sites
General and Admin expense
DOE Mandated Expense
Subtotal
5
3
10
18
.
3
10
13
3
11
13
3
11
14
3
11
14
5
13
63
71
1
3
11
Provisional.
Other PPA Costs
Force Ma;eura Claims
Decommissioning (Sundance 1/2 and H.R Milner)
Subtotal
3
15
18
3
15
18
15
2E
43
3
15
15
33
3
15
18
15
75
40
130
3
15
8
Total Disbursements
36
31
47
32
201
40
(11)
23
6f
108
125
313
63
720
( in
14
(148)
576
23
12
(149)
461
65
c
388
108
8
(152)
351
125
313
51
(754)
10
(151)
Net Cash Flow

Beginning Cash Balance
Add Not Cash Flow
Add Return of Investment Portfolio
Deduct Consumer Allocation
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Ending Cash Balance

Consumer Allocation
78
6
(3)
62
87
6
(0)
(151)
a
(154)
576
461
38S
351
330
*2 50
$2 50
$2.53
$2.50
$2.50
T o ta l
A v fl
1
29
69
6
<3>
A P P LIC A N T C O P Y
1- Forward Price Forecast: The forward price curve was derived using data collected from
Chase and NGX for the 7x24 calendar year products.
Year
2016
2017
2018
2019
2020
Price Curve ($/MWh)
$39
$43
$52
$55
$56
Genesee PPA cash flow: Is based on the price curve and generation volumes set at
the target availability accord mo to m accordance with the PPA.
In addition the
generation volumes have been reduced to reflect only the Balancing Pools portion, (net
of MAP buyer revenues).
PPA costs, which include capacity payments, energy
payments, transmission charges, change In law costs, legal costs, and administrative
costs, have been taken into account.
Two key assumptions are as follows:
a. The bond rate, at the 30-year Government of Canada rate of 2.50% is assumed
to hold constant over the forecast period. The long Canada bond rate is the main
sensitivity factor in PPA cost structure.
b. The rate of growth in the underlying indices used for the calculation of all major
PPA costs is assumed to continue at historical rates ranging between 0% and
3%, depending on the index
Net cash flow for the Genesee PPA reflects an annual average of $1 million ($7 0 million
total) over the forecast period.
3.
MAP cash flow: Reflects the fixed monthly capacity payment to the Balancing Pool and
the variable charge recovery from the current strip contracts. The forecast reflects cash
flow from the remaining two years and makes no assumption reqardingassumes no
further MAP strip contracts are sold in the upcoming vearsl- sales. Variable charges are
forecast at a recovery rate of $13.19/MWh for 2016 and $14.50/MWh for 2017
Net cash flow for the MAP strip sales results in a total of $146 million over the forecast
period.
4.
Hydro PPA cash flow: Is based on the forward price curve applied to notional hourly
energy and ancillary service volumes as per the PPA, less PPA costs. Net cash flows
for the Hydro PPA average $69 million per annum ($343 million total) over the forecast
period.
5.
P ILO T revenue: Is based on the previous year's receipts net of auditing and dispute
cots, resulting in approximately $6 million per annum (held flat for 2017 to 2020), total
PILOT cash inflow over the forecast period are $30 million
6. Small Power Producer contracts: The remaining SPP contracts have an average cost
of $75.30/MWh over the forecast period Based on the forward price forecast we expect
to make payments of approximately $3 million per annum over the forecast period ($13
million total). The final contract for SPP expires in 2019.
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7. Total Operating Cash flow: Begins at $25 million in 2016 increasing to $157 million in
2020 for an average of $103 million per annum over the forecast period. Total operating
cash flow over the 5-year forecast period is $514 million.
8. C o sts for Isolated Generation sites: Based on a forecast provided by ATCO Electric,
the cost to reclaim the remaining sites is^vill be approximately $5 million. ATCO Electric
anticipates the remaining projects will wind-up by the end of 2016, however the
Reclamation and Remediation Committee has cautioned that one site remaining (jasper)
may extend into 2017
9. General and administrative expense: Based on the current yea rs G&A expenses of
approximately $2.5 million and escalated at 3% for the years 2017 to 2020.
10. Other PPA costs: Estimate of $3 million per annum consists of legal and consulting
costs related to dispute resolution o f Force Majeure and decommissioning claims.
11 Force Majeure: The provision of $15 million per annum is based on a historical average
o f settled claim payments/recoveries from 2001 to 2015.
12. Decom missioning costs: H R. Milner estimated provision of $15 million is assumed to
be paid out at the end of 2019 as per the agreement reached with Milner Power in 2011.
A conservative provision of $25 million has been included for decommissioning
Sundance 1 and 2
13 Net Cash flow: Averages $63 million per annum over the forecast period before
investment return and the Consumer Allocation.
14, Return on Investment Portfolio: The forecast Is based upon an average rate of r e t u r n __________________________________
o f 13% on fixed income and 2% on equities!. The rate of return has been held constant to
the end of 2020. Included in the return is an estimate of 25 basis points for management
and custodian fees. Average yearly cash flow from Investment return is $10 million,
totaling $51 million over the forecast period.
comment [ b c i ]: vm w e jbouinunc juhihss
15. Consum er allocation: Based on 59,000 GWhs of demand for 2016 escalated at 1% per
year to account for the annual increase in consumer consumption. Average consumer
allocation is forecast to be $151 million per year, totaling $754 million.
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Appendix B
Overview
There are a number of uncertainties to lake into account when determining the consumer
allocation for a given year These uncertainties include the possibility of low pool prices,
uncertain climate change policies, future MAP strip sales and corrections to the capital markets
Of these uncertainties, the most difficult to manage is pool price uncertainty This appendix
examines the sensitivity of the consumer allocation forecast under various consumer allocation
rates and power price scenarioss.
The graph below presents the expected drawdown of the Balancing Pool's financial reserves
under three scenariosEouf oottonswefe analyzed:
1 Tafg et-C ase Establishes a minimum yoar ond investment account balance in order for
F o rm a tte d : L
Lef> '
2- i _______ Recommendation - Average price of $39/MWh for 2016 based on the current
forward curve?-: Consumer-consumer A llocation allocation rate held at $2 50 till end of
2020;
A-'c_______ Sensitivity 1: Low pool prices Average price of $25/MWh for 2016-,.Consume)
consumer allocation rate set at $2.50/MWh for 2016 to 2020.

3. Sensitivity 2: Maintain current consumer allocation and low pool prices - Average price
of $25/MWh for 2016;-: Consumer consumer allocation rate set at $5.50/MWh for 2016
and $1 00/MWh for 2017.
4=
The graph also shows a 'target" drawdown line to serve as a guide for determining the
appropriate consumer allocation rate. This target drawdown path is meant to ensure a minimum
vear-end account balance is maintained, allowing the Balancino Pool to remain financially
resilient in the face of potential extraordinary events. The target is based on the 2012 consumer
allocation plan and is in alignment witn the Balancing Pools strategic plan
Form atted: List Paragraph, Iso bullets or

numbering
{ Comment 1&C2): Right >Cdf?
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Formatted: Centered
Investment Fund Drawdown
if
i
There are a number of uncertainties to take into consideration in determining the consumer
allocation for the 2016 calendar year- -Tbeeeuncort-amtios inc lude the sustained low Pool pnoe
environment. uncertain climale cha nge polic y future MAP strip sales and corrections lo the
oquity markets
The oreen line (Recommended)
The-reduced Gonsumor aUooation rate of $2 60/MWh for 2016 wui allow the Balancing Pool to
remain resilient te -the above me ntioned uncertainties, in the market. Atassumes a forward price
of S39/MWh and a consumer allocation of $2 50/MWh* Under this scenario, (preen Imet the
forecasted ending investment account balance for 2016 with-would be approximately $570
million. Reducing the rate to $2.50/MWh -writ also allow a tevetoed consumer allocation going
forwardThe reduced S2.50/MWh rate is sustainable for the entire time horizon shown.
There is a risk that the realized Peek pool price for 2016 settles at $25/MWhtower than the current
forward curve suggests. However, the reduced consumer allocation rate of S2 50/MWh for 2016
will allow the Balancing Pool to remain resilient, even in a low pool price scenario.* If ihe-phoe
spam try.June WHS worn removed the realized Pool price for 2015 is closer to $31/MWh. The blue
line (Sensitivity 1 ) Illustrates the Balancing Pool s financial reserves Web-assuming a consumer
allocation o f $2.50/MWh and a S25/MWh pool price. In this scenano. (blue line ) the forecasted
ending investment account balance for 2016 will be approximately $470 million* which isstill above
the target investment account balance (black dotted line) established back-m-2642. This scenario is
entirely plausible oiven today's market environment If the price spike in June 2015 had not
occurred, the realized pool price for 2015 would be closer to S31/MWh Furthermore, several of the
recent months in 2015 have settled near S25/MWh
The final scenano (red ImelShould the examines the conseouences of maintaining the consumer
allocation remain at $5.50/MWh and-rfjh e forward-pool Price settles at $25/MWh for 2016-heo
kne^. In this scenario, whieh-is-ptaosible-the investment account balance wilt would be drawn down
to $289 million by year-end 2016 and. Tthe Balancing Pool will have to reduce the consumer
allocation to $1/MWh for 2017 in order to maintain the minimum investment account balance of
$250 million. Under this scenario, the Balancing Pool's financial resilience would be significantly
compromised.
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Conclusion
In order to maintain the minimum investment account balances established in 2012 (contingency
fund) and avoid a possible consumer allocation Gharge in the- later veareorotect the Balancing
around tho climate change policy, management recommends a roduoiionreducina te-the consumer
allocation rate to $2.50/MWh for 2016.
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A u d it and Finance C om m ittee
Topic Summary
DECISION ITEM
2016 Allocation to Consumers

Date: November 12, 2015
R e co m m e n d a tio n ;
Management recommends that the 2016 consumer allocation paid to Alberta electricity
consumers be set at S2.50/MWh.
B a ckg ro u n d :
As prescribed by the Electric Utilities Act (Section 82), the Balancing Pool is required to forecast its
revenues and expenses and to then calculate an annualized amount". The annualized amount is
the estimated amount received from or paid to consumers through the annual A E S O tariff
Each year the Balancing Pool must notify the A E S O and the AU C of the annualized amount in
November so that the amount can be included in the A E S O s General Tariff Application for the
upcoming year Neither the A E S O nor the A U C have any discretion or influence over setting the
allocation.
The recommended 2016 consumer allocation of $2.50/MWh represents a $3.00/MWh decrease
from the previous consumer allocation rate of $5.50/MWh, which has remained constant for the
previous four years.
Attached to this recommendation are two supporting appendices. Appendix A provides a brief
description of our 2016 forecast assumptions. Appendix B provides sensitivity analysis and
contingency plans.
S u b m itte d by: Bruce Roberts
Michelle Manuliak
Benjamin Chappell
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Appendix A
2016 C onsum er A llocation Forecast
O ctober 28, 2015
in miHions
Average Pool price per M W h
2016
2017
2018
2013
2020
$39
$43
$52
$55
$56
Total
$49
Operating Cash Flow

G enesee P P A {net o f P P A paym ents)
M A P s trip revenue
(96)
72
(83)
74
35
54
57
Hydro P P A (net of P P A paym ents)

PILOT Revenue
S m all Power P roducer C ontracts
40
6
(5)
52
6
78
6
67
6
86
6
(4)
(3)
(0)
17
46
5
3
10
16
3
10
13
3
11
13
11
3
15
3
15
18
3
15
15
33
3
15
18
3
15
25
43
18
15
75
40
130
36
31
56
47
32
201
(19)
15
60
100
117
272
700
(19)
26
(148)
559
15
20
(149)
445
60
17
(151)
371
100
14
(152)
332
117
13
(154)
272
90
(754)
559
$2.50
445
$2.50
371
$2.50
332
$2.50
308
$2.50
116
146
(33)
146
343
30
(13)
149
473
3
11
14
5
13
53
71
Disbursements
Operating.
Isolated G eneration S ites
G eneral and A dm in E xpense
DOE M andated E xpense
Subtotal
Provisional
Other P P A C osts
Force M ajeure C laim s
D ecom m issioning (S undance 1/2 and H.R. Milner)
Subtotal
Total Disbursements
Net Cash Flow
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Beginning C ash B alance

Add: Net C ash Flow
A dd. Return of Investm ent Portfolio
Deduct: C onsu m er A llo cation
Ending Cash Balance

Consumer Allocation
_
3
14
1 . F orw ard P rice F o re ca st: The forward price curve was derived using data collected from
Chase and N G X for the 7x24 calendar year products.
Year
Price Curve ($/MWh)
2016
$39
2017
$43
2018
$52
2019
$55
2020
$56
Is based on the price curve and generation volumes set at

the target availability in accordance with the PPA. In addition, the generation volumes
have been reduced to reflect only the Balancing Pools portion, net of MAP buyer
revenues. PP A costs, which include capacity payments, energy payments, transmission
charges, change in (aw costs, legal costs, and administrative costs, have been taken into
account.
2. Genesee PPA cash flo w :
Two key assumptions are as follows:

a. The bond rate, at the 30-year Government of Canada rate of 2.50% is assumed
to hold constant over the forecast period. The long Canada bond rate is the main
sensitivity factor in P P A cost structure.
b. The rate of growth in the underlying indices used for the calculation of all major
P P A costs is assum ed to continue at historical rates ranging between 0% and
3%, depending on the index.
Net cash flow for the Genesee PPA begins with a cash outflow of $96 million in 2016
and grows to a cash inflow of $57 million as the forward curve increases from $39/MWh
in 2016 to $56/MWh in 2020. The total cash outflow for the forecast period is $33.0
million.
3. MAP cash flo w : Reflects the fixed monthly capacity payment to the Balancing Pool and
the variable charge recovery from the current strip contracts. The forecast reflects cash
flow from the remaining two years and assum es no further MAP strip contracts are sold
in the upcoming years. Variable charges are forecast at a recovery rate of $13.19/MWh
for 2016 and $14.50/MWh for 2017. '
Capacity payment receipts
Variable charge recovery
Total MAP cash flow
$103.5
42,9
$146.4 million
C ash flow for the MAP strip sales results in a total of $146 million over the forecast
period. Genesee P P A costs have been accounted for under the Genesee PPA cash
flow.
4. H yd ro PPA cash flo w : Is based on the forward price curve multiplied by the energy
and ancillary service volumes set out in the Hydro PPA, less P P A costs. The forward
price curve is shaped to reflect peak premiums. Net cash flows for the Hydro PPA
average $69 million per annum ($343 million total) over the forecast period.
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5. PILO T revenue: Is based on the previous years receipts net of auditing and dispute
cots, resulting in approximately $6 million per annum (held flat for 2017 to 2020), total
P ILO T cash inflow over the forecast period are $30 million.
6.
S m all Pow er P roducer c o n tra c ts : The remaining S P P contracts have an average cost
of $75.30/MWh over the forecast period. Based on the forward price forecast we expect
to make payments of approximately $3 million per annum over the forecast period ($13
million total). The final contract for S P P expires in 2019.
7. Total Operating C ash flow: Begins at $17 million in 2016 increasing to $149 million by
2020 yielding an average of $95 million per annum over the forecast period. Total
operating cash flow over the 5-year forecast period is $473 million.
8. C o s ts fo r Isolated G eneration sites: Based on a forecast provided by A TC O Electric,
the cost to reclaim the remaining sites will be approximately $5 million. A TC O Electric
anticipates the remaining projects will wind-up by the end of 2016, however the
Reclamation and Remediation Committee has cautioned that one site remaining (jasper)
may extend into 2017.
9. G eneral and a d m in is tra tiv e expense: Based on the current years G&A expenses of
approximately $2.5 million and escalated at 3% for the years 2017 to 2020.
10. O th e r PPA c o s ts : Estimate of $3 million per annum consists of legal and consulting
costs related to dispute resolution of Force Majeure and decommissioning claims.
11. F orce M ajeure: The provision of $15 million per annum is based on a historical average
of settled claim payments/recoveries from 2001 to 2015.
12. D e c o m m is s io n in g costs: H.R. Milner estimated provision of $15 million is assumed to
be paid out at the end of 2019 as per the agreement reached with Milner Power in 2011.
A conservative provision of $25 million has been included for decommissioning
Sundance 1 and 2.
13. Net C a sh flow: Begins at an outflow of $19 million in 2016 increasing to $117 million by
2020 yielding an average of $54 million per annum over the forecast period.
14. R e tu rn on In ve stm e n t P o rtfo lio : The forecast is based upon a weighted average return
of 4.2% (fixed income 1.4%, equities 7.4%) starting in 2016 and held constant to 2020.
included in the return is an estimate of 25 basis points, reflecting costs for management
and custodian fees. Average yearly cash flow from Investment return is $18 million,
totaling $90 million over the forecast period.
15 C o n s u m e r a llo c a tio n : Based on a forecast of 59,000 GWhs of demand for 2016
escalated at 1% per year to account for the annual increase in consumer consumption.
Average consumer allocation is forecast to be $151 million per year, totaling $754
million.
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A p p e n d ix B
O verview
There are a number of uncertain parameters that must be considered when determining the
consumer allocation for the coming year. These uncertainties include the possibility of lower
than anticipated future pool prices, potential for additional change in law costs from evolving
climate change policy and uncertain investment returns with potential corrections to the capital
markets. Of these uncertainties, the most difficult to manage and the most impactful on future
cash flows is pool price uncertainty. This appendix examines the sensitivity of the balance of the
investment account forecast across a range of consumer allocation and pool price scenarios.
The graph on the following page presents the expected drawdown of the Balancing Pools yearend balance of the investment accounts under three scenarios:
1. R ecom m enda tion (G reen L ine): Reduced consumer allocation and expected pool price
in 2016 aligned with NGX forward price: published on September 30, 2015.
Key Assumptions
Pool Price/MWh
Consumer Allocation/MWh
2016
$39.00
$2.50
2017
$43.00
$2.50
2018
$52.00
$2.50
2019
$55.00
$2,50
2020
$56.00
$2.50
2. S e n s itiv ity 1 (Red Line): Maintain current consumer allocation and experience a lower
than expected pool price for 2016,
Key Assumptions
Pool Price/MWh
2016
$25.00
$5.50
2017
$43.00
nil
2018
$52.00
$1.75
2019
$55.00
$3.00
2020
$56.00
$3.00
3. S e n s itiv ity 2 (B lu e Line): Reduced consumer allocation and experience a lower than
expected pool price in 2016.
Key Assumptions
Pool Price/MWh
2016
$25.00
$2.50
2017
$43.00
$2.50
2018
$52.00
$2.50
2019
$55.00
$2.50
2020
$56.00
$2.50
The graph also shows a target drawdown line {black dashed) which reflects the targeted
drawdown of the investment accounts which was established in the 2012 consumer allocation
plan. The target drawdown was established to maintain the Balancing Pools resilience in the
face of potential extraordinary events and is in alignment with the Balancing Pool s current
strategic plan.
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Investment Fund Drawdown

800
The recommended payout (green line) assum es a forward price of $39/MWh for the 2016
calendar year and a consumer allocation rate of $2.50/MWh (Appendix A sets out the
assumptions used in the development of this scenario), Under this scenario, the forecasted
ending investment account balance for 2016 is expected to be approximately $560 million. The
reduced consumer allocation rate of $2.50/MWh is expected to be sustainable for the remaining
period through 2020.
Given pending supply additions in early 2016, there is a significant risk that the realized pool price
for 2016 will settle lower than the current forward curve suggests. By example, the 2015 year-todate (Jan 2015 to Sep 2015) settled Pool price is $39.50/MWh. If the relatively high prices that
were observed in the month of June 2015 are removed from the analysis, the settled Pool price for
the year averages approximately $31/MWh Furthermore, several of the recent months in 2015
have settled near $25/MWh.
Sensitivity 1 (red line) examines the consequences of maintaining the consumer allocation at
$5.50/MWh in the event that the pool price settles at $25/MWh in 2016. Under this scenario, the
investment account balance will be reduced to $269 million by year-end 2016. Over drawing the
financial accounts to levels below target may compromise the Balancing Pools ability to fund future
financial obligations. Given the prevailing low pool price environment it will be impossible to restore
the balance of the investment account to sufficient levels. Instead, the Balancing Pool would have
to eliminate the consumer allocation for the 2017 calendar year in order to maintain sufficient
financial reserves to off-set potential liabilities. Should Pool prices recovery above $50/MWh by
2018, the Balancing would be able to resume the consumer allocation for 2018.
Reducing the consumer allocation rate to $2 50/MWh for 2016 will provide a buffer against the
low pool price scenario that will ensure the Balancing Pool remains financially resilient.
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Sensitivity 2 (blue line) illustrates the ending investment account balance assuming a consumer
allocation of $2.50/MWh and a $25/MWh pool price for 2016. In this scenario, the forecasted
ending investment account balance for 2016 will be approximately $455 million, slightly above the
pre- established target investment account balance and in-line with the drawdown trajectory.
C onclusion
In order to maintain the Balancing Pool's financial resiliency, management recommends reducing
the consumer allocation rate to $2.50/MWh for 2016. Should future power prices recover, the
Balancing Pool would be able to increase future consumer allocation distributions.
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Financial Report to the Audit and Finance Committee
For the month ending October 31, 2015
Prepared: December 4, 2015
Results at a Glance
(in thousands of dollars)
Total Revenues
Total Expenses
Net Income from Operating Activities
Net Surplus (Deficit) to Deferral Account
Consumer Allocation ($5.50/MWh)
Cash, cash equivalents and investments
Total Asset
Total Liabilities
Deferral Account
Average Pool price per MWh
AECO Gas Price ($/GJ)
Market Heat Rate
October
19,110
27,144
(8,034)
2,653
26,931
-
$21.47
$2.46
9
October
Budget
28,965
28,233
732
732
26,594
-
$47 60
$3.48
14
YTD
304,990
292,106
12,884
(15,471)
267,517
774,265
1,707,164
427,416
1,279,748
$35.81
$2.62
14
YTD
Budget
287,153
281,575
5,578
5,578
266,026
805,571
1,809,789
407,192
1,402,597
$47.60
$3.50
14
YE Forecast YE Budget
351,294
342,510
337,994
344,956
(2,446)
13,300
(30,801)
13,300
323,784
325,276
771,460
707,892
1,624,840 1,752,985
400,424
418,181
1,206,659 1,352,561
$34.41
$47.60
$2.57
$3.50
14
13
Financial Highlights (Please read highlights with Page 3 to 6 materials as reference)
Pool price for October averaged $21.47/MWh. October was the fifth month of the year where average monthly
prices did not exceed $25.00/MWh. The soft prices extended into October as a result of the abundant
generation supply in the market.
Total revenues were lower than budget by $9.9 million. Sale of Electricity and Hydro PPA revenues were the
major contributors to the revenue shortfall as these revenues fell below budgeted expectations by $8.6 million
and $4.6 million respectively. Net PILOT revenues also fell short of budget due to the fact no PILOT installments
were remitted to the Balancing Pool in October. All costs associated with administering PILOT (including dispute
costs) are netted against any installment payments made to the Balancing Pool, therefore October financial
results reflect negative PILOT revenues. These lower than anticipated revenues were partially offset by realized
capital gains of $4.7 million on the investment portfolio.
Year-to-date, revenues have exceeded budget by $17.8 million which is primarily due to realized capital gains of
$68.7 million on the investment portfolio. Revenues from the Sale of Electricity, the Hydro PPA and PILOT fell
below budget expectations by $37.0 million, $8.8 million and $4.5 million respectively year-to-date.
Total expenses of $27.1 million for the month of October were lower than budget due to the lower than
budgeted costs relating to Force Majeure claims.
On a year-to-date basis, total expenses are higher than budget by $10 5 million primarily due to higher than
expected expenses related to Availability Incentive Payments ("AIP") for the Genesee PPA (actual generation has
exceeded target availability) The higher than expected expenses for the Genesee PPA are offset by lower than
budgeted Amortization and depreciation expenses due to the impairment loss on the Genesee PPA recorded at
year-end 2014,
The investment portfolio recorded a mark-to-market gain of $10.7 million during the month of October primarily
due to the reversal of losses suffered in the domestic and global equity markets earlier in the year Year-to-date
BAL000211
F12-2016
APPLICANT COPY
we have recorded a mark-to-market loss of $28.6 million on the investment portfolio the majority of which
related to the domestic equity market.
The year-end forecast reflects actual financial results from January through October, which had a realized
average Pool Price of $35,80/MWh. The estimate for the balance of the year reflects an average Pool price of
$27.09/MWh for the remaining two months. Assuming the re-investment of interest, dividends, and capital
gains, management anticipates a drawdown of the investment accounts by approximately $242 million for the
year to fund the allocation to consumers. The forecast is highly dependent upon the realized Pool price over the
remainder of the year, potential Force Majeure claims and market changes on the investment portfolio.
Management anticipates a significant impairment loss on the Genesee PPA at year-end. The change-in-law costs
are expected to be significantly impacted by the recently announced climate change policy The Genesee PPA
will be exposed to additional carbon tax (greenhouse gas emission) costs of approximately $75 million per
annum between 2018 and 2020. At present, management has not seen any movement in the forward curve
published by NGX in response to the policy announcement
F12-2016
BAL000212
APPLICANT COPY
F12-2016
Balancing Pool
Statement of Income (unaudited)
October 31, 2015
Revenues
Sale of Electricity
MAP Contract Revenue
Hydro PPA - Change in Value
Payments in lieu of tax ("PILOT")
Investment Income - Interest & Dividends
Investment Income - Capital Gain (Loss)
Other Revenues
Total Revenue
October
Actual
October
Budget
Variance
YTD
YTD
Budget
Year End
Forecast
Variance
8,832
5,846
(1,284)
(205)
1,271
4,650
19,110
17,479
5,864
3,310
928
1,384
28,965
18,647)
( 18)
14,594)
11,133)
(113)
4,650
(9,855)
133,774
59,139
24,333
5,070
14,022
68,652
304,990
170,778
58,340
33,098
9,529
15,408
287,153
(37,004)
799
(8,765)
(4,459)
(1,386)
68,652
Expenses
Genesee PPA
Amortization and Depreciation
SPP Contracts - Change in Value
General & Administrative
Other PPA Costs (Force Majeure Legal)
Force Majeure Costs (Capacity Payments)
DOE Mandated Costs
Investment Management Fees
Other Expenses (Trading Chg., Map IV, credit)
Total Expenses
16,464
9,217
(17)
197
144
6
679
159
295
27,144
15,610
9,815
98
229
167
1,250
542
180
342
28,233
( 854)
598
115
32
23
1,244
(137)
21
47
1,089
173,026
92,161
799
2,146
797
11,473
6,563
2,025
3,116
292,106
Operating Income
(8,034)
732
(8,766)
12,884
BAL000213
Other Income(Expense)
Year-End Asset/Liability Valuation
Hedging Gain
Investment Mark-to-Market Gain (Loss)
Change in net assets attributable to the
Balancing Pool Deferral Account
Deferral Account - Opening Liability
Net Surplus (Deficit)
Consumer Allocation
Deferral Account - Ending Liability
Year End
Budget
Variance
17,837
153,563
70,817
23,328
4,720
21,330
68,652
100
342,510
150
351,294
(51,504)
799
(16,390)
(6,765)
(5,526)
68,652
( 50)
(8,784)
155,200
98,146
981
2,317
1,667
12,500
5,417
1,984
3,363
281,575
(17,826)
5,985
182
171
870
1,027
(1,146)
( 41)
247
(10,531)
204,065
110,593
1,120
2,600
1,131
11,473
7,846
2,325
3,803
344,956
186,405
117,776
1,177
2,771
2,000
15,000
6,500
2,333
4,032
337,994
(17,660)
7,183
57
171
869
3,527
(1,346)
8
229
(6,962)
5,578
7,306
(2,446)
13,300
(15,746)
271
(28,626)
271
(28,626)
(30,801)
13,300
(44,101)
1,562,736
(30,801)
(325,276)
1,206,659
1,663,045
13,300
(323,784)
1,352,561
10,687
10,687
271
(28,626)
2,653
732
1,921
(15,471)
5,578
1,304,026
2,653
(26,931)
1,279,748
1,428,459
732
(26,594)
1,402,597
1,562,736
(15,471)
(267,517)
1,279,748
1,663,045
5,578
(266,026)
1,402,597
205,067
70,018
39,718
11,485
24,856
-
271
(28,626)
(21,049)
APPLICANT COPY
F12-2016
Balancing Pool
Statement of Financial Position (unaudited)
October 31,2015
Assets
Cash & Cash Equivalents
Investments
Subtotal
Accounts Receivable & Prepaid Expenses
Hydro PPA
Property, Plant & Equipment
Total Assets
Liabilities
Accounts Payable
Accrued Liabilities
Sub-total
Power Purchase Arrangement Lease Obligation
Reclamation & Abandonment Provision
Total Liabilities
October
October
Budget
YE Forecast
YE Budget
1,588
772,677
922
804,649
3,518
704,374
1,000
770,460
774,265
805,571
707,892
771,460
15,484
346,077
571,338
1,707,164
22,026
373,781
608,411
1,809,789
20,997
343,045
552,906
1,624,840
24,487
368,257
588,781
1,752,985
50,570
17,801
68,371
47,258
9,432
56,690
51,409
19,084
70,493
50,993
10,515
61,508
322,702
27,151
9,192
427,416
322,868
19,105
8,529
407,192
312,511
26,850
8,327
418,181
312,761
18,421
7,734
400,424
1,279,748
1,402,597
1,206,659
1,352,561
BAL000214
4
APPLICANT COPY
F12-2016
Balancing Pool
Statement of Cash Flow (unaudited)
October 31, 2015
October
Operating activities
Change in net assets attributable to the Balancing Pool Deferral Account
Items not affecting cash
Amortization and depreciation
Increase(decrease) in value of Hydro power purchase arrangement
Increase in value of small power producer contracts
Revaluation of Hydro PPA and SPP contracts
Unrealized mark-to-market
Finance Expense
Reclamation and abandonment expenditures
Net Cash Flow from Operations
Net Change in non-cash working capital
Investing activities
Sale of Investments
Disposals (Additions) to Property, plant and equipment
October
Budget
YTD
YTD
Budget
YE
Forecast
YE Budget I
2,653
732
(15,471)
5,578
(30,801)
13,300
9,217
1,284
(17)
9,815
(3,310)
98
92,161
(24,333)
799
98,146
(33,098)
981
110,593
(23,328)
1,120
117,776
(39,718)
1,177
(10,687)
100
(301)
2,249
539
2,788
75
(417)
6,993
1,259
8,252
28,626
996
(3,723)
79,055
(407)
78,648
748
(4,167)
68,188
(1,348)
66,840
28,626
1,195
(4,223)
83,182
(3,799)
79,383
898
(5,000)
88,433
1,008
89,441
197,976
(20)
197,956
241,681
(56)
241,625
232,166
(20)
232,146
29,080
42
29,122
19,581
19,581
173,379
(56)
173,323
(26,931)
(5,095)
(1,264)
(434)
(33,724)
(26,594)
(5,054)
4,423
(502)
(27,727)
(267,517)
(50,954)
36,041
(4,594)
(287,024)
(266,026)
(50,538)
56,495
(4,218)
(264,287)
(325,276)
(61,145)
38,069
(5,779)
(354,131)
(323,784)
(60,646)
68,639
(5,209)
(321,000)
(1.814)
106
(35,053)
509
(33,123)
587
Cash & Cash Equivalents - Opening
3,402
816
36,641
413
36,641
413
Cash & Cash Equivalents - Closing
1,588
922
1,588
922
3,518
1,000
Financing activities
Consumer Allocation
PPA Capital Lease obligation
Net Hydro power purchase arrangement receipts (payments)
Small power producer contracts payments
Increase (decrease) in cash and cash equivalents
BAL000215
APPLICANT COPY
F12-2016
General & Administrative Expenses

Personnel Costs
Professional Fees
Corporate Governance
Stakeholder Relations/Communications
Office Expenses
Total G&A Expenses
October
130
13
23
2
29
197
October
Budget
139
26
31
2
31
229
Variance
9
13
8
2
32
BAL000216
APPLICANT COPY
YTD
Actual
1,319
154
307
16
350
2,146
YTO
Budget
1,373
263
281
17
375
2,309
Variance
54
109
( 26)
1
25
163
Year End
Budget
1,647
315
342
20
437
2,761
Appendix 1 - Alberta Market Overview

October Monthly Highlights
O cto b e r Monthly Dashboard
Pool Price
Market Statistics
Pool price for October averaged $21,47/MWh,

bringing the year-to-date average price to
$35.81/MWh. Prices have continued to exhibit
softness and low volatility throughout most of the
year.
Demand
Demand was down by one percent year-over-year
in October, the same decrease experienced in
September. Year to date demand is up one percent
from 2014.
% Change from
Average
Previous Year
M o n th ly Price <$/MWh)
21.47
-21%
Price ($ /M W h)
35.81
-32%
M o n th ly Demand (MW)
8.935
-1%
YTD Demand (MW)
9,005
1%
ytd
M o n th ly Gas Price ($/GJ)
2.46
-30%
YTD Gas Price ($/GJ)
2.62
-41%
Fleet Availability
Supply
O ther
Supply remained strong over the month, with no

major scarcity events. As expected, wind generation
increased in October as seasonal weather patterns
shifted,
Coal
Sources
W ind
Total
W eek 1
87%
71%
W eek 2
68%
64%
73%
76%
W eek 3
W eek 4
91%
90%
25%
54%
32%
71%
93%
67%
28%
74%
A ve ra g e
90%
67%
34%
73%
Natural Gas
The average spot price of AECO-C over the month
was $2.46/GJ. This average compares to $3.50/GJ
for the month in 2014.
Futures Market
The forward market continued to show softness
over the past month. The prompt month
(November) fell as the probability of a major system
disruption decreased with time to delivery.
Futures Market Snapshot

End of M onth
% Change from
($/M W h)
Previous M onth
Novem ber 2015
34.00
-n %
December 2015
39.75
-5%
January 2016
42.00
1%
Q1 2016
33.85
0%
Cal 16
39 73
3%
BAL000217
F12-2016
APPLICANT COPY
balancingpool
For the month ending November 30, 2015
Prepared: January 11, 2016
Results at a Glance
Total Revenues
Total Expenses
Total Asset
Total Liabilities
Deferral Account
Market Heat Rate
November
23,595
27,260
(3,665)
(7,716)
27,387
-
November
Budget
28,262
28,049
213
213
27,592
-
$21.17
$2.41
9
$47.60
$3.48
14
YTD
328,584
319,365
9,219
(23,187)
294,904
742,514
1,668,247
423,602
1,244,645
$34.49
$2.60
13
YTD
Budget
315,415
309,625
5,790
5,790
293,617
785,370
1,777,992
402,774
1,375,218
$47.60
$3.50
14
YE Forecast
346,403
345,972
430
(31,976)
324,108
714,913
1,624,964
418,312
1,206,652
$33.34
$2.58
13
YE Budget
351,294
337,994
13,300
13,300
323,784
771,460
1,752,985
400,424
1,352,561
$47 60
$3.50
14
Financial Highlights {Please read highlights with Page 3 to 6 materials as reference)
November's monthly average Pool price was $21.17/MWh, the third consecutive month, where average
monthly Pool prices haven't exceeded $22.00/MWh. On a Year-to-date (including December), the average Pool
price for the year was $3334/MWh.
Total revenues for November of $23.6 million fell short of budgeted revenue by $4 7 million. Sale of Electricity
and Hydro PPA revenues were below budget by $13.7 million combined as a result of the low Pool price. Net
PILOT revenues were also below budget ($1.0 million) due to PILOT expenses exceeding remittances received for
the month which resulted in negative revenues. The revenue shortfall was partially offset by gains realized on
the investment portfolio of $10.2 million.
On a year-to-date basis, total revenues are exceeding budget by $13.2 million due to capital gains realized on
the investment portfolio of $78.8 million. The realized capital gains have offset the revenue shortfall related to
the Sale of Electricity ($45.3 million) and Hydro PPA ($14.2 million). PILOT revenues are also lower than budget
due to the lower than anticipated remittances.
Total expenses for November of $27.3 million were just below budgeted expenses of $28.0 million primarily due
to lower than budgeted Force Majeure expenses for November. The Balancing Pool recovered a small amount
of a previously paid Force Majeure claim resulting in negative Force Majeure expense,
On a year-to-date basis, total expenses are exceeding budget by $9.7 million mainly due to higher than
budgeted Genesee PPA costs. Offsetting the higher than anticipated costs for the Genesee PPA are Amortization
and Depreciation expenses which are lower than budget due to the Genesee PPA impairment loss which was
recorded at year-end 2014.
A $4,1 million mark-to-market loss was recognized on the investment portfolio during November On a year-todate basis, we have recorded a mark-to-market loss of $32.7 million. The majority of the loss has been
recognized in the domestic equity market
F12-2016
BAL000218
APPLICANT COPY
The year-end forecast reflects actual financial results from January through November, which reflects a realized
average Pool price of $34.49/MWh, The estimate for December reflects an average Pool price of $20.93/MWh.
Assuming the re-investment of interest, dividends, and capital gains, management anticipates a net drawdown
of the investment accounts by approximately $232 million for the year to fund the allocation to consumers. This
does not include any mark-to-market losses or gains on the investment portfolio for the month of December,
Management anticipates a significant impairment loss on the Genesee PPA at year-end. The change-in-law costs
are expected to be significantly impacted by the recently announced climate change policy. Based on the
pending increases to the carbon price contemplated in the Climate Change leadership Plan announced in late
November 2015. The Genesee PPA will potentially be exposed to additional carbon tax costs of approximately
$75 million per annum between 2018 and 2020. At present, management has not seen any movement in the
forward curve published by NGX in response to the policy announcement.
Management has not reflected the anticipated impairment loss in the forecast presented
F12-2016
BAL000219
APPLICANT COPY
F12-2016
Balancing Pool
November 30, 2015
Revenues
Sale of Electricity
Hydro PPA-Change in Value
Other Revenues
Total Revenue
November
Actual
November
Budget
Variance
8,519
5,795
(2,119)
(6)
1,121
10,168
117
23,595
16,811
5,814
3,310
978
1,349
28,262
(8,292)
( 19)
(5,429)
(984)
(228)
10,168
117
(4,667)
142,293
64,934
22,214
5,064
15,142
78,820
117
328,584
Expenses
Genesee PPA
DOE Mandated Costs
Other Expenses (Trading Chg,, Map IV, credit)
Total Expenses
16,337
9,217
228
197
152
(5)
665
164
305
27,260
15,433
9,815
98
236
167
1,250
542
176
332
28,049
(904)
598
(130)
39
15
1,255
(123)
12
27
789
Operating Income
(3,665)
213
(4,051)
BAL000220
Hedging Gain
Consumer Allocation
YTD
YTD
Budget
Variance
187,589
64,154
36,408
10,507
16,757
Year End
Forecast
Year End
Budget
Variance
151,526
70,798
19,076
4,965
21,101
78,820
117
346,403
205,067
70,018
39,718
11,485
24,856
315,415
(45,296)
780
(14,194)
(5,443)
(1,615)
78,820
117
13,169
150
351,294
(53,541)
780
(20,642)
(6,520)
(3,755)
78,820
( 33)
(4,891)
189,363
101,378
1,026
2,343
949
11,469
7,228
2,190
3,419
319,365
170,633
107,961
1,079
2,5S3
1,833
13,750
5,958
2,160
3,698
309,625
(18,730)
6,583
53
210
884
2,281
(1,270)
( 30)
279
(9,740)
204,968
110,594
1,300
2,561
1,109
11,469
7,893
2,350
3,728
345,972
186,405
117,776
1,177
2,771
2,000
15,000
6,500
2,333
4,032
337,994
(18,563)
7,182
(123)
210
891
3,531
(1,393)
( 17)
304
(7,978)
(3,878)
9,219
5,790
3,429
431
13,300
(12,869)
(4,051)
271
(32,677)
271
(32,677)
271
(32,667)
271
(32,667)
(7,716)
213
(7,929)
(23,187)
5,790
(28,977)
(31,965)
13,300
(45,26S)
1,279,748
(7,716)
(27,387)
1,244,645
1,402,597
213
(27,592)
1,375,218
1,562,736
(23,187)
(294,904)
1,244,645
1,663,045
5,790
(293,617)
1,375,218
1,562,736
(31,976)
(324,108)
1,206,652
1,663,045
13,300
(323,784)
1,352,561
APPLICANT COPY
F12-2016
Balancing Pool
November 30, 2015

Assets
Investments
Sub-total
Hydro PPA
Total Assets
Liabilities
Accounts Payable
Accrued Liabilities
Subtotal
Reclamation & Abandonment Provision
Total Liabilities
November
November
Budget
YE Forecast
YE Budget
(1,399)
743,913
337
785,033
5,000
709,912
1,000
770,460
742,514
785,370
714,912
771,460
18,470
345,142
562,121
1,668,247
22,344
371,682
598,596
1,777,992
14,101
343,045
552,905
1,624,963
24,487
368,257
588,781
1,752,985
50,845
19,120
69,965
48,078
9,973
58,051
50,589
19,785
70,374
50,993
10,515
61,508
317,606
27,251
8,780
423,602
317,815
18,763
8,145
402,774
312,511
27,100
8,327
418,312
312,761
18,421
7,734
400,424
1,375,218
1,206,651
1,352,561
_____________________
1,244,645
BAL000221
4
APPLICANT COPY
F12-2016
Balancing Pool
November 30, 2015
Revaluation of Hydro PPA and SPP contracts
Unrealized mark-to-market
Finance Expense
Reclamation and abandonment expenditures
Sale of Investments
Consumer Allocation
BAL000222

November
November
Budget
(7,716)
213
(23,187)
5,790
(31,976)
13,300
9,217
2,119
228
9,815
(3,310)
98
101,378
(22,214)
1,026
107,961
(36,408)
1,079
110,594
(19,076)
1,300
117,776
(39,718)
1,177
4,051
100
7,999
(1,393)
6,606
75
(417)
6,474
1,044
7,518
32,677
1,096
(3,723)
87,053
(1,799)
85,254
.
823
(4,583)
74,662
(305)
74,357
32,677
1,195
(3,973)
90,741
2,978
93,719
898
(5,000)
88,433
1,008
89,441
24,713
24,713
19,616
19,616
198,092
(56)
198,036
217,592
(20)
217,572
232,092
(56)
232,036
232,166
(20)
232,146
(27,387)
(5,095)
(1,184)
(640)
(34,306)
(27,592)
(5,054)
5,409
(482)
(27,719)
(294,904)
(56,050)
34,857
(5,233)
(321,330)
(293,617)
(55,591)
61,903
(4,700)
(292,005)
(324,108)
(61,145)
33,817
(5,960)
(357,396)
(323,784)
(60,646)
68,639
(5,209)
(321,000)
(2,987)
(585)
(38,040)
(76)
(31,641)
587
1,588
922
36,641
413
36,641
413
(1,399)
337
(1,399)
337
5,000
1,000
VTD
YTD
Budget
YE
Forecast
YE Budget
APPLICANT COPY
F12-2016

Personnel Costs
Professional Fees
Office Expenses
Total G&A Expenses
November
126
12
28
2
29
197
November
Budget
Variance
137
11
26
14
39
11
2
31 _________ 2
235
38
BAL000223
APPLICANT COPY
YTD
Actual
1,445
166
336
17
379
2,343
YTD
Budget
1,510
289
321
18
406
2,544
Variance
65
123
( 15)
1
27
201
Year End
Budget
1,647
315
342
20
437
2,761

November Monthly Highlights
N o v e m b e r Monthly Dashboard
Pool Price
Pool price for November averaged $21.17/MWh,
year.
Demand
Demand was down by two percent year-over-year
in November versus a one percent decline in
October. Year to date demand is flat compared to
2014.
Market Statistics
% Change from
Average
Previous Year
M o n th ly Price ($/M W h)
21.17
44%
YTD Price ($ /M W h)
34.49
-33%
M o n th ly Demand (MW)
9,459
-2%
YTD Demand (M W )
9,646
0%
2.40
-36%
YTD Gas Price (S/GJ)
2 60
-40%
Fleet Availability
Supply
Other

increased in November as seasonal weather
patterns shifted.
Coal
Sources
W ind
Total
W eek 1
S3%
67%
39%
75%
W eek 2
93%
68%
48%
76%
W eek 3
95%
66%
52%
76%
W eek 4
91%
72%
44%
77%
A v e ra g e
93%
68%
46%
76%
Natural Gas
Futures Market
Forward prices fell yet again as soft spot prices
continued to materialize over the past month.
Calendar year 2016 fell to just below $37/MWh
suggesting the market is expecting 2016 to closely
resemble 2015.

End o f M onth
% Change from
(S/M W h)
Previous M onth
December 2015
33.00
-17%
January 2016
37.00
-12%
February 2016
36.00
-9%
Q 12016
36.33
8%
Cal 16
36.90
-796
F12-2016
BAL000224
APPLICANT COPY
B arb LeClaire Freeborn

Bruce Roberts
Wednesday, November 04, 2015 11:53 AM
Michelle Manuliak
William Stedman (External)
Fwd: Consumer Allocation
From:
Sent:
To:
Cc:
Subject:
Michelle: Would you please run the scenario that Bill has described and include it in the CA write up for
discussion. We can review in tomorrow and then potentially reissue the write up in Boardbooks.
Thank you;
BR
Sent from my iPhone
Begin forwarded message:
From: Bill Stedman <wstedmanfalentxcapital.com>
Date: November 4. 2015 at 11:34:57 AM MST
To: Bruce Roberts <bruce.roberts@balancinepool.ca>
Cc: Greg Pollard <gpollard@,connacheroil.com>
Subject: Consumer Allocation
I had a quick read o f the materials in the Audit package regarding the Consumer Allocation. 1
would like to consider another case in which we reduce the Consumer Allocation to $4.00 this
year and then drop it to S2.50 thereafter. This will reduce the forecast ending cash balance.
1 like the idea of trying to make changes to the Consumer Allocation gradually rather than in one
step. However, we should talk about what makes sense in the current circumstances.
1 did not see any discussion as to what is a reasonable target ending cash balance in 2020.This
seems like a big issue to me which deserves some thoughtful analysis.
Bill Stedman
ENTx Capital Corp.
(403)999-1186
BAL00011
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APPLICANT COPY

Tuesday, November 17, 2015 12:00 PM
Monica Sloan (External)
Doug Topping (External); Bruce Roberts, Michelle Manuliak, Greg Pollard
RE: 2016 meeting schedule and Q3 Report
From:
Sent:
To:
Cc:
Subject:
We will need to Approve the 2017 Consumer Allocation by mid-November, at the latest. If we schedule the Q3 Board
meeting for the end of November, we will need to convene a special meeting to consider the Consumer Allocation.
It looks like we should schedule the Board meeting for late November, and we should anticipate a special meeting, if
required, to consider the Consumer Allocation earlier in November
I will propose some specific dates for 2016 unless there are other comments or alternatives.
From: Monica Sloan Imailto:monica.sloan@iksholdings.com1
Sent: November 16, 2015 9:03 AM
To: Bill Stedman <wstedman@entxcapital.cotn>
Cc: Doug Topping <dtoppingd@yahoo.ca>; Bruce Roberts <Bruce.Roberts@balancinRpool.ca>; Michelle Manuliak
<michelle.manuliak@balancingpool.ca>; Greg Pollard <gpollard@connacheroil.com>
Subject: Re: 2016 meeting schedule and Q3 Report
Bill, I have a conflict with another board for the week of Nov 14-18 and Friday Nov 25. Is there any chance of holding the
meetings the following week of Nov 28 to Dec 2 or from Nov 22 to 24?
l have no further comments regarding The Quarterly Report.
Monica
Monica Sloan
Managing Director JKS Holdings
403 620 0026
On Nov 14, 2015, at 2:11 PM, Greg Pollard <gpe@shaw.ca> wrote:

All
I am fine with any dates within the time period noted in the draft 2016 meeting schedule in Boardbooks,
My only comment on the Q3 report is to add a few comments (perhaps as D (iii)) noting our continued
focus on reducing costs and specifically the reduction in audit fees for 2016.
Greg Pollard, CPA, CIRP (ret.), ICD.D
403 818-0710
gpe@shaw.ca
BAL0001
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APPLICANT COPY

John Martin
Wednesday, November 18, 2015 8:21 AM
Michelle Manuliak
LaRhonda Papworth
RE: Consumer Allocation
From;
Sent:
To:
Cc:
Subject:
Thanks, Michelle.
LaRhonda Papworth will be coordinating the filing of the A E S O s 2016 Rider F application and will let you know when it is
filed and when it is approved.
John Martin
Senior Tariff and Regulatory Advisor
403-539-2465 direct
403-667-8040 cell
From: Michelle Manuliak

Sent: Wednesday, November 18, 2015 6:45 AM
To: John Martin
Cc: LaRhonda Papworth
Subject: RE: Consumer Allocation
Hi John,
Please find the 2016 Consumer Allocation letter attached.

Regards,
Michelle Manuliak
Balancing Pool
From: John Martin

Sent: Monday, November 16, 2015 2:18 PM
To: Michelle Manuliak
Hi, Michelle,
I'm just checking to see if the approval of the 2016 consumer allocation unfolded as planned, and if we should be
watching for a letter from the Balancing Pool. We have things in place to finalize and file our Rider F application to the
Commission, and want to make sure we will be ready when the letter arrives.
If you could provide an update on the status of the letter, that would be helpful.
Thanks.
John Martin
403-539-2465 direct
403-667-8040 cell
BAL000371
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APPLICANT COPY
From: John Martin

S ent: Thursday, October 29, 2015 3:25 PM

Su b ject: RE: Consumer Allocation
Thanks, Michelle.
Well plan for a quick turnaround of an application for filing with the Commission, with the assumption that we will get the
Balancing Pool letter on or around Monday, November 16.
As well, in case you need it to calculate the Balancing Pool credit, the A ESO s forecast of energy for 2016 is 62,949,000
MWh.
John Martin

403-539-2465 direct
403-667-8040 cell

Sent: Thursday, October 29, 2015 1:52 PM
To: John Martin
S u b je c t: RE: Consumer Allocation
Hi John,
The Board meeting to approved the 2016 allocation will be on November 13'. We'll get the letter over to the AEOS likely
on Monday, November 16th Hopefully that timing work for you guys.
Kind Regards,
Michelle Manuliak
From: John Martin

Sent: Thursday, October 29, 2015 1:48 PM
S u b je c t: RE: Consumer Allocation
Hi, Michetle.
Would you be able to indicate when the Balancing Pool will be setting the consumer allocation for 2016? We are trying to
make some pians to accommodate vacations here over the next few weeks, and want to make sure we are ready for the
Balancing Pools notice when it comes.
Thanks.
John Martin
403-539-2465 direct
403-667-8040 cell

Sent: Tuesday, October 14, 2014 7:27 AM
To: John Martin
S u b je ct: RE: Consumer Allocation
Hi John,
BAL000372
F12-2016
APPLICANT COPY
The B alancing Pool has set the 2015 C o nsum e r A llo catio n rate. Can you send m e th e A E S O 's 2015 fo reca st o f energy?
Kind Regards,
Michelle Manuliak | Controller | Balancing Pool
2350, 330 - 5th Avenue S.W. | Calgary, AB | T2P 0L4
direct line: 403.539.5357 | fax: 403.539.5366
From: John Martin

Sent: Friday, October 11, 2013 8:27 AM
Hi, Michelle.
Our 2014 forecast of energy that will be used to distribute the Balancing Pool consumer allocation is 61,863 GWh.
Let me know if you need any additional information,
John Martin
Director, Tariff Applications
Regulatory
Alberta Electric System Operator (AES0)
2500, 330 - 5th Avenue SW
Calgary, AB T2P 0L4
403-539-2465 direct
403-539-2524 fax
403-667-8040 cell
www.aeso.ca
www.DOW6rinoalberta.com

Sent: Wednesday, October 09, 2013 2:22 PM
To: John Martin
Hi John,
It's that time of year again. Please provide me with the 2014 forecast of energy for the distribution of BP's Consumer
Allocation.
Kind Regards,
Michelle Manuliak 1 Controller | Balancing Pool
2350, 330 - 5th Avenue S.W, | Calgary, AB j T2P 0L4
direct line: 403.539.5357 | fax: 403.539.5366
From: John Martin

Sent: Wednesday, October 17, 2012 3:01 PM
Cc: Raj Sharma
Hi, Michelle.
3
BAL000373
F12-2016
APPLICANT COPY
Our 2013 forecast of energy that will be used to distribute the Balancing Pool consumer allocation is 60,869 GWh. Of
course, you can use a rounded value.
Non-responsive
Jan you please send the Balancing

Pool notice to Raj Sharma while I am away? He will coordinate the preparation ana filing of the application to the
Commission for approval of the AESO 's rider to refund the Balancing Pool consumer allocation.
Thanks.
John Martin
Director, Tariff Applications
Regulatory
Alberta Electric System Operator (AESO)
Calgary, AB T2P 0L4
403-539-2465 direct
403-539-2524 fax
403-667-8040 cell
www.aeso.ca
www.powerinoalberta.com

Sent: Wednesday, October 17, 2012 11:45 AM
To: John Martin
Subject: Consumer Allocation
Hi John,
I'm preparing the letter to notify the AESO regarding the 2013 Consumer Allocation.
Would you please provide me with the estimate of MWh's for 2013?
2012 was based upon 59,000 GWhs of consumption.
Thank You,
direct line: 403.539.5357 | fax: 403.539.5366
BAL000374
F12-2016
APPLICANT COPY
Calgary Place
2350. 330 - 5!h Ave. S.W.
Calgary, Alberta T2P 0L4
balancingpool
tel (403) 539-5350

fax (403) 539-5366
www balancingpool.ca
November 17, 2015
Ms. Heidi Kirrmaier, Vice-President, Regulatory

Alberta Electric System Operator
Suite 2500, 330 - 5th Avenue SW
Calgary, AB T2 P 0L4
RE: AESO 2016 T a riff A p p lic a tio n
Dear Ms. Kirrmaier:

The Balancing Pool has announced a consumer allocation of $3.25 per MWh of consumption for
an estimated annualized amount of $204,584,250. Pursuant to Section 30(2) (b) of the Electric
Utility Act, any such allocation must be included in the A E S O 's tariff.
Please consider this our formal request to have this included as part of the A E S O s tariff
effective January 1 to December 31,2016.
If you have any questions, please contact the undersigned at (403) 539-5353.
Sincerely.
Bruce Roberts
President and C E O
C C John Martin, Alberta Electric System Operator
BAL000375
F12-2016
APPLICANT COPY

LaRhonda Papworth
Friday, February 05, 2016 11:20 AM
Michelle Manuliak
RE: Balancing Pool - 2016 Consumer Allocation
From:
Sent:
To:
Subject:
Michelle,
John forwarded your inquiry to me. I've taken a look at past Rider F, Balancing Pool Consumer Allocation Riaer
applications and decisions and I see that, on average, the Commission is taking around 25 days to issue a decision . I
believe if the AESO were notified by the Balancing Pool in very early May 2016, we could apply, receive a decision and
implement the change for July 1, 2016.
We will need some idea by the end of March if the Balancing Pool is still considering this change in order to receive
internal AESO approvai/notification for the application. I can go to the committee with an information item indicating a
likely change but it does take time and could hoid up our application in May if I don't get to the committee in time.
As well, the AESO intends to issue a new load forecast early in Q3. This will mean a new energy forecast for 2016 for the
Balancing Pool to do it's calculation, i'll put a reminder in my calendar to send you the new energy value as soon as it is
available.
Let me know if we need to chat more regarding the potential change.
Thanks,
LaRhonda
LaRhonda Papworth
Manager, Tariff Applications
Regulatory
2500,330 - 5th Avenue SW
Calgary, AB T2P 0L4
403-539-2555 direct
403-921-8193 cell
From : Michelle Manuliak
S ent: Thursday, February 04, 2016 8:32 AM
To: John Martin
S ubje ct: Balancing Pool - 2016 Consumer Allocation
Hi John,
The Balancing Pool may be changing the 2016 Consumer Allocation effective for the period of July 1, 2016 to December
31, 2016. Bank in the 2010 the Balancing Pool made a mid-year change to the Consumer Allocation (effective July l 5')
and notified the AESO in mid-May. Would this be sufficient notice again?
Kind Regards,
Michelle Manuliak |Controller 1 Balancing Pool
1
BAL000376
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APPLICANT COPY
direct line: 403.539.5357 | fax: 403.539.5365
BAL000377
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APPLICANT COPY

Bruce Roberts
Monday, March 07, 2016 2 08 PM
Re: TRP News Release - TransCanada to Terminate Alberta Power Purchase
Arrangements
From:
Sent:
To:
Subject:
Bill; I was thinking the same thing. We need to stop the bleeding ASAP.
BR
Sent from my iPhone
On Mar 7, 2016, at 1:42 PM. William Stedman (External) <wstedman@entxcapital.com> wrote:
*** EXTERNAL email. Please be cautious and evaluate before you click on links, open
attachments, or provide credentials.***
Bruce: do you think we should give notice right away that the Consumer Allocation will be dropped to
zero? It seems pretty clear that we have little choice. Perhaps we don't need to wait for the Board
meeting. We could just approve by Round Robin resolution this week.
From: Bruce Roberts fmailto:Bruce.Roberts(S>balancinEPOol.cal

Sent: March 7, 2016 8:39 AM
To: Bill Stedman <wstedmanfflentxcapital.com>
Subject: Fwd: TRP News Release - TransCanada to Terminate Alberta Power Purchase Arrangements
FY1 - you've likely heard already. Our up coming Board meeting is timely.
BR
Sent from my iPhone
Non-responsive
BAL00012
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B arb Le C la ire Freeborn

William Steelman (External)
Wednesday, March 09, 2016 11:39 AM
Monica Sloan (External)
Greg Pollard (External), Doug Topping (External), Bruce Roberts,
dallas.droppo@blakes.com
RE: consumer Allocation
From:
Sent:
To:
Cc:
Subject:
*** EXTERNAL email. Please be cautious and evaluate before you click on links, open attachments, or provide
credentials.***
We can schedule a special Board meeting if required. Let's look at the materials and decide whether a telephone or in
person meeting is needed.
I believe Greg is back this weekend.
From: Monica Sloan Imailto:monica.sloan@iksholdings.com1
Sent: March 9, 2016 11:33 AM
To: Bill Stedman <wstedman@entxcapital.com>
Cc: Greg Pollard (epe@shaw.ca) <gpe@shaw.ca>; Doug Topping <dtoppingd@yahoo.ca>, Bruce Roberts
<Bruce.Roberts@balancingpool.ca>: dallas.droppo@blakes.com
Subject: Re: consumer Allocation
Bill given the small size of the board, could we not move the board meeting up? When does Greg get back? I am back in
Calgary now.
Monica
Monica Sloan
Managing Director JKS Holdings
403 620 0026
On Mar 9, 2016, at 9:38 AM, Bill Stedman <w5tedman@entxcapital,com> wrote:

Directors:
I have asked Bruce to look at the Consumer Allocation in light of the recent decisions by trans Canada
and Altagas to send their PPAs to the Balancing Pool. Our next scheduled Board meeting is April 1, but l
believe we may want to move more quickly to address the Consumer Allocation. We may want to
consider revising the Consumer Allocation by Round Robin Resolution, in advance of the meeting.
Bill
BAL0002
F12-2016
APPLICANT COPY

From:
Sent:
To:
Cc:
Subject:
Attachments:
Ben Chappell
Friday, March 11, 2016 3:02 PM
D- BP Board of Directors
Bruce Roberts
PPA Terminations
March Call - PPA Terminations.pdf
Bill et al-,
Please find attached management's recommendations related to the consumer allocation and the investment fund in
advance of next weeks teleconference. Should you have any questions, please do not hesitate to contact Bruce or me
Regards,
Ben
Benjamin Chappell, CFA
M a n a g e r o f S tra te g y a n d S p ecial P ro je c ts
B a la n c in g P o ol
(403) S39-5361
b e n .c h a p p e llfS b a la o c in g p o o l.c a
F12-2016
BAL000120
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balancingpoo!
B a la n c in g P o o l B o a rd
D E C IS IO N ITEM
201 6 C o n s u m e r A llo c a tio n S u s p e n s io n
In v e s tm e n t P o r tfo lio L iq u id a tio n
Date: March 11th, 2016
O v e rv ie w
With T ra n s C a n a d a s termination of the S u n d a n ce A, S u n d a n ce B, and S h e e rn e ss

P P A s , the B alancing Pool is facin g a significant ca sh shortfall in 2016. T h is docum ent
provides a prelim inary a sse ssm e n t of the financial im plications for the B alancing Pool
and recom m ends immediate a ctio n s to mitigate the im pact of these terminations.
R e c o m m e n d a tio n s
C o n su m e r Allocation: M anagem ent recom m ends the 2016 consum er allocation be

suspended effective May 1st, 2016.
Investm ent Portfolio: M anagem ent recom m ends the B a la n cin g P o o l's investm ent
m a n ag e rs be instructed to begin liquidating the securities held in the investm ent
account so that funds are im m ediately available and that capital market risk is
elim inated.
F in a n c ia l A s s e s s m e n t
Th e table on the next page provides a forecast of the B alan cin g P o o l's cash flows for
this year through to 2020. M any of the figures presented below are prelim inary
estim ates and will be subject to ch an ge a s more information beco m es available.
Th e ca sh flow estim ates do not include a consum er allocation or charge beyond May
1st, 2016.
F12-2016
BAL000121
APPLICANT COPY

P P A Term inations
in millions
Average Pool price per M W h
2016
2017
2018
2019
2020
$23.33
$30,69
$39,75
$48.50
$50.25
(41)
10
17
(61)
(69)
(74)
(85)
(43)
(31)
Operating Cash Flow

P P A Cash Plow (net of P P A paym ents)
G enesee
(126)
(93)
Extraordinary PPA Cash Hows

G enesee Cartoon Tax Adjustm ent
Battle R i\ r
Sheem ess
(62)
(81)
Sundance A
(86)
(41)
(38)
Sundance B
(43)
(38)
(45)
(16)
(27)
(250)
(231)
(118)
(116)
Term ination C o sts.

Battle River
Net C ash F low from P P A s
Hydro P P A (net o f PP A paym ents)
Sm all Pow er P roducer C ontracts
PILOT Revenue
(108)
(467)
(6)
16
42
68
7)
(5)
5
(4)
5
(0)
5
(235)
(189)
(46)
(475)
69
(42)
Disbursements
Operating:
Isolated G eneration Sites
General and A d m in EKpense
DOE M andated Expense
S u btotal
P 6/148,iprfitl;
O ther P P A C o sts
Force M ajeure Claim s
D e com m issioning (Sundance 1/2 and H.R. M ilner)
Subtotal
Total Disbursements
Net Cash Flow
Beginning C ash Balance
Add. Net C ash Flow
Add Return of Investm ent Portfolio
Deduct: C o nsum er A lloca tion
Ending Cash Balance
5
3
10
3
10
3
11
18
13
13
11
14
11
14
15
15
13
15
15
15
15
*
18
18
31
33
18
36
31
44
47
32
(511)
(266)
(232)
(93)
(74)
7D0
121
(266)
(144)
(377)
(469)
(232)
(93)
(74)
(511)
(68)
121
(144)
____GZT1___ _____(459)
____(SSL
Th e fo re ca st dem onstrates that the Ending C a s h B a la n ce is expected to approach a

zero b alan ce by the end of 2016 and that there is an urgent need to su spend the
consum er allocation to ensure the B alan cin g P o o ls funds are fully available.
The forecast above is built on the following assumptions:
T h e B a la n cin g Pool b eco m es the P P A B uyer of, and a ssu m e s financial

responsibility for, the Battle R iver 5 P P A a s at the beginning of January;
F12-2016
BAL000122
APPLICANT COPY
T h e Balancing Pool b eco m es the P P A B uyer of, and a ssu m e s financial

responsibility for, the S u n d a n ce A, S u n d a n ce B, and S h e e rn e ss P P A s a s at the
beginning of March; and
Th e Battle R iver 5 P P A is terminated by paying out the Net Book V alu e to the
P P A Ow ner at the end of 2 0 16,
Of note is that the fo recast d o e s not incorporate the potential requirement for additional
funds related to:
T h e put back of the S u n d a n ce C and/or Keephills P P A s ;
Th e decision to terminate further P P A s by the B a la n cin g Pool; or,
Pow er prices m aterializing at lower than expected levels.
A s there is a reaso nably

funds in 2016, invoking a
ensure that a sufficient
M anagem ent will provide
high probability that the B alancing Pool will require additional

consum er charge later this year will also likely be n e ce ssa ry to
contingency e xists to protect a g a in st the risks cited above.
subsequent a n a ly sis in the May Board meeting on this matter.
F12-2016
BAL000123
APPLICANT COPY
Barb LeCiaire Freeborn

LaRhonda Papworth
Wednesday, March 16, 2016 8:20 AM
Michelle Manuliak
RE: Balancing Pool - 2016 Consumer Allocation
From:
Sent:
To:
Subject:
Michelle,
Thanks for the heads up. in order to structure the application for quick approval and a minimal process, the following
two items might be helpful to include in the Balancing Pool notification.
1) For January 1, 2016 to April 30, 2016 the Balancing Pool Allocation amount forecasted to refund would be:
$3.2S/MWh X 21,069 GWh = $68,474,250. Since we must include an annual amount, I would think that the
annual amount would be $68,474,250. Resulting in no refund/collection for May 1, 2016 to December 31, 2016.
2) It would also be very helpful if the Balancing Pool could include one or two sentences explaining the
circumstances of this change.
Regards,
LaRhonda

S ent: Wednesday, March 16, 2016 7:40 AM
To: LaRhonda Papworth

Subject: RE: Balancing Pool - 2016 Consumer Allocation
Hi LaRhonda,
Thanks for the updated information. I will likely have the notification letter to you end of day today or by 9:30 am
tomorrow morning. The Balancing Pool will be turning off the Consumer Allocation and there will be no distribution to
Consumers effective May 1, 2016 for the balance of the year. Please keep this information confidential for the time
being.
Kind Regards,
Michelle Manuliak
Controller
From : LaRhonda Papworth

Sent: Tuesday, March 15, 2016 1:44 PM
Michelle,
I should inform the Balancing Pool that in our 2016 Tariff Update application (filed on February 2, 2016) we updated our
2016 metered energy forecast to align with current expectations for electricity consumption in 2016. John would have
BAL000378
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provided you with the 62,949 GWh for 2016. We have since updated that to 62,004.8 GWh This is public in the
Commission Proceeding #21302.
Let me know if you need anything further.
Thanks,
LaRhonda

Sent: Thursday, March 10, 2016 12:07 PM
Ok Thanks LaRhonda, our Board is going to move pretty fast on the CA decision, this is beyond an extraordinary event
for BP.
From: LaRhonda Papworth

I think we can still do that. With giving ourselves 7 days to prepare the application after the notice, we should be okay. I
would not want to file after March 31s, though.
LaRhonda

Hi LaRhonda,
We will be holding an emergency Board meeting on Wednesday or Thursday of next week regarding the Consumer
Allocation. We will be prepared to send an official notification letter to the AESO by March 18th, possible a day sooner.
Our Board would like to know if we could have the Consumer Allocation change made effective for May I s if we notify
the AESO by March 18th?
Thanks,
Michelle
From: LaRhonda Papworth

Sent: Wednesday, March 09, 2016 11:54 AM
Subject: Re: Balancing Pool - 2016 Consumer Allocation
Michelle,
Sorry, I am offsite today. I believe the same timeframe span would work. If we were notified by the Balancing Pool by March 15, we
could get it in effect by May 1st. t dont see anyway to get it effective by April 1st. Thoughts?
LaRhonda
2
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----- Original message-----From: Michelle Manuliak

Date: Wed, Mar 9, 2016 11:46 AM
To: LaRhonda Papworth;
Subject:R: Balancing Pool - 2016 Consumer Allocation
Hi LaRonda,
I just let you a voice message. I'd like to touch base with you today regarding a change to the Consumer allocation. How
quickly can this change be made. The last communication we had was regarding a mid-year adjustment, we are now
looking at changing the CA as soon as possible.
Thanks,
Michelle Manuliak
From : LaRhonda Papworth
Sent: Friday, February 05, 2016 11:20 AM
Michelle,
John forwarded your inquiry to me. I've taken a look at past Rider F, Balancing Pool Consumer Allocation Rider
applications and decisions and I see that, on average, the Commission is taking around 25 days to issue a decision . I
believe if the AESO were notified by the Balancing Pool in very early May 2016, we could apply, receive a decision and
implement the change for July 1, 2016.
We will need some idea by the end of March if the Balancing Pool is still considering this change in order to receive
interna! AESO approval/notification for the application. I can go to the committee with an information item indicating a
likely change but it does take time and could hold up our application in May if I don't get to the committee in time.
As well, the AESO intends to issue a new load forecast early in Q3. This will mean a new energy forecast for 2016 for the
Balancing Pool to do it's calculation. I'll put a reminder in my calendar to send you the new energy value as soon as it is
available.
Let me know if we need to chat more regarding the potential change.
Thanks,
LaRhonda
LaRhonda Papworth
Manager, Tariff Applications
Regulatory
2500, 330 5th Avenue SW
Calgary, AB T2P0L4
403-539-2555 direct
403-921-8193 cell
Sent: Thursday, February 04, 2016 8:32 AM
To: John Martin
Subject: Balancing Pool - 2016 Consumer Allocation
3
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Hi John,
The Balancing Pool may be changing the 2016 Consumer Allocation effective for the period of July 1, 2016 to December
31, 2016. Bank in the 2010 the Balancing Pool made a mid-year change to the Consumer Ailocation (effective July 1st)
and notified the AESO in mid-May. Would this be sufficient notice again?
Kind Regards,
direct line: 403.539.5357 | fax: 403.539.5366
BAL000381
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Calgary Place
2350, 330 - 5th Ave. S.W,
Calgary, A lberta T2P 0L4
balancingpool
tel (403) 539-5350

fax (403) 539-5366
www.balandngpDol.ca
March 17, 2016
Ms. Heidi Kirrmaier, Vice-President, Regulatory

Suite 2500, 330 - 5th Avenue SW
Calgary, A B T2P 0L4
RE: A E S O 2016 T a riff A p p lic a tio n
Dear Ms. Kirrmaier;

The Balancing Pool is hereby requesting a reduction to the consumer allocation to $0.00 per
MWh of consumption effective May 1, 2016 resulting in an amended estimated annualized
amount of $68,474,250. Pursuant to Section 30(2) (b) of the Electric Utility Act, any such
allocation must be included in the A E S O s tariff.
The Balancing Pool's Board of Directors has approved a reduction to the consumer allocation to
accommodate the financial impact as a result of the termination of the following Power
Purchase Arrangements; Battle River 5, Sheem ess, Sundance A and Sundance B. Under
Section 2(1 )(i) of the Balancing Pool Regulation, the Balancing Pool must begin making the
Capacity and Energy payments for the aforementioned P P A s upon verification of the PPA
terminations.
Sincerely.
Bruce Roberts
President and C E O
C C LaRhonda Papworth, Alberta Electric System Operator
BAL000382
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Heidi Kirrmaier
Thursday, March 17, 2016 12:52 PM
Michelle Manuliak; John Martin; LaRhonda Papworth
Bruce Roberts
RE: Balancing Pool's letter issued today to the AESO related to the pending change to
the Consumer Allocation for 2016
From:
Sent:
To:
Cc:
Subject:
Thanks Michelle; understood.

Heidi
To: Heidi Kirrmaier; John Martin; LaRhonda Papworth
Cc: Bruce Roberts
Subject: Balancing Pool's letter issued today to the AESO related to the pending change to the Consumer Allocation for
2016
Dear Heidi Kirrmaier and Regulatory Group,
The reduction to the Consumer allocation has not been announced publicly by the Balancing Pool, as such please do not
discuss the pending change to the consumer allocation in the public domain until such a time is it announced by the
Balancing Pool to the public.
Should you have any questions or concerns, please contact the Balancing Pool's CEO, Bruce Roberts
(bruce.ro be rts@balancinapool.ca).
Kind Regards,
direct line: 403.539.5357 j fax; 403.539.5366i
BAL000383
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Barb Le C la ire Freeborn

John Martin
Tuesday, March 22, 2016 1:17 PM
Michetie Manuliak; 8ruce Roberts; bob.heggie@auc.ab.ca
FW; Potential Amendment to Rider F
From:
Sent:
To:
Subject:
For your information, below is the advance notice I sent to the distribution system owners this morning after we talked.
John Martin
Regulatory
Calgary, AB T2P 0L4
403-539-2465 direct
403-539-2949 fax
403-667-8040 cell
www.aeso.ca
www.Dowerinoalberta.ca
From : John Martin

Sent: Tuesday, March 22, 2016 11:17 AM
To: Tony Martino ftonv.martino(3)atcoelectric.com1; 'dcrippen@enmax.com1; 'Petratur, Joe'; 'Zurek, Gerald';
'regulatoryaffairs@epcor.com'; Miles Stroh (Miles.Stroh@fortisaiberta.com1: Monica Huynh
fmonica.huynh@fortisalberta.com1: Stewart Purkis ( SDurkis@lethbridae.ca1: Jim Jorgensen (jim.iorqensen@reddeer.ca1
Subject: Potential Amendment to Rider F
For your information, the A ESO has learned that we may receive notice from the Balancing Pool in the near future of an
amendment to the annual amount that is refunded through Rider F of the ISO tariff, Balancing Pool Consumer Allocation
Rider. We expect the amendment will be based on an effective date of May t, 2016, for the revised rider amount.
We will file a Rider F amendment application as soon as possible following receipt of an amendment notice from the
Balancing Pool. I am letting you know of the potential Rider F amendment application as you may not be expecting a mid
year adjustment and may need time to prepare the application for your own distribution tariff rider. LaRhonda or I will let
you know as soon as possible if the A ESO files a Rider F amendment application.
In the meantime, pfease treat this notice of a potential change to the Balancing Pool annual amount as confidential until
information is made public by either the Balancing Pool or the AESO. Please contact me if you have any questions.
John Martin
Regulatory
Calgary, AB T2P 0L4
403-539-2465 direct
403-539-2949 fax
403-667-8040 cell
www.aeso.ca
BAL000384
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From:
Sent:
To:
Subject:
Attachments:
Bruce Roberts
Ben Chappell; Michelle Manuliak
FW: flow chart Balancing Pool allocation
Balancing Pool mechanism (g).pdf
FYi
From : Bob Reggie f'mailttcBob.Heaaietaiauc.ab.ca'l
To: Bruce Roberts; John Martin
Subject: FW: flow chart Balancing Pool allocation
credentials.***
Attached is the process document I referenced this morning. We have sent it to the Department. Bob
Bob Heggie
Chief Executive
Direct Line: (403) 592-4440 ____ _______
_______ ___________ _ -------------
From : Jim Law

To: Bob Heggie
Cc: Blair Miller; Doug Larder
Subject: flow chart Balancing Pool allocation
This email and any files transmitted with it are confidential and intended solely for the use of the individual or
entity to whom they are addressed. If you are not the named addressee you should not disseminate, distribute or
copy this e-mail.
BAL000366
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AUC process for Balancing Pool allocation.

2016 example
General Framework
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Based on this forecast, the Balancing Pool determines an

annualized amount that will be refunded to (or collected from)
electricity consumers over the year, "... so that no profit or loss
results, after accounting for the annualized amount under
section 82(7) as a revenue or expense of the Balancing Pool.
[Electric Utilities Act, Section 85(1)0)]
In other words:
BP revenues - BP expenses + annualized amount = 0
Since its introduction in 2006, the annualized amount has
resulted in a refund to customers each year.
http://www.balancin gpool.ca/consumer-al location''
Under Section 82(4) of the E le c tr ic U tilitie s A ct, the Balancing

Pool notifies the AESO of an annualized amount for each fiscal
year.
On November 17, 2015 the

Balancing Pool notified the
AESO of a positive annualized
amount of $204,584,250 for 2016
and has recommended that the
amount be refunded to consumers
as a $3.25/MWh credit.
http://www.aeso.ca/do wnloads/A
ppendix A Balancing Pool Notice.pdf
Under sections 82(5) and 30(2)(b) of the E le c tr ic U tilitie s A c t,

the AESO includes the annualized amount in the AESO tariff
and applies for the AUC approval of its tariff (The AUC reviews
the application after it is filed and it may not become public for
up to ten days, at which time public notice is issued).
This amount, also known as the consumer allocation, applies to
all demand transmission service (DTS) and demand opportunity
service (DOS) market participants who receive system access
service from the AESO, and is recovered through Rider F of
the AESO tariff. In accordance with the Commissions
predecessor, the Alberta Energy and Utilities Board (board)
Order U2006-307, the City of Medicine Hat and BC Hydro at
Fort Nelson are ineligible for Rider F.
The allocation is based on the amount of electric energy
consumed annually. As such, approximately per cent of the
annual allocation goes to commercial and industrial electricity
consumers, with the remainder to the residential and farm
sector.
On November 18, 2015, the AUC

received an application from the
AESO requesting approval of a
$3.25/MWh credit to all DTS and
DOS market participants, with the
exceptions of the City of
Medicine Hat and BC Hydro at
Fort Nelson, for metered energy
from January 1, 2016 through
December 31, 2016 inclusive
(Rider F).
The AUC issued a notice of the
application, allowing interested
parties one week, until November
25, 2015 to register to participate.
No submissions were received.
BAL000368
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The Commission must approve the annualized amount provided

to the AESO by the Balancing Pool, without modification,
pursuant to Section 82(6)(a) of the E le c tric U tilitie s A ct.
However, Pursuant to Section 82(6)(b) of the E le c tr ic U tilitie s
the Commission must approve, with or without
modification, the allocation of the annualized amount to the
owners of electric distribution systems, industrial systems and
persons that have made arrangements under Section 101(2),
being demand transmission service (DTS) and demand
opportunity service (DOS) market participants.
A ct,
Following the Commissions approval, the AESO starts

refunding (or recovering) the annualized amount to market
participants through its Rider F. Among these market participants
are the distribution facility owners (DFOs),
On December 3, 2015, the AUC

issued Decision 21031-D01-2015
approving the $3.25/MWh credit
by way of a Rider F to market
participants who receive system
access service from the AESO.
The AESO 2016 tariff, including

Rider F, the S3,25/MWh credit,
goes into effect on January 1,
2016.
An example of one DFO,

FortisAlberta Inc.:
Following the Commissions approval of the AESO Rider F rate

(or in practice, after the AESO files a Rider F application with
the Commission), each DFO files with the Commission its
Balancing Pool true-up rider application to ensure that its
Balancing Pool refund to or collection from its customers
matches its settlement with the AESO. The DFOs Balancing
Pool true-up rider rate is slightly higher than the AESO Rider F
rate to account for line losses.
Usually, it is done as part of the annual PBR rate adjustment
application to set rates for the coming year.
The AUC reviews the applications after they are filed and
typically issues public notices shortly after filing, although
applications may not be public for up to ten days.
On November 19, 2015, Fortis

pointed to the AESO Rider F
application for a $3.25/MWh
credit and proposed to revise its
Balancing Pool allocation rider
to correspond with the
proposed AESO Rider F rate
for 2016.
Due to line losses, Fortis
Balancing Pool Allocation rider
refund was around 3.32/MWh.
Notices would ordinarily be
issued to the public. No specific
notice was issued because the
change was made as part of the
ongoing annual PBR rate
adjustment proceeding, started
on September 10, 2015
BAL000369
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In a regulatory proceeding, the Commission verifies the DFOs

calculations and approves the Balancing Pool true-up rider rate for
distribution customers, as part of the rate setting process.

issued Decision 20818-D01-2015,
approving, as part of the 2016
PBR tariff, Fortis 2016
Balancing Pool Allocation Rider
of about 3.32/MWh.
The annualized amount is refunded to (or recovered from) the DFOs

customers.
Fortis 2016 PBR rates,

including the 2016 Balancing
Pool Allocation Rider credit, of
some $3.32/MWh goes into effect
on January 1, 2016.
In the second half of 2017, Fortis

will true-up its Balancing Pool
Allocation Rider to make sure the
amount it refunded to customers
in 2016 equals the refund it
received from the AESO for that
year.
F12-2016
BAL000370
APPLICANT COPY

From:
Sent:
To:
Subject:
Attachments:
Bruce Roberts
FW: AUC role in Balancing Pool Allocation to consumers
FYI - See trailing email from Jim Law (Communications at AUC)

BR
From : James E Allen |mailto:James.E.AIIen(Bqov.ab.ca]
S ent: Tuesday, March 22, 2016 3:12 PM
To: ! Jim Law; Ryan Cromb
Cc: Brad Hartle; Chris Bourdeau; Andrew Buffin; Bruce Roberts; Mark Zanewick; Calvin Karabonik
S u b je c t: RE: AUC role in Balancing Pool Allocation to consumers
*** EXTERNAL email Please be cautious and evaluate before you click on links, open attachments, or provide credentials.***
Thanks Jim
I asked Chris to coord this yesterday between the BP and AUC based on my conversation with Bruce ... so we can attach
to a BN for the Minister explaining this will work in time and space and how it all fits with the larger PPA discussions
around options and impacts to consumers.
As always
Much appreciated!
Cheers
James
S ent: March 22,^2016 3:00 PM

To: Ryan Cromb
Cc: James E Allen; Brad Hartle

S u b je c t: AUC role in Balancing Pool Allocation to consumers
Ryan, you asked yesterday if I could shed some light or perspective of the AUC role and process in the issue of the
amount the Balancing Pool now credits monthly to consumers, and the change it wants to make for May,
I hope the attached is useful. In addition to the general process, we tracked an actual application down the right hand
side of the attached flow chart.
In a nutshell:
The Balancing Pool notifies the AESO and they apply to us. We cannot alter the amount, only how it is allocated,
for example currently it is done on a certain amount per megawatt hour.l
l
F12-2016
BAL000225
APPLICANT COPY
The AESO application is technically public on our system, but only to those who have an account and can access
the system anytime.
We could also review the application for up to a week or a bit more before we informed players, at that point it
would be public should anyone take the time to look.
If the Balancing Pool wanted to stop allocating the consumer credit in May, this would likely be possible if the
AESO filed its application with us within a few days.
I checked with a few people here in my work area. The Balancing Pool allocation now shows on their monthly
bills as a credit, not a charge, anywhere from four to eight dollars per month, depending on the month. So if the
pool applied to remove that credit, that would be an example of the impact on a residential customer, the credit
would disappear. Of course, much more of an impact for industrial, as the allocation is based upon energy used.
James, hope this might also be useful to you. I was trying to reach Phil today about another matter and spoke briefly to
Brad instead, and mentioned this, so am copying him. As always, Bob Heggie can shed more light on process or other
considerations and asked me to mention he is certainty available to chat if you need to.
copy this e-mail.2
F12-2016
BAL000226
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A U C process for Balancing Pool allocation.

2016 example
General Framework
F12-2016
BAL000227
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electricity consumers over the year,
so that no profit or loss
section 82(7) as a revenue or expense of the Balancing Pool.
[Electric Utilities Act, Section 85(1)(})]
In other words:
BP revenues - BP expenses + annualized amount = I)
Since its introduction in 2006. the annualized amount has
http:/;www.balanciniDQol.ca'consumer-allocation
Under Section 82(4) of the E le c tr ic U tilitie s A ct, the Balancing

Pool notifies the ALSO of an annualized amount for each fiscal
year.

amount of $204,584,250 for 2016
and has recommended that ihe
as a $3.25/MWh credit
.aeso.ca/downloads/A
ooendix A Balancing Pool Noiicerndf
h ttD .v V w w w
Under sections 82(5) and 30(2)(b) of the E le c tr ic U tilitie s A ct,

Fort Nelson are ineligible for Rider F
sector.

$3.25/MWh credit to all DTS and
exceptions of the City of
(Rider F).
25. 2015 to register to participate.
BAL000228
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APPLICANT COPY
The Commission must approve the annualized amount provided

to the AESO by the Balancing Pool, without modification,
pursuant to Section 82(6)(a) of the E le c tric U tilitie s A ct.
However, Pursuant to Section 82(6)(b) of the E le c tric U tilitie s
the Commission must approve, with or without
modification, the allocation of the annualized amount to the
owners of electric distribution systems, industrial systems and
persons that have made arrangements under Section 101 (2),
being demand transmission service (DTS) and demand
opportunity service (DOS) market participants.
A ct,
Following the Commissions approval, the AESO starts

refunding (or recovering) the annualized amount to market
participants through its Rider F. Among these market participants
are the distribution facility owners (DFOs).

issued Decision 21031-DO I-201 5
approving the $3.25/MWh credit
by w'ay of a Rider F to market
participants who receive system
access service from the AESO
The AESO 2016 tariff, including

Rider F. the S3,25/MWh credit,
goes into effect on January' 1,
2016.

FortisAlberta Inc.:
Following the Commissions approval of the AESO Rider F rate

Pool true-up nder rate is slightly higher than the AESO Rider F
F12-2016

for 2016.
Due to line losses, Fortis
BAL000229
APPLICANT COPY


issued Decision 20818-D01 -2015,
of about 3.32/MWh.
O
customers.

on January 1, 2016.
In ihe second half of 2017, Fortis

year.
F12-2016
BAL000230
APPLICANT COPY

From:
Sent:
To:
Subject:
Attachments:
Bruce Roberts
FW: AUC role in Balancing Pool Allocation to consumers
FYI - See trailing email from Jim Law (Communications at AUC)

BR
From : James E Allen \mailto:James.E.Allen@Qov.ab.ca]
S ent: Tuesday, March 22, 2016 3:12 PM
To: ! Jim Law; Ryan Cromb
Cc: Brad Hartle; Chris Bourdeau; Andrew Buffin; Bruce Roberts; Mark Zanewick; Calvin Karabonik
S u b je c t: RE: AUC role in Balancing Pool Allocation to consumers
*** EXTERNAL email. Please be cautious and evaluate before you click on links, open attachments, or provide credentials.***
Thanks Jim
I asked Chris to coord this yesterday between the BP and AUC based on my conversation with Bruce ... so we can attach
to a BN for the Minister explaining this will work in time and space and how it all fits with the larger PPA discussions
around options and impacts to consumers.
As always
Much appreciated!
Cheers
James
From : Jim Law fmailto:Jim.Law@auc.ab.ca)
S ent: March 22, 2016 3:00 PM
To: Ryan Cromb
Cc: James E Allen; Brad Hartle
S u b je c t: AUC role in Balancing Pool Allocation to consumers
Ryan, you asked yesterday if I could shed some light or perspective of the AUC role and process in the issue of the
amount the Balancing Pool now credits monthly to consumers, and the change it wants to make for May.I
I hope the attached is useful. In addition to the general process, we tracked an actual application down the right hand
side of the attached flow chart.
In a nutshell:
The Balancing Pool notifies the AESO and they apply to us. We cannot alter the amount, only how it is allocated,
for example currently it is done on a certain amount per megawatt hour.
F12-2016
BAL000124
APPLICANT COPY
The AESO application is technically public on our system, but only to those who have an account and can access
the system anytime.
We could also review the application for up to a week or a bit more before we informed players, at that point it
would be public should anyone take the time to look.
If the Balancing Pool wanted to stop allocating the consumer credit in May, this would likely be possible if the
AESO filed its application with us within a few days.
I checked with a few people here in my work area. The Balancing Pool allocation now shows on their monthly
bills as a credit, not a charge, anywhere from four to eight dollars per month, depending on the month, So if the
pool applied to remove that credit, that would be an example of the impact on a residential customer, the credit
would disappear. Of course, much more of an impact for industrial, as the allocation is based upon energy used.
James, hope this might also be useful to you. I was trying to reach Phil today about another matter and spoke briefly to
Brad instead, and mentioned this, so am copying him. As always, Bob Heggie can shed more light on process or other
considerations and asked me to mention he is certainly available to chat if you need to.
copy this e-mail.
F12-2016
BAL000125
APPLICANT COPY
A U C process for Balancing Pool allocation.

2016 example
General Framework
F12-2016
BAL000126
APPLICANT COPY

electricity consumers over the year,
so that no profit or loss
section 82(7) as a revenue or expense of the Balancing Pool .'
[Electric Utilities Act, Section 85(l)(j)]
In other words:
BP revenues - BP expenses + annualized amount - 0
Since its introduction in 2006, the annualized amount has
httmVwww.balancingpool.ca/consumer-allocation/
Under Section 82(4) of the E le c tric U tilitie s A ct, the Balancing

Pool notifies the AESO of an annualized amount for each fiscal
year.

amount of $204,584,250 for 2016
and has recommended that the
as a $3.25/MWh credit.
http ://www.aeso. caVdownloads/A
DDendix A Balancing Pool Notice.pdf
Under sections 82(5) and 30(2)(b) of the E le c tric U tilitie s A c t,

Fort Nelson are ineligible for Rider F.
sector.
FI 2-2616

$3.25/MWh credit to all DTS aud
exceptions of the C ity of
(Rider F).
25, 2015 to register to participate.
BAL000127
APPLICANT COPY

FortisAlberta Inc.:
Following the Commission's approval of the AESO Rider F rate

Pool true-up rider rate is slightly higher than the AESO Rider F

for 2016.
Due to line losses, Fortis'
3
BAL000128
F12-2016
APPLICANT COPY


issued Decision 20818-D01-2015,
of about 3.32/MWh.

customers.

on January 1,2016.
In the second half of 2017, Fortis

year.
BAL000129
F12-2016
APPLICANT COPY

From:
Sent:
To:
Subject:
Ben Chappell
Wednesday, March 23, 2016 4:34 PM
michelle.manuliak@balancingpool.ca
Consumer Charge Analysis
Hi Michelle,
I am putting together a brief write-up explaining our need to invoke a consumer charge in 2016 and the potential need
for debt financing to cover termination costs. Could you please update the consumer allocation cash flow forecast we
used for the emergency board meeting? What are your thoughts on the 2016 price? I was thinking we used the YTD
price of $18 instead of the forward price. Thoughts?
We will also need to evaluate when in the year we will run out of money. After talking to Bruce, he said we should have
this TransCanada revenue issue resolved by August, meaning we will either have both the costs and revenues or neither
to our account after that time. As such, if we can survive until then, we won't have to worry about the revenue
withholding issue.
I will talk to you more tomorrow.
Thanks,
Benl
F12-2016
BAL000130
APPLICANT COPY

From:
Sent:
To:
Subject:
Attachments:
Ben Chappell
Bruce Roberts
Consumer Charge and Termination Financing
Consumer Charge and Termination Financing pdf
Bruce,
Please find attached the board write-up regarding the financial consequences of the recent PPA terminations.
Regards,
Ben
i
F 1 2-2016
B A L0 0 0 1 3 1
balancingpool
IN F O R M A T IO N ITEM
C o n s u m e r C h a rg e a n d T e rm in a tio n F in a n c in g
D ate: A p r il 1st, 2016
Overview
With the termination of (soon to be) all PPAs, the Balancing Pool is facing a significant
cash shortfall in 2016. This document provides an assessment of the financial
implications for the Balancing Pool.
The table on the next page provides a forecast of the Balancing Pool's cash flows over
2016. The following assumptions were used to generate the cash flow estimates over
the year:
o All PPAs are returned to the Balancing Pool. The Balancing Pool assumes
responsibility for the costs of each PPA and collects the revenues from the
energy sold into the market as at the date the PPA was returned by each
PPA s respective Buyer.
o No termination payments are made to the PPA Owners during 2016.
a
The consumer allocation is suspended starting May 1st, 2016.
o The average wholesale power price over the balance of 2016 is assumed
to equal the year-to-date price of $18 per MWh.
The figures below are best estimates made with the information available as of the time
of this writing and are subject to change. The Balancing Pool has not been provided
with detailed cost information related to the Sundance PPAs, the Sheemess PPA, or the
Keephills PPA and has instead relied on estimates derived from the PPA schedules and
other sources.
F12-2016
BAL000132
APPLICANT COPY
April
Month
(1.274)
Sub-total Cash Flow from Admin & Othei

Pool Price
$
Settlement Month
Strip Contract (100 NVV)

Total PPA Cash Flows
SPP
Isolated Generation
18.00 $
Mar
1,834
(53,918)
(848)
Force Majeure
(250)
(1,250)
(16.315)
Sub-total Cash Flow after Settlement
(68,195)
Opening Cash Balance - April 1
579,283
June
May
(729)
Forecast Cash Inflow (Outflow)
(69,469)
Ending Cash Balance at Month End
507,295
429,615
(2,519)
August
(1,517)
18.00 $
18.00 i
18.00 $
Jun
May
Apr
1,844
1,834
1,844
(57,497)
(60,192)
(61,370)
(576)
(863)
(776)
(250)
(250)
(250)
(1,250)
(1,250)
(1,250)
(15.159)
(56,975)
(58,381)
(74,080)
507,295
(2,871)
(74,809)
Other Adjustments
(702)
July
(728)
September
(706)
October
November December
(919)
16.00 S
18.00 $
18.00 5
Sep
Aug
Jul
1,844
1,834
1,834
(60.700)
(58,394)
(57,008)
(469)
(488)
(470)
(250)
(1,250)
-
(56,415)
(250)
(1.250)
(57,089)
429,615
(2,844)
(59,083)
367,688
(2.774)
(58,492)
306,422
(57,143)
246,534
(2.779)
(57,795)
367,688
306.422
246,534
185,960
(2.746)
(250)
(1,250)
*
(719)
(6,902)
January
(877)
18.00
18.00 %
18.00 $
Dec
Nov
Oct
1,844
1,834
1,834
(68.266)
(60,517)
(59,579)
(647)
(582)
(691)
(250)
(250)
(250)
(1,250)
(1.250)
(1.250)
"
(58,279)
(58,373)
(57,831)
(65,003)
185,960
61,987
(59,198)
123,922
(2,844)
(59,092)
(64,733)
(5,563)
(3,175)
(65,879)
123,922
61,987
(5,563)
(2,839)
(2,817)
uasm
With the additional losses associated with the return of the PPAs to the Balancing Pool, monthly cash outflows are
anticipated to reach approximately $60 million. Given existing reserves, the Balancing Pool will not be able to sustain these
losses and is forecast to be short approximately $75 million by the end of January 2017. These losses can be translated into
the required consumer charge that needs to be implemented:
BAL000133
The earliest start date that a consumer charge could be implemented is expected to be July 1st. 2016. Given the
duration of the billing and settlement cycle, the first cash inflow associated with the charge would be received one
month after the charge takes effect. As such, a July 1sl implementation date would yield five months of collection at
the new rate in 2016 and one month at the new rate in 2017.
The required minimum cash reserve to cover ongoing operations, unexpected costs, and PPA related claims is
assumed to be $100 million. Combining this minimum with the $75 million shortfall requires the Balancing Pool to
collect $175 million total prior to 2016 yearend settlement.
APPLICANT COPY
At current demand levels, the Balancing Pool collects $4.9 million per month per
dollar of consumer charge. The 2016 charge will be collected for six months,
meaning $29.4 million will be collected in total per dollar of consumer charge.
To realize the supplementary cash inflow of $175 million by 2016 yearend

settlement, the total consumer charge will need to be $6.00 per MWh starting
July 1st, 2016.
Should the Balancing Pool elect to terminate one or more PPAs (including the Battle
River PPA) the required charge needed to generate the required cash payouts would
become prohibitively large. As such, the Balancing Pool will need to source external
financing to cover the payment of the Net Book Values (NBVs) associated with the
underlying units to the PPA owners when terminating any PPA. While the Sheemess,
Genesee, and Keephills PPAs are not potential candidates for termination since they
have NBVs that are much larger than any anticipated losses associated with continuing
to hold those PPAs, the Battle River PPA and Sundance PPAs are likely termination
candidates. The combined NBVs of these PPAs are estimated to be approximately
$450 million. The Balancing Pool has begun to explore whether financing for this
amount can be established.
Assuming the Sundance PPAs and the Battle River PPA are terminated by the end of
2016, the Balancing Pool's ongoing cash outflows are expected to be approximately
$400 million per year excluding the repayment of termination related debt. Taking the
losses from ongoing operations and the debt repayments into consideration, the
Balancing Pool will likely be required to implement a consumer charge of approximately
$10 per MWh in 2017.
F12-2016
BAL000134
APPLICANT COPY

From:
Sent:
To:
Cc:
Subject:
Attachments:
Bruce Roberts
Thursday March 24, 2016 4:51 PM
Marie Gallant
Recent PPA Terminations and Pending Cash Flow Implications
Consumer Charge and Termination Financing.pdf
Bill et al.
As Marie has left for the day the attached document will be posted to Board books early next week - but we thought
that we'd provide it to you via email so that you can consider the repercussions over the weekend
First off I need to make the Board aware of the fact that the GoA has intervened and delayed the AESOs filing of the
revised Rider F tariff to the AUC. On March 17"' we provided the GoA with notice of our intention to suspend the
consumer allocation and they expressed some concerns and asked for a few days to respond. We worked closely with
the AESO, AUC and GoA to mitigate their concerns. Ultimately the AUC was able to provide the government with
assurance that there would be no public disclosure of the filing for 10 days - presumably long enough to them to
develop a communication plan. Late this afternoon the Premiers' office instructed us not to file with the AUC until
further notice. As such we are at risk of missing the May 1st window - which would result in an additional $17 million
being paid out to consumers.
Given the recent developments wrt to ongoing PPA terminations we have prepared a preliminary analysis of the
expected costs and cash flow consequences to the Balancing Pool if we end up holding all of the PPAs for the balance of
the year
Assuming that in short order we end up with the Sundance A, B & C. Battle River 5, Keephills, Sheerness and Genesee
PPAs and assuming current market conditions prevail, we anticipate a cash cost of approximately $60 million per month
over the balance of the year. In addition we will need to fund the consumer allocation for March and April to the tune
of $32 million.
While we have the option to terminate various PPAs by paying out the net book value to the Owners it is unlikely that
we will be able to do so before year end. As such, we must anticipate and prepare for a total cash outflow of $655
million between now and the end of the year.
We currently have approximately $580 million of financial assets under management that can be drawn down to
mitigate the PPA costs. To ensure that the Balancing Pool has sufficient financial resilience to absorb other potential
liabilities we are reluctant to draw our financial account to below $100 million. As such we will need to raise
approximately $175 million through a consumer charge over the final five months of 2016 and the first month of
2017. This translates into a consumer charge of $6.00 / MWh starting July l 5t, 2016.
Conclusion: There is no way that we will be able to defer the introduction of a consumer charge until 2017. At the May
meeting the Board will need to approve the implementation of a consumer charge of approximately $ 6 00/ MWh
beginning July l 51. We will work to refine our estimates of the charge over the next several weeks as we obtain better
information from the PPA Owners / Buyers.
We look forward to discussing this matter at the upcoming Board meeting next week.
BR
BAL00019
F12-2016
APPLICANT COPY
balancingpool
C o n s u m e r C h a rg e a n d T e rm in a tio n F in a n c in g
D ate: A p r il 1st, 2016
Overview
With the termination of (soon to be) all PPAs, the Balancing Pool is facing a significant
cash shortfall in 2016. This document provides an assessment of the financial
implications for the Balancing Pool.
The table on the next page provides a forecast of the Balancing Pools cash flows over
2016 The following assumptions were used to generate the cash flow estimates over
the year:
o All PPAs are returned to the Balancing Pool. The Balancing Pool assumes
responsibility for the costs of each PPA and collects the revenues from the
energy sold into the market as at the date the PPA was returned by each
PPA's respective Buyer.
o
No termination payments are made to the PPA Owners during 2016.
o The consumer allocation is suspended starting May 1st, 2016.

o The average wholesale power price over the balance of 2016 is assumed
The figures below are best estimates made with the information available as of the time
of this writing and are subject to change. The Balancing Pool has not been provided
with detailed cost information related to the Sundance PPAs, the Sheerness PPA, or the
Keephills PPA and has instead relied on estimates derived from the PPA schedules and
other sources.1
BAL00020
F12-2016
APPLICANT COPY
F 1 2-2016
Month
Pool Price
Settlement Month
Strip Contract (100 W J )
SPP
Isolated Generation
Force Majeure
Consumer Allocation

Other Adjustments

Cash Transfer from Investments
April
(1.274)
May
June
July
August
September
October
November
December
January
(729)
(702)
(1.517)
Mar
1.834
(53.918)
(848)
(250)
(1.250)
(16,315)
1,844
(61,370)
(776)
(250)
(1.250)
May
1.834
(60,192)
(863)
(250)
(1.250)
Jun
1,844
(57,497)
(576)
(250)
(1,250)
Jul
1,834
(57,008)
(488)
(250)
(1,250)
-
6" <S5'
7--1TCJ
(SS.jTS)
5M16)
(57,0^1
(58.77*1
(5* 371}
157*311
>vn,"
61,987
(2,817)
(64.733)
(5,563)
(3,175)
(65,879)
**00 i
10 < O
(15.1 )
(728)
1
18.00 S
(706)
18.00 ;
Aug
1,834
(58,394)
(470)
(250)
(1,250)
(919)
1HM 5
Sap
1,844
(60,700)
(469)
(250)
(1.250)
(719)
teco 5
Oct
1,834
(60,517)
(691)
(250)
(1,250)
579,283
(2,519)
(69,469)
607,295
(2,871)
(74,809)
429,615
(2,844)
(59,083)
367,668
(2,774)
(58,492)
306,422
(2,746)
(57,143)
246,534
(2,779)
(57,795)
165,960
(2,839)
(59,198)
123,922
(2,844)
(59,062)
507,295
429,615
367,688
306,422
246,534
185,960
123,622
61,987
(6.902)
noo
Nov
1 844
(59.579)
(582)
(250)
(1,250)
(877)
18 00
Dec
1,834
(66,266)
(647)
(250)
(1,250)
(5,563) ( 2 1 6 1 7 ) ,
With the additional lo sse s a sso ciated with the return ot the P P A s to the B alan cin g Pool, monthly cash outflows are
anticipated to reach approxim ately $60 million. G iven existing reserves, the B alancing Po ol will not be able to sustain these
lo s se s and is forecast to be short approxim ately $75 million by the end of Ja n u ary 2017. T h e se lo sse s can be translated into
the required consum er charge that needs to be implemented:
B A L0 0 0 2 1
T h e earliest start date that a consum er charge could be implemented is expected to be Ju ly 1st, 2016. G iven the
duration of the billing and settlem ent cycle, the first cash inflow asso ciated with the charge would be received one
month after the charge takes effect. A s such, a July 1st implementation date would yield five months of collection at
T h e required minimum cash reserve to cover ongoing operations, unexpected costs, and P P A related claim s is
a ssu m e d to be $100 million. Com bining this minimum with the $75 million shortfall requires the B alancing Pool to
APPLICANT COPY
At current dem and levels, the B alancing Pool collects $4,9 million per month per
dollar of consum er charge. Th e 2016 charge will be collected for six months,
m eaning $29.4 million will be collected in total per dollar of consum er charge.
T o realize the supplem entary c a sh inflow of $175 million by 2016 yearend

settlement, the total co n su m e r charge will need to be $6.00 per MWh starting
Ju ly 1st, 2016.
Should the B alancing Pool elect to terminate one or more P P A s (including the Battle
R iver P P A ) the required charge needed to generate the required ca sh payouts would
becom e prohibitively large. A s such, the B alan cin g Pool will need to so urce external
financing to cover the paym ent of the Net Book V a lu e s (N B V s) a sso ciated with the
underlying units to the P P A ow ners w hen terminating an y P P A . W hile the S h e e rn e ss,
G e n e se e , and Keephills P P A s are not potential cand id ates for termination sin ce they
have N B V s that are m uch larger than a n y anticipated lo s se s asso ciated with continuing
to hold those P P A s , the Battle R iv e r P P A and S u n d a n c e P P A s are likely termination
candidates. Th e com bined N B V s of these P P A s are estimated to be approxim ately
$450 million. T h e B alancing Pool h a s begun to explore whether financing for this
am ount can be established.
A ssu m in g the Su n d a n ce P P A s and the Battle R iver P P A are terminated by the end of
2016, the B a la n cin g P o o fs ongoing cash outflows are expected to be approxim ately
$400 million per year excluding the repaym ent of termination related debt. Ta kin g the
lo s s e s from ongoing operations and the debt repaym ents into consideration, the
B alancing Pool will likely be required to im plem ent a consum er charge of approxim ately
$10 per MWh in 2017, 3
BAL00022
F12-2016
APPLICANT COPY

Bruce Roberts
Re: Recent PPA Terminations and Pending Cash Flow Implications
From:
Sent:
To:
Subject:
B ill:
Welcome back!
Once you have returned home and recovered from jet lag etc perhaps we should arrange a quick telephone call so that I
can provide you with recent developments.
I am generally around all weekend - let me know when you might have time to chat.
BR
Sent from my iPhone
On Mar 24, 2016, at 6:33 PM, William Stedman (External) <wstedman@entxcapital.com> wrote.
EXTERNAL email. Please be cautious and evaluate before you click on links, open attachments, or
provide credentials.***
Bruce. Could you provide more details as to how we were instructed to hold the Consumer Allocation as
is.
At a minimum, we will need to write an acknowledgement to the Minister. Also, would like to discuss
this with Blakes.
Bill Stedman
On Mar 24, 2016, at 4:50 PM, Bruce Roberts < Bruce.Roberts(SbalancingDOol.C3> wrote:
Bill et al.
As Marie has left for the day the attached document will be posted to Board books early
next week - but we thought that we'd provide it to you via email so that you can
consider the repercussions over the weekend.
First off I need to make the Board aware of the fact that the GoA has intervened and
delayed the AESO's filing of the revised Rider F tariff to the AUC. On March 17th we
provided the GoA with notice of our intention to suspend the consumer allocation and
they expressed some concerns and asked for a few days to respond. We worked closely
with the AESO, AUC and GoA to mitigate their concerns. Ultimately the AUC was able to
provide the government with assurance that there would be no public disclosure of the
filing for 10 days - presumably long enough to them to develop a communicationl
l
BAL00017
F12-2016
APPLICANT COPY
plan. Late this afternoon the Premiers' office instructed us not to file with the AUC until
further notice. As such we are at risk of missing the May 1* window - which would
result in an additional $17 million being paid out to consumers.
Given the recent developments wrt to ongoing PPA terminations we have prepared a
preliminary analysis of the expected costs and cash flow consequences to the Balancing
Pool if we end up holding all of the PPAsfor the balance of the year,
Assuming that in short order we end up with the Sundance A, B & C, Battle River 5,
Keephills, Sheerness and Genesee PPAs and assuming current market conditions prevail,
we anticipate a cash cost of approximately $60 million per month over the balance of
the year. In addition we will need to fund the consumer allocation for March and April
to the tune of $32 million.
While we have the option to terminate various PPAs by paying out the net book value to
the Owners it is unlikely that we will be able to do so before year end. As such, we must
anticipate and prepare for a total cash outflow of $655 million between now and the
end of the year.
We currently have approximately $580 million of financial assets under management
that can be drawn down to mitigate the PPA costs. To ensure that the Balancing Pool
has sufficient financial resilience to absorb other potential liabilities we are reluctant to
draw our financial account to below $100 million. As such we will need to raise
approximately $175 million through a consumer charge over the final five months of
2016 and the first month of 2017. This translates into a consumer charge of $6,00 /
MWh starting July 1st, 2016.
Conclusion: There is no way that we will be able to defer the introduction of a
consumer charge until 2017. At the May meeting the Board will need to approve the
implementation of a consumer charge of approximately $ 6.00/ MWh beginning July l 5t
. We will work to refine our estimates of the charge over the next several weeks as we
obtain better information from the PPA Owners / Buyers.
We look forward to discussing this matter at the upcoming Board meeting next week.
BR
<Consumer Charge and Termination Financing.pdf>
F12-2016
B A L00018
APPLICANT COPY
balancingpool
Condensed Interim Financial Statements and Review
B a la n c in g P o o l
For the three months ended March 31, 2016
F12-2016
BAL000231
APPLICANT COPY
NOTICE OF N O AUDITOR'S REVIEW OF INTERIM FINANCIAL ST AT EM EN TS
The accompanying unaudited interim financial statements of the Balancing Pool have been prepared by and are
the responsibility of the Company's management. The Company's independent auditor has not performed a
review of these financial statements in accordance with standards established by the Canadian Institute of
Chartered Accountants for a review of interim financial statements by an entity's auditors.
Caigary, Alberta
May 19, 2016
Confidential
F12-2016
BAL000232
APPLICANT COPY
M a n a g e m e n t 's D is c u s s io n a n d A n a ly s is
This Management's Discussion and Analysis ("MD&A") for the Balancing Pool is dated May 19, 2016 and should
be read in conjunction with the Balancing Pool's condensed interim financial statements for the three months
ended March 31, 2016 and 2015 and the annual financial statements for the years ended December 31, 2015
and 2014.
The condensed interim financial statements have been prepared in accordance with International Financial
Reporting Standards ("IFRS") except for the valuation adjustments for the Hydro PPA and Small Power Producer
contracts, which are recorded on an annual basis.
1 Three months ended March 31

Volume - gigawatt hours ("GWh")
Genesee Power Purchase Arrangement ("PPA")
Battle River 5 PPA
Sheerness PPA *
Sundance A PPA *
Sundance B PPA *
Sundance C PPA *
Hydro PPA electricity
Hydro PPA ancillary service
Small Power Producer
Price - per megawatt hour ("MWh")
Average Pool price
Other
Consumer Allocation per MWh
Financial Results (in th o u s a n d s o f d o lla rs )
Total revenues
Total expenses
Income from operating activities
Change in net assets attributable to the Balancing Pool deferral account
For the period ended (in thousands of dollars)
Total assets
Total liabilities
Net assets attributable to the Balancing Pool deferral account
Consumer allocation
2016
2015
1,676
371
201
205
103
80
366
328
43
1,650
$18.12
$29.03
$3.25
$5.50
56,057
108,667
(52,610)
(52,811)
March 31,
2016
598,444
1,177,325
504,550
672,775
48,929
361
324
44
107,354
85,294
22,060
21,760
December 31, 1
2015
709,792
1,299,463
524,948
774,515
324,113
* The meter volumes reflected above are effective as of the date the Balancing Pool received the PPA notices of
termination. Please see the following page for effective dates.2
Confidential
F12-2016
BAL000233
APPLICANT COPY
in Q1 2016, the Balancing Pool received formal notice from the Buyers of the Sheerness, Sundance A, Sundance
B and Sundance C PPA, of their intention to terminate their respective PPAs.
On May S, 2016, the Balancing Pool received formal notice from ENMAX PPA Management of its intention to
terminate the Keephills PPA. The table below summarizes the various terminated PPAs.
Date of
Termination Notice
Power Purchase
Arrangement
PPA Buyer
December 11, 2015
Battle River 5
ENMAX PPA Management
March 7, 2016
Sheerness
TransCanada Energy Ltd.
March 7, 2016
Sundance A
March 7, 2016
Sundance B
ASTC Power Partnership
March 24, 2016
Sundance C
May 5, 2016
Keephills
Capital Power PPA Management Inc.

ENMAX Energy Corporation
According to the Balancing Pool Regulation, the Balancing Pool assumes responsibility for capacity and energy
payments for the terminated PPAs immediately following receipt of the notice of termination. Revenues from
the terminated PPAs are recorded in Sale of Electricity and the PPA capacity and energy payments and other
associated costs are recorded in Cost of Sales. Upon conclusion of the investigation, should the terminations
prove to be illegitimate or the effective date of the terminations be revised, the Balancing Pool may recover the
previously paid PPA costs from the PPA Buyers.
At March 31, 2016, the Balancing Pool had not completed the investigation of the terminated PPAs listed above.
A provision for an onerous contact will be required for the terminated PPAs according to IAS 37 Provisions,
Contingent Liabilities and Contingent Assets. A provision may be recognized for an onerous contract when the
unavoidable cost of meeting the obligations under the contract exceed the economic benefits expected to be
derived from the contract to the extent any loss cannot be recovered from electricity consumers. The provision
is measured at the lower of the expected costs of terminating the contract and the expected net costs of
continuing with the contract. Please note that this quarterly report does not reflect a provision for Sheerness,
Sundance A, Sundance B and/or Sundance C as the Balancing Pool is currently estimating the financial impact of
any potential termination.
The Balancing Pool's legislated duties and strategic objectives include the following:
Act as a risk backstop in relation to extraordinary events, including force majeure for Power Purchase
Arrangements ("PPAs") that were sold to the third party buyers;
Participate in regulatory and dispute resolution processes to protect the value of the Balancing Pool's
assets when required on behalf of Alberta electricity consumers;
Hold the Hydro Power Purchase Arrangement ("Hydro PPA") and manage the associated stream of
receipts or payments;
Confidential
F12-2016
BAL000234
APPLICANT COPY
Act as a buyer for the PPAs that were not sold in the public auction held by the Government of Alberta
in 2000 or that have subsequently been terminated by third party buyers and manage the resulting
electricity portfolio in a commercial manner;
Transfer offer control to market participants by selling PPAs held by the Balancing Pool in whole or
through PPA derivative contracts when market conditions will allow the Balancing Pool to receive fair
market value;
Manage the investment accounts prudently; and
Allocate any forecasted cash surplus (or deficit) to electricity consumers in Alberta in annual amounts.
This Consumer Allocation is managed so that there is no profit or loss over the life of the Balancing Pool.
Force Majeure
Events of force majeure are extraordinary events beyond the reasonable control of the affected PPA
counterparty. Related to its risk backstop responsibilities, the Balancing Pool has a statutory obligation to pay
certain costs during events of force majeure as set out in the terms of the PPAs.
Financial Assets under Investment
Financial investments held by the Balancing Pool are available to mitigate existing or future Balancing Pool
liabilities.
Prior to April 1, 2016, the Balancing Pool's Board had approved a long-term investment policy for managing the
financial assets. The investment policy was based on investment standards that have been deemed prudent by
the Board of Directors and generally focused on achievement of a fair return on investments through a
diversified investment portfolio to reduce risk. Professional money management firms manage the investment
portfolio. The major sources of our investment income include interest, dividends and gains or losses on the sale
of investments.
The ranges for asset allocation within the investment portfolio were as follows:
Fixed Income
4 0 60%
Canadian Equities
15 35% *
Global Equities
15 35%*
* Total equity exposure was capped at 60%.
In light of the PPA terminations and the potential cash requirements, on April 1, 2016 the Balancing Pool's Board
of Directors approved a revision to the asset allocation strategy for the financial assets under investment
intended to de-risk the portfolio and increase liquidity.
Genesee Power Purchase Arrangement and Related Finance Lease Obligation
The Genesee power purchase arrangement ("Genesee PPA'') transfers substantially all of the benefits and some
of the risks of ownership to the Balancing Pool. The asset is accounted for as a finance lease as required by IAS
17 Leases and is included in PP&E as required by IAS 16 Property, Plant and Equipment. The Genesee PPA is
recorded at an amount not exceeding the estimated net future cash flows arising from operations over the
remaining life of the PPA. The Balancing Pool is not responsible for the daily operation of the Genesee power
plant, however the Balancing Pool does retain offer control.4
4
Confidential
BAL000235
F12-2016
APPLICANT COPY
As counterparty to the Genesee PPA, the Balancing Pool is required to make monthly payments to the owner of
the generating unit intended to cover fixed and variable costs. The capital component of the monthly capacity
payment is shown as a finance lease obligation.
Hydro Power Purchase Arrangement
The Hydro power purchase arrangement (Hydro PPA") is recorded as an asset at the net present value of the
estimated net cash receipts over the remaining term of the contract, which expires on December 31, 2020.
Future revenues are estimated based on the notional energy and reserve (ancillary services) volumes set out in
the Hydro PPA and management's best estimate of future energy and reserve prices. Corresponding expenses
reflect the obligations for the remaining term of the contract as set out in the Hydro PPA.
The Hydro PPA is recorded as a financial asset since TransAlta Corporation ("TransAlta"), the owner of the hydro
plants, retains offer control of the hydro assets under the terms of this PPA.
Payments in Lieu of Tax
Payments in Lieu of Tax ("PILOT") receipts are based on the taxable income of a municipal entity as defined in
Section 147 of the Electric Utilities Act and the Payment in Lieu of Tax Regulation of the Act. In general, the
PILOT amounts are equal to the amount the municipal entity would be required to pay as tax that year pursuant
to the Income Tax Act of Canada and the Alberta Corporate Tax Act. PILOT payments remitted by the municipal
entity are subject to audit by Alberta Tax and Revenue Administration. The Balancing Pool has no control over
the PILOT amounts remitted by the municipal entities or the assessments issued by Alberta Tax and Revenue
Administration.
Small Power producer Contracts
The Small Power Research and Development Act required TransAlta Corporation to act as counterparty to the
Small Power Producer ("SPP") contracts and to compensate the Small Power Producer for energy delivered
under the contract at a specified price.
Under the Independent Power and Small Power Regulation, the Balancing Pool is required to make payments to
TransAlta Corporation to compensate the company for any revenue shortfall experienced during periods when
the Pool price falls below the SPP contracted price. Conversely, the Balancing Pool is entitled to receive
payments from TransAlta Corporation during high price periods when there is a revenue surplus relative to the
contract price.
The SPP contracts are recorded as a liability calculated as the net present value of the future payments or
receipts from SPP related power sales considering any differences between the annual prices set out in the SPP
contracts and management's best estimate of the Pool price forecast over the remaining term of the contracts.
The SPP contracts are recorded as a financial instrument analogous to a fixed for floating swap arrangement.
Reclamation and Abandonment
The reclamation and abandonment provision represents a fixed amount that has been committed for the
decommissioning of H.R. Milner generating station, estimated reclamation and abandonment costs associated
with the Isolated Generation sites and estimated decommissioning costs of eligible PPA-related facilities.5
5
Confidential
F12-2016
BAL000236
APPLICANT COPY
Under the Negotiated Settlement Agreement for the H.R. Milner generating station in 2001, the Balancing Pool
assumed liability for the costs of decommissioning the station at the end of the contract period. When the asset
was sold in 2004, the Balancing Pool retained the liability for decommissioning the generating station, A bilateral
agreement was reached in 2011 with Milner Power Limited Partnership where the Balancing Pool's exposure to
decommissioning costs are capped at $15 million in nominal dollars.
Under the Isolated Generating Units and Customer Choice Regulations of the Act, the Balancing Pool is liable tor
certain amounts relating to the reclamation and abandonment costs associated with Isolated Generation sites.
Pursuant to Section 7 of the Power Purchase Arrangements Regulation of the Act, the owner of a PPA-related
generating unit who applies to the Alberta Utilities Commission ("AUC") to decommission a unit within one year
of the termination of the PPA may be entitled to receive compensation from the Balancing Pool. The
compensation is to be calculated as the amount by which the decommissioning costs exceed the amount the
owner collected from consumers before January 1, 2001 and subsequently through a PPA. The unit must have
ceased generating electricity and payment is subject to AUC approval. This provision does not apply to PPArelated generating units where the termination date occurs after December 31, 2018.
Consumer Allocation
The Consumer Allocation is reviewed and approved annually by the Board of the Balancing Pool and may be
revised at any time during the year at the Board's discretion.
Details of Revenues (in thousands of dollars)
Sale of electricity
Sale of generating capacity
Change in fair value of Hydro power purchase arrangement
Change in fair value of investments
Investment income - interest and dividends
Payments in lieu of taxes
Total revenues
Three months ended

March 31
2015
2016
39,941
34,530
17,828
26,030
(6,266)
(548)
48,562
(6,320)
4,564
2,895
(223)
2,418
56,057
107,354
Variance
5,411
8,202
(5,718)
(54,882)
(1,669)
(2,641)
(51,297)
Sale of Electricity
Revenue from the sale of electricity increased in Q1 2016 relative to Q1 2015 due to the inclusion of Battle River
5 PPA revenues. The Balancing Pool did not hold Battle River 5 in Q 12015.
Sale of Generating Capacity
The two 100-MW strip contracts for generating capacity derived from the Genesee PPA resulted in revenues of
$26.0 million for the first quarter of 2016. The increase in revenues for Q1 2016 relative to Q1 2015 was the
result of a onetime payment received through a negotiated settlement reached with one of the strip buyers to
facilitate the termination of the strip contract.
Confidential
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APPLICANT COPY
Ch ange in Fair Value of Hydro P o w e r Purchase Arrangement
Revenue from the Hydro PPA decreased in Q1 2016 relative to Q1 2015 due to lower actual current cash receipts
than those forecast in the 2015 year-end valuation. Actual cash receipts decreased as a result of the lower than
expected Pool prices for Q1 2016.
Changes in Fair Value of Investments
Details of Changes in Fair Value of Investments
(m thousands of dollars)
Unrealized mark-to-market (loss) gain
Realized capital gains
Total Changes in Fair Value of Investments
Three months ended

March 31
2016
2015
(116,682)
23,262
25,300
110,362
48,562
(6,320)
Variance
(139,944)
85,062
(54,882)
Total changes in fair value of investments declined for Q1 2016 relative to Q1 2015 due to the accelerated sale
of investments.
Investment Returns & Benchmark (;)
Three months ended

March 31
2016
2015
5.40
(0.33)
(0.39)
5.26
0.14
0.06
Investment returns
Benchmark
Variance
Variance
(5.73)
(5.65)
(0.08)
Investment In co m e-Interest and Dividends

Investment income for Q1 2016 decreased relative to Q1 2015 due to the drawdown of the Investment
portfolio.
Payments In Lieu of Tax
Total PILOT revenues in Q1 2016 decreased relative to Q1 2015 as a result of litigation and audit costs exceeding
installment remittances received by the Balancing Pool.
The Balancing Pool has no control over the timing and amount of PILOT instalments remitted by the
municipalities or adjustments and / or refunds in relation to reassessments of prior years. PILOT instalments are
calculated by the electricity companies and are subject to audit by Alberta Tax and Revenue Administration. The
Balancing Pool is responsible for paying the PILOT audit and litigation costs incurred by Alberta Tax and Revenue
Administration.7
Confidential
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APPLICANT COPY
Details of Expense [in thousands of dollars)
Cost of sales
Force majeure costs
Mandated costs
General and administrative
Investment management costs
Changes in fair value of Small Power Producer contracts
Total expenses
Three months ended

March 31
2016
2015
104,879
78,670
492
2,852
1,937
1,829
640
628
352
624
475
583
108,667
85,294
Variance
26,209
(2,360)
(108)
12
(272)
(108)
23,373
Cost of Sales
Total cost of sales increased in Q1 2016 relative to Q1 2015 primarily due to the inclusion of PPA costs
associated with the terminated PPAs, which include Battle River 5( Sheerness, Sundance A, Sundance B and
Sundance C. The Balancing Pool is responsible for remitting the PPA costs to the plant Owners of the generating
units during the termination evaluation phase. Should the PPA terminations prove invalid the Balancing Pool
may be able to recover the PPA costs remitted to the plant Owners,
PPA costs include plant capacity payments, variable operating costs including incentive payments, transmission
charges and change in law costs. Capacity payments comprise more than 83% of total costs of sales and these
payments vary year-over-year as a result of changes in cost base, cost indices, interest rates and pass-through
charges. Changes to the Pool price have a minimal impact on the PPA capacity payments.
Force Majeure Costs
Force majeure costs for Q1 2016 decreased by $2.4 million relative to the same period in 2015 as there have
been no claims submitted during Q1 2016.
Investment Management Costs
Investment management costs for Q1 2016 decreased relative to Q1 2015 due the drawdown of the investment
portfolio as management fees are generally calculated as a percentage of the portfolio value.8
Three months
ended
March 31,2016
162
20,754
598,282
314,393
243,734
1,177,325
Details of Assets
On thousands of dollars)
Cash and cash equivalents
Trade and other receivables
Investments
Property, plant and equipment
Hydro power purchase arrangement
Total assets
Year ended
December 31,
2015
5,073
16,093
704,719
330,945
242,633
1,299,463
Variance
(4,911)
4,661
(106,437)
(16,552)
1,101
(122,138)
Confidential
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BAL000239
APPLICANT COPY
Investments
I'm thousands of
dollars)
704,719
113,245
(116,682)
(103,000)
598,282
Investment Balance Portfolio

I Opening Investment Balance, December 31, 2015
Realized capital gains, Interest and dividends on investments
Unrealized capital losses
Withdrawal from Investment portfolio
Closing Investment Balance, March 31, 2016
The investment portfolio has declined by $106.4 million from December 31, 2015 to finance operating losses
and the consumer allocation.
Property, Plant and Equipment
As required by IAS 16 Property, Plant and Equipment, the Genesee PPA is recorded under Property, Plant and
Equipment. The decrease in the net book value from year-end 2015 reflects the current quarter's amortization
of the Genesee PPA and other capital assets.
As a result of the decline in the forward market price, an impairment loss of $222,0 million was recorded on the
Genesee PPA lease at December 31, 2015.
The net present value of the Hydro PPA at March 31, 2016 increased by $1.1 million from December 31, 2015.
Typically, the Hydro PPA will decline in value if revenues exceed the costs under the contact. In the current
circumstances, with the low market prices, the costs of the PPA exceed revenues, which increase the residual
value of the Hydro PPA due to the mechanics of financial instrument accounting used for this asset.
Details of Liabilities
(in thousands of dcilars)
Trade and other payables
Genesee power purchase arrangement lease obligation
Small power producer contracts
Reclamation, abandonment provision and other long
term obligations
Total liabilities
Three months
ended
March 31,2016
89,615
297,130
9,865
Year ended
December 31,
2015
74,580
312,511
11,368
107,940
504,550
126,489
524,948
Variance
15,035
(15,381)
(1,503)
(18,549)
(20,398)
Trade and Other Payables

Trade and other payables increased in Q1 2016 relative to year-end 2015 due to the inclusion of PPA costs
associated with the terminated PPAs (Battle River 5, Sheerness, Sundance A, Sundance B and Sundance C).9
Confidential
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APPLICANT COPY
Ge nesee P o w e r Purchase Arrangement Lease Obligation
The balance of the liability related to the Genesee PPA at March 31, 2016 represents the sum of the capital
component of the total payments required over the remaining term of the Genesee PPA. The decrease in the
first quarter of 2016 from December 31, 2015 reflects the straight-line amortization of the lease obligation.
The net present value of the SPP contract liability at March 31, 2016 decreased by $1.5 million from year-end
2015. The decrease in fair value is attributed to amortization of the SPP value as determined in the 2015 yearend valuation process.
Reclamation, Abandonment Provision and Other Long-Term Obligations
The decrease in the reclamation, abandonment provision and other long-term obligations from December 31,
2015 primarily reflects amortization of the Battle River 5 PPA provision.
Balancing Pool Deferral Account, Beginning of Year

Deferral account, beginning of year
Consumer Allocation
Deferral account, end of year
Three months
ended
March 31,2016
774,515
(52,811)
(48,929)
672,775
Year ended
December 31,
2015
1,562,737
(464,109)
(324,113)
774,515
The Balancing Pool deferral account decreased from December 31, 2015 as a result of operating losses for the
first quarter and the consumer allocation distribution.
To manage liquidity risk, the Balancing Pool forecasts cash flows for a period of 12 months and beyond to the
end of 2020. Historically the Balancing Pool has had the flexibility to adjust the Consumer Allocation and / or
liquidate investments as required to meet cash flow requirements.
Due to the recent notices of PPA terminations, the Balancing Pool's Board of Directors approved a liquidation
strategy of the Investment portfolio. If upheld, the Balancing Pool anticipates the termination of the PPAs will
have a material effect and will likely result in a Consumer Charge in the future.
The Balancing Pool also has access to a credit facility of $90.0 million to meet short-term liquidity needs. At
December 31, 2015 the Balancing Pool had $2.0 million of unsecured Letters of Credit issued with Natural Gas
Exchange.
The Balancing Pool's primary uses of funds are for payment of operating expenses, payment of the obligations
associated with the Genesee PPA, Battle River 5 PPA, Sundance A PPA, Sundance B PPA and Sundance C PPAs
and payment of the Consumer Allocation.
10
Confidential
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APPLICANT COPY
In November 2015, the Balancing Pool established the annual allocation of its financial surplus to electricity
consumers in Alberta at $3.25 per MWh of consumption, effective January 1,2016 (2015 - $5.50 per MWh). This
forecast was based upon cash flows and the expected financial position for 2016, prior to receipt of the notices
of the PPA terminations.
The Balancing Pool is exposed to a variety of risks while executing its mandate. Most of the risks are unique to
the organization given its role and responsibilities in the Alberta Electric Industry. At the time that the Alberta
electricity sector was restructured, the Balancing Pool was created to underwrite various risks associated with
the PPAs. The risks the Balancing Pool is exposed to in executing its mandate include the following;
Force majeure risk

counterparty. These events include:
o Extraordinary situations typically covered in force majeure clauses such as natural disasters,
war, explosions, sabotage, etc.;
o A major failure of some or all of the components of the plant which results in the plant
being forced to operate at a lower level for a period in excess of 42 days; and
o Transmission constraints that limit or prevent the delivery of electricity to the grid.
Under the provisions of the PPAs, when a claim of force majeure is made, PPA Buyers are relieved of their
obligations to make fixed capacity payments to the PPA Owner and instead the Balancing Pool is required to
pay the PPA Owner the capacity payments normally paid by the Buyer. In addition, during events of force
majeure availability incentive payment obligations between the Buyer and Owner are suspended.
Power market price volatility risk

As counterparty to the Genesee PPA, Battle River 5 PPA, Hydro PPA and SPP contracts, the Balancing Pool is
exposed to power market price volatility risk.
The Alberta market prices for electricity are settled at spot market prices and are dependent on many
factors including but not limited to the supply and demand of electricity, generating and input costs, natural
gas prices and weather conditions. Exposure to power price volatility may be partially managed through the
execution of the Balancing Pool's hedging strategy
The Balancing Pool may have the ability to further reduce its exposure to market prices by selling blocks of
the Genesee PPA capacity over long terms.
Marketable securities investment returns

Historically, the value of these Investments was exposed to changes in capital markets and, as such, faced
the risks related to equity market performance, interest rates, foreign exchange rates, and other financial
risks. In addition, the liquidity risk of the portfolio was managed to ensure sufficient funds were available on
relatively short notice in response to potential claims, etc.
11
Confidential
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APPLICANT COPY
The Balancing Pool's investment portfolio is managed by independent investment managers guided by pre
set asset allocations as specified in the Balancing Pool's Statement of Investment Policy.
Effective April 1, 2016, the Balancing Pool's Board of Directors approved a revision to the asset allocation
strategy for the financial assets under investment intended to de-risk the portfolio and increase liquidity.
The funds will be held in short-term deposits and / or money market securities.
PPA termination and / or unit destruction risk

The PPAs contain a termination provision that makes accommodations for the PPA to be terminated to the
extent a change in taw could render continued performance of the arrangement unprofitable or more
unprofitable to the PPA Buyer.
The Balancing Pool is responsible for conducting an investigation and must assess and verify the termination
event and determine any need for a payment to be made by or to a party under the provisions of the
arrangement.
If the termination notice under the change in law provision is determined to be valid, the Balancing Pool
would be required to act as default Buyer, thereby assuming responsibility for paying the ongoing capacity
and energy payments associated with a terminated PPA.
Unit destruction
In the event that a unit is destroyed and cannot be repaired by the Owner, the Balancing Pool could be
required to pay the Residual Balancing Pool Amount to the PPA Buyer and the Net Book Value less any
Insurance Proceeds to the Owner of the unit.
Change in law risk

Changes in law, including regulatory, environmental and electricity market design changes, can have a
material effect on the values of the PPAs. Costs (and benefits) associated with a change in law are passed
from plant Owners to the PPA Buyer. As the default Buyer of the various PPAs, the Balancing Pool must
assume and be responsible for change in law costs affecting the generating units.
The Balancing Pool is subject to risk associated with changing Federal and Provincial laws, regulations, and
any Balancing Pool specific mandate changes.
PPA decommissioning risk

If a PPA Owner elects to decommission its facility, the Balancing Pool may be required to recompense the
Owner for some of its decommissioning costs. The Balancing Pool would be financially liable for
decommissioning costs exceeding the amounts the Owner has collected prior to deregulation and
subsequently through the PPA payments. Regulation requires such claims to be initiated within one year of
the termination of the PPA and before the end of 2018.
PPA Buyer default risk

The PPA regulation contains provisions where, in the event of a Buyer default, the Balancing Pool would
assume the role of Buyer and would either hold the PPA or auction the capacity back to the market.1
2
12
Confidential
F12-2016
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APPLICANT COPY
Alberta Climate Leadership Plan

In November 2015, the Government of Alberta announced the Climate Leadership Plan ("CLP"). The CLP
establishes a framework for the retirement of coal-fired generation by 2030, compliance requirements for
coal emissions and renewable generation procurement to replace coal-fired generation. The CLP has not
been enacted into law and the specifics of the policy have not been finalized. The final plan could have a
material effect on the value of the PPAs.
Liquidity
To meet short-term liquidity needs, the Balancing Pool has access to a $90.0-million credit facility. Should
the estimated liabilities exceed investment funds that may be available, the Balancing Pool has the ability to
implement a Consumer Charge.
There were no significant changes to accounting standards that impacted the Balancing Pool in Q.1 2016. The
Balancing Pool prepares its financial statements in accordance with International Financial Reporting Standards
("IFRS") as issued by the International Accounting Standards Board ("IASB").
Since a determination of certain assets, liabilities, revenues and expenses is dependent upon future events, the
preparation of these financial statements requires the use of estimates and assumptions which have been made
using careful judgment. Actual results will differ from these estimates.
In particular, there were significant accounting estimates made in relation to the following items:
Reclamation and Abandonment Provision
External engineering estimates are used to calculate the anticipated future costs of reclamation and
abandonment. The current and long-term portions of the provision are based upon management's best estimate
of the tim ing of the costs.
Onerous Contract Provision
The provision for the Battle River 5 PPA is estimated using estimated future electricity prices, escalated costs as
per the contract terms and future cash outflows discounted to the net present value at 2.7%.
Hydro Power Purchase Arrangement Valuation, Small Power Producer Contracts Valuation and Genesee
Power Purchase Arrangement Impairment Assessment
The net present value of future cash flows is estimated using:
estimated future electricity prices;
escalated costs as per contract term; and
future cash flows discounted to net present value at 10.1% (2014 10.1%).
In the opinion of management, these financial statements have been properly prepared within reasonable limits
of materiality and within the framework of the significant accounting policies.
Confidential
13
BAL000244
F12-2016
APPLICANT COPY
Certain information in this MD&A is forward-looking information and relates to, among other things, anticipated
financial market performance, future power prices and strategies. Forward-looking information typically
contains statements with words such as "anticipate," "believe," "expect," "target" or similar words suggesting
future outcomes.
By their nature, such statements are subject to various risks and uncertainties that could cause the Balancing
Pool's actual results and experience to differ materially from the anticipated results. Such risks and uncertainties
include, but are not limited to, the availability of generating assets and the price of energy commodities;
regulatory decisions; extraordinary events related to the various PPAs; the ability of the Balancing Pool to
successfully implement the initiatives referred to in this MD&A and other electricity market factors1
4
14
Confidential
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APPLICANT COPY
Statem ent of Financial Position

March 31,
2016
\fm thousand:, of Canadian dollars)
December 31,
2015
Assets
Current assets
Current portion of Hydro power purchase arrangement (Note 2 a)
162
20,754
30,400
51,316
5,073
16,093
26,147
47,313
Investments (Note 3)
598,282
704,719
Property, plant and equipment (Note 4 a)
314,393
330,945
213,334
1,177.325
216,486
1,299,463
89,615
61,480
5,440
47,270
203,805
74,580
61,524
5,834
47,125
189,063
235,650
250,987
4,425
5,534
Reclamation and abandonment provision & other long-term obligations (Note 5)

Total Liabilities
60,670
504,550
79,364
524,948
Net assets attributable to the Balancing Pool deferral account (Note 6)
672,775
774,515
Hydro power purchase arrangement (Note 2 a)

Total Assets
Liabilities
Current liabilities
Current portion of power purchase arrangement lease obligation
Current portion of Small Power Producer contracts (Note 2 b)
Current portion of reclamation and abandonment provision (Note 5)
Small Power Producer contracts (Note 2 b)
Contingencies and commitments (Note 7}

Subsequent Events (Note 8)
Confidential
15
BAL000246
F12-2016
APPLICANT COPY
Statem ents of Incom e (loss) and Com prehensive Incom e (loss)
((in thousands o f C a n a d ia n
Three months ended

March 31
d o lla rs ) _____________________________________________ 2016_________ 2015
Revenues
Sale of electricity
Changes in fair value of Hydro power purchase arrangement (Note 2 a)
Changes in fair value of investments (Note 3)
Payments in lieu of tax
Expenses
Cost of sales
Force majeure costs
Mandated costs
Changes in fair value of Small Power Producer contracts (Note 2 c)
Income from operating activities
Other income (expense)
Finance expense
16
39,941
26,030
(6,266)
(6,320)
2,895
(223)
56,057
34,530
17,828
(548)
48,562
4,564
2,418
107,354
104,879
492
1,829
640
352
475
108,667
78,670
2,852
1,937
628
624
583
85,294
(52,610)
22,060
(201)
(201)
(300)
(300)
(52,811)
21,760
Confidential
BAL000247
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APPLICANT COPY
Statem ents of Cash Flows

Three months ended
March 31
2016
2015
(in tho/sanas of Canadian dollars)

Cash flow provided by (used in)
Amortization and depreciation (Note 4)
Reclamation, abandonment and other long-term obligations
Fair value changes on Small Power Producer contracts (Note 2 b)
Fair value changes on Hydro power purchase arrangement (Note 2 a)
Fair value changes on financial investments (Note 3)
Finance expense
Reclamation and abandonment expenditures (Note 5)
Net change in non-cash working capital
Net cash provided by (used in) operating activities
Interest, dividends and other gains
Sale of investments
Net cash (used in) provided by investing activities
Hydro power purchase arrangement net cash receipts (payments) (Note 2 a)
Payment of power purchase arrangement lease obligation
Small Power Producer contracts net receipts (payments) (Note 2 b)
Payment of the Consumer Allocation (Note 6)
Net cash used in financing activities
Change in cash and cash equivalents
Cash and cash equivalents, beginning of period
Cash and cash equivalents, end of period
17
(52,811)
21,760
16,552
(18,675)
475
6,266
116,682
201
(75)
10,374
78,989
27,647
583
548
(23,262)
300
(175)
(2,794)
24,607
(113,245)
103,000
(10,245)
(29,836)
70,000
40,164
(7,367)
(15,381)
(1,978)
(48,929)
(73,655)
925
(15,286)
(1,775)
(83,624)
(99,760)
(4,911)
(34,989)
5,073
162
36,641
1,652
Confidential
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APPLICANT COPY
C o n d e n s e d I n t e r im N o te s t o F in a n c ia l S ta te m e n ts
These interim financial statements for the three months ended March 31, 2016 are unaudited and have been
prepared by management in accordance with IAS 34 'Interim Financial Reporting' ("IAS 34") as issued by the
International Accounting Standards Board ("IASB") except for the financial instrument valuation adjustments for
the Hydro PPA and SPP contracts.
The disclosures provided below are incremental to those included with the annual financial statements. These
interim condensed financial statements should be read in conjunction with the audited financial statements and
the notes thereto for the year ended December 31, 2015.
These financial statements were authorized and approved for Issue by the Board of the Balancing Pool on May
19, 2016.
a) Hydro Power Purchase Arrangement

The remaining term of the Hydro PPA is five years through to December 31, 2020. At March 31, 2016 the value
of the Hydro PPA was $243.7 million (Dec. 31, 2015 - $242.6 million). The Hydro PPA is revalued at each year
end. The estimated value of this asset will vary significantly depending on the assumptions used and there is a
high degree of measurement uncertainty associated with these assumptions.
o ,' OoHorsJ
(.>
Hydro power purchase arrangement, opening balance

Accretion and current year change
Net cash payments (receipts)
Revaluation of hydro power purchase arrangement asset
Hydro power purchase arrangement, closing balance
Less: Current portion
Three months
Year ended
ended
December 3J,
March 31, 2016
2015
f
357,785
242,633
(6,266)
19,126
7,367
(33,866)
(100,412)
243,734
242,633
(30,400) _______ (26,147)
213,334
216,486
b) Small Power Producer Contracts

At March 31, 2016 the value of the SPP contracts was $9.9 million liability (Dec. 31, 2015 - $11.4 million liability).
The SPP contracts are revalued at each year endSmall Power Producer Contracts
(inthrumonth ofdnlhir.)
Small Power Producer contracts, opening balance
Net cash payments
Revaluation of Small Power Producer contracts
Small Power Producer contracts, closing balance
18
Three months
ended
March 31. 2C16
(11,368)
(475)
1,978
(9,865)
5,440
(4,425)
Year ended
December 31,
2015
(12,987)
(1,301)
5,960
(3,040)
(11,368)
5,834
(5,534)
Confidential
F12-2016
BAL000249
APPLICANT COPY
T h re e m o n th s e n d e d
M a rc h 3 1 , 2 0 1 6
M a rk e t
V a lu e
C o st
tinthoniandsof dollar5/
Fixed income securities
Canadian equities
Global equities
Total investments
413,856
173,537
10,889
598,282
Year ended
D ecem b er 31, 2015
M arke t
V a lu e
C o st
413,330
172,772
7,156
593,258
353,29S
135,209
216,215
704,719
350,950
108,540
123,523
583,013
The following table provides disclosure on the movements in the fair value of the investments:
Fixed
Income
Securities
Unrealized Market Gain (Loss)

(m.tfW .U SO Tifc Qf ilollois)
Unrealized market gain, December 31, 2014
Changes in value attributable to:
Change during the period
Realized (gain) loss on sales of investments
Net change during the period
Unreaiized market gain, March 31, 2016
19
Canadian
Equities
Global
Equities
Totals
5,152
59,776
110,865
175,793
5,633
(15,531)
45,433
35,535
(17,576)
(63,606)
(33,107) ___ (18,173)
(89,622)
(8,440)
(2,807)
2,345
(54,087)
26,669
92,692
121,706
(794)
8,472
(13,999)
(6,321)
(1,025)
(74,960)
(110,361)
(1,819)
(34,376)
(25,904)
(88,959)
(116,682)
526
765
3,733
5,024
Confidential
F12-2016
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APPLICANT COPY
a)
Property, Plant and Equipment

Genesee PPA
(in t h o u s a n d s o f d o lla r s /
Office
Equipment
Total
Cost
Balance as at December 31, 2014
Additions
Additions
Balance as at March 31, 2016
1,505,670
1,505,670
1,505,670
519
56
575
575
1,506,189
56
1,506,245
1,506,245
Accumulated Depreciation
Impairment loss
Amortization and Depredation
Balance as at March 31,2016
842,301
110,561
221,960
1,174,822
16,542
1,191,364
444
34
478
10
488
842,745
110,595
221,960
1,175,300
16,552
1,191,852
330,848
314,306
97
87
330,945
314,393
Net Book Value

As at December 31, 2015
As at March 31,2016
During 2015, an impairment loss was recorded with respect to the Genesee PPA.
b)
Genesee Power Purchase arrangement Lease Obligation
There have been no changes to the estimated future annual lease payments from those presented in the 2015
audited annual financial statements.
Confidential
20
BAL000251
F12-2016
APPLICANT COPY
(<n thausandi of daflt^s)

At January 1, 2015
Net increase in provision
Liabilities paid in period
Accretion expense
At December 31, 2015
At January 1, 2016
Amortization
Accretion expense
At March 31, 2016
At March 31, 2016
Other Long-Term
Obligation
H.R. Milner
Battle River
Generating
5 PPA
Station
11,854
96,700
800
474
96,700
13,128
*
(44,200)
52,500
13,128
96,700
(18,675)
78,025
(44,420)
33,605
Reclamation and
Abandonment Provision
Isolated
Generation
Costs of PPAs
Sites
6,518
11,505
2,731
(767)
(4,047)
261
460
5,463
11,198
(2,925)
2,538
11,198
13,128
89
13,217
13,217
5,463
(75)
37
5,425
(2,850)
2,575
11,198
75
11,273
11,273
Total
29,877
99,464
(4,047)
1,195
126,489
(47,125)
79,364
126,489
(18,675)
(75)
201
107,940
(47,270)
60,670
The Balancing Pool's objective when managing capital is to operate as per the requirements of the Electric
Utilities Act (2003) which requires the Balancing Pool to operate with no profit or loss and no share capital and
forecast its revenues, expenses, and cash flows. Any excess or shortfall of funds in the accounts is to be
allocated to, or provided by, electricity consumers.
A reconciliation of the opening and closing Balancing Pool deferral account is provided below:
jm thovscm ts ofaoltofs)
Deferral account, beginning balance

Payment of Consumer Allocation
Deferral account, ending balance
Three months
ended
March 31, 2016
774,515
(52,811)
(48,929)
Year ended
December 31,
2015
1,562,737
(464,109)
(324,113)
672,775
774,515
Confidential
21
F12-2016
BAL000252
APPLICANT COPY
Termination of Power Purchase Arrangements

Pursuant to Section 96 of the EUA, where a PPA is terminated except for an Owner's termination for destruction,
the PPA will be deemed to have been sold to the Balancing Pool. Buyer-initiated termination could be triggered
by a change in law, which renders the PPA uneconomic or more uneconomic for the buyer, an event of force
majeure lasting greater than six months or Owner default in performing its obligations. Termination under
these provisions would result in the transfer of the PPA to the Baiancing Pool. The Balancing Pool would then
assume responsibility for ongoing capacity payments and other PPA-related costs and would be responsible for
selling the output into the wholesale power market.
The Balancing Pool has the option to resell the PPAs or terminate the PPAs by paying the Owner a termination
payment equal to the net book value.
Genesee PPA Energy Strip Contracts
In the last quarter of 2014, the Balancing Pool sold two 100-MW strip contracts for generating capacity from the
Genesee PPA (representing 26% of the total Genesee PPA capacity). The two contracts commenced on
November 1, 2014 and were contracted to expire on October 31, 2017. Terms of the contracts require the
purchaser to pay a fixed monthly fee established by a competitive bid process and amounts intended to cover
certain PPA costs payable by the Balancing Pool.
Revenue from the sale of the energy strip contracts has been recorded in sale of generating capacity on the
Statement of Income.
Alberta Tax and Revenue Administration has issued notices of re-assessment for several tax years (dating back to
2001) to a municipal entity that has been subject to PILOT. The municipal entity has disagreed with many
aspects of the notices of re-assessment and has filed notices of objection for those tax years. The municipal
entity has proceeded with litigation to resolve the various tax matters. The total PILOT revenues under dispute
with the municipal entity are $305.1 million for the tax years of 2001 through to 2015. Due to the uncertainty of
the outcome of the litigation, these financial statements do not reflect any contingent asset or liability in
relation to these ongoing disputes.
Disputed Amounts
Disputed amounts for commercial matters are expensed as incurred and recognized on recovery.
Credit Facility
At December 31, 2015, the Balancing Pool had $2.0 million of unsecured Letters of Credit issued and an
uncommitted credit facility available to issue Letters of Credit up to a maximum of $90.0 million.
22
Confidential
F12-2016
BAL000253
APPLICANT COPY
On May 5, 2016, the Balancing Pool received formal notice from ENMAX PPA Management of its intention to
terminate the Keephills PPA.
ENMAX's decision was triggered by the increased costs that will be imposed on Keephills under the changes to
the Specified Gas Emitters Regulation and related Climate Change Emissions Management Fund that became
effective January 1, 2016. These changes served to increase the costs of carbon and would thereby increase
compliance costs for Keephills.
According to Section l(d}(ii) of the Balancing Pool Regulation, an "extraordinary event" is an event that results in
the termination of an arrangement in accordance with its terms and conditions and that the Balancing Pool is
required to become party to the arrangement. Under Section 2(l)(g) of the regulation, on receipt of notice in
respect of an extraordinary event, the Balancing Pool must conduct any investigation it determines appropriate
in accordance with the EUA, the regulations and any arrangement. According to Section 2(l)(h) when clause (g)
applies, the Balancing Pool must agree with the parties to the arrangement that the extraordinary event has
occurred and that there is a need for a payment to be made to or by the Balancing Pool, or assess and verify the
occurrence of the extraordinary event and the need for any payment to be made by or to a party under the
provisions of the arrangement, and participate in any dispute resolution proceedings under an arrangement.
The Balancing Pool is reviewing the notices to terminate. Under Section 2(l)(g) and (h) of the Balancing Pool
Regulation, the Balancing Pool will conduct an investigation to assess and verify the legitimacy of the
terminations.
If the legitimacy of the terminations is verified, then:
Pursuant to Section 2(l)(i) of the Balancing Pool Regulation, the Balancing Pool will be responsible for
making Capacity and Energy Payments to the Owners of the generating stations.
The Balancing Pool will have the option of either continuing to hold, sell or terminate the PPAs by paying
the Owner a Termination Payment equal to the Net Book Value. A decision of whether to hold, sell or
terminate the PPAs will be made pending further consultation with the Alberta Department of Energy,
consumer groups and the conclusion of the Balancing Pool's investigation of the Sheemess, Sundance A,
Sundance B and Sundance C PPA terminations.
There is a high degree of uncertainty regarding to the financial impact of the potential terminations of
the PPAs as it will depend upon future market prices, the specific details of the carbon tax contemplated
under the Climate Change Leadership Plan and the decision to terminate, sell or hold the PPAs. The
Balancing Pool believes that the impact of the termination of the PPAs in future periods could be
material.
The Balancing Pool anticipates the termination of the PPAs will impose significant financial obligations
on the Balancing Pool that will deplete the existing investment portfolio overtime and may result in
future charges to electricity consumers. The amount and commencement of a consumer charge will be
determined at the conclusion of the Balancing Pool's investigation of the terminated PPAs and will
depend heavily on future market prices and the nature and magnitude of the carbon levies that are
contemplated under the Climate Change Leadership Plan.
23
Confidential
BAL000254
F12-2016
APPLICANT COPY
balancingpool
For the month ending January 31, 2016
Prepared: April 19, 2016
Results at a Glance
Total Revenues
Total Expenses
Total Asset
Total Liabilities
Deferral Account
Market Heat Rate
January
24,356
28,174
(3,818)
(20,263)
17,312
658,266
1,249,582
512,642
736,940
$22.25
$2.23
10
January
Budget
24,373
27,082
(2,709)
(2,709)
17,532
686,974
1,414,428
402,651
1,011,777
$39.00
$3.77
10
Financial Highlights (Please read highlights with Page 2 to 5 materials as reference)
January's monthly average Pool price of $22.25/MWh extended the low price trend observed
throughout 2015 into 2016.
Total revenues for January of $24.4 million were slightly below budget. Sale of Electricity was $1.4
million lower than budget due to the lower than anticipated Pool price for January and despite the
inclusion of Battle River 5 revenues which were not budgeted for 2016. Revenue from the Hydro PPA
was $4.5 million lower than budget due to the lower than budgeted Pool price. Offsetting the lower
revenues were realized capital gains of $6.4 million from the investment portfolio.
Total expenses for January of $28.2 million were only higher than budget by $1.1 million, despite the
addition of Battle River 5 PPA expenses. Cost of Sales were higher than budgeted by $4,2 million given
the inclusion of Battle River 5 expenses. Offsetting the higher costs were lower than expected
expenditures relating to Amortization and Depreciation, and Force Majeure expenses. Amortization and
Depreciation were lower than expected as a result of the impairment loss recognized against the
Genesee PPA at year-end No new Force Majeure claims were received in January.
The investment portfolio for January recognized a mark-to-market loss of $16.4 million. The majority of
the loss occurred in the global equity market. The Balancing Pool withdrew $40.0 million from the
investment portfolio to cover settlement obligations for December. The withdrawal was offset by
realized interest, dividends, and gains of $7.4 million, resulting in an overall reduction of $49.0 million
relative to the investment account balances at December 31, 2015.
BAL000255
F12-2016
APPLICANT COPY
Balancing Pool
January
Actual
January 31, 2016

Revenues
Sale of Electricity
Total Revenue
January
Budget
Variance
13,056
5,999
(2,110)
(10)
1,019
6,402
24,356
14,413
6,048
2,349
425
1,138
24,373
(1357)
( 49)
(4,459)
(435)
(119)
6,402
(17)
Expenses
Cost of Sales - PPAs
DOE Mandated Costs
Total Expenses
21,165
5,517
123
214
132
610
112
301
28,174
16,929
7315
91
224
167
1,250
650
146
310
27,082
(4,236)
1,798
( 32)
10
35
1,250
40
34
9
(1.092)
Operating Income
(3,818)
(2,709)
(1,109)
(16,445)
(16,445)
(20,263)
(2,709)
(17,554)

Consumer Allocation
774,515
(20,263)
(17,312)
736,940
1,032,018
(2,709)
(17,532)
1,011,777
* The major factors related to the variance are the Genesee PPA impairment loss ($222 million), Hydro
PPA write-down ($100 million) and Battle River 5 PPA provision ($97 million).
F12-2016
BAL000256
APPLICANT COPY
Balancing Pool
January 31, 2016
Assets
Investments
January
Budget
January
Sub-total
Hydro PPA
Total Assets
Liabilities
Accounts Payable
Accrued Liabilities
Sub-total
2,573
655,693
1,661
685,313
658,266
686,974
23,889
242,000
325,427
1,249,582
18,295
277,645
431,514
1,414,428
58,120
15,338
73,458
39,567
18,850
58,417

Reclamation, Abandonment & Other Long-term Obligations
Total Liabilities
307,384
120,973
10,827
512,642
736,940
307,405
26,531
10,298
402,651
1,011,777 |
* Includes onerous contract provision for Battle River 5
BAL000257
F12-2016
APPLICANT COPY
Balancing Pool
January 31, 2016
January
Budget
January
Unrealized mark-to-market (investments)
Reclamation, abandonment & other long-term obligations (provision)
Finance Expense
Reclamation, abandonment & other long-term obligations (expenditures)
Interest, Dividends, and Other Gains
Sale of Investments
(20,263)
(2,708)
5,517
2,110
123
16,445
(5,551)
67
(32)
(1,584)
(8,918)
(10,502)
7,315
(2,349)
91
*
56
(203)
2,202
(3,155)
(953)
(7,419)
40,000
32,581
21,000
(17,312)
(5,127)
(1,477)
(663)
(24,579)
(17,532)
(5,106)
3,821
(569)
(19,386)
(2,500)
661
5,073
1,000
Cash & Cash Equivalents-Closing
2,573
1,661 |
Consumer Allocation
21,000
-
* Onerous contracts payments for Battle River 5
F12-2016
BAL000258
APPLICANT COPY

Personnel Costs
Professional Fees
Office Expenses
Total G&A Expenses
January
137.5
23.3
22.6
1.7
28.7
213.8
January
Budget
143.9
26.3
22.1
1.7
30.4
224.4
Variance
6.4
3.0
(0.5)
1.7 |
10.6
Year End
Budget
1,705.5
315.0
353.8
20,0
438.5
2,832.8
F12-2016
B A L000259
APPLICANT COPY
balancingpool
For the month ending February 29, 2016
Prepared: April 20, 2016
Results at a Glance
Total Revenues
Total Expenses
Total Asset
Total Liabilities
Deferral Account
Market Heat Rate
February
15,508
25,529
(10,021)
(22,206)
15,540
February
Budget
23,343
26,753
(3,410)
(3,410)
15,568
$17.22
$1.71
10
$39.00
$3.75
10
YTD Budget
YTD
39,864
53,703
(13,839)
(42,469)
32,852
612,447
1,191,875
492,681
669,194
$19.86
$1.98
10
47,715
53,834
(6,119)
(6,119)
33,100
663,433
1,381,170
388,371
992,799
$39.00
$3.76
10
Financial Highlights {Please read highlights with Page 3 to 6 materials as reference)
February's monthly average Pool price of $17.22/MWh was the lowest average monthly Pool
price realized since the start of deregulation.
Total revenues for February of $15.5 million were $7.8 million lower than budget The low Pool
price affected revenues from the Sale of Electricity (despite the inclusion of Battle River 5
revenues) and the Hydro PPA, resulting In a budget shortfall of $3.8 million and $4.4 million
respectively. MAP Contract revenues were below budget by $3.0 million. The Balancing Pool
reached a settlement with ANC Power for a termination payment of $16.5 million which was
recorded and received in March 2016. Going forward MAP Contract revenues are anticipated to
be half their budgeted value due to the termination. These revenue shortfalls were partially
offset by realized gains of $4.3 million on the investment portfolio.
On a year-to-date basis, revenues are tracking lower than budget by $7.9 million primarily due
the low year-to-date average Pool price of $19.86/MWh relative to budget price. The low Pool
price resulted in lower than expected revenues from the Sale of Electricity ($5.1 million) and the
Hydro PPA ($8.9 million). Additionally, the termination of the ANC Power strip contract has
resulted in a $3.1 million revenue shortfall. Offsetting these revenue shortfalls are realized
capital gains from the investment portfolio of $10.7 million.
Total expenses for February of $25.5 million were marginally lower than budget mainly due to
lower than anticipated Amortization and Depreciation and Force Majeure expenses.
Amortization and depreciation expense was lower than budget due to the Genesee PPA
impairment loss recorded at December 31, 2015. The impairment loss decreased value of the
F12-2016
BAL000260
APPLICANT COPY
Genesee PPA, thereby reducing the corresponding amortization and depreciation expense. The
actual impairment recorded at December 31, 2015 exceeded the impairment loss anticipated by
management at the time of the 2016 budget. There were no new Force Majeure claims initiated
during the month of February. Offsetting these lower than budgeted items were higher Cost of
Sales which includes the PPA expenditures for Genesee and Battle River 5. Cost of Sales was
higher than budget primarily due to Battle River 5 PPA expenses which were not included in the
budget.
On a year-to-date basis, total expenses are slightly under budget despite the inclusion of Battle
River 5 PPA costs. Amortization and depreciation and Force Majeure expenses were below
budget on a year-to-date basis due to the December 31, 2015 impairment loss recorded for the
Genesee PPA and the absence of any new Force Majeure claims in 2016. Offsetting these lower
than budgeted items were Cost of Sales which were higher than budgeted by $6.0 million given
the inclusion of Battle River 5 related expenses.
A $12.2 million mark-to-market loss was recognized on the investment portfolio during
February. The bulk of the loss was attributed to the global equity portion of the portfolio. On a
year-to-date basis, a mark-to-market loss of $28.6 million has been recorded.
The Balancing Pool has withdrawn $78.0 million from the investment portfolio year-to-date in
order to meet cash settlement obligations.
BAL000261
F12-2016
APPLICANT COPY
Balancing Pool
February 29, 2016
fin thousands of dollars)
Revenues
Sale of Electricity *
Total Revenue
Expenses
Cost of Sales - PPAs **
DOE Mandated Costs
Total Expenses
Operating Income
February
Actual
February
Budget
9,698
2,846
(2,099)
(90)
876
4,277
15,508
13,483
5,936
2,349
475
1,100
Variance
YTD
YTD
Budget
Variance
23,343
(3,785)
(3,090)
(4,448)
( 565)
(224)
4,277
(7,835)
22,754
8,846
(4,209)
(100)
1,894
10,679
39,864
27,897
11,984
4,698
899
2,237
47,715
(5,143)
(3,138)
(8,907)
( 999)
(343)
10,679
(7,851)
18,361
5,517
230
204
170
610
112
325
25,529
16,615
7,315
91
223
167
1,250
650
141
301
26,753
(1,746)
1,798
(139)
19
( 3)
1,250
40
29
( 24)
1,224
39,526
11,035
353
418
302
1,219
224
626
53,703
33,544
14,630
182
447
333
2,500
1,300
288
610
53,834
(5,982)
3,595
(171)
29
31
2,500
81
64
( 16)
131
(10,021)
(3,410)
(6,611)
(13,839)
(6,119)
(7,720)
(12,185)
(12,185)
(28,630)
(22,206)
(3,410)
(18,796)
(42,469)
(6,119)

Consumer Allocation
736,940
(22,206)
(15,540)
699,194
1,011,777
(3,410)
(15,568)
992,799
774,515
(42,469)
(32,852)
699,194
1,032,018
(6,119)
(33,100)
992,799
(28,630)
(36,350)
* Actual revenues include revenue from the Battle River 5 PPA which was not included in the budget
** Actual expenses include Battle River 5 PPA costs and an offsetting entry for the amortization of the
Battle River 5 onerous contract provision, neither of which were included in the budget.
BAL000262
F12-2016
APPLICANT COPY
Balancing Pool
February 29, 2016

Assets
Investments
February
Sub-total
Hydro PPA
Total Assets
Liabilities
Accounts Payable
Accrued Liabilities
Sub-total
February
Budget
1,790
610,657
982
662,451
612,447
663,433
16,783
242,735
319,910
1,191,875
15,839
277,699
424,199
1,381,170
56,069
9,457
65,526
37,289
12,500
49,789

Reclamation, Abandonment & Other Long-Term Obligations
Total Liabilities
302,257
114,520 *
10,378
492.681
302,298
26,383
9,901
388,371
699,194
992,799 |
F12-2016
BAL000263
APPLICANT COPY
Balancing Pool
F 1 2-2016
February 29, 2016

February
Budget
February
Finance Expense
Net Change In non-cash working capital
Sale of Investments
YTD
YTD Budget
(22,206)
(3,410)
(42,469)
(6,119)
5,517
2,099
230
12,185
(6,512)
67
(9)
(8,629)
(825)
(9,454)
7,315
(2,349)
91
11,035
4,209
353
28,630
(12,063)
134
(41)
(10,212)
(9,744)
(19,956)
14,630
(4,698)
181
56
(203)
1,500
(6,174)
(4,674)
.
*
111
(407)
3,698
(9,325)
(5,627)
(5,149)
38,000
32,851
22,862
22,862
(12,568)
78,000
65,432
43,862
43,862
(15,540)
(5,127)
(2,834)
(679)
(24,180)
(15,568)
(5,106)
2,295
(488)
(18,867)
(32,852)
(10,253)
(4,312)
(1,342)
(48,759)
(33,100)
(10,212)
6,116
(1,057)
(38,253)
(783)
(679)
(3,283)
(18)
2,573
1,661
5,073
1,000
1,790
982
1,790
982
Consumer Allocation
B A L000264
* Amortization for Battle River 5 onerous contract provision
APPLICANT COPY
F12-2016
General & A dm inistrative Expenses

Personnel Costs
Professional Fees
Office Expenses
Total G&A Expenses
February
142.5
14.3
16.8
1.7
28.8
204.1
February
Budget
142.2
26.3
22.1
1.7
30.4
222 7
Variance
(0.3)
12.0
5.3
1.6
18.6
BAL000265
APPLICANT COPY
YTD
Actual
279.9
37.6
39.4
3.3
57.5
417.7
YTD
Budget
286.1
52.5
44.2
3.3
60.8
446.9
Variance
6.2
14.9
4.8
-
3.3
29.2
Year End
Budget
1,705.5
315.0
353.8
20.0
438.5
2,832.8

Bruce Roberts
Thursday, April 28, 2016 4:55 PM
Planned changes to the Consumer Allocation
From:
Sent:
To:
Subject:
Hi Bill;
I just returned from an Agency Coordinating meeting during which David James informed me that the government has
once again denied us permission to proceed with our planned Rider F filing with the AUC.
As such we will miss the opportunity to turn off the CA on June 1 and will be required to pay out a further $17 million
over the month of June.
FYI - We are planning to bring forward a Decision Item at the May Board meeting that recommends the introduction of a
Consumer Charge effective July 1.
Sincerely;
Bruce Roberts
403 539-5353
BAL00023
F12-2016
APPLICANT COPY
A l IM IvTA
IM IUA
f >fjt,
W/'-l.
nt t/', M im .ii
I
V i.1.', i
AR2S833
MAY 0 2 2016
Mr. William Stedman
Chair, Board of Directors
Balancing Pool
2350, 330 - 5 Avenue SW
Calgary AB T2P 0L4
Dear Bill:
Thank you for the meeting and discussion on April 7. 2016, and subsequent discussions
on Power Purchase Arrangement surrenders
The issue of Power Purchase Arrangements and their purported surrender to the
Balancing Pool is a significant matter for Albertans and our government. I appreciate
your willingness to work with the government through this process and your
acknowledgement of having to consider the effects and consequences of any Balancing
Pool actions on all Albertans.
We discussed, for information, a number of items including:
potential decisions regarding the surrendered Power Purchase Arrangements,
use of agents by the Balancing Pool for the purposes of Offer Control.
the current Consumer Allocating and the potential for changes, and
communications resources and links
On all of these matters, it will be important that we work and collaborate closely, while
respecting our respective roles in the process. The building of trust and confidence
through the sharing of information and analyses in a timely way in advance of any
decisions will be of paramount importance to me
l confirm that our intent is to maintain such shared information as confidential, subject
always to the Freedom o f Information and Protection of Privacy Act We will use the
provisions of the Alberta Public Agencies Governance Act to both request and share
information with you.
..
I ' i I 'p 'l.im u llm ltiiii);, | tlc o m iiiii. ,\|lt ,!.
I k
1 .fiH 'l.i
Irli
Ml t
it* l.i*
!2
-Ml h . I .V 1
BAL00070
F12-2016
APPLICANT COPY
W hile w e d isc u sse d briefly the potential for decisio ns regarding the Battle R iver 5 Power
P u rch a se Arrangem ent w e confirm, rem ains our advice that w e will need m ore time and
will h ave further and m ore specific d iscu ssio n s with you on that matter.
O n a related matter, w e hope to work together to arrive at a com m on view with respect
to the dispute between the B alan cin g Pool and En m ax on the effective date of the
surrender of the Pow er P u rch a se Arrangem ents. I will a sk departm ent staff to set up a
time to d isc u ss this further.
I appreciate that there is substantial work to be done in the com ing months and I am
committed to working with you, through our department, to ach ie ve the best possible
outcom es for Albertans.
I look forward to our next discussio n.
Sincerely,
r
M argaret M cC uaig-B o yd
Minister
cc:
G rant D. S p ra g u e , Q C
Deputy Minister of En ergy
BAL00071
F12-2016
APPLICANT COPY

From:
Sent:
To:
Subject:
Attachments:
Ben Chappell
Wednesday, May 11, 2016 11:50 AM
marie.gallant@balancingpool.ca
Consumer Allocation Impact
consumer allocation impact.pdf
i
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balancingpoo!
C o n s u m e r C h a rg e
D ate: M a y 1 7 th, 2016
O v e rv ie w
With the ongoing responsibility for covering the ca sh flows for the entire P P A fleet, the
B a la n cin g Poo! is expected to face a significant ca sh shortfall in 2016. T h is docum ent
provides an updated a sse ssm e n t of the financial im plications and d isc u sse s the options
related to a consum er charge.
T h e table on the next page provides an update to the previous monthly ca sh flow
forecast presented to the board in the last m eeting. Th e following assum ptio ns were
used to generate the cash flow estim ates over the year:
o All P P A s , including the Kee p h ills P P A , h ave been returned to the

B a la n cin g Pool. Th e B a la n cin g Pool a ssu m e s responsibility for the costs
of e ach P P A and collects the reven u e s from the energy sold into the
m arket starting at the date the P P A w as deem ed terminated by the
various Buyers.
o
No termination paym ents will be m ade to the P P A O w ners during 2016.
Th e consum er allocation is su spended starting A u gu st 1st, 2016.
o T h e a ve ra ge w holesale power price over the balance of 2016 is assum ed

Th e figu re s presented are best estim ates m ade with the information available a s at the
time of this writing.
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F 1 2-2016
Balancing Pool Cash Flow Forecast ($000s)
May
Month
June
July
August
September
October
November December
January
17.00 $
17.00
17.00 $
17.00 $
17.00 $
17.00 $
17.00 5
17.00 5
17.00 S
Nov
Dec
Oct
Sep
Aug
Jul
Jun
May
Apr
(3.327)
(9,368)
(3,406)
(3,216)
(3.141)
(3,132)
(3,199)
(4,445)
(2,962)
1,900
1,908
1,900
1,908
1,900
1,900
1,900
1,908
1.908
(55,003)
(55,783)
(56,760)
(56,856)
(53,471)
(54,769)
(53,877)
(56,453)
(51,768)
(658)
(591)
(477)
(703)
(496)
(477)
(877)
(585)
(790)
(100)
(100)
(100)
(100)
(100)
(100)
(100)
(100)
(100)
(1.000)
(1,000)
(1,000)
(1
000)
(1,000)
(1,000)
(1,000)
(1,000)
(1,000)
*
(16,001)
(15,440)
(15,153)
(15,159)
(53,106)
(53,425)
(53,848)
(54,029)
(52,808)
(68,179)
(68,097)
(69,204)
(63,915)

535,000
(66,877)
468,123
Pool Price
Settlement Month
Admin & Other
Strip Contract (100 IWV)
SPP
Isolated Generation
Force Majeure
Consumer Allocation
468,123
(72,403)
395,719
395,719
(72,541)
323,178
323,178
(71,311)
251,867
251,867
(55,949)
195,918
195,918
(57,254)
138,664
138,664
(57,245)
81,419
81,419
(62,793)
18.626
18,626
C (37.807C
G iven the ongoing financial obligations associated with the P P A s , the monthly cash outflows are estim ated to average $58
million excluding the consum er allocation. T h e $58 million cash outflow is som ewhat le ss than the previously forecasted loss,
primarily due to slightly lower than expected capacity paym ents asso ciated with the S h e e rn e ss and S u n d a n ce P P A s .
With its existing financial reserves, the B alancing Pool is forecast to be short approxim ately $38 million by the end of Ja n u a ry
2017. T h is negative balance com pares to the $75 million shortfall estimated previously. Th e reduced shortfall is due to the
lower than expected P P A e xp e n se s, a higher cash balance at the end of April than w as previously forecasted, and the fact
the Keephills P P A w as returned to the B alancing Pool in May rather than in April a s w as assu m e d in the previous analysis.
B A L000142
G iven the regulatory filing requirements, the earliest start date that a consum er charge could be implemented under normal
conditions would be A ugust 1st, 2016. G iven the duration of the billing and settlement cycle, the first cash inflow asso ciated
with the charge would be received one month after the charge takes effect. A s such, an A u gu st 1st implementation date
would yield four m onths of collection at the new rate in 2016 and one month at the new rate in 2017 for an aggregate
collection period of five m onths.
APPLICANT COPY
At current dem and levels, the B a la n cin g Pool would collect $4.9 million per month per
dollar of consum er charge. T h e 2016 charge would be collected for five months,
m eaning $24.5 million would be collected in total per dollar of consum er charge. If the
B a la n cin g Pool w ish e s to cover the expected $37 million shortfall, a consum er charge of
$1.75 per MWh would be required. If a $100 million cash buffer is desired (a s w as
a ssu m e d in the previous forecast), a consum er charge of $5.75 per MWh would be
required over the balance of 2016.
A s an alternative approach, the B alan cin g Pool m ay elect to defer im plem enting a
co n su m e r ch arge in 2016 and instead rely on its $90 million revolving line of credit to
cover any shortfall. Ending the year with a negative ca sh balance would require a larger
co n su m e r charge in 2017 to recover the shortfall from 2016. T h e risk with this approach
is that power prices ave rage below $17 per MWh a s a ssu m e d in the forecast, resulting
in a cash shortfall that e xce e d s the revolving line of credit limit.
A ssu m in g annual generation vo lum es at target availability, the annual revenues
a sso cia te d with the P P A fleet fall by approxim ately $35 million per dollar d e crea se in the
pool price. A reduction of only a few dollars from the $17 per MWh a ssu m e d price would
leave the B a la n cin g Pool overdrawn on its line of credit and unable to cover its cash
shortfall. G iven this level of expo sure, it is recom m ended the B alancing Pool continue to
explore options for increasing its credit limit, e sp e cia lly if the decision is m ade to defer
c h a rg e s to con su m e rs until 2017. It should be noted that the ability to avoid a consum er
ch a rge in 2016 is predicted on the condition that the current consum er allocation be
su sp en d e d im mediately; if the governm ent d o es not allow the B a la n cin g Pool to
su sp en d the allocation in a tim ely m anner, avoiding the introduction of a consum er
ch arge in late 20 16 will be im possible.
Currently, the B a la n cin g Pool is facing great uncertainty with respect to governm ent
policy in relation to the P P A term inations. Th e cash flow forecast above m ay need to be
m aterially altered a s d e cisio n s are m ade by policym akers. Fo r instance, if it is
determ ined by the court and/or the governm ent that a P P A Buyer is required to give six
m onths notice prior to returning a P P A to the B a la n cin g Pool, the B alancing Pool would
recoup hundreds of m illions of dollars of P P A related e xp e n se s already incurred (or
soon to be incurred), thereby elim inating the need for a 2016 consum er charge
altogether. A s su ch , the B a la n cin g Pool m ay wish to de lay im plem enting a charge for
the time being. In the interim, it is recom m ended that the B alancing Pool continue to
advo cate for a suspensio n of the consum er allocation with governm ent. In addition, the
B a la n cin g Pool should continue to explore its options for expanding its a c c e s s to credit.
T h e cash flow forecast ab o ve d o es not incorporate any future paym ents related to the
termination of the various P P A s . Sh o u ld the B a la n cin g Pool elect to terminate one or
more P P A s by paying the Net B oo k V a lu e s (N B V s ) a sso ciated with the underlying units,
the consum er ch arge needed to generate the required cash payouts would increase
significantly. T o avoid the significant upfront charge to co nsum ers needed to fund these
paym ents, it m ay be preferable for the B alancing Pool to source external financing to
co ve r the paym ent of the N B V s. O ptions for financing termination paym ents are being
explored concurrently with options to increase the revolving line of credit limit.
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From:
Sent:
To:
Subject:
Attachments:
Bruce Roberts
Tuesday, May 31, 2016 3:22 PM
William Stedman (External) (wstedman@entxcapital.com)
FW: Premier s Briefing Note
Premier's BN_Consumer Allocation.docx
Bill;
Our friends at the ADOE provided the attached briefing note to Ben Chappell earlier today seeking his input. Ben had
responded to a telephone request yesterday wherein he was asked several questions about our current financial status,
our burn rates in relation to the terminated PPAs etc. This information now appears prominently in the Briefing Note
S.24(1)(a)(b)
The good news is that the Department appears to be advancing the CA matter in government circles with the intent of
obtaining approval for changes.
S.24(1)(a)(b)
BR
From : Ben Chappell

S ent: Tuesday, May 31, 2016 1:48 PM
To: Bruce Roberts
S u b je ct: Premier's Briefing Note
BAL00024
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As req ue sted .
Ben
BAL00025
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Ben Chappell
Thursday, June 09, 2016 4:52 PM
Michelle Manuliak
Consumer Allocation Forecast
01 PPA Termination Forecast Model.xls
From:
Sent:
To:
Subject:
Attachments:
Hi Michelle,
The DOE has asked us to look into this RRO idea. Part of the request is to determine how much of a consumer charge
would be needed after incorporating future RRO revenues. In order to determine the answer to this question, l need the
2017 to 2020 Balancing Pool cash flows. Would you be able to update the consumer allocation forecast spreadsheet
using the following two price curves:
2017
$2177
$37.10
2018
$33.82
$46.75
2019
$34.49
$52.00
2020
$41.72
$55.00
Don't worry about updating Genesee as I have some numbers I can use already, but please do update Hydro and SPP.
I have attached the spreadsheet for reference.
Thanks so much.
Ben
F12-2016
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Terminations
SGER
-x
Discount Rate ?
M millions
V3
D
^Je ra g e Pool price per MWh
2016
2017
2018
2019
2020
$23.33
$30.69
$39 75
$48 50
$50 25
10
17
Total
$39
Operating C ash Flow

PPA Cash Flow (net of PPA payments)
Genesee
Battle River 5
Sundance A
Sundance B
Net Cash Flow from PPAs
Hydro PPA (net o f PPA payments)
Small Power Producer C ontracts
PILOT Revenue
(126)
(93)
(41)
(233)
_
(126)
(6)
(7)
5
(135)
(93)
(41)
10
17
(233)
16
68
69
42
(4)
5
188
(17)
25
(77)
82
91
(270)
(5)
(0)
5
Disbursements
Operating.
General and Admin Expense
Subtotal
5
3
10
18
3
10
13
11
13
11
3
11
14
3
15
13
31
3
15
15
33
18
15
75
28
118
14
5
13
53
71
Provisional
Other PPA Costs
Force Majeure Claims
Decommissioning (Sundance 1/2 and H R Milner)
Subtotal
3
15
18
3
15
18
Total Disbursements
36
31
44
47
32
189
(171)
(108)
(42)
35
59
(459)
700
(171)
23
(102)
451
(108)
16
359
(42)
14
331
35
14
381
59
17
-
(226)
85
(102)
451
359
331
381
457
400
3W>
Net Cash Flaw

Add Net Cash Flow
(J J d Return o t Investment Portfolio
^gpduct. Consumer Allocation
r r __________________________________________________________
n d in g Cash Balance
bnsumer Allocation
m Account
2SU
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ISO
3
15
-
wm
balancingpool
For the month ending April 30, 2016
Prepared: June 15, 2016
Results at a Glance

Total Revenues
Total Expenses
Total Asset
Total Liabilities
Deferral Account
Market Heat Rate
April
29,146
77,751
(48,605)
(53,945)
14,589
-
Budget
23,757
26,926
(3,169)
(3,169)
15,159
-
$39.00
$3.30
12
$13.63
$1.07
13
YTD
201,884
200,458
1,426
(120,596)
63,518
537,654
1,117,841
527,440
590,401
$16.99
$1.57
11
YTD Budget
95,829
107,844
(12,015)
(12,015)
64,573
629,574
1,333,476
378,046
955,430
$39.00
$3.60
11
Year-to-Date PPA Cash Flow Summary
(in th o u sa n d s o f d o lla r s )
Actual Generation
(GW h)
Genesee
Sheerness
2,147
516
Sundance A
Sundance B
Sundance C
Battle
River 5
Hydro
Total
433
299
395
475
899
5,164
58,437
7,513
6,234
4,276
5,604
8,490
11,817
102,371
Capacity Payment
Energy Payment
Other PPA Costs
61,480
14,566
10,569
22,543
4,789
1,514
12,319
3,290
1,632
14,529
2,354
(490)
11,158
2,999
1,084
23,793
8,104
2,140
21,728
13
167,550
36,102
16,462
Total Expenses
86,615
28,846
17,241
16,393
15,241
34,037
21,741
220,114
(28,178)
(21333)
(11,007)
(12,117)
(9,637)
(25,547)
(9,924)
(117,743)
Revenues
Expenses
N et Cash Flow
Please note that the table above represents cash flows and does not take into account the amortization of the
Genesee and Battle River PPA provisions and therefore will not tie to the Income Statement.
Significant Variances to 2016 Budget
Unless otherwise noted below, the variances related to the 2016 budget for the Sale of Electricity and Cost of Sales are
a direct result of the added financial obligations imposed on the Balancing Pool following the termination of the
various PPAs in Q1 of this year. The termination of the PPAs was not anticipated at the time the 2016 budget was
prepared.
MAP Contract revenue for 2016 will be lower than budget for the remainder of the year due to the termination of the
strip contract held by ANC The Balancing Pool received a settlement payment of $16.5 million in March as
compensation for the termination.
1
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Amortization and Depreciation expense will be lower than budget for the duration of the year due to the impairment
loss recorded at December 31, 2015 against the Genesee PPA. The impairment loss decreased the overall value of the
Genesee PPA, thereby reducing the corresponding amortization and depreciation expense. The actual impairment
amount recorded at December 31, 2015 exceeded the impairment loss anticipated by management at the time the
2016 budget was prepared as a result of the continued decline in forward market prices in recent months.
Revenues
Pool price for April averaged $13.63/MWh which set a new low for the monthly average Pool price since the inception
of deregulation. The realized monthly average Pool price has steadily decreased each month since February 2016.
Revenues include remittances of revenue from the PPA Buyers associated with the terminated PPAs. The PPA Buyers
continue to offer the PPA capacity into the market pending AUC approval of offer control transfer.
Total revenues were $29.1 million for the month of April and $201.9 million on a year-to-date basis. The lower
realized Pool price has resulted in lower than budgeted revenue from the Hydro PPA for April {$3.3 million under
budget) and on a year-to-date basis ($16.6 million under budget).
Net revenues from Payments in Lieu of Tax were lower than budget by $0.6 million for April and $2.2 million for the
year due to the associated costs of the ENMAX dispute exceeding remittances. To date, the Balancing Pool has only
received $0.1 million in remittances,
The Balancing Pool sold $61.0 million of investments for April and $164.0 million year-to-date in in order to meet cash
settlement requirements. The sale of Investments has resulted in the crystallization of $5.2 million in capital gains for
April and $115.6 million year-to-date.
Expenses
Total expenses were $77,8 million for April and $200,5 million year-to-date, Small Power Producer ("SPPJ') costs
exceeded budget by $0.2 for April and $0.4 million for the year due to the lower realized Pool price.
Other PPA Costs relating to Force Majeure claims were higher than budget by $0.2 million for both April and year-todate. The increased costs are primarily due to the Keephills 1 Force Majeure arbitration hearing which commenced in
early May.
There have been no Force Majeure claims received year-to-date which has resulted in a positive variance of $1,3
million for April and $5.0 million year-to-date.
Other Expenses are higher than budget by $0.3 million for April and $0.5 million year-to-date as a result of increased
trading charge fees due to the increased generating capacity from the terminated PPAs.
Other Income/Expense
The Balancing Pool has recognized mark-to-market losses of $5.3 million for April and $122.0 million year-to-date on
the investment portfolio. These mark-to-market losses are the result of the investment portfolio sales.
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F1 2 -2 0 1 6
Balancing Pool
April 30, 2016
Revenues
Other Revenues
Total Revenue
Expenses
DOE Mandated Costs
Total Expenses
Operating Income
Other lncome( Expense)
Change in net assets attributable to the Balancing Pool
Deferral Account
April
Actual
April
Budget
21,870
2,713
(942)
(150)
431
5,224
29,146
Variance
13,948
5,992
2,349
425
1,043
YTD
YTD Budget
Variance
23,757
7,922
(3,279)
(3,291)
( 575)
(612)
5,224
5,389
610
25
606
77,751
16,772
7,316
91
245
167
1,250
650
134
301
26,926
(53,401)
1,799
(152)
1
(166)
1,250
40
109
(305)
(50,825)
2,438
376
1,742
200,458
67,246
29,261
363
926
667
5,000
2,600
560
1,221
107,844
(48,605)
(3,169)
(45,436)
1,426
(12,015)
13,441
(5,340)
(122,022)
(122,022)
(53.945)
(3,169)
(45,436)
(120,596)
(12,015)
(108,581)
70,173
5,517
243
244
333
-
61,811
28,743
(7,208)
(373)
3,326
115,585
-
56,258
24,024
9,397
1,798
4,352
_
5,553
4,719
(16,605)
(2,171)
(1,026)
115,585
201,884
95,829
106,055
171,405
22,070
718
884
825
(104,159)
7,191
( 355)
42
(158)
5,000
162
184
(521)
(92,614)
B A L000270

658,935
973,758
774,515
1,032,018
(53,945)
(3,169)
(120,596)
(12.015)
Consumer Allocation
(14,589)
(15,159)
(63,518)
(64,573)
590,401
955,430
590,401
955,430
* Actual revenues include revenue from the Battle River 5, Sundance A, Sundance B, Sundance C, and Sheerness PPAs which were not Included in the budget
Actual expenses include Battle River 5, Sundance A, Sundance B, Sundance C, and Sheerness PPA costs and an offsetting entry for the amortization of the Battle River 5
onerous contract provision, none of which were included in the budget.
3
APPLICANT COPY
Balancing Pool
April 30, 2015

Assets
Investments
April
Budget
April
57
537,597
952
628,622
537,654
629,574
25,964
245,348
308,875
1,117,841
15,387
278,922
409,593
1,333,476
Liabilities
Accounts Payable
Accrued Liabilities
Sub-total
93,281
12,519
105,800
37,037
13,800
50,837

Reclamation, Other long-term Provisions
Total Liabilities
292,003
120,235
9,402
527,440
590,401
Subtotal
Hydro PPA
Total Assets
292,086
26,087
9,036
378,046
955,430 |
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Balancing Pool
F 1 2-2016
April 30, 2015

April
Budget
April
Finance Expense
Sale of Investments
YTD
YTD Budget
(53,945)
(3,169)
(120,596)
(12,015)
5,517
942
243
5,340
(1,612)
67
(43,448)
10,975
(32,473)
7,316
(2,349)
91
56
(204)
1,741
520
2,261
22,070
7,208
718
122,022
(6,447)
268
(75)
25,168
21,349
46,517
29,261
(9,397)
363
_
(5,655)
61,000
55,345
16,929
16,929
(14,589)
(5,127)
(2,557)
(704)
(22,977)
(118,900)
164,000
222
(813)
7,621
(7,825)
(204)
45,100
77,691
(25)
77,666
(15,159)
(5,106)
1,378
(499)
(19,386)
(63,518)
(20,508)
(9,924)
(2,683)
(96,633)
(64,573)
(20,425)
9,591
(2,103)
(77,510)
(105)
(196)
(5,016)
(48)
162
1,148
5,073
1,000
57
952
57
952
Consumer Allocation
B A L000272
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General & A dm in istra tive Expenses
'
Personnel Costs
Professional Fees
Office Expenses
Total G&A Expenses
April
124.7
47.9
40.6
1.7
29.3
244.2
April
Budget
142.4
26.3
44.4
1.7
30.5
245.3
Variance
17.7
(21-6)
3.8
-
1.2
1.1
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YTD
Actual
545.3
100 2
99.6
13.8
125.3
884.2
YTD
Budget
570.2
105.0
110.6
6.7
133.1
925.6
Variance
24.9
4.8
11.0
(7.1)
7.8
41.4
Year End
Budget
1705.5
315.0
353.8
20.0
438.5
2,832.8

From:
Sent:
To:
Subject:
Attachments:
Michelle Manuliak
Tuesday, June 21, 2016 1:25 PM
Ben Chappell
Forecast and Actuals to June 30
04 Cash Forecast June 9 v2 CA continues.xlsx, 2016 Actual Cash Flows.xls

direct line: 403.539.5357 | fax: 403.539.5366
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2016 C ash Forecast
mj00)'s
ffltettlement Month
Jun
g o o l Price Forecast
I 0 .cn
-Jk
o>
Month
Ju ly
Jul
s
Aug
IB 00
August
Sep
September
PILOT Revenue (Costs)

Other PPA & Trading Charge
Strip Contract Expense
investment Management Fees
DOE Mandated Costs
(100)
(282)
(215)
(20)
(250)
-
(8,000)
(242)
(216)
(20)
-
Sub-total Admin & Other
(867)
(8,478)
(556)
1,971
(16,000)
(6,800)
(12,500)
(5,800)
(7,100)
(6,800)
(5.500)
(926)
(594)
(200)
(1,000)
(15,000)
1,965
(15,568)
(6,800)
(12,500)
(5,800)
(7,100)
(6.800)
(5,500)
(921)
(503)
(100)
(1.000)
(15,000)
(75.^2/-.
1,965
(15,568)
(6,800)
(12,500)
(5,800)
(7,100)
(6,800)
(5,500)
(1,538)
(485)
(100)
(1,000)
(15,000)
311,732
(3,026)
(84,105)
224,600
224,600
(3,056)
(76,781)
144,763
Genesee Strip Contract

Genesee
Battle River 5
Sheerness
Sundance A
Sundance B
Sundance C
Keephills
Hdyro
SPP
Isolated Generation
Force Majeure
Consumer Allocation
Sub-total PP A Settlement
Opening Cash Balance
G S T on PP A s
Forecast C ash Inflow (Outflow)
R id in g Cash Balance
W391,900
(3,052)
(77,116)
311,732
(100)
(232)
(203)
(20)
-
Oct
15 00
October
(100)
(233)
(216)
(20)
(200)
re.Ott
November
Nov
1
16,00
December
Dec
$
16 00|
January
2016
Forecast
(100)
(240)
(209)
(20)
(100)
(222)
(210)
(20)
(6,500)
(100)
(222)
(210)
(20)
(175)
(769)
(569)
(7,052)
(727)
(19,017)
1.971
(15,619)
(6,800)
(12,500)
(5,800)
(7.100)
(6,800)
(5,500)
(2,521)
(484)
(100)
(1.000)
(15,000)
1,965
(15,568)
(6,800)
(12,500)
(5,800)
(7,100)
(6,800)
(5,500)
(2,483)
(714)
(100)
(1,000)
(15,000)
1,971
(15.619)
(6,800)
(12,500)
(5,800)
(7,100)
(6,800)
(5,500)
(2,069)
(600)
(100)
(1.000)
(15,000)
1,965
(15,568)
(6,800)
(12,500)
(5,800)
(7,100)
(6.800)
(5.500)
(1.705)
(668)
(100)
(1 000)
(15,000)
' (77.400)
(76,9i?)
13,775
(109,512)
(47,600)
(87,500)
(40,600)
(49,700)
(47,600)
(38,500)
(12,163)
(4,048)
(800)
(7,000)
(105,000)
(536,249)
63,633
(3.115)
(77,969)
(17,451)
(17.451)
(3.091)
(83,969)
(104,511)
144.763
(3,108)
(78,022)
63,633
o
o
ro
-4
cn
APPLICANT COPY
(104,511)
(3,074)
(77,303)
(184,888)
(8,600)
(1.674)
(1,47B)
(140)
(625)
(6,500)
F1 2 -2 0 1 6
(In thousands of dollars)
Operating Cash
Investment Portfolio
Total Opening Cash & Investment Balance
January
5,073
704,719
709,792
February
2,573
655,693
658,266
March
1,790
610,657
612,447
April
May
162
598,282
598,444
57
537,597
537,654
June
1,868
462,893
464,761
PPA Cashflow
Admin, Reclamation, SPP, PILOT and Other Cashflows
Investment Portfolio Cashflow
Consumer Allocation Distribution
Total Cash Outflow
(14,266)
(10,924)
(9,024)
(17,312)
(51,526)
(20,290)
(2,957)
(7,032)
(15,540)
(45,818)
(28,291)
17,734
12,631
(16,077)
(14,003)
(54,895)
8,379
315
(14,589)
(60,790)
(56,775)
(1,688)
296
(14,726)
(72,893)
(60,049)
1,680
350
(14,800)
(72,819)
Operating Cash
Investment Portfolio
Total Ending Cash & Investment Balance
2,573
655,693
658,266
1,790
610,657
612,447
162
598,282
598,444
57
537,597
537,654
1,868
462,893
464,761
50
391,892
391,942
B A L000276
APPLICANT COPY

Wednesday, June 22, 2016 4 30 PM
Monica Sloan (External); Greg Pollard (External)
Bruce Roberts
Phone Call with Coleen Volk
From:
Sent:
To:
Cc:
Subject:
* * * EXTERNAL email. Please be cautious and evaluate before you click on links, open attachm ents, o r provide
c re d e n tia ls .* **
Bruce and I had our 15 minute scheduled call with Ms Volk, Deputy Minister of Energy, today She was on time, did not
have staff with her and generally handled herself in a friendly but professional manner.
Bruce introduced the Balancing Pool. I then said we were in a holding pattern at the request of the Department. I said
we projected we would run out of money by November and would have to institute a consumer charge by August to
avoid hitting bottom. I said we had been advised by our bankers that they would require a government loan guarantee
in the absence of a consumer charge.
I said we had a responsibility to declare whether the PPA terminations were verified and for managing the cost of the
terminated PPAs Ms. Volk asked a few good questions. I said time was of the essence.
Ms. Volk said electricity was a priority for her and she understood our concerns. She said she would get back to us
shortly. She invited us to contact her directly if we needed immediate assistance.1
BAL00029
F12-2016
APPLICANT COPY
balancingpool
C ondensed Interim Financial Statem en ts and Review
Balancing Pool
For the three and six m onths ended June 30, 2016
APPLICANT COPY
F12-2016
BAL000277
NOTICE OF NO AUDITOR'S REVIEW OF INTERIM FINANCIAL STATEMENTS

The accompanying unaudited interim financial statements of the Balancing Pool have been prepared by and are
the responsibility of the Company's management. The Company's independent auditor has not performed a
review of these financial statements in accordance with standards established by the Canadian Institute of
Chartered Accountants for a review of interim financial statements by an entity's auditors.
Calgary, Alberta
September 28, 2016
APPLICANT COPY
Management's Discussion and Analysis

This Management's Discussion and Analysis ("MD&A") for the Balancing Pool is dated September 28, 2016 and
should be read in conjunction with the Balancing Pool's condensed interim financial statements for the three
and six months ended June 30, 2016 and 2015 and the annual financial statements for the years ended
December 31, 2015 and 2014.
The condensed interim financial statements have been prepared in accordance with International Financial
Reporting Standards ("IFRS") except for the valuation adjustments for the Hydro PPA and Small Power Producer
contracts, which are recorded on an annual basis.
Results at a Glance
Three months ended
June 30
2016
2015
Three months ended March 31

Volume - gigawatt hours ("GWh")
Genesee Power Purchase Arrangement ("PPA")
Battle River 5 PPA
Sheerness PPA *
Sundance A PPA *
Sundance B PPA *
Sundance C PPA *
Keephills PPA *
Hydro PPA electricity
Hydro PPA ancillary service
Small Power Producer
Price - per megawatt hour ("MWh")
Average Pool price
Other
Consumer Allocation per MWh
Financial Results (in thousands of dollars)
Total revenues
Total expenses
Income (loss) from operating activities
For the period ended (in thousands of dollars)
Total assets
Total liabilities
Net liabilities attributable to the Balancing Pool deferral account
Consumer allocation
Six months ended

June 30
2016
2015
1,352
332
1,073
715
683
1,139
825
408
309
35
1,447
409
309
39
3,028
703
1,273
920
786
1,219
825
774
638
78
3,097
770
633
81
$15.00
$57.22
$16.55
$51.46
$3.25
$5.50
$3.25
$5.50
(143)
318,688
(318,831)
(319,032)
102,814
92,278
10,536
10,259
55,912
1,203,705
(1,147,793)
(1,148,195)
June 30,
2016
388,710
979,982
1,446,898
(466,916)
93,236
210,169
177,572
32,597
32,022
December
31, 2015
709,792
1,299,463
524,948
774,515
324,113
* The metered volumes reflected above are effective as of the date the Balancing Pool received the PPA notices
of termination. Please see the following page for effective dates.
APPLICANT COPY
F12-2016
BAL000279
Significant Events
G o in g C o ncern
These condensed interim financial statements have been prepared assuming the Balancing Pool will continue as
a going concern, which contemplates the recognition of assets and the satisfaction of liabilities in the normal
course of business.
The termination of the PPAs and the low price environment has constrained the Balancing Pool's ability to
discharge its financial obligations. The Government of Alberta has advised it will be proposing legislation, which
will allow the Government of Alberta to loan funds to the Balancing Pool in order to meet the company's
financial obligations.
PPA T e rm in a tio n s
During the first six months of 2016, the Balancing Pool received formal notice from the Buyers of the Sheerness,
Sundance A, Sundance B and Sundance C and Keephills PPA, of their intention to terminate their respective
PPAs.
The table below summarizes the various terminated PPAs and their respective termination dates.
Effective Date of
Termination
Power Purchase
Arrangement
PPA Buyer
January 1, 2016
Battle River 5
ENMAX PPA Management ("ENMAX")
March 8, 2016
Sheerness
TransCanada Energy Ltd. ("TCE")
March 8, 2016
Sundance A
March 8, 2016
Sundance B
ASTC Power Partnership ("ASTC")
March 24, 2016
Sundance C
Capital Power PPA Management Inc. ("CP")
May 5, 2016
Keephills
ENMAX Energy Corporations
According to the Balancing Pool Regulation, the Balancing Pool assumes responsibility for capacity and energy
payments for the terminated PPAs immediately following receipt of the notice of termination. Revenues from
the terminated PPAs are recorded in Sale of Electricity and the PPA capacity and energy payments and other
associated costs are recorded in Cost of Sales. Upon conclusion of the Balancing Pool's investigation, should the
terminations prove to be illegitimate or the effective date of the terminations be revised, the Balancing Pool
may recover the previously paid PPA costs from the PPA Buyers.
At June 30, 2016, the Balancing Pool had not completed the investigation of Sheerness, Sundance A, Sundance
B, Sundance C and Keephills PPA terminations.
On July 25, 2016, the Attorney General of Alberta filed an application with the Alberta Court of Queen's Bench
seeking declarations relating to the validity of certain provisions of the Battle River 5 PPA, and other PPAs, and
seeking judicial review of the Balancing Pool's decision to accept termination by ENMAX PPA Management Inc.
of the Battle River 5 PPA. The Balancing Pool, the Alberta Utilities Commission, ENMAX PPA Management Inc.
and other parties with interests in PPAs were named as respondents. The Balancing Pool will be providing its
responses for consideration by the Court.
APPLICANT COPY
F12-2016
BAL000280
Provisions for onerous contracts have been recorded for the terminated PPAs according to IAS 37 Provisions,
Contingent Liabilities and Contingent Assets. A provision may be recognized for an onerous contract when the
unavoidable cost of meeting the obligations under the contract exceed the economic benefits expected to be
derived from the contract. The provision is measured at the lower of the expected costs of terminating the
contract and the expected net costs of continuing with the contract.
L e g is la te d D u tie s a n d S tra te g ic O b je c tiv e s

The Balancing Pool's legislated duties and strategic objectives include the following:
Act as a risk backstop in relation to extraordinary events, including force majeure for Power Purchase
Arrangements ("PPAs") that were sold to the third party buyers;
Participate in regulatory and dispute resolution processes to protect the value of the Balancing Pool's
assets when required on behalf of Alberta electricity consumers;
Hold the Hydro Power Purchase Arrangement ("Hydro PPA") and manage the associated stream of
receipts or payments;
Act as a buyer for the PPAs that were not sold in the public auction held by the Government of Alberta
in 2000 or that have subsequently been terminated by third party buyers and manage the resulting
electricity portfolio in a commercial manner;
Transfer offer control to market participants by selling PPAs held by the Balancing Pool in whole or
through PPA derivative contracts when market conditions will allow the Balancing Pool to receive fair
market value;
Manage the investment accounts prudently; and
Manage the Balancing Pool accounts so that there is no profit or loss over the life of the Balancing Pool.
Force M a je u re
counterparty. Related to its risk backstop responsibilities, the Balancing Pool has a statutory obligation to pay
certain costs during events of force majeure as set out in the terms of the PPAs.
F in a n c ia l A ssets u n d e r In v e s tm e n t
Financial investments held by the Balancing Pool are available to mitigate existing or future Balancing Pool
liabilities.
Prior to April 1, 2016, the Balancing Pool's Board had approved a long-term investment policy for managing the
financial assets. The investment policy was based on investment standards that have been deemed prudent by
the Board of Directors and generally focused on achievement of a fair return on investments through a
diversified investment portfolio to reduce risk. Professional money management firms manage the investment
portfolio. The major sources of our investment income include interest, dividends and gains or losses on the sale
of investments.
APPLICANT COPY
In light of the PPA terminations, on April 1, 2016 the Balancing Pool's Board of Directors approved a revision to
the asset allocation strategy for the financial assets under investment intended to de-risk the portfolio and
increase liquidity.
G enesee P o w e r P urchase A rra n g e m e n t a n d R e la te d Finance Lease O b lig a tio n
The Genesee power purchase arrangement ("Genesee PPA") transfers substantially all of the benefits and some
of the risks of ownership to the Balancing Pool. The asset is accounted for as a finance lease as required by IAS
17 Leases and is included in PP&E as required by IAS 16 Property, Plant and Equipment. The Genesee PPA is
recorded at an amount not exceeding the estimated net future cash flows arising from operations over the
remaining life of the PPA. The Balancing Pool is not responsible for the daily operation of the Genesee power
plant, however the Balancing Pool does retain offer control.
As counterparty to the Genesee PPA, the Balancing Pool is required to make monthly payments to the owner of
the generating unit intended to cover fixed and variable costs. The capital component of the monthly capacity
payment is shown as a finance lease obligation.
H y d ro P o w e r P urchase A rra n g e m e n t
The Hydro power purchase arrangement ("Hydro PPA") is recorded as an asset at the net present value of the
estimated net cash receipts over the remaining term of the contract, which expires on December 31, 2020.
Future revenues are estimated based on the notional energy and reserve (ancillary services) volumes set out in
the Hydro PPA and management's best estimate of future energy and reserve prices. Corresponding expenses
reflect the obligations for the remaining term of the contract as set out in the Hydro PPA.
The Hydro PPA is recorded as a financial asset since TransAlta Corporation ("TransAlta"), the owner of the hydro
plants, retains offer control of the hydro assets under the terms of this PPA.
P a y m e n ts in Lieu o f Tax
Payments in Lieu of Tax ("PILOT") receipts are based on the taxable income of a municipal entity as defined in
Section 147 of the Electric Utilities Act and the Payment in Lieu o f Tax Regulation o f the Act. In general, the
PILOT amounts are equal to the amount the municipal entity would be required to pay as tax that year pursuant
to the Income Tax Act o f Canada and the Alberta Corporate Tax Act. PILOT payments remitted by the municipal
entity are subject to audit by Alberta Tax and Revenue Administration. The Balancing Pool has no control over
the PILOT amounts remitted by the municipal entities or the assessments issued by Alberta Tax and Revenue
Administration.
S m all P o w e r P ro d u c e r C o n tra c ts
The Small Power Research and Development Act required TransAlta Corporation to act as counterparty to the
Small Power Producer ("SPP") contracts and to compensate the Small Power Producer for energy delivered
under the contract at a specified price.
Under the Independent Power and Small Power Regulation, the Balancing Pool is required to make payments to
TransAlta Corporation to compensate the company for any revenue shortfall experienced during periods when
the Pool price falls below the SPP contracted price. Conversely, the Balancing Pool is entitled to receive
payments from TransAlta Corporation during high price periods when there is a revenue surplus relative to the
contract price.
APPLICANT COPY
The SPP contracts are recorded as a liability calculated as the net present value of the future payments or
receipts from SPP related power sales considering any differences between the annual prices set out in the SPP
contracts and management's best estimate of the Pool price forecast over the remaining term of the contracts.
The SPP contracts are recorded as a financial instrument analogous to a fixed for floating swap arrangement.
R e c la m a tio n a n d A b a n d o n m e n t
The reclamation and abandonment provision represents a fixed amount that has been committed for the
decommissioning of H.R. Milner generating station, estimated reclamation and abandonment costs associated
with the Isolated Generation sites and estimated decommissioning costs of eligible PPA-related facilities.
Under the Negotiated Settlement Agreement for the H.R. Milner generating station in 2001, the Balancing Pool
assumed liability for the costs of decommissioning the station at the end of the contract period. When the asset
was sold in 2004, the Balancing Pool retained the liability for decommissioning the generating station. A bilateral
agreement was reached in 2011 with Milner Power Limited Partnership where the Balancing Pool's exposure to
decommissioning costs are capped at $15 million in nominal dollars.
Under the Isolated Generating Units and Customer Choice Regulations o f the Act, the Balancing Pool is liable for
certain amounts relating to the reclamation and abandonment costs associated with Isolated Generation sites.
Pursuant to Section 7 of the Power Purchase Arrangements Regulation o f the Act, the owner of a PPA-related
generating unit who applies to the Alberta Utilities Commission ("AUC") to decommission a unit within one year
of the termination of the PPA may be entitled to receive compensation from the Balancing Pool. The
compensation is to be calculated as the amount by which the decommissioning costs exceed the amount the
owner collected from consumers before January 1, 2001 and subsequently through a PPA. The unit must have
ceased generating electricity and payment is subject to AUC approval. This provision does not apply to PPArelated generating units where the termination date occurs after December 31, 2018.
C o n s u m e r A llo c a tio n
The Consumer Allocation is reviewed and approved annually by the Board of the Balancing Pool and may be
revised at any time during the year at the Board's discretion.
APPLICANT COPY
Operations
Revenues
Details of Revenues (in thousands of dollars)
Sale of electricity
Change in fair value of Hydro power purchase
arrangement
Change in fair value of investments
Payments in lieu of taxes
Total revenues
Three months ended

June 30
Six months ended

June 30
2016
91,800
8,068
2015
58,427
16,774
Variance
33,373
(8,706)
2016
131,741
34,098
2015
92,957
34,603
Variance
38,784
(505)
(4,511)
(175)
1,053
(96,378)
(143)
30,438
(8,870)
4,230
1,815
102,814
(34,949)
8,695
(3,177)
(98,193)
(102,957)
(10,777)
(6,496)
3,948
(96,602)
29,890
39,692
8,794
4,233
210,169
(40,667)
(46,188)
(4,846)
(100,835)
(154,257)
55,912
Sale o f E le c tric ity
Revenue from the sale of electricity increased in Q2 2016 relative to Q2 2015 due to the inclusion of revenues
from Battle River, Sundance A, Sundance B, Sundance C, Sheerness and Keephills PPAs. The Balancing Pool did
not hold any of the above-mentioned PPAs in Q2 2015.
Sale o f G e n e ra tin g C a p a city
The remaining 100-MW strip contract for generating capacity derived from the Genesee PPA resulted in
revenues of $8.1 million for the second quarter of 2016. The decrease in revenues for Q2 2016 relative to Q2
2015 was the result of the termination of one of the strip contracts in Q1 2016.
C hange in Fair V a lu e o f H y d ro P o w e r P urchase A rra n g e m e n t
Revenue from the Hydro PPA decreased in Q2 2016 relative to Q2 2015 due to lower realized cash receipts than
those forecast in the 2015 year-end valuation. Actual cash receipts decreased as a result of the lower than
expected Pool prices for Q2 2016.
Changes in Fair V a lu e o f In v e s tm e n ts
Details of Changes in Fair Value of

Investments
Unrealized mark-to-market (loss) gain
Realized capital gains
Total Changes in Fair Value of Investments
Three months ended

June 30
2016
(5,143)
4,968
(175)
2015
(39,368)
30,498
(8,870)
Variance
34,225
(25,530)
8,695
Six months ended

June 30
2016
(121,825)
115,329
(6,496)
2015
(16,107)
55,799
39,692
Variance
(105,718)
59,530
(46,188)
Total changes in fair value of investments declined for Q2 2016 relative to Q2 2015 due to the accelerated sale
of investments.
APPLICANT COPY
F12-2016
BAL000284
Investment Returns & Benchmark (%)
Six months ended

June 30
Three months ended

June 30
2016
Investment returns
Benchmark
Variance
2015
0.17
2.20
(2.03)
Variance
(0.54)
(0.80)
0.26
0.71
3.00
(2.29)
2016
2015
(0.17)
1.80
(1.97)
Variance
4.83
4.42
0.41
(5.00)
(2.62)
(2.38)
In v e s tm e n t In c o m e - In te re s t and D iv id e n d s
Investment income for Q2 2016 decreased relative to Q2 2015 due to the drawdown of the investment
portfolio.
P a y m e n ts In Lieu o f Tax
Total PILOT revenues in Q2 2016 decreased relative to Q2 2015 as a result of significant refunds, litigation and
audit costs exceeding installment remittances received by the Balancing Pool.
A municipal entity subject to PILOT has disagreed with numerous tax assessments issued by Alberta Tax and
Revenue Administration (2001 - present) and has filed notices of objection for those tax years. Many of those
matters have been adjudicated by the Alberta courts. The court ruling has resulted in a preliminary PILOT refund
of $96 million due to the municipal entity. The proposed refund of $96 million has been accrued in trade and
other payables in Q2 2016.
The Balancing Pool has no control over the timing and amount of PILOT instalments remitted by the
municipalities or adjustments and / or refunds in relation to reassessments of prior years. PILOT instalments are
calculated by the electricity companies and are subject to audit by Alberta Tax and Revenue Administration. The
Balancing Pool is responsible for paying the PILOT audit and litigation costs incurred by Alberta Tax and Revenue
Administration.
Expenses
Details of Expense (in thousands of dollars)
Cost of sales
Provision for other long-term obligations
Force majeure costs
Mandated costs
Changes in fair value of Small Power Producer
contracts
Total expenses
Three months ended

June 30
Six months ended

June 30
2016
237,647
76,382
1,259
1,829
932
117
2015
80,570
9,009
1,957
668
629
Variance
157,077
76,382
(7,750)
(128)
264
(512)
2016
352,758
842,502
1,751
3,657
1,572
469
2015
159,240
11,861
3,893
1,296
1,253
522
318,688
(555)
1,077
996
29
967
92,278
226,410
1,203,705
177,572
1,026,133
APPLICANT COPY
F12-2016
BAL000285
Variance
193,518
842,502
(10,110)
(236)
276
(784)
Cost o f Sales
Total cost of sales increased in Q2 2016 relative to Q2 2015 primarily due to the inclusion of PPA costs
associated with the terminated PPAs, which include Battle River 5, Sheerness, Sundance A, Sundance B and
Sundance C and Keephills. The Balancing Pool is responsible for remitting the PPA costs to the plant Owners of
the generating units during the termination evaluation phase. Should the PPA terminations be determined to be
invalid the Balancing Pool may be able to recover the PPA costs remitted to the plant Owners.
PPA costs include plant capacity payments, variable operating costs including incentive payments, transmission
charges and change in law costs. Capacity payments comprise more than 83% of total costs of sales and these
payments vary year-over-year as a result of changes in cost base, cost indices, interest rates and pass-through
charges. Changes to the Pool price have a minimal impact on the PPA capacity payments.
P ro v is io n fo r O th e r Lon g -T e rm O b lig a tio n s
Other long-term obligations reflect the onerous contract provisions established for the terminated PPAs over
the first six months of 2016. There were no terminated PPAs during the first six months of 2015.
Force M a je u re Costs
Force majeure costs for Q2 2016 decreased by $7.8 million relative to the same period in 2015 as there have
been no claims submitted during Q2 2016.
Assets
Details of Assets
Six months
ended
June 30,2016

Investments
Hydro power purchase arrangement
Total assets
(3,450)
46,446
392,160
297,840
243,536
976,532
Year ended
December 31,
2015
5,073
16,093
704,719
330,945
242,633
1,299,463
Variance
(8,523)
30,353
(312,559)
(33,105)
903
(322,931)
T ra d e a n d O th e r R eceivable s
Trade and other receivables have increased for Q2 2016 relative to Q2 2015 as a result of revenues accrued for
the terminated PPAs.
APPLICANT COPY
F12-2016
BAL000286
In v e s tm e n ts
(in thousands of
dollars)
Investment Balance Portfolio

Opening Investment Balance, December 31, 2015
Realized capital gains, interest and dividends on investments
Unrealized capital losses
Withdrawal from Investment portfolio
Closing Investment Balance, June 30, 2016
704,719
119,266
(121,825)
(310,000)
392,160
The investment portfolio has declined by $312.6 million from December 31, 2015 given the necessity to
liquidate financial assets in order to finance operating losses and the consumer allocation.
P ro p e rty , P la n t a n d E q u ip m e n t
As required by IAS 16 Property, Plant and Equipment, the Genesee PPA is recorded under Property, Plant and
Equipment. The decrease in the net book value from year-end 2015 reflects the current quarter's amortization
of the Genesee PPA and other capital assets.
As a result of the decline in the forward market price, an impairment loss of $222.0 million was recorded on the
Genesee PPA lease at December 31, 2015. The Genesee PPA is tested for impairment at each year-end.
H y d ro P o w e r P urchase A rra n g e m e n t
The net present value of the Hydro PPA at June 30, 2016 increased by $0.9 million from December 31, 2015.
Typically, the Hydro PPA will decline in value if revenues exceed the costs under the contact. In the current
circumstances, with the low market prices, the costs of the PPA exceed revenues, which increase the residual
value of the Hydro PPA due to the mechanics of financial instrument accounting.
Liabilities
Details of Liabilities
Small power producer contracts
Reclamation, abandonment provision
Other long-term obligations
Total liabilities
Six months
ended
June 30,2016
250,294
281,749
8,551
29,876
872,978
1,443,448
Year ended
December 31,
2015
74,580
312,511
11,368
29,789
96,700
524,948
Variance
175,714
(30,762)
(2,817)
87
776,278
918,500
APPLICANT COPY
F12-2016
BAL000287
T ra d e a n d O th e r P ayables
Trade and other payables increased in Q2 2016 relative to year-end 2015 due to the inclusion of PPA costs
associated with the terminated PPAs (Battle River 5, Sheerness, Keephills, Sundance A, Sundance B and
Sundance C). In addition, trade and other payables reflect a pending refund of $96 million due to a municipal
entity subject to the PILOT regulation.
G enesee P o w e r P urchase A rra n g e m e n t Lease O b lig a tio n
The balance of the liability related to the Genesee PPA at June 30, 2016 represents the sum of the capital
component of the total payments required over the remaining term of the Genesee PPA. The decrease in the
first six of 2016 from December 31, 2015 reflects the straight-line amortization of the lease obligation.
S m all P o w e r P ro d u c e r C o n tra c ts
The net present value of the SPP contract liability at June 30, 2016 decreased by $2.8 million from year-end
2015. The decrease in fair value is attributed to amortization of the SPP value as determined in the 2015 yearend valuation process.
R e c la m a tio n a n d A b a n d o n m e n t P ro v is io n
Details of Reclamation and Abandonment

Six months
ended
June 30,2016
13,305
5,222
11,349
29,876
H.R. Milner generating stations

Isolated generation sites
Decommissioning Costs of PPAs
Total Reclamation and Abandonment
Year ended
December 31,
2015
13,128
5,463
11,198
29,789
Variance
177
(241)
151
87
Reclamation and abandonment provision at June 30, 2016 increased relative to December 31, 2015 primarily
due to accretion expense recorded on the provisions.
P ro v is io n fo r O th e r Lon g -T e rm O b lig a tio n s
Details of Provision for Other Long-Term Obligations

Battle River 5 Power purchase arrangement ("PPA")
Sheerness PPA
Sundance A PPA
Sundance B PPA
Sundance C PPA
Keephills PPA
Total Other Long-Term Obligations
Six months
ended
June 30,2016
87,030
364,251
44,431
146,070
157,211
73,985
872,978
Year ended
December
31, 2015
96,700
96,700
Variance
(9,670)
364,251
44,431
146,070
157,211
73,985
776,278
Other long-term obligations represent onerous contract provisions recorded for the terminated PPAs. The
balance at June 30, 2016 increased relative to December 31, 2015 due to the termination of Sheerness,
Sundance A, Sundance B, Sundance C and Keephills PPAs over the first six months of 2016. Onerous contract
provisions are re-valued at each year-end.
APPLICANT COPY
F12-2016
BAL000288
Balancing Pool Deferral Account, Beginning of Year

Deferral account, beginning of year
Consumer Allocation
Deferral account, end of period
Six months
ended
June 30,2016
774,515
(1,148,195)
(93,236)
(466,916)
Year ended
December 31,
2015
1,562,737
(464,109)
(324,113)
774,515
The Balancing Pool deferral account decreased from December 31, 2015 as a result of operating losses for the
first six months and the consumer allocation distribution.
Liquidity and Cash Flow

To manage liquidity risk, the Balancing Pool forecasts cash flows for a period of 12 months and beyond to the
end of 2020.
Due to the recent notices of PPA terminations, the Balancing Pool's Board of Directors approved the liquidation
of the investment portfolio. If upheld, the Balancing Pool anticipates the termination of the PPAs will have a
material effect on cash flow and liquidity.
The Balancing Pool has access to a credit facility of $4 million. At June 30, 2016, the Balancing Pool had $2.0
million of unsecured Letters of Credit issued with Natural Gas Exchange.
These condensed interim financial statements have been prepared assuming the Balancing Pool will continue as
a going concern. Refer to Note la ) Going concern.
The Balancing Pool's primary uses of funds are for payment of operating expenses, payment of the obligations
associated with the following PPAs; Genesee, Battle River 5, Sundance A, Sundance B and Sundance C,
Sheerness, Keephills and payment of the Consumer Allocation.
The Government of Alberta has advised it will be proposing legislation, which will allow the Government of
Alberta to loan funds to the Balancing Pool in order to meet the company's financial obligations.
O utlook
In November 2015, the Balancing Pool established the annual allocation of its financial surplus to electricity
consumers in Alberta at $3.25 per MWh of consumption, effective January 1, 2016 (2015 - $5.50 per MWh). This
forecast was based upon cash flows and the expected financial position for 2016, prior to receipt of the notices
of the PPA terminations.
APPLICANT COPY
F12-2016
BAL000289
R isk s a n d R isk M a n a g e m e n t
The Balancing Pool is exposed to a variety of risks while executing its mandate. Most of the risks are unique to
the organization given its role and responsibilities in the Alberta electric industry. At the time that the Alberta
electricity sector was restructured, the Balancing Pool was created to underwrite various risks associated with
the PPAs. The risks the Balancing Pool is exposed to in executing its mandate include the following:
Force m a je u re ris k
counterparty. These events include:
o Extraordinary situations typically covered in force majeure clauses such as natural disasters,
war, explosions, sabotage, etc.;
o A major failure of some or all of the components of the plant which results in the plant
being forced to operate at a lower level for a period in excess of 42 days; and
o Transmission constraints that limit or prevent the delivery of electricity to the grid.
Under the provisions of the PPAs, when a claim of force majeure is made, PPA Buyers are relieved of their
obligations to make fixed capacity payments to the PPA Owner and instead the Balancing Pool is required to
pay the PPA Owner the capacity payments normally paid by the Buyer. In addition, during events of force
majeure availability incentive payment obligations between the Buyer and Owner are suspended.
P o w e r m a rk e t p ric e v o la t ilit y ris k
As counterparty to the Genesee PPA, Battle River 5 PPA, Sundance A, Sundance B, Sundance C, Sheerness,
Keephills, Hydro PPA and SPP contracts, the Balancing Pool is exposed to power market price volatility risk.
The Alberta market prices for electricity are settled at spot market prices and are dependent on many
factors including but not limited to the supply and demand of electricity, generating and input costs, natural
gas prices and weather conditions. Exposure to power price volatility may be partially managed through the
use of forward sales.
The Balancing Pool has the ability to further reduce its exposure to market prices by selling blocks of the
Genesee PPA capacity over long terms.
M a rk e ta b le s e c u ritie s in v e s tm e n t re tu rn s
Historically, the value of these investments was exposed to changes in capital markets and, as such, faced
the risks related to equity market performance, interest rates, foreign exchange rates, and other financial
risks. In addition, the liquidity risk of the portfolio was managed to ensure sufficient funds were available on
relatively short notice in response to potential claims, etc.
The Balancing Pool's investment portfolio is managed by independent investment managers guided by pre
set asset allocations as specified in the Balancing Pool's Statement of Investment Policy.
Effective April 1, 2016, the Balancing Pool's Board of Directors approved a revision to the asset allocation
strategy for the financial assets under investment intended to de-risk the portfolio and increase liquidity.
The funds are currently held in short-term deposits and / or money market securities.
APPLICANT COPY
PPA te r m in a tio n a n d / o r u n it d e s tru c tio n risk
The PPAs contain a termination provision that makes accommodations for the PPA to be terminated should
a change in law render continued performance of the arrangement unprofitable or more unprofitable to the
PPA Buyer.
In the event that a termination notice is submitted by a Buyer, the Balancing Pool is responsible for
conducting an investigation and must assess and verify the termination event and determine any need for a
payment to be made by or to a party under the provisions of the arrangement.
Should the termination notice under the change in law provision be determined to be valid, the Balancing
Pool is required to act as default Buyer, thereby assuming responsibility for paying the ongoing capacity and
energy payments associated with a terminated PPA.
U n it d e s tru c tio n
In the event that a unit is destroyed and cannot be repaired by the Owner, the Balancing Pool could be
required to pay the Residual Balancing Pool Amount to the PPA Buyer and the Net Book Value less any
Insurance Proceeds to the Owner of the unit.
C hange in la w ris k
Changes in law, including regulatory, environmental and electricity market design changes, can have a
material effect on the values of the PPAs. Costs (and benefits) associated with a change in law are passed
from plant Owners to the PPA Buyer. As the default Buyer of the various PPAs, the Balancing Pool must
assume and be responsible for change in law costs affecting the generating units.
The Balancing Pool is subject to risk associated with changing Federal and Provincial laws, regulations, and
any Balancing Pool specific mandate changes.
PPA d e c o m m is s io n in g risk
If a PPA Owner elects to decommission its facility, the Balancing Pool may be required to recompense the
Owner for some of its decommissioning costs. The Balancing Pool would be financially liable for
decommissioning costs exceeding the amounts the Owner has collected prior to deregulation and
subsequently through the PPA payments. Regulation requires such claims to be initiated within one year of
the termination of the PPA and before the end of 2018.
PPA B u y e r d e fa u lt ris k
The PPA regulation contains provisions where, in the event of a Buyer default, the Balancing Pool would
assume the role of Buyer and would either hold the PPA or auction the capacity back to the market.
A lb e rta C lim a te L e a d e rs h ip Plan
In November 2015, the Government of Alberta announced the Climate Leadership Plan ("CLP"). The CLP
establishes a framework for the retirement of coal-fired generation by 2030, compliance requirements for
coal emissions and renewable generation procurement to replace coal-fired generation. The CLP has not
been enacted into law and the specifics of the policy have not been finalized. The final plan could have a
material effect on the value of the PPAs.
APPLICANT COPY
Liquidity
The termination of the PPAs and the low price environment has constrained the Balancing Pool's ability to
discharge its financial obligations. The Government of Alberta has advised it will be proposing legislation,
which will allow the Government of Alberta to loan funds to the Balancing Pool in order to meet the
company's financial obligations.
A c c o u n tin g P o lic y C h a n g e s
There were no significant changes to accounting standards that impacted the Balancing Pool in Q2 2016. The
Balancing Pool prepares its quarterly financial statements in accordance with International Financial Reporting
Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB") except for quarterly
valuation adjustments to the Hydro PPA and SPP contracts and provisions for other long-term obligations.
C ritica l A c c o u n tin g E s tim a te s

Since a determination of certain assets, liabilities, revenues and expenses is dependent upon future events, the
preparation of these financial statements requires the use of estimates and assumptions which have been made
using careful judgment. Actual results will differ from these estimates.
In particular, there were significant accounting estimates made in relation to the following items:

External engineering estimates are used to calculate the anticipated future costs of reclamation and
abandonment. The current and long-term portions of the provision are based upon management's best estimate
of the timing of the costs.
Onerous Contract Provision
The provisions for the terminated PPAs are determined using estimated future electricity prices, escalated costs
as per the contract terms and future cash outflows discounted to the net present value at 2.7%.
Hydro Power Purchase Arrangement Valuation, Small Power Producer Contracts Valuation and Genesee
Power Purchase Arrangement Impairment Assessment
The net present value of future cash flows is estimated using:
estimated future electricity prices;
escalated costs as per contract term; and
future cash flows discounted to net present value at 10.1% (2014 - 10.1%).
In the opinion of management, these financial statements have been properly prepared within reasonable limits
of materiality and within the framework of the significant accounting policies.
APPLICANT COPY
F o rw a rd -L o o k in g In fo rm a tio n
Certain information in this MD&A is forward-looking information and relates to, among other things, anticipated
financial market performance, future power prices and strategies. Forward-looking information typically
contains statements with words such as "anticipate," "believe," "expect," "target" or similar words suggesting
future outcomes.
By their nature, such statements are subject to various risks and uncertainties that could cause the Balancing
Pool's actual results and experience to differ materially from the anticipated results. Such risks and uncertainties
include, but are not limited to, the availability of generating assets and the price of energy commodities;
regulatory decisions; extraordinary events related to the various PPAs; the ability of the Balancing Pool to
successfully implement the initiatives referred to in this MD&A and other electricity market factors.
APPLICANT COPY
Balancing Pool
Statem ent of Financial Position
June 30,
2016
(in thousands of Canadian dollars)
December 31,
2015
A sse ts
Current assets
Current portion of Hydro power purchase arrangement (Note 2 a)
46,446
34.679
81,125
5,073
16,093
26,147
47,313
Investments (Note 3)
392,160
704,719
Property, plant and equipment (Note 4 a)
297,840
330,945
Hydro power purchase arrangement (Note 2 a)
208,857
216,486
Total Assets
979,982
1,299,463
253,744
61,442
5,055
2,609
213,742
536,592
74,580
61,524
5,834
2,925
44,200
189,063
220,307
250,987
3,496
5,534
27,267
26,864
659,236
52,500
Total Liabilities
1,446,898
524,948
Net (liabilities)assets attributable to the Balancing Pool deferral account (Note 7)
(466,916)
774,515
Lia b ilitie s
Current liabilities
Current portion of power purchase arrangement lease obligation
Current portion of Small Power Producer contracts (Note 2 b)
Current portion of reclamation and abandonment provision (Note 5)
Current portion of other long-term obligations (Note 6)

Small Power Producer contracts (Note 2 b)
Reclamation and abandonment provision (Note 5)
Other long-term obligations (Note 6)
Basis of Presentation - Going Concern (Note la ) and Contingencies and Commitments (Note 8)
APPLICANT COPY
F12-2016
BAL000294
Balancing Pool
Statem ents of Incom e (loss) and Com prehensive Incom e(loss)
Three months ended
June 30
2016
2015
I((in thousands of Canadian dollars)

Revenues
Sale of electricity
Changes in fair value of Hydro power purchase arrangement (Note 2 a)
Changes in fair value of investments (Note 3)
Payments in lieu of tax
Expenses
Cost of sales
Provision for other long-term obligations
Force majeure costs
Mandated costs
Changes in fair value of Small Power Producer contracts (Note 2 c)
Income(loss) from operating activities
91,800
8,068
(4,511)
(175)
1,053
(96,378)
(143)
58,427
16,774
30,438
(8,870)
4,230
1,815
102,814
237,647
76,382
1,259
1,829
932
117
522
318,688
80,570
(318,831)
Other income (expense)

Net gain on financial derivatives
Finance expense
(201)
(201)
(319,032)
Six months ended

June 30
2016
2015
131,741
92,957
34,098
34,603
(10,777)
29,890
(6,496)
39,692
3,948
8,794
4,233
(96,602)
55,912 210,169
352,758
842,502
1,751
3,657
1,572
469
996
1,203,705
159,240
10,536 (1,147,793)
32,597
9,009
1,957
668
629
(555)
92,278
22
(299)
(277)
(402)
(402)
22
(597)
(575)
10,259 (1,148,195)
32,022
APPLICANT COPY
F12-2016
11,861
3,893
1,296
1,253
29
177,572
BAL000295
Balancing Pool
Statements of Cash Flows
Three months ended
Six months ended
(in thousands of Canadian dollars)_______________________________________________ 2016_______ 2015_______ 2016______ 2015

Cash flow provided by (used in)
Amortization and depreciation (Note 4)
Other long-term obligations (Note 6)
Fair value changes on Small Power Producer contracts (Note 2 b)
Fair value changes on Hydro power purchase arrangement (Note 2 a)
Fair value changes on financial derivative instruments
Fair value changes on financial investments (Note 3)
Finance expense
Reclamation and abandonment expenditures (Note 5)
Net change in non-cash working capital
Net cash provided by (used in) operating activities
(319,032)
16,552
24,660
522
4,511
5,143
201
(240)
132,377
(135,306)
10,259 (1,148,195)
32,022
27,647
55,294
(555)
(30,438)
(30)
39,368
299
(1,617)
(58,390)
(13,457)
33,105
776,278
996
10,777
121,825
402
(315)
148,811
(56,316)
29
(29,890)
(30)
16,107
597
(1,792)
(61,186)
11,151
Interest, dividends and other gains
Sale of investments
Purchase of property, plant and equipment
(6,020)
207,000
(34,724)
110,000
(6)
(119,266)
310,000
(64,560)
180,000
(6)
Net cash provided by (used in) investing activities
200,980
75,270
190,734
115,434
Hydro power purchase arrangement net cash receipts (payments) (Note 2 a)
Payment of power purchase arrangement lease obligation
Small Power Producer contracts net receipts (payments) (Note 2 b)
Payment of the Consumer Allocation (Note 7)
(4,313)
(15,381)
(1,835)
(44,307)
33,802
(15,286)
(627)
(77,426)
34,727
(11,680)
(30,762) (30,573)
(2,402)
(3,813)
(93,236) (161,050)
Net cash used in financing activities
(65,836)
(59,537)
(139,491) (159,298)
(162)
2,276
(5,073)
(32,713)
162
1,652
5,073
36,641
3,928
3,928
Change in cash and cash equivalents

Cash and cash equivalents, beginning of period
Cash and cash equivalents, end of period
APPLICANT COPY
F12-2016
BAL000296
C o n d e n se d In te rim N o te s to F in a n c ia l S ta te m e n ts
1.
B a sis o f P re se n ta tio n
a) Going Concern
These condensed interim financial statements have been prepared assuming the Balancing Pool will
continue as a going concern, which contemplates the recognition of assets and the satisfaction of liabilities
in the normal course of business. For the six months ended June 30, 2016, the Balancing Pool incurred a net
loss of $1.1 billion and a net reduction in cash and cash equivalents of $321.1 million. As at June 30, 2016,
the Balancing Pool has net liabilities of $1.4 billion and has approximately $213.7 million of obligations
related to power purchase contracts due in the next twelve months. The net liability position is a result of
the PPA terminations discussed in note 6 and the current Alberta power forward price curves, which suggest
low Alberta power prices in the near term.
Currently, based on its planned expenditures and expected cash flows, the Balancing Pool will need to
secure new sources of working capital to continue operations beyond December. The Government of
Alberta has advised it will be proposing legislation, which will allow the Government of Alberta to loan funds
to the Balancing Pool in order to meet the company's financial obligations.
The Balancing Pool believes there is a reasonable expectation that it will be successful in obtaining the
necessary funding to address its working capital needs and therefore the going concern assumption is
appropriate for these condensed interim financial statements. However, there can be no assurance that the
steps being taken will be successful and as a result there is a material uncertainty that may cast significant
doubt upon the Balancing Pool's ability to continue as a going concern and the Balancing Pool may therefore
be unable to realise its assets and settle its liabilities in the normal course of business. These condensed
interim financial statements do not include any adjustments to the recoverability and classification of
recorded assets, liabilities, revenues and expenses that might be necessary should the Balancing Pool be
unable to continue as a going concern.
b) Statement of Compliance
These interim financial statements for the three and six months ended June 30, 2016 are unaudited and
have been prepared by management in accordance with IAS 34 'Interim Financial Reporting' ("lAS 34") as
issued by the International Accounting Standards Board ("IASB") except for the financial instrument
valuation adjustments for the Hydro PPA and SPP contracts. The disclosures provided below are incremental
to those included with the annual financial statements.
These interim condensed financial statements should be read in conjunction with the audited financial
statements and the notes thereto for the year ended December 31, 2015.
These financial statements were authorized and approved for issue by the Board of the Balancing Pool on
September 28, 2016.
APPLICANT COPY
2.
Accounting for Financial Instrum ents
a) Hydro Power Purchase Arrangement

At June 30, 2016 the value of the Hydro PPA was $243.5 million (Dec. 31, 2015 - $242.6 million). The Hydro PPA
is revalued at each year-end. The estimated value of this asset will vary significantly depending on the
assumptions used and there is a high degree of measurement uncertainty associated with these assumptions.
Six months
ended
June 30, 2016
242,633
(10,777)
11,680

(in th o u sa n d s o f d o lla rs)
Hydro power purchase arrangement, opening balance

Net cash payments (receipts)
Revaluation of hydro power purchase arrangement asset
Hydro power purchase arrangement, closing balance
243,536
(34,679)
208,857
Year ended
December 31,
2015
357,785
19,126
(33,866)
(100,412)
242,633
(26,147)
216,486
b) S m all P o w e r P ro d u c e r C o n tra c ts
At June 30, 2016 the value of the SPP contracts was $8.6 million liability (Dec. 31, 2015 - $11.4 million liability).
The SPP contracts are revalued at each year end.
Six months ended
June 30, 2016

Small Power Producer contracts, opening balance

Net cash payments
Revaluation of Small Power Producer contracts
Small Power Producer contracts, closing balance
3.
(11,368)
(996)
3,813
(8,551)
5,055
(3,496)
Year ended
December 31,
2015
(12,987)
(1,301)
5,960
(3,040)
(11,368)
5,834
(5,534)
Investm ents
Uin th o u sa n d s o f d o lla rs)
Fixed income securities

Canadian equities
Global equities
Total investments
Six months ended

June 30, 2016
Market
Value
Cost
392,145
392,263
-
15
392,160
16
392,279
Year ended
December 31, 2015
Market
Value
Cost
353,295
350,950
135,209
108,540
216,215
123,523
704,719
583,013
APPLICANT COPY
F12-2016
BAL000298
The following table provides disclosure on the movements in the fair value of the investments:
Unrealized Market Gain (Loss)
Fixed Income
Securities
Canadian
Equities
Global
Equities
Totals
5,152
59,776
110,865
175,793
5,633
(15,531)
45,433
35,535
(8,440)
(17,576)
(63,606)
(89,622)
(2,807)
(33,107)
(18,173)
(54,087)
2,345
26,669
92,692
121,706
(906)
12,143
(17,733)
(6,496)
(1,557)
(38,812)
(74,960)
(115,329)
(2,463)
(26,669)
(92,693)
(121,825)
(118)
(1)
(119)

Unrealized market gain, June 30, 2016
4.
a)
Property, Plant and Equipm ent and Related Lease Obligation

P ro p erty, Plant and Eq u ip m en t
(in th o u sa n d s o f d o lla rs )
Genesee PPA
Office Equipment
Total
Cost
Additions
Additions
Balance as at June 30, 2016
1,505,670
1,505,670
1,505,670
519
56
575
575
1,506,189
56
1,506,245
1,506,245
Accumulated Depreciation
Impairment loss
Balance as at June 30, 2016
842,301
110,561
221,960
1,174,822
33,085
1,207,907
444
34
478
20
498
842,745
110,595
221,960
1,175,300
33,105
1,208,405
330,848
297,763
97
77
330,945
297,840
Net Book Value

As at December 31, 2015
As at June 30, 2016
During 2015, an impairment loss was recorded with respect to the Genesee PPA. The Genesee PPA will be re
valued and tested for impairment at year-end. It is highly likely the Genesee PPA will be reclassified at year-end
as an onerous contract and the net liability for the Genesee PPA will be recorded under Other long-term
obligations.
APPLICANT COPY
F12-2016
BAL000299
b)
G enesee P o w e r P urchase A rra n g e m e n t Lease O b lig a tio n
There have been no changes to the estimated future annual lease payments from those presented in the 2015
audited annual financial statements.
5.
Reclam ation and Abandonm ent Provision

H.R. Milner
Isolated
_
_
_
Decommissioning
_ ,
Generating
Generation
_ ,
,
Total
_ .
6
Costs of PPAs
(in th o u sa n d s o f d o lla rs) __________________ St3tlOn__________ Sites________________________________
At January 1, 2015
11,854
6,518
11,505
29,877
800
2,731
(767)
2,764
(4,047)
(4,047)
Accretion expense
474
261
460
1,195
13,128
5,463
11,198
29,789
(2,925)
(2,925)
13,128
2,538
11,198
26,864
At January 1, 2016
Accretion expense
At June 30, 2016
At June 30, 2016
6.
13,128
177
13,305
-
5,463
(315)
74
5,222
(2,609)
2,613
13,305
11,198
151
11,349
-
29,789
(315)
402
29,876
(2,609)
27,267
11,349
O ther Long-term s Obligations
Battle
River 5
PPA
At January 1, 2015
Amortization
96,700
96,700
(44,200)
52,500
At January 1, 2016
Amortization
At June 30, 2016
At June 30, 2016
96,700
(9,670)
87,030
(19,340)
67,690
389,546
(25,295)
364,251
(80,945)
283,306
76,382
(2,397)
73,985
(16,441)
57,544
Sundance A
Sundance B
53,687
(9,256)
44,431
(29,620)
14,811
156,214
(10,144)
146,070
(32,460)
113,610
Sundance C
Sheerness
166,673
(9,462)
157,211
(34,936)
122,275
Keephills
Total
APPLICANT COPY
F12-2016
BAL000300
96,700
96,700
(44,200)
52,500
96,700
842,502
(66,224)
872,978
(213,742)
659,236
Pursuant to Section 96 of the EUA, as a result of Buyer-initiated terminations triggered by a change in law, which
rendered the PPAs uneconomic or more uneconomic for the Buyer, the Battle River PPA, Sundance A, Sundance
B, Sundance C, Sheerness and Keephills PPAs were transferred to the Balancing Pool over Q1 and Q2 2016.
While the Balancing Pool continues to hold the PPAs, it will assume responsibility for ongoing capacity payments
and other PPA-related costs and is responsible for selling the output into the wholesale power market.
We refer to Note 8, Contingencies and Commitments, for additional information with respect to the termination
of power purchase arraignments.
Based on forward market electricity prices published by the Natural Gas Exchange as of the effective date noted
in the table above for each respective PPA, the unavoidable costs of meeting the obligations under the PPAs
exceed the economic benefits expected to be derived from them. As a result, onerous contract provisions have
been recognized and measured at the lower of the present value of continuing the PPAs and the expected costs
of terminating them, which include the estimated net costs of continuing them for the minimum six-month
notice period required for such termination. The estimated costs for the PPA provisions were discounted at
2.7%.
Effective Date of
Termination
Power Purchase
Arrangement
PPA Buyer
January 1, 2016
Battle River 5
March 8, 2016
Sheerness
March 8, 2016
Sundance A
March 8, 2016
Sundance B
ASTC Power Partnership ("ASTC")
March 24, 2016
Sundance C
Capital Power PPA Management Inc. ("CP")
May 5, 2016
7.
Keephills
ENMAX PPA Management ("ENMAX")

TransCanada Energy Ltd. ("TCE")
ENMAX Energy Corporations
Capital M anagem ent
The Balancing Pool's objective when managing capital is to operate as per the requirements of the Electric
Utilities Act (2003) which requires the Balancing Pool to operate with no profit or loss and no share capital and
forecast its revenues, expenses, and cash flows.
A reconciliation of the opening and closing Balancing Pool deferral account is provided below:
Year ended
December 31,
2015
Six months ended

June 30, 2016

774,515
1,562,737
(1,148,195)
(464,109)
Payment of Consumer Allocation
(93,236)
(324,113)
Deferral account, ending balance
(466 916)
774,515
Deferral account, beginning balance

APPLICANT COPY
F12-2016
BAL000301
8. Contingencies and Commitments

Termination of Power Purchase Arrangements
Pursuant to Section 96 of the EUA, where a PPA is terminated except for an Owner's termination for destruction,
the PPA will be deemed to have been sold to the Balancing Pool. Buyer-initiated termination could be triggered
by a change in law, which renders the PPA uneconomic or more uneconomic for the buyer, an event of force
majeure lasting greater than six months or Owner default in performing its obligations. Termination under these
provisions would result in the transfer of the PPA to the Balancing Pool. The Balancing Pool would then assume
responsibility for ongoing capacity payments and other PPA-related costs and would be responsible for selling
the output into the wholesale power market.
On July 25, 2016, the Attorney General of Alberta filed an application with the Alberta Court of Queen's Bench
seeking declarations relating to the validity of certain provisions of the Battle River 5 PPA, Sundance A PPA,
Sundance B PPA, Sundance C PPA, Sheerness PPA and Keephills PPA. The Attorney General is seeking judicial
review of the Balancing Pool's decision to accept termination by ENMAX PPA Management Inc. of the Battle
River 5 PPA. The Balancing Pool, the Alberta Utilities Commission, ENMAX PPA Management Inc. and other
parties with interests in PPAs were named as respondents. The Balancing Pool will be providing its responses for
consideration by the Court.
In the event the PPA terminations are legitimate and the PPAs are returned to the Balancing Pool, the Balancing
Pool has the option to then resell the PPAs or terminate the PPAs by paying the Owner a termination payment
equal to the net book value.
Genesee PPA Energy Strip Contracts

In the last quarter of 2014, the Balancing Pool sold two 100-MW strip contracts for generating capacity from the
Genesee PPA (representing 26% of the total Genesee PPA capacity). The two contracts commenced on
November 1, 2014 and were contracted to expire on October 31, 2017. Terms of the contracts require the
purchaser to pay a fixed monthly fee established by a competitive bid process and amounts intended to cover
certain PPA costs payable by the Balancing Pool.
A negotiated settlement was reached in March 2016 with one of the strip buyers resulting in the termination of
the strip contract.
Revenue from the sale of the energy strip contracts has been recorded in sale of generating capacity on the
Statement of Income.

Alberta Tax and Revenue Administration has issued notices of re-assessment for several tax years (dating back to
2001) to a municipal entity that has been subject to PILOT. The municipal entity has disagreed with many
aspects of the notices of re-assessment and has filed notices of objection for those tax years. The municipal
entity has proceeded with litigation to resolve the various tax matters. The total remaining PILOT revenues
under dispute with the municipal entity are $77.0 million for the tax years of 2001 through to 2016. Due to the
uncertainty of the outcome of the litigation, these financial statements do not reflect any contingent asset or
liability in relation to these ongoing disputes.
A number of these matters have been resolved through the courts, which has resulted in the pending refund of
$96 million to the municipal entity accrued in trade and other payables.
APPLICANT COPY
Disputed Amounts
Disputed amounts for commercial matters are expensed as incurred and recognized on recovery.
Credit Facility
At June 30, 2016, the Balancing Pool had $2.0 million of unsecured Letters of Credit issued and an uncommitted
credit facility available to issue Letters of Credit up to a maximum of $4.0 million.
APPLICANT COPY

From:
Sent:
To:
Cc:
Subject:
Attachments:
Michelle Manuliak
Wednesday, July 06, 2016 8:11 AM
Bruce Roberts; Ben Chappell
2016 Forecast to Year End
Cash Flow Forecast to year end.docx
Good Morning Bill,

Please find attached the forecast to year-end 2016. We have presented four possible outcomes. Please see below for a
summary of our findings.
Summary of Forecast Findings:
The most drastic forecast scenario attached is Scenario 1A, wherein the PILOT refund of $96 million is remitted at the
end of August 2016 to ENMAX and the Consumer Allocation of $3.25/MWh continues to the end of the year. Under this
scenario the Balancing Pool would be in a deficit position of $24.5 million by the end of October. We would be able to
utilize our existing credit facility of $90 million to cover the shortfall for October, but not November.
Should the Balancing Pool be able to defer the $96 million PILOT refund into 2017 and turn off the Consumer Allocation
by September 1, 2016 (Scenario 2B) we will be in a deficit position of $35.6 million by the end of December. We would
buy ourselves a couple of months before we would dip into our credit facility.
This is of course subject to the actual Pool price coming in at $16/MWh.
Bruce, please comment if I have missed anything.
Kind Regards,
direct line: 403.539.5357 | fax:403-539.5366
BAL000304
F12-2016
APPLICANT COPY
The following assumptions were used to generate the cash flow estimates reflected in all four
of the following forecast scenarios presented below:
All PPAs, including the Keephills PPA, have been returned to the Balancing Pool. The
Balancing Pool assumes responsibility for the costs of each PPA and collects the
revenues from the energy sold into the market starting at the date the PPA was deemed
terminated by the various Buyers.
No termination payments will be made to the PPA Owners during 2016
The average wholesale power price over the balance of 2016 is assumed to equal $16
per MWh m arginally lower than the year-to-date average of $16.50 per MWh. June's
power price averaged $15.44 per MWh.
The figures presented are best estimates made with the information available as at the time of
this writing. Actual costs have been incorporated into the forecast where possible.
Forecast Scenario 1A
Forecast Scenario 1A reflects the following two additional key assumptions:
Includes the $96 million PILOT refund to ENMAX at the end of August 2016
2016 Consumer Allocation of $3.25/MWh continues to the end of the year

Pool Price Forecast
Month
T o ta l A d m in & O th e r
T o ta l PPA Cash O u tflo w
Scenario 1A
Includes $96 million PILOT refund and Consumer Allocation continues to year-end at S3.25/MWh
_________________________________________________________________________________________
ffi/C-d S
ic re sl<LOjeno i
$
August
July
October
September
November
December
January
(1,6 0 7 ]
(97,132)
(1,172)
(1,348)
(1,180)
(7,662)
(1,312)
(60,500)
(60,068)
(60,058)
(60,119)
(60,068)
(60.119)
(60,068)
(1,705)
H ydro
(926!
(921)
(1,538)
(2,521)
(2,483)
(2,069)
SPP
(594)
(503)
(485)
(484)
(714)
(600)
(668)
Is o la te d G eneration
(200)
(100)
(100)
(100)
(100)
(100)
(100)
(1.000)
(1,000)
(1,000)
(1.000)
(1,000)
(1,000)
(1,000)
C o nsum er A llo c a tio n
(15,000)
115,000]
(15,000)
(15,000)
(15.000)
S u b - t o t a l P P A S e t t le m e n t
o -* a n
Opening Cash Balance - Jul 0!

Forecast Cash Outflow
Ending Cash Balance
390,000
(79,827)
310,173
56,085
(80,573)
(24.4881
(24,488)
(80,545)
(105,033)
Force M a je u re
' . i / m I
310,173
(174,7251
135,448
IB M
<15-0 0 0 >________ l S 2 L
135,448
(79,363)
56,085
(105,033)
(86,550)
(191,583)
(191,583)
(793S4)
(271,437)
BAL000305
F12-2016
APPLICANT COPY
Forecast Scenario IB
Forecast Scenario IB reflects the following two additional key assumptions:
2016 Consumer Allocation of $3.25/MWh is suspended effective September 1, 2016
Scenario IB
Includes $96 million PILOT refund and Consumer Allocation is turned Off for Sept. 1, 2016

Pool Price Forecast
T o ta l PPA C ash O u tflo w
: * :
September
August
July
Month
56
.1*M i
I6
>
October
1600 1
November
16 Jf
'* m
January
December
(1 ,6 0 7 )
(9 7 ,1 3 2 )
(1 ,1 7 2 )
(1 ,3 4 8 )
(1,1 80)
(7 ,6 6 2 )
(1 ,3 1 2 )
(60,500)
(6 0 ,0 6 8 )
(6 0 ,0 6 8 )
(6 0 .1 1 9 )
(60,068)
(6 0 ,1 1 9 )
(6 0 ,0 6 8 )
H yd ro
(9 2 6 )
(9 2 1 )
(1 ,5 3 8 )
(2 ,5 2 1 )
(2.4 83)
(2 ,0 6 9 )
(1 ,7 0 5 )
SPP
(594)
(503)
(4 8 5 )
(4 3 4 )
(714)
(600)
(6 6 8 )
is o la te d G e n e ra tio n
(2 0 0 )
(1 0 0 )
(1 0 0 )
(1 0 0 )
(100)
1100)
(1 0 0 )
(1 ,0 0 0 )
(1 ,0 0 0 )
(1 ,0 0 0 )
(1 ,0 0 0 )
(1 ,0 0 0 )
(1 ,0 0 0 )
(1 ,0 0 0 )
(15.000)
(15,000)
<174,7251
164,361
'65,573'
C8S.S45!
(71.5V-
(54 8541
310,173
(174,725)
135,448
135,448
(64,363)
71,085
71.085
(65,573)
5,512
5,512
(65,545)
(60.033)
Force Majeure
C o n su m e r A llo c a tio n
Sub-total PPA Settlement

Opening Cash Balance - iul 05
Ending Cash Balance
390,000
(79,827)
310.173
(60,033)
(71,550)
(131,583)___
(131,583)
(64,854)
(196,437)
$96 million PILOT refund to ENMAX deferred into 2017

Scenario 2 A
3oes not include $96 million PILOT refund and Consumer Allocation continues to year end at S3.25/M W
(in t h o u s a n d s o f d o lla r s )
KM
P o o l P r ic e f o r e c a s t
M o n th
T o t a l A d m in & O t h e r
Total PPA Cash O u tflo w
S e p te m b e r
A u gu st
Ju ly
1MC *
O c to b e r
N ovem ber
D ecem ber
Ja n u a r y
(1,607)
(1,182)
(1,172)
(1,348)
(1.180)
(7,6621
(1-312)
(60,500)
(60,068)
(60,068)
(60,119)
(60,0681
(60,119)
(60,068)
Hydro
(926)
(921)
(1,538)
(2,521)
(2,483)
(2,069)
(1,705)
SPP
(594)
(503)
(485)
(484)
(714)
(600)
(668)
Isolated G eneration
(200)
(100)
(100)
(100)
(100)
(100)
(100)
(1.000)
(1,000)
(1.000)
(l.OOO)
(1,000)
Cl,000)
(1.000)
(15,000)
Force M ajeu re
Consumer A lloca tion
(15,000)
(15 0 0 0 )
(15,000)
(15.000)
(15.000)
S u b t o t a l P P A S e t t le m e n t
17M 2=n
<711751
(79561
'P.0,5731
is a s )
3 1 0 .1 7 3
2 3 1 ,3 9 8
1 5 2 ,0 3 5
7 1 .462
(9 ,0 8 3 )
___
O p e n in g C ash B a la n c e lu l OS
3 9 0 ,0 0 0
F o re c a s t Cash O u t flo w
(7 9 ,8 2 7 )__________ (7 8 ,7 7 5 )__________ (7 9 ,3 6 3 )__________ (8 0 ,5 7 3 )__________ (8 0 ,5 4 5 )__________(8 6 ,5 5 0 )__________ (7 9 ,8 5 4 )
(9 5 .6 3 3 )
E n d in g C a sh B a la n c e
3 1 0 ,1 7 3 __________ 2 3 1 ,3 9 8 __________ 1 5 2 ,0 3 5 ____________ 7 1 .462____________ (9 ,0 8 3 )__________ (9 S ,6 3 3 )
(1 7 5 ,4 8 7 )
BAL000306
F12-2016
APPLICANT COPY
Forecast Scenario 2B
Forecast Scenario 2B reflects the following two additional key assumptions:
$96 million PILOT refund to ENMAX deferred into 2017

2016 Consumer Allocation of $3.25/M W h is suspended effective Septem ber 1, 2016
Scenario 28

Pool Price Forecast
Does not include $96 million PILOT refund and Consumer Allocation is turned Off for Sept. 1, 2016
_ ______ _
Is
Month
16.0
July
T o ta l PPA C a sh O u tf lo w
26.00
August
1600
September
16-00 5
October
1600
November
IF
1(5 S
December
!*> A *f
January
(1 .6 0 7 )
(1 ,1 8 2 )
(1 ,1 7 2 )
(1 ,3 4 8 )
(1 ,3 8 0 )
(7 ,6 6 2 )
11,312)
160.500)
(6 0 ,0 6 8 )
(6 0 ,0 6 8 )
(6 0 ,1 1 9 )
160,068)
(6 0 ,1 1 9 )
(6 0 ,0 6 8 )
H y d ro
(9 2 6 )
(9 2 1 )
(1 ,5 3 8 )
(2 ,5 2 1 )
(2 ,4 8 3 )
(2 ,0 6 9 )
(1 ,7 0 5 )
SPP
(5 9 4 )
(5 0 3 )
(48S )
(4 8 4 )
(7 1 4 )
(6 0 0 )
(6 6 8 )
Is o la te d G e n e ra tio n
(2 0 0 )
(1 0 0 )
(1 0 0 )
(1 0 0 )
(1 0 0 )
(1 0 0 )
(1 0 0 )
(1 ,0 0 0 )
(1 ,0 0 0 )
(1,000)
(1 ,0 0 0 )
(1 .0 0 0 )
(1 ,0 0 0 )
(1 ,0 0 0 )
(1 5 ,0 0 0 )
(1 5 ,0 0 0 )
' 7S^27
178 775'
<64,3651
(.S>3>
390,000
(79.827)
310,173
310,173
(78,775)
231,398
231,398
(64.363)
167,035
167,035
(65,573)
101,462
101,462
(65,545)
35,917
35,917
(71,550)
(35,633)
(35,633)
(64,854)
(100,487)
Force M a je u re

Opening Cash Balance - Jul 05
Ending Cash Balance
BAL000307
F12-2016
APPLICANT COPY

Bruce Roberts
Michelle Manuliak, Ben Chappell
Re: 2016 Forecast to Year End
From:
Sent:
To:
Cc:
Subject:
Bill;___________________________
Non-responsive
and should be back in by 10:30 +V Could we schedule the call for 11:00 am this
morning?
BR
Sent from my iPhone
On Jul 6, 2016, at 09:39, William Stedman (External) <wstedman(S>entxcapital.com> wrote
* * EXTERNAL email. Please be cautious and evaluate before you click on links, open attachments, or
I would like to schedule a call this morning to discuss. Please advise what works for you and I will
accommodate.
Bill Stedman
On Jul 6, 2016, at 8:10 AM, Michelle Manuliak <michelle.manuliak@balancingpool.ca> wroteGood Morning Bill,
Please find attached the forecast to year-end 2016. We have presented four possible
outcomes. Please see below for a summary of our findings
The most drastic forecast scenario attached is Scenario 1A, wherein the PILOT refund of
$96 million is remitted at the end of August 2016 to ENMAX and the Consumer
Allocation of $3.25/MWh continues to the end of the year Under this scenario the
Balancing Pool would be in a deficit position of $24.5 million by the end of October. We
would be able to utilize our existing credit facility of $90 million to cover the shortfall for
October, but not November.
Should the Balancing Pool be able to defer the $96 million PILOT refund into 2017 and
turn off the Consumer Allocation by September 1, 2016 (Scenario 2B) we will be in a
deficit position of $35.6 million by the end of December. We would buy ourselves a
couple of months before we would dip into our credit facility.
This is of course subject to the actual Pool price coming in at $16/MWh.
1
F12-2016
BAL000144
APPLICANT COPY

Kind Regards,
direct line: 403.539.5357 | fax: 403.539.5366
<Cash Flow Forecast to year end.docx>
F12-2016
BAL000145
APPLICANT COPY

From:
Sent:
To:
Cc:
Subject:
Bruce Roberts
Michelle Manuliak; Ben Chappell
Re: 2016 Forecast to Year End
Bill;
Non-responsive
morning?
BR
and should be back in by 10:30 + \ -. Could we schedule the call for 11:00 am this
Sent from my iPhone

On Jul 6, 2016, at 09:39, William Stedman (External) <wstedman@entxcapital.com> wrote:
*** EXTERNAL email. Please be cautious and evaluate before you click on links, open attachments, or
I would like to schedule a call this morning to discuss. Please advise what works for you and I will
accommodate.
Bill Stedman
On Jul 6, 2016, at 8:10 AM, Michelle Manuliak <michelle.manuliak(5>balancingpool.ca> wrote:

Good Morning Bill,
Please find attached the forecast to year-end 2016. We have presented four possible
outcomes. Please see below for a summary of our findings.
The most drastic forecast scenario attached is Scenario 1A, wherein the PILOT refund of
$96 million is remitted at the end of August 2016 to ENMAX and the Consumer
Allocation of $3.25/MWh continues to the end of the year. Under this scenario the
Balancing Pool would be in a deficit position of $24.5 million by the end of October. We
would be able to utilize our existing credit facility of $90 million to cover the shortfall for
October, but not November.
Should the Balancing Pool be able to defer the $96 million PILOT refund into 2017 and
turn off the Consumer Allocation by September 1, 2016 (Scenario 2B) we will be in a
deficit position of $35.6 million by the end of December. We would buy ourselves a
couple of months before we would dip into our credit facility.
This is of course subject to the actual Pool price coming in at $16/MWh
1
F12-2016
BAL00030
APPLICANT COPY

Kind Regards,
Michelle Manuliak |Controller | Balancing Pool
direct line: 403.539.5357 | fax: 403.539.5366
<Cash Flow Forecast to year end.docx>
8AL00031
F12-2016
APPLICANT COPY

From:
Sent:
To:
Cc:
Subject:
Attachments:
Michelle Manuliak
Wednesday, July 06, 2016 5:43 PM
Bruce Roberts; Sharleen Traynor
Upcoming Board Meeting
Cash Flow Forecast to year end.pdf
Dear Board of Directors,

Please find attached the 2016 Cash Forecast memo in advance of the Board meeting next week. My sincere apologies, I
will be unable to attend the meeting to present the material as I am getting married next week and heading out for
some vacation time.
The material will be posted on Diligent Board books early next week. Sharleen Traynor will be sending an email when the
other material is ready for distribution.
Kind Regards,
direct line: 403.539.5357 | fax: 403.539.5366
BAL000308
F12-2016
APPLICANT COPY
balancingpool
M emorandum
To:
Board of Directors
From: Michelle Manuliak, Bruce Roberts

Date: July 06, 2016
Re:
2016 Cash Forecast Scenarios and Estimated Consumer Charge
P urpose
Provide an updated cash flow forecast to the Board of Directors given the ongoing responsibly
for covering the cash flows for the entire PPA fleet and the pending PILOT refund.
F inancial A sse ssm e n t
The following assumptions were used to generate the cash flow estimates reflected in all four
of the forecast scenarios presented below:
All PPAs, including the Keephills PPA, have been returned to the Balancing Pool. The
Balancing Pool assumes responsibility for the ongoing financial obligations associated
with each PPA and collects the revenues from the energy sold into the market starting
at the date the PPA was deemed terminated by the various Buyers.
No termination payments will be made to the PPA Owners during 2016.
per MWh marginally lower than the year-to-date average of $16.50 per MWh. June's
power price averaged $15.44 per MWh. Supply and demand fundamentals are expected
to remain constant over the balance of the year.
The four scenarios also include a provision for potential plant owner (forgone AIP) Force
Majeure claims estimated at $1 million per month.
BAL000309
F12-2016
APPLICANT COPY
Please note that the financial implications for consumer allocation changes affect the following
month's cash balance. For example, a change to the consumer allocation effective September
1st would be reflected in the October column on the cash forecast as remittances will not be
realized until post-settlement.
Scenario 1A
Includes $96 million PILOT refund and Consumer Allocation continues to year-end at $3.25/MWh
(In t h o u s a n d s o l d o l l a r s ! _______________________________________________________________________________ ____________________________________________
vac $
P o o l P r ic e F o re c a st
C a le n d a r M o n th
Ju ly
A ugust
PILOT Refund and Audit Costs
(50)
DOE Mandated Costs
Total Admin & Other

Total PPA Cash Outflow
Hydro PPA
SPP
Isolated Generation
Force Majeure
Consumer Allocation
ifico
(96.000)
l
S e p te m b e r
1 6 .0 0
O c to b e r
(50)
(50)
'
uoo
N ovem ber
(50)
(50)
(2,069)
(600)
(1,705)
(926)
(594)
(200)
(921)
(503)
(2,521)
(484)
(10O)
(1,000)
(1,538)
(485)
(100)
(100|
(2,483)
(714)
(100)
(1.000)
(15.000)
(1 5 ,0 0 0 )
(1,000)
(15,000)
O p e n in g C a sh B a la n c e lu l 0 !
3 9 0 ,0 0 0
F o r e c a s t C a sh O u t flo w
(7 9 ,8 2 7 )
E n d in g C a sh B a la n c e
3 1 0 ,1 7 3
in v is *
< * > !
310/173
1 3 5 ,4 4 3
(1 7 4 ,7 2 5 )
(7 9 3 6 3 )
1 3 5 ,4 4 8
5 6 ,0 8 5
(50)
(1,262)
(60,068)
(1.122)
(60,068)
(1,000)
(SO)
Ja n u a ry
(1,112)
(60,119)
(1,132)
(60,068)
______ 11S?L
<*>
D e ce m b e r
(1.130)
(60.068)
(1.557)
(60,500)
(60,119)
c h -A
(6,500)
(1,298)
(1.000)
(15,000)
(100)
(1,000)
115,000]
(668)
(100)
(1,000)
(15.000)
5 6 ,03 5
(2 4 ,4 8 8 )
(1 0 5 ,0 3 3 )
(1 9 1 .5 8 3 )
(8 0 .5 7 3 )
(8 0 ,5 4 5 )
(8 6 ,5 5 0 )
179304)
(1 0 5 ,0 3 3 )
(1 9 1 ,5 8 3 )
(2 7 1 ,4 8 7 )
Worst Case: Balancing Pool cannot meet October obligations.
BAL000310
F12-2016
APPLICANT COPY
Forecast Scenario IB
Forecast Scenario IB reflects the following two additional key assumptions
(cash settled in October)
Scenario IB
Includes $96 million PILOT refund and Consumer Allocation is turned Off for Sept. 1, 2016
(In t h o u s a n d s o f d o l la r i)
&0&
P o o l P r ic e F o r e c a s t
C a le n d a r M o n t h
\ s r.o
*5
J u ly
A ugust
11, UO
.6 IX
N ovem ber
O c to b e r
S e p te m b e r
(96.000)
(SO)
(50)
Total Admin 6 Other

Hydro
SPP
Isolated Generation
(1,122)
(1,557)
(6O.S0O)
(1,132)
(60.068)
(6 0 ,0 6 8 )
(9 2 6 )
(921)
(503)
(100)
(1,000)
(1,538)
(A8S)
(100)
(1,000)
(15.0001
(15,000)
(S94)
Force Majeure
Consumer Allocation
(200)
(1,000)
(15,000)
.le p s JT i
O p e n in g C a s h B a la n c e - l u l 0 5
3 9 0 ,0 0 0
F o r e c a s t C a s h O u t flo w
(7 9 .8 2 7 )
E n d in g C a s h B a la n c e
3 1 0 .1 7 3
n s>
310,173
a s in
1 3 5 ,4 4 8
1 3 5 ,4 4 3
5 6 ,0 8 5
i'
Ja n u a ry
(SOI
(50)
(6,500)
(1.298)
(60,119)
(1.130)
(60,068)
(1,312)
(60,068)
(2.521)
(484)
(2.483)
(714)
(100)
(1,000)
11,1121
(60,119)
(2,069)
(100)
(1,000)
(1.705)
(668)
(100)
1600)
1100)
(1,000)
(1,000)
(1 4 6 ,5 8 3 )
'.6 5 3 5 ]
5 6 ,0 8 5
(7 9 ,3 6 3 )
D ecem b er
I H
|65 s j .M
(174.725)
I B
-t
(SO)
(50)
DOE Mandated Costs
<'
(9 ,4 8 8 )
(7 5 ,0 3 3 )
(6 5 ,5 7 3 )
(6 5 ,5 4 5 )
(7 1 .5 5 0 )
(6 4 ,9 0 4 )
(9 .4 8 8 )
(7 5 ,0 3 3 )
(1 4 6 ,5 8 3 )
(2 1 1 ,4 8 7 )
Does not include the $96 million PILOT refund to ENMAX at the end of August 2016
2016 Consumer Allocation of $3.25/M Wh continues to the end of the year
Scenario 2A
Does not Include $96 m illio n PILOT re fund and Consumer A llo cation continues to year end at $ 3 ,25/M W h
(In th o u sa n d s o l d o lla rs )
._
Pool Price Forecast

Calendar M onth
PHOT Refund and Costs
DOE Mandated Costs
Total Admin & Othei
Hydro
SPP
Isolated Generation
Force Majeure
Consumer Allocation
Opening Cash Balance - Jui OS
Ending Cash Balance
ih it;
July
14410 :i
August
(50)
-
(1.5S7)
(60,500)
(926)
(594)
(200)
(1.000)
(15.000)
390,000
(79.82?)
310.173
4,(81
September
(50)
(1,132)
(60,068)
1921)
1503)
(100)
(1,000)
___ j , 0 0 0 J _
78.775; .
310,173
(78,775)
231,398
(501
(1.122)
(60,068)
(1.538)
(4851
(100)
(1,000)
(15,000)
231,398
(79.363)
152,035
-b.tr..
u>ao s
November
October
>
December
v
January
(50)
(50)
(50)
(6,500)
(1.298)
(60,119)
(2,521)
1484)
(1,130)
(60.068)
(2.483)
(714)
(1.112)
(60.119)
(2,069)
(600)
(1,262)
(60.068)
(1,705)
(668)
1100)
(1.000)
(15,000)
(100)
(1,000)
115,000)
(100)
(1,000)
(15,000)
(100)
(1,000)
152,035
71,462
(9.083)
(80.573)
71,462
(80,545)
(9.083)
I86.S50)
(95.633)
(50)
(15 000)
|15.S54!
(95.633)
(79,854)
(175,4871
BAL000311
F12-2016
APPLICANT COPY
Forecast Scenario 2B
Forecast Scenario 2B reflects the following two additional key assumptions:
Scenario 2B
Does n o t include $96 m illion PHOT refund and Consumer Allocation is turned O ff for Sept. 1, 2016
(in thousands o f dollars)

Pool Price Forecast
'
Calendar M onth
DOE Mandated Costs
Total Admin & Other
Hydro
SPP
isolateo Generation
Force Majeure
l i t M'
lfc .<
August
July
(SO)
-
(SO)
September
sLaT
October
in #
November
* *> .
December
January
(50)
(SO)
(50)
(6,500)
(1,130)
(1,112)
(60,119)
(60,068)
(2,069)
(1,705)
(668)
(100)
(600)
(100)
(1,000)
(1,000)
(100)
(1,000)
55 3*
- - .it*- .
86,662
21,167
(43,833)
(65,495)
21,167
(65,000)
(64,804)
(108,637)
(1,557)
(1,1321
(1,122)
(60,068)
(60,068)
(1,538)
(200)
(1,000)
(100)
(1,000)
(485)
(100)
(1,298)
(60,119)
(2,521)
(484)
(1,000)
(100)
(1,000)
165 S U |
Consumer Allocation
S ub-total PPA Settlement
(15,000)
(T s rrrj
(15,000) _____(5.5,000)

390,000
310,223
231,498
Forecast Cash O utflow

Ending Cash Balance
(79,777)
310,223
(78,725)
231,498
(79,313)
152,185
152,185
(65,5231
86,662
(60,068)
(2,483)
(714)
-TS'.I
(50)
--
(60,500)
(926)
(594)
(921)
(503)
(43433)
(50)
(1,262)
Best Case- Balancing Pool cannot meet December obligations.

Consumer Charge Estimate
Assuming a forecast price of $16/MWh, the estimated monthly cash outflow associated with
the PPAs and other administrative expenditures averages $65 million per month. At current
demand levels, the Balancing Pool would collect $5 million per month per dollar of consumer
charge. A consumer charge of $13/MWh would be required to cover the monthly financial
obligation of $6$ million. The Balancing Pool would collect a total of $260 million over the
remaining months of 2016 leaving an ending estimated balance of approximately $48 million on
January 31, 2017. For 2017 the total consumer collection would be $780 million with a charge
of $13/MWh equaling the expected obligations. Please see the forecast below.
BAL000312
F12-2016
APPLICANT COPY
Consumer Charge of $13/MWh

(In thousands o f dollars)
Pool Price Forecast
Calendar M o n th
16.00
IS 00
August
July
PILOT R efund and A u dit Costs
(50)
DOE M andated Costs
T otal A d m in & O ther
(irSST)
{60,5001
1926)
(1,132)
(60,068)
(921)
1594)
(200)
(503|
(100)
(1,000)

H ydro
SPP
Force M ajeure
C onsum er A llo c a tio n
(1,000)
(15,000)
S u b-total PPA S ettlem ent

390,000
Forecast Cash O u tflo w

Ending Cash Balance
(79,827)
310,173
(96,000)
(15,000)
(174,735)
310,173
(174,725)
135,443
.10.00
Septem ber
(50)
16 00
O ctober
(1,122)
(100)
(1,000)
(15,000)
(PS 463)
135,448
(79,363)
56,085
ItO N ovem ber
16 00
December
(SO)
(50)
(50)
(6,500)
(1,298)
(60,119)
(1,130)
(60,068)
(2,521)
(434)
(100)
(1,000)
65,000
(2,483)
(714)
(100)
(1,000)
65,000
(60,068)
(1,538)
(485)
i6 m
January
(SO)
*
(1,112)
(60,119)
(2,069)
(1,312)
(60,068)
(1,705)
(600)
(100)
(1,000)
(668)
(100)
(1,000)
65,000
65,000
54,967
48,417
(6,550)
48,417
48,513
(5J1)
56,085
(573)
55,512
55,512
(S45)
54,967
96
>
F12-2016
BAL000313
APPLICANT COPY
balancingpool
For the month ending May 31, 2016
Prepared: July 7, 2016
Results at a Glance
May
Budget
24,300
27,087
(2,787)
(2,787)
15,153
-
May
35,663
91,676
(56,013)
(56,030)
14,726
-

Total Revenues
Total Expenses
Total Asset
Total Liabilities
Deferral Account
Market Heat Rate
$15.89
$1.17
14
$39.00
$3.24
12
YTD
237,546
292,134
(54,588)
(176,626)
78,244
464,759
1,053,425
533,780
519,645
$16.77
$1.49
11
YTD Budget
120,128
134,930
(14,802)
(14,802)
79,726
612,597
1,310,620
373,130
937,490
$39.00
$3.53
11
Year-to-Date PPA Cash Flow Summary

(in thousands o f
d o lla rs)
Actual Generation
(GWh)
Genesee*
Sheerness
Keephills
Sundance
A
5undance
Sundance
Battle
River 5
Total
H ydro
2,503
912
388
649
513
863
589
1,125
7,542
65,794
13,977
6,288
9,909
7,529
13,137
10,366
15,653
142,653
Capacity Payment
Energy Payment
76,863
16,974
35,249
7,498
22,717
4,047
6,360
29,742
10,107
27,160
2,683
19,262
4,902
20,103
8,398
238,594
53,471
O ther PPA Costs
11,802
3,296
1,007
2,309
389
2,689
2,550
14
24,056
105,639
46,943
11,188
26,473
27,153
29,152
42,399
27,174
316,121
(39,845)
(32,966)
(4,900)
(16,564)
(19,624)
(16,015)
(32,033)
(11,521)
(173,468)
Revenues
Expenses
Total Expenses
Net Cash Flow
*Please note that the table above represents cash flows and does not take into account the amortization of the
Genesee and Battle River PPA provisions and therefore will not tie to the Income Statement.
Significant Variances to 2016 Budget
Unless otherwise noted below, the variances related to the 2016 budget for the Sale of Electricity and Cost of Sales are
a direct result of the added financial obligations imposed on the Balancing Pool following the termination of the
various PPAs during the year The Keephllls PPA is the most recent PPA returned to the Balancing Pool and was
terminated in May The termination of the PPAs was not anticipated at the time the 2016 budget was prepared.
MAP Contract revenue for 2016 will be lower than budget for the remainder of the year due to the termination of the
strip contract held by ANC. The Balancing Pool received a settlement payment of $16.5 million in March as
compensation for the termination.
1
BAL000319
F12-2016
APPLICANT COPY
Amortization and Depreciation expense will be lower than budget for the duration of the year due to the impairment
loss recorded at December 31, 2015 against the Genesee PPA. The impairment loss decreased the overall value of the
Genesee PPA, thereby reducing the corresponding amortization and depreciation expense. The actual impairment
amount recorded at December 31, 2015 exceeded the impairment loss anticipated by management at the time the
2016 budget was prepared as a result of the decline in forward market prices between the time the budget was
prepared and the end of 2015.
Revenues
Pool price for May averaged $15.89/MWh which halted the trend of decreasing monthly average Pool prices that has
been occurring since February 2016. Revenues include remittances of revenue from the PPA Buyers associated with
the terminated PPAs. The PPA Buyers continue to offer the PPA capacity into the market pending AUC approval of
offer control transfer.
Total revenues were $35.7 million for the month of May and $237.5 million on a year-to-date basis. The low realized
Pool price has resulted in revenue from the Hydro PPA being below budget for both May ($1.0 million under budget)
and on a year-to-date basis ($8.2 million under budget).
Net revenues from Payments in Lieu of Tax were lower than budget by $0.6 milfion for May and $2.7 million for the
year due to the associated costs of the ENMAX dispute. The Balancing Pool has only received $0.1 million in
remittances to date this year.
The Balancing Pool sold $75.0 million of investments during May in order to meet cash settlement requirements. To
date the Balancing Pool has sold $239,0 million of investments which resulted in the crystallization of $115.6 million in
capital gains year-to-date.
Expenses
Total expenses were $91.7 million for May and $292,1 million year-to-date. Small Power Producer ("SPP") costs have
exceeded budget for the year by $0.4 million for the year due to the low Pool prices experienced over 2016.
Other PPA Costs relating to Force Majeure claims were higher than budget by $0.3 million for May and $0,4 million
year-to-date. The increased costs are primarily due to the Keephills 1 Force Majeure arbitration hearing which was
conducted in May.
There have been no Force Majeure claims received year-to-date which has resulted in a positive variance of $1.3
million for May and $6.3 million year-to-date.
The increased generating capacity due to the terminated PPAs is the primary reason that Other Expenses are higher
than budget by $0.5 million for May and $1.0 million year-to-date.
Other Income/Expense
The Balancing Pool has recognized mark-to-market losses of $122.0 million year-to-date on the investment portfolio.
These mark-to-market losses are the result of the investment portfolio sales which have been required in order to
meet monthly cash settlement needs. When an investment security is sold the mark-to-market gains or losses
previously recorded for that holding are reversed and the realized gain or loss is recorded as a Capital Gain or Loss on
the Statement of Income.
BAL000320
F12-2016
APPLICANT COPY
F12-2016
Balancing Pool
May 31, 2016
Revenues
Investment Income-Interest & Dividends
Other Revenues
Total Revenue
Expenses
DOE Mandated Costs
Total Expenses
Operating Income
May
Actual
May
Budget
33,975
2,472
(1,002)
(95)
340
(27)
35,663
Variance
14,413
6,048
2,349
475
1,015
YTD
YTD Budget
Variance
BAL000321
24,300
19,562
(3,576)
(3,351)
(570)
(675)
( 27)
*
11,363
237,546
120,128
117,418
83,821
5,517
141
334
423
610
46
784
91,676
16,929
7,316
91
232
167
1,250
650
131
321
27,087
(66,892)
1,799
( 50)
(102)
(256)
1,250
40
85
(463)
(64,589)
255,226
27,587
858
1,218
1,248
3,048
423
2,526
292,134
84,175
36,576
454
1,158
833
6,250
3,250
691
1,543
134,930
(171,051)
8,989
( 404)
( 60)
(415)
6,250
202
268
(983)
(157,204)
(56,013)
(2,787)
(53,226)
(54,588)
(14,802)
(39,786)
(17)
(122,038)
(53,243)
(176,626)
(14,802)
774,515
(176,626)
(78,244)
519,645
1,032,018
(14,802)
(79,726)
937,490
Change in net assets attributable to the Balancing Pool
Deferral Account
(56,030)
(2,787)

Consumer Allocation
590,401
(56,030)
(14,726)
519,645
955,430
(2,787)
(15,153)
937,490
(17)
95,786
31,215
(8,211)
(467)
3,665
115,558
-
70,671
30,072
11,746
2,272
5,367
25,115
1,143
(19,957)
(2,739)
(1.702)
115,558
(122,038)
(161,824)
Actual revenues include revenue from the Battle River 5, Keephllls, Sundance A, Sundance B, Sundance C, and Sheerness PPAs which were not included in the budget.
** Actual expenses include Battle River 5, Keephills, Sundance A. Sundance B, Sundance C, and Sheerness PPA costs and an offsetting entry for the amortization of the
Battle River 5 onerous contract provision, none of which were included in the budget.
3
APPLICANT COPY
Balancing Pool
May 31, 2016
May
Budget
May
(in thousands af dollars)
Assets
Investments
1,866
462,893
932
611,665
Sub-total
464,759
612,597
39,366
245,943
303,357
1,053,425
17,033
278,712
402,278
1,310,620
Liabilities
Accounts Payable
Accrued Liabilities
Sub-total
105,657
13,873
119,530
37,189
14,450
51,639

Reclamation, Other long-term Provisions
Total Liabilities
286,876
118,497
8,877
533,780
519.645

Hydro PPA
Total Assets
286,980
25,940
8,571
373,130
937,490
BAL000322
F12-2016
APPLICANT COPY
Balancing Pool
F1 2 -2 0 1 6
May 31, 2016
May
Budget
May
Finance Expense
Sale of Investments
Consumer Allocation
YTD
YTD Budget
(56,030)
(2,787)
(176,626)
(14.802)
5,517
1,002
141
17
(1,612)
67
(193)
(51,091)
328
(50,763)
7,316
(2,349)
91
27,587
8,211
858
122,038
(8,058)
335
(269)
(25,924)
21,677
(4,247)
36,576
(11,746)
454
56
(203)
2,124
(845)
1,279
.
278
(1.017)
9,743
(8,669)
1,074
.
B A L000323
(312)
75,000
74,688
16,957
16,957
(119,212)
239,000
119,788
94,648
(25)
94,623
(14,726)
(5,127)
(1,598)
(665)
(22,116)
(15,153)
(5,106)
2,559
(556)
(18,256)
(78,244)
(25,635)
(11,521)
(3,348)
(118,748)
(79,726)
(25,531)
12,151
(2,659)
(95,765)
1,809
(20)
(3,207)
(68)
57
952
5,073
1,000
1,866
932
1,866
932
Increase (decrease) In cash and cash equivalents

APPLICANT COPY
F12-2016

Personnel Costs
Professional Fees
Office Expenses
Total G&A Expenses
May
138.7
138.0
26.1
1.8
29.5
334.1
May
Budget
141.7
26.3
31.9
1.7
30.7
232.3
Variance
3.0
(111.7)
5.8
(0.1)
1.2
( 101.8)
BAL000324
APPLICANT COPY
YTD
Actual
684.0
238.2
125.7
15.6
154 8
1,218.3
YTD
Budget
711.9
131.3
142.5
8.3
163.9
1,157.9
Variance
27.9
(106.9)
16.8
(7.3)
9.1
( 60.4)
Year End
Budget
1705 5
315.0
353.8
20.0
438 5
2,832.8

O ctober M onthly Highlights
O c t o b e r M onthly Dashboard
Pool Price
Market Statistics
Pool price for October averaged $21.47/MWh,

year.
Demand
% Change fro m
M o nthly Price ($ /M W h}
21,47
-21%
YTD Price ($ /M W h)
3S.S1
-32%
M o nthly Demand (M W )
8,935
-1%
YTD Demand (M W )
9,005
1%
2 46
2.62
30%
-41%
YTD Gas Price ($/GJ)
Demand was down by one percent year-over-year

in October, the same decrease experienced in
September. Year to date demand is up one percent
from 2014.
Previous Year
Average
Fleet Availability
Supply
O ther

increased in October as seasonal weather patterns
shifted.
Coal
Sources
Wind
W eek 1
87%
71%
25%
73%
W eek 2
91%
68%
54%
76%
W eek 3
90%
64%
32%
W eek 4
93%
67%
28%
71%
74%
A ve ra g e
90%
67%
34%
73%
Total
Natural Gas
Futures Market
The forward market continued to show softness
over the past month. The prompt month
(November) fell as the probability of a major system
disruption decreased with time to delivery.

End o f M onth
% Change from
(S/M W h)
Previous M onth
N ovem ber 2015
34 00
- ii%
December 201S
39.75
-5%
January 2016
42 00
1%
Q 1 2016
3985
0%
Cal 16
39.73
3%
BAL000325
F12-2016
APPLICANT COPY
balancingpool
Calgary Place
2350, 330 - 5 t h Ave S.W
Calgary. Alberta T2P 0L4
tel (403) 539-5350

fax (403) 539-5366
www balancingpool.ca
July 12, 2016

Honourable Margaret McCuaig-Boyd
Minister of Energy
324 Legislature Building
10800 - 9 7 Avenue
Edmonton, AB T5K 2B6
Dear Minister McCuaig-Boyd,
Bruce Roberts, CEO of Balancing Pool, and I enjoyed meeting with you in April, 2016. We look
forward to continuing to work with you, and your department, through these interesting times.
Bruce and I also had the opportunity to introduce ourselves, in a phone call, to Ms. Coleen Volk
on June 22nd.
As Bruce and I mentioned during our call with Ms. Volk, there are two urgent matters which are
top of mind at the Balancing Pool. These are first, the impending liquidity issue and second, the
verification of terminated PPAs.
The Department of Energy had asked that we defer action on these issues. The Balancing Pool
board met today in a special session and wished to stress it believes both issues need to be
addressed promptly.
Balancing Pool Liquidity Issue
When we spoke with Ms. Volk in June, Bruce and I indicated we expected the Balancing Pool to
exhaust its cash reserves around November 2016, assuming then prevailing electricity prices.
Last week, following a recent court decision with respect to a Payment in Lieu of Taxes (PILOT)
dispute, the Alberta Finance Department advised us the Balancing Pool will be required to make
a payment to ENMAX of $96 million. This payment will accelerate the date we run out of funds
by about one month.
BAL00072
F12-2016
APPLICANT COPY
I have attached three cash flow scenarios, using different assumptions, for 2016. They show
the Balancing Pool becoming insolvent between October and December. Accordingly, action is
urgently required.
The Balancing Pool Board reiterates its recommendation to immediately suspend the Consumer
Allocation.
Assuming a future electricity price of $16/MW, the Balancing Pool will require a Consumer
Charge of about $13/MW in order to meet its obligations. Our cash estimates are also attached.
We would like to meet with you, as soon as practical, to discuss our urgent requirement for a
Consumer Charge.
We are of course open to considering any other form of revenue source.
PPA Terminations
As you are aware, all the PPA buyers elected to terminate their PPAs in late 2015 and in the first
quarter of 2016. Under the terms of the PPA contracts the Balancing Pool is required to review
these terminations and to determine whether they are in accordance with the provisions of the
PPAs.
The Balancing Pool has verified the first termination, by ENMAX at Battle River 5. We are ready
to act on the other terminations, but have been told, by staff at the Department of Energy, that
there would be relevant new information forthcoming.
We recognize we have a duty to act prudently and to consider all of the factors which may be
relevant in the circumstances. The 8oard believes we have waited as long as we can for new
information to be made available. The Board requests the Department either share any
additional information it might have which relates to this issue, or agrees to allow the Balancing
Pool to complete its review using currently available information.
Mandate
The Balancing Pool Board understands it has a duty to fulfill its mandate as described in the
Electric Utilities Act and the various PPAs. We also understand we have a duty to follow
instructions from the Minister, if you provide us with clear directions which modify the
mandate, we will follow the revised mandate.
BAL00073
F12-2016
APPLICANT COPY
We appreciate that all the current issues have broad policy considerations.
We are currently in the untenable position in which the Department has requested we defer on
key decisions, but has not provided a revised mandate or written instructions. Meanwhile, the
PPA termination process is held in abeyance and the Balancing Pool is fast approaching
insolvency.
The Board requests that Bruce Roberts and I meet with the Department to resolve these very
important issues.
Thank you for your consideration.
William R. Stedman
Chair, Balancing Pool
Attachment
Cc:
Coleen Volk - Deputy Minister - Energy

David James - Assistant Deputy Minister - Energy
BAL00074
F12-2016
APPLICANT COPY
balancingpool
A p p e n d ix 1
F inancial A ssessm ent - 2016 Cash Forecast Scenarios and E stim a te d C onsum er Charge
The following assumptions were used to generate the cash flow estimates reflected in the three
forecast scenarios presented below:
All PPAs have been returned to the Balancing Pool. The Balancing Pool has assumed
responsibility for the ongoing financial obligations associated with each PPA and collects
the revenues from the energy sold into the market starting at the date that each PPA
was deemed terminated by the various Buyers
per MWh marginally lower than the year-to-date average D f $16.50 per MWh. June's
power price averaged $15.44 per MWh. Supply and demand fundamentals are expected
to remain constant over the balance of the year.
The three scenarios also include a provision for potential plant owner (forgone AIP)
Force Majeure claims estimated at $1 million per month.
Note that changes to the consumer allocation are not realized until the following month. For
example, a change to the consumer allocation effective September 1st would be reflected in
the October column on the cash forecast as remittances will not be realized until post
settlement.
F12-2016
BAL00075
APPLICANT COPY
5
Forecast Scenario 1 - Status Quo
Forecast Scenario 1 reflects the following two additional key assumptions:
Scenario 1
includes $96 million PILOT refund and Consumer Allocation continues to year-end at $3.25/MWh
(In thousands o l dollars!
Pool Price Forecost
Calendar M o nth
August
July
(SO)
DOE Mandated Costs

Total Admin & Other
(1,557/
(60.MKI)
(SO)
(1,132)
(1122)
(60,068)
(60,068)
(1,538)
(S94|
(9211
(503)
(200)
(1.000)
(100)
(1,000)
(15,000)
(15,000)
(100)
(1.000)
(15,000)
Hydro PPA
(926,
SPP
Isolated Generation
Force Majeure
Consumer Allocation
(96,000)
Septem ber
(485)
O ctober
(50)
(1,298)
(60,119)
(2,521)
(484)
November
January
150)
(50)
(6.500)
(1,130)
(1.112)
(60.119)
(50)
(1 262)
(60 068)
(2.069)
(600)
(1 705)
(568)
(100)
(1.000)
(100)
(1,000)
(50)
(60,0681
(2.483)
(100)
(1,000)
(214)
(100)
(1,000)
1^,000)
(15,000)
S u b-total PPA Settlem ent
Opening Cash Balance - Jul 0!

Ending Cash Balance
December
<1S,0CC)
__
tf tg fe N
390,000
(79,827)
310,173
310,173
(174,725)
135,448
135,448
(79,363)
S6.08S
56,08$
(24.488)
(80,573) __
(24,4631 (105,033)
(105,033)
(86,550)
(191,583)
(191,583)
(79,904)
(271,487)
Conclusion: Cash shortfall in October 2016.
BAL00076
F12-2016
APPLICANT COPY
Forecast Scenario 2 - Consumer Allocation Cancelled September 2016

Scenario 2
Includes $96 million PILOT refund and Consumer Allocation is turned off for Sept. 1, 2016
fin cnousanas o r oonrsj
s.
Calendar M o n th
A ugust
July
Septem ber
:6XK>
O ctober
~
?
N ovem ber
A c - i< l
ia n u a ry
December
(501
(50)
(50)
(50)
(6,500)
(1.132)
(1,122)
(1,298)
(1.130)
(60,503)
(50,068)
(60,058)
(60,119)
(60,068)
(1.1121
(60,119)
(1,312)
(60,068)
(926)
(1,538)
(2,521)
(484)
(2 483)
(2,0691
(1.705)
(594)
(921)
(503)
1724)
(6001
(668j
(200)
(100)
(100)
(100)
(100|
(1001
(1,000)
(1,000)
(1.000|
(1,000)
(96,000)
(50)
DOE Mandated Costs

Total Admin & Other
(1557)
Hydro
SPP
Isolated Generation
force Majeure
Consumer Allocation
- iH
(485)
(1,000)
(1,000)
(100)
(1,000)
(15.000)
(15,000)
(15.0001
' A -? '.j
S ub-total PPA S e ttlem ent

Opening Cash Balance * Jul OS
390,000
179,627)
Ending Cash Balance
310,173
(50)
*. "!
(146,583)
310,175
135,448
56,085
(9,486)
(75,033)
(174,725)
(79,363)
(6 5^73 )
(65,545)
(71,550)
(64,904)
135,448
56.08S
(9.468)
(75,033)
(146,583)
(211,487)
Conclusion: No Significant Improvement in Liquidity Position. Cash Shortfall October 2016
BAL00077
F12-2016
APPLICANT COPY
Forecast Scenario 3 - PILOT refund to ENMAX deferred to 2017

Scenario 3
$96 m illion PILOT refund deferred to 2017 and Consumer A llocation Is turned o ff fo r Sept. 1. 2016
I
-

Pool Price Forecast
DOE Mandated Costs

Total Admin & Other
Hydro
SPP
Isolated Generation
Force Majeure
Consumer Allocation
I
September
October
$L
. B S
November
January
December
(50)
(50)
(50)
(SO)
(50)
(50)
(1,557)
(1,298)
(60,500)
(60,068)
(921)
(1,112)
(60,119)
(2,069)
(594)
(200)
(1000)
(IS,000)
-V r,
(503)
(485)
(60,119)
(2.521)
(484)
(1,262)
(60,068)
(926)
(60,068)
(1,538)
(1,130)
(60,068)
(2,483)
(6,500)
11.132)
(1,122)
(100)
(1,000)
(100)
(1,000)
(15,000)
(100)
(714)
(100)
(600)
(100)
(1,000)
(1,000;
(1.000)
(SO)
Sub-total PPA S ettlem ent
August
July
Calendar M onth
lia s h
(15,000)
-=
s a m
Opening Cash Balance Jul 05
390,000
310,223
231,498
152,185
Forecast Cash O utflow
(79,777)
(79,313)
Ending Cash Balance
310,223
(78,725)
231,498
(65,523)
86,662
152,185
(1,705)
(668)
(100)
(1,000)
T S jg o V .
86.662
21,167
(43,833)
(65,495)
(65,000)
(64,804)
21,167
<43,833)
(108,637)
Conclusion: Cash shortfall delayed until December 2016.
BAL00078
F12-2016
APPLICANT COPY
Consumer Charge Estimate

Assuming a market price forecast of $16/MWh, the estimated monthly cash outflow associated
with the PPAs and other administrative expenditures averages $65 million per month. At
current demand levels, the Balancing Pool would collect $5 million per month per dollar of
consumer charge. A consumer charge of $13/MWh would be required to cover the monthly
financial obligation of $65 million. The Balancing Pool would collect a total of $260 million over
the remaining months of 2016 leaving an ending estimated balance of approximately $48
million on January 31, 2017.
C o n su m e r Charge o f $ 1 3 /M W h
(In t h o u s a n d s o f d o lla r s )
P o o l P r ic e F o r e c a s t
Calendar M o n th
PILOT Refund ana Audit Costs
DOE Mandated C a ts
Total Admm & O tte f
Hydro
August
July
(50)
O ctober
(SO)
(SO)
-
(96,000)
-
(1.5S7)
(1,132)
(60,068)
(921)
(503)
(1,122)
(1.298)
(60,068)
(1,538)
(60.119)
(60,S00)
(926)
(594)
SPP
Isolated Generation
Force Majeure
(1,000)
Consumer Allocation
(1S.OOO)
(200)

Opening Cash Balance - Jul D5
Ending Cash Balance
Septem ber
390,000
(79,827)
310,173
(485)
(100)
(100)
(1,000)
(1,000)
(IS,cool _____ i a s L
310,173
(174,7251
135,448
135,448
(79,363)
56,085
Novem ber
(50)
*
(2,521)
(484)
(10O)
(1,000)
65,000
56.085
(573)
55,512
(1,130)
(60,068)
(2,483)
(714)
(100)
(1,000)
December
(SO)
(6,500)
(1,112)
65,000
(60,119)
(2,069)
(600)
(100)
(1,000)
65,000
55,512
(545)
54,967
54,967
(6,550)
48/417
January
(50)
-
(1312)
(60,0681
(1.705)
(668)
(100)
(1,000)
65,000
48.417
96
48313
Conclusion: $l3/MWh consumer charge commencing September 2016 provides positive cash balance.
BAL00079
F12-2016
APPLICANT COPY

Sharleen Traynor
Thursday, July 21, 2016 1:26 PM
Michelle Manuliak
Consumer Allocation Notice
From:
Sent:
To:
Subject:
Michelle,
John Martin asked Bruce if we could withdraw the notice that was sent to the AESO regarding the change in the
consumer allocation in early 2015.1called John Martin and advised him that I would like to discuss this with you first
given your involvement in the file. I would like to set aside some time on Monday to chat with you about this so we can
send something to the AESO by end of day Monday. Let me know if you would prefer I book a short meeting in this
regard?
Sharleen
Sharleen Traynor | Manager Corporate Services | Balancing Pool
2350, 330 - 5th Avenue SW | Calgary, AB | T2P 0L4
Direct Line: (403) 539-5360 | Cell: (587) 893-2553 | Fax: (403) 539-5366
www.balancingpool.ca
BAL000326
F12-2016
APPLICANT COPY

From:
Sent:
To:
Subject:
Sharleen Tray nor

Michelle Manuliak
RE: Consumer Allocation Notice
No new from the DOE yet....! -P

S ent: Thursday, July 21, 2016 1:54 PM
To: Sharleen Traynor

Subject: Re: Consumer Allocation Notice
No meeting notice required, lests touch base on Monday morning. Check with Bruce to see if we've herd from
the DOE re: our efforts to start a consumer charge.
See you Monday,
Michelle
Sent from my Samsung Galaxy smartphone
--------Original message--------From: Sharleen Traynor <Sharleen.Travnor@balancinKnool.ca>

Date: 2016-07-21 1:26 PM (GMT-07:00)
To: Michelle Manuliak <michelle.manuliak@balancingpool.ca>
Subject: Consumer Allocation Notice
Michelle,
John Martin asked Bruce if we could withdraw the notice that was sent to the AESO regarding the change in the
consumer allocation in early 2015.1called John Martin and advised him that I would like to discuss this with you first
given your involvement in the file. I would like to set aside some time on Monday to chat with you about this so we can
send something to the AESO by end of day Monday. Let me know if you would prefer I book a short meeting in this
regard?
Sharleen
Sharleen Traynor | Manager Corporate Services | Balancing Pool
2350, 330-5 th Avenue SW | Calgary, AB | T2P 0L4
Direct Line: (403) 539-5360 | Cell: (587) 893-2553 | Fax: (403) 539-5366
www.balancingpool.ca
F12-2016
BAL000327
APPLICANT COPY

From:
Sent:
To:
Cc:
Subject:
John M artin
Tuesday, July 26, 2016 9:24 AM
M ichelle M anuliak
LaRhonda Papworth: Bruce Roberts
RE: V olum es Forecast fo r Consum er A llo ca tio n A d ju stm e n t
No need to meet; your reply is sufficient.

Can I ask that you not send us the notice until it is clear that we can act on it? The legislation doesn't really provide us an
option to not proceed with an application to the Commission after receiving a notice from the Balancing Pool, so it is
awkward if we receive it but cannot act on it. We do appreciate advance warning of a notice, though, so that we can be
ready to file an application as soon as possible after receiving the notice.
Note that the A ESO office will be closed this Friday, July 29, as well as Monday, August 1. If it is at all possible to receive
the notice (with permission to act) by end of day Thursday, that would potentially let us file the application this week.
Getting approvals from the Commission before September 1, for both the A ESO and for distribution system owners, will
be challenging, especially given the controversy around the return of the PPAs to the Balancing Pool.
Thanks.
John Martin
Regulatory
Calgary, AB T2P 0L4
403-539-2465 direct
403-539-2949 fax
403-667-8040 cell
www.aeso.ca
www.powerinoal berta,ca
From : Michelle M anuliak
S ent: Tuesday, July 26, 2016 9:05 AM
To: John M artin
Cc: La Rhonda Papw orth; Bruce Roberts
Subject:
RE: Volum es Forecast fo r C onsum er A llocation A d ju s tm e n t
Hi John,
It is s till th e B alancing Pool's in te n tio n to in itia te a charge to consum ers d e sp ite th e events o f ye ste rd a y. We are still
responsible fo r th e o n g o in g costs o f th e PPAs d u rin g th e c o u rt litig a tio n process, w e do re q u ire fu n d in g o r th e
a lte rn a tiv e w ilt be insolvency.
W e w ill be sending th e le tte r la te r to d 3 y . Please n o te th a t w e d o n 't w a n t th e a p p lica tio n process to begin u n til the
G o v e rn m e n t gives us the go ahead W e a n tic ip a te to h e a r fro m th e g o v e rn m e n t o fficials la te r th is w eek.
If y o u 'd like to d ro p by to discuss w ith Bruce and I, please le t m e know .
Kind Regards,
BAL000385
F12-2016
APPLICANT COPY
M ic h e lle
From : John Martin

Cc: La Rhonda Papworth
S u b je ct: RE: Volumes Forecast for Consumer Allocation Adjustment
Hi, Michelle.
Given the Alberta government's application to the court yesterday for judicial review and an order declaring the Enron
clause" void in law, and the government's related order quashing a recent decision by the Balancing Pool to accept the
return of Enmaxs now money-iosing Battle River 5 PPA to the Balancing Pool, I assume the Balancing Pool will not be
amending the consumer allocation as discussed yesterday.
Please confirm.
Thanks.
John Martin
Regulatory
Calgary, AB T2P 0L4
403-539-2465 direct
403-539-2949 fax
403-667-8040 cell
www.aeso.ca
www.poweringalberta.ca
From : John Martin
S ent: Monday, July 25, 2016 4:51 PM
S u b je c t: Volumes Forecast for Consumer Allocation Adjustment
Hi, Michelle.
In response to your voicemail message, here is our current estimate of volumes for 2016. We plan to present it in our
Rider F application to the Commission as follows:
[A]
[B]
[C]
[D = B 4 C]
Metered
Consumer
Period
Amount
Energy
Allocation
__________________$ 000 000
GWh________ $/MWh
Jan-Aug 2016
($123,850)
38,107 ($3.25/MWh)
Sep-Dec 2016________ $254,020_______ 19,540 $13.00/MWh
Annua!
$130,170
57,647
The values in column [C] are our volumes current estimate. The values in column [B] are calculated based on the values
in columns [C] and [D]; you may need to adjust the column [B] values if they don't reflect your expectations.
Let me know if you have any questions.
2
BAL000386
F12-2016
APPLICANT COPY
John Martin

Regulatory
Calgary, AB T2P0L4
403-539-2465 direct
403-539-2949 fax
403-667-8040 cell
www.aeso.ca
www.powerinqalberta.ca
BAL000387
F12-2016
APPLICANT COPY

John Martin
Tuesday, July 26, 2016 1:26 PM
Michelle Manuliak
LaRhonda Papworth; Bruce Roberts
RE: Volumes Forecast for Consumer Allocation Adjustment
From:
Sent:
To:
Cc:
Subject:
Thanks, Michelle.
We will prepare to be ready to file our application to the Commission as soon as possible after receiving notice from the
Balancing Pool.
John Martin
403-539-2465 direct
403-667-8040 cell
S ent: Tuesday, July 26, 2016 1:17 PM
To: John Martin; Bruce Roberts
S ubje ct: RE: Volumes Forecast for Consumer Allocation Adjustment
Hi John,
Our CEO, Bruce Roberts has spoken with Bob Heggie over at the AUC. The tentative plan is to have a new Consumer
Allocation letter over to you on Tuesday August 2 nri after our Board of Directors meeting. Bob has relayed to the
Balancing pool that it is possible to have the Consumer allocation revised for September 1st if we can meet that timeline
of next Tuesday.
At the moment that is our goal. It will be depended upon the Energy Minister making a decision on the amount we can
charge later this week.
If you have further concerns, please get in touch with Bruce Roberts. He has been cc'd on this email.
Kind Regards,
Michelle
From : John Martin
S ubje ct: RE: Volumes Forecast for Consumer Allocation Adjustment
Thanks. Withdrawing the previous letter will be great.

I don't think it is practical to request a September 1 effective date if we receive the notice next week. The Commission
needs at least four weeks to process an application, and preferably six weeks. If you send us the notice next week, I
suggest the effective date for the revised consumer allocation be October 1, 2016.
John Martin
BAL000388
F12-2016
APPLICANT COPY
Regulatory
Calgary, AB T2P 0L4
403-539-2465 direct
403*539-2949 fax
403-667-8040 cell
www.aeso.ca
www.powerinoalberta.ca
Sent: Tuesday, July 26, 2016 9:23 AM
To: John M artin

Subject: RE: Volumes Forecast for Consumer Allocation Adjustment
Hi John,
A n o th e r quick u p d a te . W e w ill w ith d ra w th e M a rc h le tte r to d a y . In a w eek o r so, when th e Energy M in s te r decides on
th e c o n su m e r charge going fo rw a rd and re la te d tim in g , w e w ill issue 3 new le tte r at th a t tim e .
Thanks,
M ic h e lle
From : John Martin

Sent: Tuesday, July 26, 2016 8:40 AM
Subject: RE: Volumes Forecast for Consumer Allocation Adjustment
Hi, Michelle.
Given the Alberta government's application to the court yesterday for judicial review and an order declaring the Enron
clause" void in law, and the government's related order quashing a recent decision by the Balancing Pool to accept the
return of Enmax's now money-losing Battle River 5 PPA to the Balancing Pool," I assume the Balancing Pool will not be
amending the consumer allocation as discussed yesterday.
Please confirm.
Thanks.
John Martin
Regulatory
Calgary, AB T2P 0L4
403-539-2465 direct
403-539-2949 fax
403-667-8040 cell
www.aeso.ca
www.powerinaalberta.ca
2
BAL000389
F12-2016
APPLICANT COPY
From : John Martin
Sent: Monday, July 25, 2016 4:51 PM


Subject: Volumes Forecast for Consumer Allocation Adjustment
Hi, Michelle,
In response to your voicemail message, here is our current estimate of volumes for 2016, We plan to present it in our
Rider F application to the Commission as follows:
[A]
[B]
[C]
[0 = B r C]
Metered
Consumer
Period
Amount
Energy
Allocation
_________________ $ 000 000______ GWh________$/MWh
Jan-Aug 2016
($123,850)
38,107 ($3.25/MWh)
Sep-Dee 2016________ $254,020_______ 19,540 $13.00/MWh
Annual
$130,170
57,647
The values in column [C] are our volumes current estimate. The values in column [B] are calculated based on the values
in columns [C] and [D]; you may need to adjust the column [B] values if they don't reflect your expectations.
Let me know if you have any questions.
John Martin

Regulatory
Calgary, AB T2P 0L4
403-539-2465 direct
403-539-2949 fax
403-667-8040 cell
www.aeso.ca
BAL000390
F12-2016
APPLICANT COPY
Calgary Place
2350, 3 3 0 - 5 t h Ave. S.W.
Calgary, Alberta T2P QL4
balancingpool
te l ( 4 0 3 ) 5 3 0 -5 3 5 0
fa x ( 4 0 3 ) 5 3 0 -5 3 6 6
www, bal ancingpoot.ca
July 26, 2016

Ms, Heidi Kirrmaier, Vice-President, Regulatory
Suite 2500, 330 - 5,h Avenue SW
Calgary, A B T 2 P 0L4
RE: AESO 2016 T a riff A p p lic a tio n
Dear Ms. Kirrmaier:

Please accept this letter as official notice, that the Balancing Pool is withdrawing our Consumer
Allocation letter dated March 17, 2016.
The Balancing pool anticipates a revised letter will be forwarded to the A E S O on August 2nd
Sincerely,
Bruce Roberts
President and C E O
C C LaRhonda Papworth, Alberta Electric System Operator
BAL000391
F12-2016
APPLICANT COPY

From:
Sent:
To:
Cc:
Subject:

Greg Pollard (External): Monica Sloan (External)
Bruce Roberts; DALLAS DROPPO
Special Board Meeting
credentials.***
I would like to call a special board meeting for 10:00 AM, Tuesday August 2 at the Balancing Pool offices, I expect the
meeting will terminate by 12:30.
The agenda is
1. Review financial projections to year end 2016 assuming various levels of Consumer Charge, beginning September 1,
2016.
2. Discuss, and if appropriate approve, a Consumer Charge as of September 1,2016.
Non-responsive
Monica Sloan has a prior commitment on Tuesday and is unlikely to be able to attend. I will meet with Monica on Friday
this week and will discuss the material with her I will relay any questions or concerns she may have to the Board when
we meet on Tuesday.
I expect management will have the supporting materials for distribution by Thursday this week.
Bill Stedman
ENTx Capital Corp
(403)999-1186
BAL0003
F12-2016
APPLICANT COPY

From:
Sent:
To;
Subject:
Attachments:
Michelle Manuliak
Ben Chappell
Forecast To Year End
05 Cash Forecast Aug 2 $12.00xlsx; 05 Cash Forecast Aug 2 $(3.25).xlsx; 05 Cash
Forecast Aug 2 $0.00.xlsx
Ben,
Please update as you see fit.
direct line: 403.539.5357 | fax:403-539.5366
BAL000328
F12-2016
APPLICANT COPY
Balancing Pool
Forecast to year end 2016
V n thousands of dollars)
g t t le m e n t M onth
2 & o l Price Forecast
Calendar Month
PILOT and Audit Costs
Sep
Jul
rS ild
August
Jciuti
September
(50)
DOE Mandated Costs

Total Admin & O ther
(96,000)
1-
>
Oct
i & jOO
October
Nov
lb 00
November
Dec
iD.no
December
>
16,001
January
(50)
(50)
(6,500)
(50)
(1,262)
(60,068)
(1,132)
(1,122)
(1,298)
(1,130)
(50)
(50)
(60,068)
(60,068)
(60,119)
(60,068)
(1,112)
(60,119)
Hydro PPA
(921)
(1,538)
(2,521)
(2,483)
(2,069)
(1,705)
SPP
(503)
(485)
(48 4)
(714)
(600)
(668)
Isolated Generation
(100)
(100)
(100)
(100)
(1,000)
(1,000)
(1,000)
(100)
(1,000)
57,000
Total PPA Cash O utflow
Consumer Allocation
(15,438)
(100)
(1,000)
(15,438)
57,000
57,000
57,000
(7*21 S)
i 175.r s ' i |
M W
ta M D
(14.150)
Opening Cash Balance - Aug 01

Ending Cash Balance
315,000
(79,213)
235,787
235,787
(175,751)
60,036
60,036
(8,573)
51,46a
51,464
(8,545)
42,919
42,919
(14,550)
28,368
28,368
(7,904)
20,464
4,750
4,750
4,750
4,750
4,750
(3.25)
12.00
12.00
12 00
12.00
Force Majeure
Demand Gwh's
CA Rate
(1,000)
4,750
(3.25)
CD
>
1
o
o
o
CO
NO
CD
APPLICANT COPY
*041
Balancing Pool
'forecast to year end 2016
i thousands of dollars)
fisttle m e n t M onth
0k>o! Price Forecast

Calendar Month
PILO T and Audit Costs
DOE M andated Costs
Total Adm in & O ther
Hydro PPA
SPP
Aug
Jul
16 AO $
August
16.00 S
September
Sep
O ct
i*.oa *
October
(50)
(96,000)
(50)
(1.132)
(60,068)
(1,298)
(60,119)
(2.521)
(484)
Nov
l.fi.00
November
(50)
$.
Dec
16.00 5
December
January
(50)
(50)
(1,130)
(60,068)
(2,483)
(714)
(100)
(6,500)
(1,112)
(60,119)
(2,069)
(600)
(100)
(1 ^ 4 3 8 )
(1,000)
{15,438)
(1,000)
(15,438)
(50)
(1,262)
(60,068)
(1,705)
(668)
(100)
(1,000)
(15,438)
Isolated Generation
Force M ajeure
Consum er Allocation
(15,438)
(1,122)
(60,068)
(1,538)
(485)
(100)
(1,000)
(15,438)
(H U U|
(175,751)
181 010]
(B0.48 3)
(86,988)
M U

Ending Cash Balance
315,000
(79,213)
235,787
235,787
(175,751)
60,036
60,036
(81,010)
(20,974)
(20,974)
(80,983)
(101,956)
(101,956)
(86,988)
(188,944)
(188,944)
(80,341)
(269,286)
4,750
(3.25)
4,750
(3.25)
4,750
(3.25)
4,750
(3.25)
4,750
(3.25)
4,750
(3.25)
Dem and Gwh's

CA Rate
(921)
(503)
(100)
(1,000)
(100)
(1,000)
00
>
r~
o
o
w
CO
APPLICANT COPY
Balancing Pool
forecast to year end 2016
îji thousands of dollars)
fipttlem ent M onth
Cfcol Price Forecast

Calendar Month
PILO T and Audit Costs
Jul
Aug
1*00
August
lb 00 S
September
(50)
(96,000)
-
DOE M andated Costs

(1,132)
(60,068)
H ydro PPA
SPP
Isolated Generation
Force M ajeure
(921)
(503)
(100)
(1,000)
(15,438)

Ending Cash Balance
Oct
Sep
(1,122)
(60,068)
(1,538)
It, UQ i
October
Nov
16,00 S
November
Dec
*6.00 S
December
16.00
January
(50)
(50)
(50)
(50)
(1,298)
(1,130)
(60,068)
(6,500)
(1,112)
(60,119)
(2,069)
(600)
(100)
(1,000)
-
(50)
(1,262)
(60,068)
(1,705)
(668)
(100)
(1,000)
-
(485)
(100)
(60,119)
(2,521)
(484)
(100)
(1,000)
(15,438)
(1,000)
-
(2,483)
(714)
(100)
(1,000)
-
179,213)
1175,751)
I6S 573)
(65,545)
(71,550)
(64.904)
315,000
(79,213)
235,787
235,787
(175,751)
60,036
60,036
(65,573)
(5,536)
(5,536)
(65,545)
(71,081)
(71,081)
(71,550)
(142,632)
(142,632)
(64,904)
(207,536)
Dem and Gwh's
4,750
CA Rate
(3.25)
4,750
(3,25)
4,750
4,750
-
UJ
>
r~
o
o
CO
CO
APPLICANT COPY
4,750
-
4,750
-

From:
Sent:
To:
Subject:
Attachments:
Michelle Manuliak
Ben Chappell
Draft Board Write Up - Forecast
Cash Flow Forecast to year end Aug 2.docx

direct line: 403.539.5357 | fax:403-539.5366
BAL000332
F12-2016
APPLICANT COPY
balancingpool
M e m orandum
To:
Board of Directors
From: Bruce Roberts, Ben Chappell and Michelle Manuliak

Date:
August 2, 2016
Re:
2016 Cash Forecast Scenarios and Estimated Consum er Charge
P u rp o s e
for covering the cash flows for the entire PPA fleet and the pending PILOT refund
The following assum ptions were used to generate the cash flow estimates reflected in all four
of the forecast scenarios presented below:
The Balancing Pool assumes responsibility for the ongoing financial obligations
associated with each PPA and collects the revenues from the energy sold into the
market starting at the date the PPA was deemed term inated by the various Buyers.
per MWh. Supply and demand fundam entals are expected to remain constant over the
balance of the year.
The scenarios also include a provision for potential plant owner (forgone AIP) Force
Majeure claim s estimated at $1 million per month
The forecast scenarios reflect the ENMAX PILOT refund of $96 million. Payment forecast
for end of Septem ber 2016.
The estimated consum er allocation has been revised to reflect the AESO's revised
demand forecast for the balance of the year.
BAL000333
F12-2016
APPLICANT COPY
The figures presented are best estimates made with the inform ation available as at the time of
Please note that the financial im plications for consumer allocation changes affect the following
m onth's cash balance. For example, a change to the consum er allocation effective September
Forecast Scenario - Consum er Allocation of $3.25/M W h continues to year end

The forecast presented below assum es the current Consumer Allocation continues to
December 2016. This scenario represents the worst case possible for the Balancing Pool.
Should the current Consumer Allocation continue to December 2016, the organization will be in
a deficient of $20.9 million by the end of October 2016.
Balancing Pool
Pool Price Forecast

Calendar Month
PILOT and A u d it Costs
lbOC 7
September
August
(50)
(96,000)
-
DOE M andated Costs

Total Adm in & Other
1 ,0 0
(50)
(50)
-r
u:
December
(50)
(6,500)
January
(SO)
(50)
(1,262)
(60,068)
U,70S)
(1,130)
(1,112)
160,068)
(60,068)
(60,119)
(2,521)
(2,483)
(2,069)
(484)
(714)
(600)
(668)
(100)
(100)
(100)
(100)
(503)
(100)
(100)

Ending Cash Balance
November
(1.298)
(921)
October
IS IT,
(60,119)
Hydro PPA
Consumer A llocation
(1,122)
SPP
fo rc e M ajeure
1 ,0 0
(1,132)
(60,068)
(1,538)
(485)
(1,000)
(1,000)
(1,000)
(1,000)
(1,000)
(1,000)
(15,438)
(15,438)
_____ (15,438)
(15,438)
(15,438)
(15,438)
. : ;
. . 7 5 ,^ 1 ,
( E ip t o ;
tl) (183)
iSf.
315,000
(79,213)
235,787
235,787
(175,751)
60,036
60,036
(81,010)
(20,974)
(20,974)
(80,983)
(101,956)
Demand (Gwh's)
4,750
4,750
CA Rate
(3 2 5 )
(3.25)
4,750
(3.25)
(101,956)
(86,988)
(188,944)
(188,944)
(80,341)
(269,286)
4,750
4,750
4,750
(3 25)
(3.25)
(3.25)
BAL000334
F12-2016
APPLICANT COPY
Forecast Scenario - Consumer Allocation set to SO.OO/MWh effective September 1st

The forecast presented below assumes the current Consumer Allocation is reduced to
$0.00/M W h effective Septem ber 1, 2016. Despite the effort to turn of the Consumer Allocation,
effective Septem ber 1st, the Balancing Pool will still be in a deficit of $5.5 million by the end of
October 2016.
Balancing Pool
Pool Price Forecast
Calendar Month
16XC
is a .
September
August
:F.OO
October
16 iX
Nov/ember
JhX>: s
December
(50)
16.00
January
150)
(50)
(50)
DOE M a ndated Costs
(6,500)
(50)
(1.132)
(60,068)
(1.122)
(1.298)
(1,130)
(1.112)
(1,262)
(60,068)
(60,119)
(60,068)
(60,119)
(60,068)
Hydro PPA
(921)
(1,538)
(2,521)
(2,483)
(2,069)
(1,705)
SPP
(503)
(48S)
(484)
(714)
(600)
(668)
Isolated Generation
(TOO)
(100)
(100)
(100)
(100)
(100)
(1,000)
(1,000)
(1.000)
(1,000)
(1.000)
(1,000)

Total PPACash O u tflo w
Force M ajeure
(96,000)
(50)
C onsum er A llo cation
(15f438)
(15,438)
179,2131
0 75.751)
JfesiE B J

Ending Cash Balance
315,000
(79,213)
235,787
235,787
(175,751)
60,036
60,036
(65,573)
(5436)
15,536)
(65,545)
(71,081)
4,750
4,750
4,750
4,750
Demand Gwh's
4,750
4.750
CA Rate
(3.2S)
(3.25)
714531.
(71,081)
(71,550)
(142,632)
(142,632)
(64,904)
(207,536)
BAL000335
F12-2016
APPLICANT COPY
Forecast Scenario - Consumer Allocation set to $13.00/MWh effective September l 4t

The forecast presented below assumes the current Consumer Allocation is reduced to
$0.00/MW h effective September 1, 2016. Despite the effort to turn of the Consumer Allocation,
effective September 1st, the Balancing Pool will still be in a deficit of $5.5 million by the end of
October 2016.
Balancing Pool
Cash Forecast to year end 2016
Pool Price Forecast

Calendar Month
September
August
(SO)
(96,000)
01
October
16 00
November
(50)
(50)
DOE M a nd a te d Costs
Total Adm in & O the r
!6 .r v
(6 /V| -9
December
(50)
_
ianuary
(50)
(6,500)
(50)
(1.132)
(1,122)
(1,298)
(1,130)
(1,112)
(1,262)
(60,068)
(60,068)
(60,119)
(60,068)
(60,119)
(60,068)
H ydro PPA
1921)
(1,538)
(2,521)
(2,483)
(2,069)
(1,705)
SPP
(503)
(485)
(484)
(714)
(600)
(668)
Iso late d G eneration
1100)
(100)
(100)
(100)
(100)
(100)
(1,000)
(1,000)
(1,000)
(1,000)
(1,000)
(1,000)
C onsum er A llo ca tio n
(15,438)
{15,438)
61,750
61,750
61.750
61,750
(W & B I
Opening Cash Balance Aug 01

Ending Cash Balance
315,000
(29,213)
235,787
235,787
(175,751)
60,036
60,036
(3,823)
56,214
56,214
52,419
(9,800)
52,419
42,618
42,618
(3-154)
39,464
4,750
4 ,750
4,750
4,750
13 00
1300
13.00
13.00
Force M ajeure
4 ,7 5 0
D em and Gwh s
4,750
CA Rate
(3.25)
(3.25)
(V9S)
C onsum er Charge E stim ate
Using the AESO's revised demand forecast, the Balancing Pool would collect $4.7 million per
month per dollar of consumer charge. A consum er charge of $13/MWh would net the Balancing
Pool $61.7 million per month, leaving an ending cash balance of approximately $40 million on
January 31, 2017 after settling the month of December 2016.
BAL000336
F12-2016
APPLICANT COPY

From:
Sent:
To:
Subject:
Attachments:
Michelle Manuliak
Ben Chappell
Draft Board Write Up - Forecast
Cash Flow Forecast to year end Aug 2.docx

direct line: 403.539.5357 | fax: 403.539.5366
F1 2-2 01 6
B A L000135
APPLICANT COPY
balancingpool
Memorandum
To:
Board of Directors
From: Bruce Roberts, Ben Chappell and Michelle Manuliak

Date:
August 2, 2016
Re:
2016 Cash Forecast Scenarios and Estimated Consum er Charge
P u rp o s e
for covering the cash flows for the entire PPA fleet and the pending PILOT refund,
The follow ing assumptions were used to generate the cash flow estimates reflected in ail four
o f the forecast scenarios presented below:
market starting at the date the PPA was deemed term inated by the various Buyers.
No term ination payments will be made to the PPA Owners during 2016.
per MWh. Supply and demand fundam entals are expected to remain constant over the
balance of the year.
M ajeure claims estimated at $1 million per month.
The forecast scenarios reflect the ENM AX PILOT refund of $96 million. Payment forecast
for end of Septem ber 2016.
The estimated consumer allocation has been revised to reflect the AESO's revised
demand forecast for the balance of the year.
F12-2016
BAL000136
APPLICANT COPY
Please note that the financial im plications for consumer allocation changes affect the following
m onth's cash balance. For example, a change to the consum er allocation effective September
Forecast Scenario - C onsum er A llo c a tio n o f $ 3 ,2 5 /M W h co n tinue s to year end
The forecast presented below assum es the current Consum er Allocation continues to
December 2016. This scenario represents the worst case possible for the Balancing Pool.
Should the current Consumer Allocation continue to December 2016, the organization will be in
a deficient of $20.9 million by the end of October 2016.
Balancing Pool
Pool Price forecast
Calendar Month
PILOT and Audit Costs
DOE Mandated Costs
Total Admin & Other
Hydro PPA
SPP
Isolated Generation
Force Majeure
Consumer Allocation
Opening Cash Balance Aug 01
Ending Cash Balance
Demand (Gwh's)
CA Rate
16.00
August
(50}
(1,132)
(60,068)
(921)
(503)
(100)
(1,000)
(15,438)
(79,213)
16.00
September
(96,000)
-
(1,122)
(60,068)
(1,538)
(485)
(100)
(1,000)
16.00
October
(501
-
(1,298)
(60,119)
(2,521)
(484)
16.00
November
16.00
December
(50)
(1,130)
(60,068)
(2,483)
(714)
(100)
(1,000)
(15,438)
(80,983)
(50)
(6,500)
(1,112)
(60,119)
(2,069)
(600)
(100)
(1,000)
(15,438)
(86.988)
(15,438)
(175,751)
(100)
(1,000)
(15,438)
(81,010)
235,787
(175,751)
60,036
60,036
(20,974)
(79,213)
235,787
(81,010)
(20,974)
(80,983)
(101,956)
(101,956)
(86,988)
(183,944)
4,750
(3.25)
4,750
(3.25)
4,750
(3.25)
4,750
(3.25)
4,750
(3.25)
315,000
F12-2016
16.00
January
(50)
(50)
(1,262)
(60,068)
(1,705)
(668)
(100)
(1,000)
(15,438)
(80,341)
(188,944)
(80,341)
(269,286)
4,750
(3.25)
BAL000137
APPLICANT COPY
Forecast Scenario - Consumer Allocation set to $0.00/MWh effective September 1st

The forecast presented below assum es the current Consum er Allocation is reduced to
SO.OO/MWh effective September 1, 2016. Despite the effort to turn of the Consumer Allocation,
effective September 1st, the Balancing Pool will still be in a deficit of $5.5 million by the end of
October 2016.
Balancing Pool
Pool Price Forecast

Calendar Month
16.00 $
August
16.00 $
September
16.00 $
October
16.00 $
November
16.00 $
December
16.00
January
Hydro PPA
(921)
(96,000)
(1422)
(60,068)
(1,538)
(2,S21)
(2,483)
(2,069)
(60,068)
(1,705)
SPP
(503)
(485)
(484)
(714)
(600)
(668)
(IDO)
(100)
(100)
(100)
(100)
(100)
(1,000)
(1,000)
(1,000)
(1,000)
(1,000)
(1,000)
PILOT and A udit Costs
(50)
DOE M andated Costs

Total PPA Cash O u tflo w
Force M ajeure
(1.132)
(60,068)
(50)
(50)
(50)
(50)
(6,500)
(50)
(1,298)
(1 4 3 0 )
(1,112)
(1,262)
(60,119)
(60,068)
(60,119)
Consum er A llo cation
(15,438)
(15,438)
(79,213)
(175,751)
(65,573)
(65,545)
(71,550)
(64,904)

Ending Cash Balance
315,000
(79,213)
235,787
235,787
(175,751)
60,036
60,036
(65,573)
(5,536)
(5,536)
(65,545)
(71,081)
(71,081)
(71,550)
(142,632)
(142,632)
(64,904)
(207,536)
Demand Gwh's
4,750
4,750
CA Rate
(3.25)
(3.25)
4,750
4,750
F12-2016
4,750
4,750
BAL000138
APPLICANT COPY
Forecast Scenario - Consumer Allocation set to $13-QQ/MWh effective September l rt

The forecast presented below assumes the current Consum er Allocation is reduced to
$0.00/M Wh effective Septem ber 1, 2016. Despite the effort to turn of the Consumer Allocation,
effective September l 5t, the Balancing Pool will still be in a deficit of $5.5 million by the end of
October 2016.
Balancing Pool
Cash Forecast to year end 2016
(In th o u s a n d s o f d o lla rs )
Pool Price Forecast

C a le n d a r M o n th
PILOT and A udit Costs

00E Mandated Costs
Total Admin & Other
Hydro PPA
SPP
Isolated Generation
Force Majeure
Consumer Allocation
S u b -to ta l PPA S e ttle m e n t
O p e n in g Cash B a la n ce - A u g 01
E n d in g Cash Balance
Demand Gwh's
4,750
4.7S0
4,750
4,750
4,750
4,750
CARate
(5.25)
(3.25)
13.00
13,00
13.00
13.00
C onsum er Charge Estim ate
Using the AESO's revised demand forecast, the Balancing Pool would collect $4.7 million per
month per dollar of consum er charge. A consum er charge of $13/MWh would net the Balancing
Pool $61.7 million per month, leaving an ending cash balance of approximately $40 million on
January 31, 2017 after settling the month of December 2016.
F12-2016
BAL000139
APPLICANT COPY

From:
Sent:
To:
Cc:
Subject:
William Stednnan (External)

Monica Sloan (External): Greg Pollard (External)
Bruce Roberts; DALLAS DROPPO
Balancing Pool Liquidity
credentials.***
David James, Electricity ADM, phoned me this afternoon He said the Government will not allow us to turn off the
Consumer Allocation or to institute a Consumer Charge. Instead, the Government proposes to fund our cash
requirements directly from Treasury.
David asked me what written assurances from Government we will require. I said we would respond following our Board
meeting on Tuesday.
I have tentatively made a lunch appointment with David James, Bruce Roberts and myself on Tuesday, following our
Board meeting.
Bill Stedman
ENTx Capital Corp.
(403)999-1186 1
BAL00032
F12-2016
APPLICANT COPY

From:
Sent:
To:
Subject:
Michelle Manuliak
Wednesday, August 03, 2016 8:10 AM
Ben Chappell
RE: Balancing Pool Default
Yes, that's correct Ben.

F rom : Ben Chappell
S e n t: Tuesday, August 02, 2016 3:25 PM
S u b je c t: Balancing Pool Default
Hi Michelle,
Now that the government has intervened and prevented the Balancing Pool from implementing a consumer charge to
cover the costs associated with the returned PPAs, we are expecting to default on our obligations in November, correct?
Thanks,
Ben
Manager of Strategy and Special Projects
Balancing Pool
(403) 539-5361
ben.chaopelllSbalancinEDOol.ca 1
F12-2016
BAL000399
APPLICANT COPY
S h a rle e n T r a y n o r
From:
Sent:
To:
Cc:
Subject:
John M a rtin
Thursday, A ug u st 04, 2016 8:26 AM
Bruce Roberts
LaRhonda Papworth; M ichelte M anuliak
RE: Potential N otice o f A m ended C onsum er A llocation
Hi, Bruce.
C o uld you provide a status update on the p o tential c o n s u m e r allocation am endm ent?
T he em ail below suggests th a t a S e p te m b e r 1 e ffective d ate will not be possible if notice w as not provided by A u gust 2.
W e are ready to file an application to the C o m m issio n upon receiving a notice from the B alancing Pool, a ssu m in g a
S e p te m b e r 1 effective date. A different e ffe ctive date w ill re q u ire som e revision to the application, w hich m ay ta k e a day or
tw o.
A n y additional inform ation you can provide w o u ld be a p preciated.
John Martin
Regulatory
2500, 330-5th Avenue SW
Calgary, A8 T2P 0L4
403*539-2465 direct
403-539-2949 fax
403-667-8040 cell
www.aeso.ca
www.powerinQaiberta.ca
From : Michelle M anuliak
Sent:
To: John M artin; Bruce Roberts
Cc: LaRhonda Papw orth

Subject: RE: Volum es Forecast
fo r C onsum er A llocation A d ju s tm e n t
Hi John,
O u r CEO, Bruce R oberts has spoken w ith Bob Heggie o v e r at th e AUC. The te n ta tiv e plan is to have a new C onsum er
A llo c a tio n le tte r o ve r to yo u on Tuesday A ugust 2 ni) a fte r o u r Board o f D ire cto rs m e e tin g . Bob has relayed to th e
B alancing p o o l th a t it is possible to have th e C onsum er a llo c a tio n revised fo r S e ptem ber I s' if w e can m e e t th a t tim e lin e
o f n e xt Tuesday.
A t th e m o m e n t th a t is o u r goal. It w ill be d e p e n d e d u p o n th e Energy M in is te r m aking a decision on th e a m o u n t w e can
charge la te r th is w eek.
If yo u have fu r th e r concerns, please g e t in to u c h w ith Bruce R oberts. He has been cc'd on th is em ail.
Kind Regards,
M ic h e lle
BAL000392
F12-2016
APPLICANT COPY
From : John Martin

Cc: La Rhonda Papworth
S u b je ct: RE: Volumes Forecast for Consumer Allocation Adjustment
Thanks. Withdrawing the previous letter will be great.

I dont think it is practical to request a September 1 effective date if we receive the notice next week. The Commission
needs at least four weeks to process an application, and preferably six weeks. If you send us the notice next week, !
suggest the effective date for the revised consumer allocation be October 1, 2016.
John Martin
Regulatory
Calgary, AB T2P 0L4
403-539-2465 direct
403-539-2949 fax
403-667-8040 cell
www.aeso.ca
BAL000393
F12-2016
APPLICANT COPY

Sunday, August 07, 2016 4:12 PM
Monica Sloan (External), Greg Pollard (External)
Bruce Roberts
Special Board meeting Aug 8
From:
Sent:
To:
Cc:
Subject:
** EXTERNAL email, Please be cautious and evaluate before you click on links, open attachments, or provide
credentials.***
I want to schedule a special Board meeting, by telephone at 4:30 PM Mountain, Monday Aug 8, 2016.
The agenda for the meeting is to discuss pending legal issues. In particular,
1.
Discuss the preparation of a letter to be sent by me to the Minister of Energy, regarding our impending
insolvency and the over-ride of our Corporate Mandate by the Government of Alberta.
Non-responsive
Thanks.
Bill
Telephone conference information is as follows:
Dial 1-877-385-4099
Participant Access Code 39450#
Moderator Access Code 97316#
BAL0004
F12-2016
APPLICANT COPY

From:
Sent:
To:
Subject:
Bruce Roberts
Balancing Pool Borrowing Update
Directors;
Michelle, Ben and I met with representatives from TD Commercial Banking to further explore the Balancing Pool's
options for covering the imminent 2016 cash shortfall emanating from the PPA terminations. We were open in
explaining the current situation and made it clear that the government's recent intervention has compromised our
mandated ability to collect losses from consumers - at least in the near term. After some discussion I ask them to
consider what they would require in the form of a guarantee or assurance from the government in order to get
comfortable with BP credit. The TD representatives will be conferring with their legal department to provide official
responses to our questions, but the conversation gave us an idea of what to expect.
S.24(1)(a)(b)(c), S.25(1)(c)
Sincerely,
Bruce Roberts
F12-2016
BAL00033
APPLICANT COPY

From:
Sent:
To:
Subject:
Attachments:
Michelle Manuliak
Wednesday, August 10, 2016 12:36 PM
Ben Chappell
FW: Going concern assessment
Balancing Pool GC Considerations 10 Aug 2016.docx; ATT00001 txt
From : Kerry Clark [mailto:kerrv.clark@ca.ev-com1

Sent: Wednesday, August 10, 2016 11:56 AM
To: Bruce Roberts; Michelle Manuliak
Cc: James Trites
Subject: Going concern assessment
Hi Bruce & Michelle
Jim & I met with Greg yesterday to discuss the process that management and the Board needs to undertake in order to
perform a going concern assessment and create an adequate audit trail/ support for such assessment. As a result, we
have updated the draft guide to include more specific guidance and commentary as well an illustrative going concern
note in case you do reach the conclusion that there is a material uncertainty.
As I expected, there is no movement on the idea of not filing the Q2 FS, which I frankly concur with given the timing of
ceasing to do that would likely expose you to accusations of lack of transparency.
When you read through the attached document, you'll see that a robust cash flow forecast with a sensitivity analysis and
well documented support for the assumptions used Is central to support your going concern conclusion. Given the
importance of this estimate combined with the press that came out this morning implying thatthe government's claim
of $2B is inflated and that the net loss on these contracts is likely closer to $600M (or $900M including the existing
Hydro PPA), I'd strongly advise that you have a professional valuator take a look at your cash flow model and the
assumptions. In addition, I know I said you could probably get away with using your existing model to estimate the
liability for financial statement recognition purposes but given all of the focus this number could receive, perhaps it is
advisable to also get this model reviewed. I know you have existing service providers for these types of models but just
in case, we do have our valuators mobilised to assist (Gerard has identified specific individuals that have had no
involvement with any of the PPA Owners related to these contracts - they are ring fenced specifically to assist you). So
just let me know if you would like me to set up a meeting or get Gerard to contact you directly.
I believe the next step is to get the Board to agree on the key assumptions as per the checklist in the memo and
document those conclusions. The forecast should then (this process could commence concurrently) be updated to
reflect the Board's conclusions (& be reviewed for reasonableness). The Board will then have to review the revised
model and assuming it does reflect a liquidity problem within the next 12 months, they will need to identify and assess
the impact of the mitigating actions they believe are available to them, including documenting those discussions. Based
on that assessment, they will then need to conclude on whether the BP is a going concern with a material uncertainty
requiring FS note disclosure versus no material uncertainty versus not a going concern at all This process is all
summarised on the attachment. We are happy to assist with documenting any of this and/or attending meetings etc as
you instruct but management/Board need to reach their own conclusions on the issues.
Let me know what you need next.
BAL000146
F12-2016
APPLICANT COPY
Cheers.
Kerry Clark, C A |Associate Partner |Financial Accounting Advisory Services
Ernst & Young LLP
Calgary City Centre
2200 - 215 2nd Street SW
Calgary, Alberta T2P 1M4, Canada
Office. +1 40 3 206 5083 | M obile +1 403 874 4274 , Kerry ClaOUSita py.com
Website: httD://vvww.ey.com
Assistant: S ydney Hanson | Phone. + 1 403 206 5472 ( Sydney Hansoo<a>ca.ey.com
This e-m ail d o e s not constitute an opinion on the application o f generally accepted accounting principles, or a n y form o f assura nce
con curren ce with a spe cific entity's accounting matters, financial statem ents, any financial o r other information o r internal controls,
not conclude on the appropriate accounting treatment b a s e d on sp e cific facts o r reco m m end which accounting pollcy/treatment a ;
entity sh o u ld s e le c t o r adopt This e-m ail Is the equivalent o f an informal discu ssio n and m ay not be shewn, re fe re n ce d or distribub
anyone outside the recipient's organization.
CONFIDENTIAL and/or PRIVILEGED. If received in error please notify the sender and permanently delete. CONFIDENTIEL et/ou
PRJV1LEG1E. Si ce couniel est reyu par erreur, veuillez nous en aviset et en effacer toute trace, EY, 222 Bay St, PO Box 251,
Toronto, ON M5K 1J7. www.ev.com/ca To unsubscribe from commercial electronic messages / Pour vous desabenner des messages
eleetromques commerciaux - Unsubscribeftt ca.ev.com
BAL000147
F12-2016
APPLICANT COPY

Wednesday, August 10, 2016 2 16 PM
Bruce Roberts. D- BP Board of Directors
RE: Balancing Pool Borrowing Update
From:
Sent:
To:
Subject:
credentials.***
Thanks Bruce. It is good to know where they stand, and no surprises in their position. The response concerning short
term financing will be highly conditional, I would guess But let's see.
From: Bruce Roberts Imailto: Bruce.RobertsObalancingpool cal
Sent: August 10, 2016 10:06 AM
To: D- BP Board of Directors <bpdir<abalancingpool.ca>
Subject: Balancing Pool Borrowing Update
Directors;
Michelle, Ben and I met with representatives from TD Commercial Banking to further explore the Balancing Pool's
options for covering the imminent 2016 cash shortfall emanating from the PPA terminations. We were open in
explaining the current situation and made it clear that the governments recent intervention has compromised our
mandated ability to collect losses from consumers - at least in the near term. After some discussion I ask them to
consider what they would require in the form of a guarantee or assurance from the government in order to get
comfortable with BP credit. The TD representatives will be conferring with their legal department to provide official
responses to our questions, but the conversation gave us an idea of what to expect.
S.24(1)(a)(b)(c),S.25(1)(c) l
BAL0007
F12-2016
APPLICANT COPY
S.24(1)(a)(b)(c),S.25(1)(c)
Sincerely,
Bruce Roberts
BAL0008
F12-2016
APPLICANT COPY

From:
Sent:
To:
Subject:
Attachments:
Bruce Roberts
Wednesday, August 10, 2016 4;13 PM
William Stedman (External) (wstedman@entxcapitai.com)
FW: Going concern assessment
Balancing Pool GC Considerations 10 Aug 2016.docx, ATT00001.txt
FYI From : Kerry Clark rmailto:kerrv.clark(S)ca.ev.com)

S ent: Wednesday, August 10, 2016 11:56 AM
To: Bruce Roberts; Michelle Manuliak
Cc: James Trites
S u b je c t: Going concern assessment
Hi Bruce & Michelle

Jim & I met with Greg yesterday to discuss the process that management and the Board needs to undertake in order to
perform a going concern assessment and create an adequate audit trail/ support for such assessment. As a result, we
have updated the draft guide to include more specific guidance and commentary as well an illustrative going concern
note in case you do reach the conclusion that there is a material uncertainty.
As I expected, there is no movement on the idea of not filing the Q2 FS, which I frankly concur with given the timing of
ceasing to do that would likely expose you to accusations of lack of transparency.
When you read through the attached document, you'll see that a robust cash flow forecast with a sensitivity analysis and
well documented support for the assumptions used is central to support your going concern conclusion. Given the
importance of this estimate combined with the press that came out this morning implying that the government's claim
of $2B is inflated and that the net loss on these contracts is likely closer to $600M (or $900M including the existing
Hydro PPA), I'd strongly advise that you have a professional valuator take a look at your cash flow model and the
assumptions. In addition, I know I said you could probably get away with using your existing model to estimate the
liability for financial statement recognition purposes but given all of the focus this number could receive, perhaps it is
advisable to also get this model reviewed. I know you have existing service providers for these types of models but just
in case, we do have our valuators mobilised to assist (Gerard has identified specific Individuals that have had no
Involvement with any of the PPA Owners related to these contracts - they are ring fenced specifically to assist you). So
just let me know if you would like me to set up a meeting or get Gerard to contact you directly.
I believe the next step is to get the Board to agree on the key assumptions as per the checklist in the memo and
document those conclusions. The forecast should then (this process could commence concurrently) be updated to
reflect the Board's conclusions (& be reviewed for reasonableness). The Board will then have to review the revised
model and assuming it does reflect a liquidity problem within the next 12 months, they will need to identify and assess
the impact of the mitigating actions they believe are available to them, including documenting those discussions. Based
on that assessment, they will then need to conclude on whether the BP is a going concern with a material uncertainty
requiring FS note disclosure versus no material uncertainty versus not a going concern at all. This process is all
summarised on the attachment. We are happy to assist with documenting any of this and/or attending meetings etc as
you instruct but management/Board need to reach their own conclusions on the issues.
Let me know what you need next
BAL00034
F12-2016
APPLICANT COPY
Cheers,
Kerry Clark, CA |Associate Partner |Financial Accounting Advisory Services
Emsl & Young LLP
Calgary City Centre
22 0 0 -2 1 5 2nd Street SW
Calgary, Alberta T2P 1M4. Canada
Office: +1 403 206 5083 | Mobile +1 403 874 4274 | Kerry.Clarkiaica ev.com
Website: htto://www ev com
Assistant' Sydney Hanson | Phone +1 403 206 5472 I Svdnev.Hansonfarca.ev.com
T h is e-m ail d o c s not constitute an opinion on the application of generally a ccepted accounting principles, or a n y form o f a ssu ra n ce
co n curren ce with a spe cific entity's accounting matters, financial statem ents, any financial or other information o r internal controls,
not conclude on the appropriate accounting treatment b a s e d on sp e cific facts or recom m end which accounting policy/treatment a ;
entity sh o u ld se le ct or adopt This e-m ail is the equivalent of an informal discu ssio n a nd m ay not be shown, re fere n ce d o r dlstribuf
anyo ne outside the recipient's organization ,
CONFIDENTIAL and/or PRIVILEGED, If received in error please notify the sender and permanently delete. CONFIDENT1EL et/ou
PRIVILEGlE, Si ce courriel est re?u par erreur. veuillez nous en aviser et en effacer toute trace. EY, 222 Bay St. PO Box 251.
Toronto, ON M5K. IJ7. www.ev.com/ca To unsubscribe from commercial electronic messages / Pour vous desabonner des messages
electroniques commerciaux : LTisubscnbeia.ca.ev com
BAL00035
F12-2016
APPLICANT COPY

From:
Sent:
To:
Subject:
Attachments:

Bruce Roberts; gpollard@connacheroil.com: Monica Sloan (External)
Fwd: Going concern assessment
image001.jpg; ATT00001 htm, Balancing Pool GC Considerations 10 Aug 2016.docx,
ATT00002.htm
credentials. ***
I have read the attached materials, and believe it is appropriate for us to complete the checklist provided. We have a
serious problem of potential insolvency, not of our making, which should be properly documented. Where there are
known facts, we should state them. However, I think we should be careful about speculation about the intended actions
or motivations of others. There is a lot we dont know and we should resist the temptation to speculate on what might
be the outcome.
Wrt the financial model, Ernst Young is recommending a 12 month period, which seems reasonable to me We only need
enough detail to show there is a reasonable probability of insolvency. It would seem reasonable to use simplifying
assumptions rather than getting into a detailed model of dispatch theory.
I have other commitments tomorrow but could meet after 2:00 if necessary. However I think we should be asking
ourselves how can we provide full, true disclosure without speculating on the decisions others will make.
Bill Stedman
ENTx Capital Corp.
(403) 999-1186
Begin forwarded message:
From: Bruce Roberts < Bruce.Roberts@balancingpool.ca>
Date: August 10, 2016 at 4:13:19 PM MDT
To: "William Stedman (External)" <wstedman@entxcapital.com>
Subject: FW: Going concern assessment
FYI From : Kerry Clark [mailto:kerry.dark@ca.ey.com]
To: Bruce Roberts; Michelle Manullak
Cc: James Trites
S u b je ct: Going concern assessment
Hi Bruce & Michelle

Jim & i met with Greg yesterday to discuss the process that management and the Board needs to
undertake in order to perform a going concern assessment and create an adequate audit trail/ support
for such assessment. As a result, we have updated the draft guide to include more specific guidance and1
1
BAL0005
F12-2016
APPLICANT COPY
commentary as well an illustrative going concern note in case you do reach the conclusion that there is a
material uncertainty.
Withheld from disclosure pursuant to Sections 24(1)(a)(b)(c)
When you read through the attached document, you'll see that a robust cash flow forecast with a
sensitivity analysis and well documented support for the assumptions used is central to support your
going concern conclusion. Given the importance of this estimate combined with the press that came
out this morning implying that the government's claim of $2B is inflated and that the net loss on these
contracts is likely closer to $600M (or $900M including the existing Hydro PPA), I'd strongly advise that
you have a professional valuator take a look at your cash flow model and the assumptions. In addition, I
know I said you could probably get away with using your existing model to estimate the liability for
financial statement recognition purposes but given all of the focus this number could receive, perhaps it
is advisable to also get this model reviewed. I know you have existing service providers for these types
of models but just in case, we do have our valuators mobilised to assist (Gerard has identified specific
individuals that have had no involvement with any of the PPA Owners related to these contracts - they
are ring fenced specifically to assist you). So just let me know if you would like me to set up a meeting
or get Gerard to contact you directly.
l believe the next step is to get the Board to agree on the key assumptions as per the checklist in the
memo and document those conclusions. The forecast should then (this process could commence
concurrently) be updated to reflect the Board's conclusions (& be reviewed for reasonableness). The
Board will then have to review the revised model and assuming it does reflect a liquidity problem within
the next 12 months, they will need to identify and assess the impact of the mitigating actions they
believe are available to them, including documenting those discussions. Based on that assessment, they
will then need to conclude on whether the BP is a going concern with a material uncertainty requiring FS
note disclosure versus no material uncertainty versus not a going concern at all. This process is all
summarised on the attachment. We are happy to assist with documenting any of this and/or attending
meetings etc as you instruct but management/Board need to reach their own conclusions on the issues
Let me know what you need next.
Cheers,
BAL0006
F12-2016
APPLICANT COPY
Calgary Place
balancingpool
2350, 330 - 5th Ave S-W
Calgary, Alcerta T2P 0L4
lei (403) 539-5350

fax (403) 539-5366
wrww.balaneingpool ca
August 12, 2016

Honourable Margaret McCuaig-Boyd
Minister of Energy
Office of the Minister
Energy
324 Legislature Building
10800 - 97 Avenue
Edmonton, AB T5K 2B6
Dear Minister McCuaig-Boyd,
I am writing as a follow-up to my letter to you of July 12, 2016. In that letter I informed you that by
reason of current and expected pool price and other contingencies visited upon the Balancing Pool, the
Balancing Pool was quickly running out of funds and is projected to become insolvent in October or
November 2016. I reiterated our recommendation to immediately suspend the Consumer Allocation I
estimated we will require a Consumer Charge, in our next annualized amount, of about $13/MW in
order to meet our financial obligations, I also said the Balancing Pool is in the untenable position in
which your Department has verbally instructed us to defer these key decisions, but has not provided
either a written revised mandate or written instructions.
Both these issues, our pending insolvency and our inability to address our legislatively mandated duties,
remain unresolved to date. In my opinion, we are now in a crisis and swift action is required. On August
2, 2016, Mr. David James, ADM Electricity met with me, Bruce Roberts and Greg Pollard, a Balancing
Pool Director. Mr. James instructed us that the Balancing Pool was not to make any changes to the
Consumer Allocation. That is, the existing Consumer Allocation of $3.25/MW is to remain in place and
the Balancing Pool is not allowed to institute a Consumer Charge. These instructions continue us on the
path towards insolvency.
The Board has begun contingency planning for insolvency. Unless alternative financing is provided very
soon, we will not be able to meet our ongoing expenses. We are preparing to stop funding, in October
or November, all non-essential expenditures. Absent the funding issue being resolved, these would
include the Consumer Allocation and payments under the PPAs.
Further, it is expected we will include in our second quarter financial statements (for the period ending
June 30, 2016) a note to the effect that management is aware of material uncertainties related to events
or conditions that may cast significant doubt upon the entity's ability to continue as a going concern.
Over the past number of months we have received verbal instructions on issues such as administration
of the Consumer Allocation from various individuals which cause us to be unable to fulfill our mandated
BAL00080
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Page 2
duties. The Board is deeply concerned regarding the Balancing Pool's ability to fulfill its mandated
duties as set forth in the Electric Utilities Act, the Balancing Pool Regulation and under the PPAs.
Accordingly, we respectfully request that, if we are to deviate from our stated mandate, the Minister
provide clear written instructions to that effect. Including stipulating that we are to refrain from
suspending the Consumer Allocation and making payments under the PPAs, and we are to refrain from
implementing a Consumer Charge. In the alternative, we request the Minister aliow the Balancing Pool
to address its legislatively mandated duties.
I am available to discuss these serious issues with you, or your representatives, at your earliest
convenience. Time is short. I believe it is important to the Balancing Pool and to its Board to have a
resolution within the next few weeks.
Thank you for your consideration.
William R. Stedmafr
Chair, Balancing Pool
Cc:
Coleen Volk - Deputy Minister - Energy

David James - Assistant Deputy Minister - Energy
BAL00081
F12-2016
APPLICANT COPY
MINUTES OF A MEETING OF THE BOARD OF DIRECTORS OF THE BALANCING POOL

(THE "CORPORATION") HELD AT THE OFFICES OF THE CORPORATION, SUITE 2350, 330
- 5 th AVENUE SW, CALGARY, ALBERTA ON THURSDAY, JANUARY 21, AT 9:00 A.M.
Non-responsive
31233493.3
F12-2016
BAL00082
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M mutes of the Board of Directors

January 21, 2016
-3 -
Non-responsive
CONSUMER ALLOCATION
There is approximately a two month window' between when the Corporation may wish to reduce the consumer
allocation versus when such allocation would be implemented as notice to the AUC is required, Given the potential
additional costs coming to the Corporation given the Battle River 5 and MAP IV developments, reducing the
consumer allocation may be prudent. The Board determined that it was not necessary to reduce the consumer
allocation immediately.
31233493.3
F12-2016
BAL00084
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- 5th AVENUE SW, CALGARY, ALBERTA ON WEDNESDAY, MARCH 16, 2016 AT 1:30 P.M.
Non-responsive
BAL00087
F12-2016
APPLICANT COPY
-2 -
Minutes of the Board of Directors

March 16,2016
CONSUMER ALLOCATION SUSPENSION AND INVESTMENT PORTFOLIO LIQUIDATION

At this juncture Mr. Chappell joined the meeting.
Management advised that with TransCanada's and ENMAX's termination of their respective PPAs as well as the
Corporation's potential termination and payout of the Battle River PPA received from ENMAX. the Corporation is
facing a significant cash shortfall in 2016 and beyond. Management provided an overview of its financial forecasts
in this regard. The Corporation began the year with a cash balance of $700 million and it was noted that even with
the suspension of the Consumer Allocation that it was anticipated that the ending cash balance of 2016 would be
$ 121 million and that by 2020 it would have a negative cash balance of $543 million
Consumer Allocation
Management recommends that the Consumer Allocation be suspended effective May 1, 2016. The Alberta Electric
System Operator has requested six weeks' notice prior to approving a reduction to the Consumer Allocation and
notification to the AUC is also required. Management and the Board discussed the issues regarding a potential
suspension of the Consumer Allocation.
ON A MOTION DULY MADE, SECONDED AND UNANIMOUSLY CARRIED, IT WAS RESOLVED
THAT the Corporation expeditiously move to suspend the Consumer Allocation and to provide the applicable
government agencies with notice of such intent.
Non-responsive
F12-2016
BAL00088
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- 5th AVENUE SW, CALGARY, ALBERTA ON FRIDAY, APRIL 1, 2016 AT 1:30 P.M.
Non-responsive
31247902 1
F12-2016
BAL00090
APPLICANT COPY

April I, 2016
-3
Non-responsive
CONSUMER ALLOCATION SUSPENSION

The Board previously resolved to suspend the Consumer Allocation effective May 1. 2016 Since the date of that
resolution the government has engaged with Management regarding the additional PPA terminations and indicated a
desire to meet with Management and the Chair. The Board discussed the issue and determined that it would be
31247902 1
F12-2016
BAL00092
APPLICANT COPY
Minutes of Ihe Board o f Directors

April 1,2016
-4 -
prudent to delay suspending the consumer allocation until after die Chair and Management's upcoming meetings
with the government given the potential for the government to provide the Corporation with additional information
relevant to the Consumer Allocation.
ON A MOTION DULY MADE, SECONDED AND UNANIMOUSLY CARRIED, IT WAS RESOLVED
THAT the Corporation delay suspending the Consumer Allocation pending receipt of additional relevant
information from the government
Non-responsive
31247902 1
F12-2016
BAL00093
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b a la n c in g p o o l
D E C IS IO N ITE M
2016 C o n s u m e r A llo c a tio n S u s p e n s io n
In v e s tm e n t P o r tfo lio L iq u id a tio n
Date: March 11th, 2016
O v e rv ie w
With T ra n sC a n a d a s termination of the S u n d a n c e A, S u n d a n ce B, and S n e e rn e s s

P P A s , the B alancing Pool is facin g a significant cash shortfall in 2016. T h is docum ent
provides a prelim inary a sse ssm e n t of the financial im plications for the B alancing Pool
and recom m ends immediate actio ns to mitigate the im pact of these terminations.
R ecom m endations
C o n su m e r Allocation: M anagem ent recom m ends the 2016 consum er allocation be
su spended effective May 1st, 2016.
Investm ent Portfolio: M anagem ent recom m ends the B alancing P o o l's investm ent
m a n ag e rs be instructed to begin liquidating the securities held in the investm ent
account so that funds are im m ediately available and that capital market risk is
elim inated.
Th e table on the next page provides a fo re cast of the B alancing Po ol's cash flows for
this y e a r through to 2020. M any of the figu re s presented below are prelim inary
estim ates and will be subject to ch an ge a s m ore information beco m es available.
Th e c a sh flow estim ates do not include a consum er allocation or charge beyond May
1st, 2016.
BAL00094
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APPLICANT COPY

PPA Terminations
in m illio n s
2016
Average Foot price per M W h
$23.33
2017
$30.69
2018
2019
$3975
2020
$48.50
$50.25
(41)
10
17
(61)
(69)
(74)
(85)
(43)
(31)
Operating Cash Flow

P P A Cash Flow (net of P P A paym ents}
(126)
G enesee
(93)
Extraordinary PPA Cash Flows

P P A Cash Flows;
G enesee Caroon Tax A d justm ent
(81)
Sundance A
(62)
(86)
(41)
S u ndance R
(43)
(38)
(45)
(16)
(27)
(108)
(467)
(250)
(231)
(118)
(116)
42
68
69
B a ttle River
S heerness
Battle River
Net C ash Flow from P P As
Hydro PP A (net o f P P A paym ents)
Sm all Pow er P rodu cer Contracts
PILO T Revenue
(38)
(6)
16
P)
(5)
5
(4)
5
(0)
5
(235)
(189)
(46)
(475)
___ m
Disbursements
O perating
Isolated G eneration S ite s
G eneral and A d m in E xpense
DOE M andated E xpense
Subtotal
Provisional:
O ther P P A C osts
Forge M ajeure C laim s
D ecom m issioning (Sundance 1/2 and H.R, M ilner)
Subtotal
Total Disbursements
Net
Cash Flow

Add: Net Cash Flow
Add; Return o f ln \*s tm e n ! Portfolio
Deduct; C onsum er A lloca tion
Endinq Cash Balance
'
5
3
10
18
10
13
3
15
15
18
13
15
18
31
33
18
36
31
44
47
32
13
3
11
14
3
15
15
121
(266)
(144)
(232)
3
11
14
(232)
(511)
700
(511)
3
11
____
3
15
<93>
________(!*>.
(377)
(469)
(93)
(74)
(66)
121
_______U *H ____________ m
____ _______m
____________E S I
Th e fo re cast dem onstrates that the Ending C a s h B a la n ce is expected to approach a

zero balance by the end of 2016 and that there is an urgent need to suspend the
consum er allocation to ensure the B a la n cin g P o o ls funds are fully available.
Th e fo recast above is built on the following assum ptions:
T h e B a la n cin g Pool be co m e s the P P A Buyer of, and a ssu m e s financial

responsibility for, the Battle R iv e r 5 P P A a s at the beginning of January;
BAL00095
F12-2016
APPLICANT COPY
T h e B alancing Pool beco m es the P P A Buyer of, and a ssu m e s financial

responsibility for, the S u n d a n ce A, Su n d a n ce B, and S h e e rn e ss P P A s a s at the
beginning of M arch; and
T h e Battle R iv e r 5 P P A is terminated by paying out the Net B oo k V alu e to the

P P A Owner at the end of 2016.
O f note is that the fo re cast d o es not incorporate the potential requirement for additional
fu n d s related to:
T h e put back of the Su n d a n ce C and/or Keephills P P A s ;
Th e decision to terminate further P P A s by the B a la n cin g Pool; or,
Po w er prices m aterializing at lower than expected levels.
A s there is a reasonably
fu n d s in 2016, invoking a
ensu re that a sufficient
M anagem ent will provide
high probability that the B alan cin g Pool will require additional
consum er ch arge later this year will a lso likely be n e ce ssa ry to
contingency exists to protect a ga in st the risks cited above.
subsequent a n a ly sis in the May Board meeting on this matter.
BAL00096
F12-2016
APPLICANT COPY
b a la n c in g p o o l
IN F O R M A T IO N ITE M
C o n s u m e r C h a rg e a n d T e r m in a tio n F in a n c in g
Date: April 1st, 2016

O v e rv ie w
With the termination of (soon to be) all P P A s , the B a la n cin g Pool is facing a significant
c a sh shortfall in 2016. T h is docum ent provides an a sse ssm e n t of the financial
im plications for the B alancing Pool.
T h e table on the next page provides a forecast of the B alancing Po ols cash flows over
2016. Th e following assum ptio ns were used to generate the cash flow estim ates over
the year:
o
All P P A s are returned to the B a la n cin g Pool. Th e Balancing Pool a ssu m e s

responsibility for the co sts of each P P A and collects the revenues from the
energy sold into the m arket a s at the date the P P A w as returned by each
P P A s respective Buyer.
No termination paym ents are m ade to the P P A O w ners during 2016.
T h e consum er allocation is su spended starting May 1st, 2016.
T h e average w holesale power price over the balance of 2016 is assum ed

T h e figu res below are best estim ates m ade with the information available a s of the time
of this writing and are subject to ch an ge. Th e B a la n cin g Pool h a s not been provided
with detailed cost information related to the S u n d a n ce P P A s , the S h e e rn e ss P P A , or the
K e e p h ills P P A and h a s instead relied on estim ates derived from the P P A sch e d u le s and
other so urces.
F12-2016
BAL00097
APPLICANT COPY
F12-2016
April
Month
Pool Price
Setllem ent Month
Strip Contract (100 MW)
SPP
Isolated Generation
Force Majeure
Consumer Allocation

Other Adjustments

Cash Transfer from Investm ents
May
June
Ju ly
August
(1.517)
September
November December
(729)
(702)
18.00 $
Mar
1 834
(53,918)
(848)
(250)
(1.250)
(16,315)
(68,195)
18.00 $
Apr
1,844
(61,370)
(776)
(250)
(1.250)
(15,159)
(74,080)
18.00 $
May
1,834
(60.192)
(863)
(250)
(1,250)
18.00 $
Jun
1,844
(57,497)
(576)
(250)
(1,250)
1,834
(57,008)
(488)
(250)
(1.250)
-
(58,381)
(56,975)
(56,415)
(57,089)
(58,279)
(68,373)
(57,831)
(65,003)
579,283
(2.519)
(69,469)
507,295
(2,871)
(74,809)
429,615
(2,844)
(59.0B3)
367,688
(2,774)
(58,492)
306,422
(2,746)
(57,143)
246,534
(2,779)
(57,795)
185,960
(2,839)
(59,198)
123,922
(2,844)
(59,092)
61,987
(2.817)
(64,733)
(S.S63)
(3,175)
(65,879)
507,295
429,615
367,688
306,422
246,534
185,960
123,922
61,987
18.00 $
Jul
(919)
January
(1,274)
(728)
(706)
October
18.00 $
18.00 S
Aug
Sep
1.834
1.844
(58,394)
(60.700)
(470)
(469)
(250)
(250)
(1,250)
(1,250)
(719)
18.00 $
Oct
1,834
(60,517)
(691)
(250)
(1,250)
(6,902)
18.00 $
Nov
1,844
(59.579)
(582)
(250)
(1,250)
(877)
18.00
Dec
1,834
(66,266)
(647)
(250)
(1,250)
S ' ---------(5,563) X J Z i s m
With the additional lo sse s asso ciated with the return of the P P A s to the B alancing Pool, monthly cash outflows are
anticipated to reach approxim ately $60 million. G iven existing reserves, the B alancing Pool will not be able to sustain these
lo sse s and is forecast to be short approxim ately S 7 5 million by the end of Ja n u a ry 2017. T h e se lo sse s can be translated into
the required consum er charge that needs to be implemented:
BAL00098
Th e earliest start date that a consum er charge could be implemented is expected to be Ju ly 1st, 2016. G iven the
duration of the billing and settlement cycle, the first cash inflow asso ciated with the charge would be received one
month after the charge takes effect. A s such, a July 1st implementation date would yield five months of collection at
T h e required minimum ca sh reserve to cover ongoing operations, unexpected costs, and P P A related claim s is
a ssu m e d to be $100 million. Com bining this minimum with the $75 million shortfall requires the B alancing Pool to
APPLICANT COPY
At current dem and levels, the B alancing Pool collects $4.9 million per month per
dollar of consum er charge. Th e 2016 charge will be collected for six months,
m eaning $29.4 million will be collected in total per dollar of consum er charge.
To realize the supplem entary ca sh inflow of $175 million by 2016 yearend

settlement, the total consum er charge will need to be $6.00 per MWh starting
Ju ly 1st, 2016.
Sho u ld the B alancing Pool elect to terminate one or more P P A s (including the Battle
R iv e r P P A ) the required ch arge needed to generate the required ca sh payouts would
becom e prohibitively large. A s such, the B alancing Pool will need to source external
financing to cover the paym ent of the Net B o o k V a lu e s (N B V s) asso ciated with the
underlying units to the P P A ow ners when terminating any P P A . W hile the Sh e e rn e ss,
G e n e se e , and Keephills P P A s are not potential cand id ates for termination since they
h ave N B V s that are m uch larger than any anticipated lo s se s asso ciated with continuing
to hold those P P A s , the Battle R iver P P A and Su n d a n ce P P A s are likely termination
candidates. Th e com bined N B V s of these P P A s are estim ated to be approxim ately
$450 million. T h e B alan cin g Pool h a s begun to explore whether financing for this
am ount can be established.
A ssu m in g the S u n d a n ce P P A s and the Battle R iver P P A are terminated by the end of
2016, the B alan cin g P o o ls ongoing cash outflows are expected to be approxim ately
$400 million per year excluding the repaym ent of termination related debt. T a kin g the
lo s s e s from ongoing operations and the debt repaym ents into consideration, the
B a la n cin g Pool will likely be required to im plem ent a consum er charge of approxim ately
$10 per MWh in 2017,
BAL00099
F12-2016
APPLICANT COPY
b a la n c in g p o o
IN F O R M A T IO N ITE M
C o n s u m e r C h a rg e
Date: May 17th, 2016

O v e rv ie w
With the ongoing responsibility for covering the c a sh flows for the entire P P A fleet, the
B a la n cin g Pool is expected to fa ce a significant c a sh shortfall in 2016. T h is docum ent
provides an updated a sse ssm e n t of the financial im plications and d isc u sse s the options
related to a consum er charge.
Th e table on the next page provides an update to the previous monthly ca sh flow
forecast presented to the board in the last m eeting. T h e following assum ptio ns were
used to generate the cash flow estim ates over the year:
o
All P P A s , including the Keephills P P A , have been returned to the

B a la n cin g Pool. The B a la n cin g Pool a ssu m e s responsibility for the co sts
of each P P A and collects the revenues from the energy sold into the
m arket starting at the date the P P A w a s deem ed terminated by the
various Buyers.
No termination paym ents will be m ade to the P P A O w ners during 2016.
T h e consum er allocation is suspended starting A u gu st 1st, 2016.
T h e a ve ra ge w holesale power price over the balance of 2016 is assu m e d

T h e figu res presented are best estim ates m ade with the information available a s at the
time of this writing.
BAL000100
F12-2016
APPLICANT COPY
F 1 2-2016
M onth_____________________ M ay_______ Ju n e ________ Ju ly

P o o l P rice
$
Se tlle m e rit M onth
Admin & Other

Strip Contract (100 M N
SPP
Isolated Generation
Force Majeure
Consumer Allocation
Su b -to ta l C a sh Flo w afte r Settlem ent

O p en in g C a sh B a la n ce - A p ril 1
F o re ca st C a sh Inflow (O utflow )
E n d in g C a sh B a lan ce at M onth En d
17.00
Apr
17.00
May
17.00
Ju n
A u gust
$
17.00
Ju l
Septem b er
$
17.00
Aug
O cto b e r
$
17.00
Sep
N ovem ber
D ecem b er
17.00
17.00
N ov
O ct
Ja n u a ry
$
17,00
D ec
(2.962)
(3,199)
(4,445)
(3.132)
(3,141)
(3.406)
(3,216)
(9,368)
(3,327)
1,906
(51,768)
(790)
(100)
(1,000)
(15,159)
(63,915)
1,900
(56.453)
1,908
(53,877)
(585)
(100)
(1.000)
(15.440)
(68,097)
1,900
(53,471)
(496)
(100)
(1.000)
(16.001)
(68,179)
1,900
(54,769)
(477)
(100)
(1,000)
1,908
(56,856)
(477)
(100)
(1,000)
1,900
(56,760)
(703)
(100)
(1.000)
1,908
(55.783)
(591)
(100)
(1.000)
1,900
(55,003)
(658)
(100)
(1,000)
(52,808)
(53,848)
(54,029)
(53,425)
(53,106)
535,000
(66,877)
468,123
468,123
395,719
(72,541)
323,178
323,178
251,867
(55,949)
195,918
195,918
(57,254)
138,664
138,664
(57,245)
81,419
81,419
(71,311)
251,867
(62,793)
18,626
18,626
(56.4331
(877)
(100)
(1,000)
(15,153)
(69,204)
(72,403)
395,719
<|:< 3 7 .8 0 7 L
G iven the ongoing financial obligations asso ciated with the P P A s , the monthly cash outflows are estim ated to average $58
million excluding the consum er allocation. T h e $58 million cash outflow is som ewhat le ss than the previously forecasted loss,
primarily due to slightly lower than expected capacity paym ents asso ciated with the S h e e rn e ss and S u n d a n ce P P A s .
With its existing financial reserves, the B alancing Pool is forecast to be short approxim ately $38 million by the end of Ja n u a ry
2017. T h is negative balance com pares to the $75 million shortfall estim ated previously. Th e reduced shortfall is due to the
lower than expected P P A e xp e n se s, a higher cash balance at the end of April than w as previously forecasted, and the fact
the Keephills P P A w a s returned to the B alancing Pool in May rather than in April a s w as assu m e d in the previous analysis.
B A L0 0 0 1 0 1
G iven the regulatory filing requirem ents, the earliest start date that a consum er charge could be im plem ented under normal
conditions would be A u gu st 1st, 2016. G iven the duration of the billing and settlement cycle, the first cash inflow asso ciated
with the charge would be received one month after the charge takes effect. A s such, an A u gu st 1st implementation date
would yield four months of collection at the new rate in 2016 and one month at the new rate in 2017 for an aggregate
collection period of five months.
APPLICANT COPY
At current dem and levels, the B a la n cin g Pool would collect $4.9 million per month per
dollar of consum er charge. Th e 2016 charge would be collected for five months,
m eaning $24.5 million would be collected in total per dollar of consum er charge. If the
B alancing Pool w ishes to cover the expected $37 million shortfall, a consum er charge of
$1.75 per MWh would be required. If a $100 million ca sh buffer is desired (a s w as
a ssu m e d in the previous forecast), a consum er charge of $5.75 per MWh would be
required over the balance of 2016.
A s an alternative approach, the B alan cin g Pool m ay elect to defer implementing a
consum er ch arge in 2016 and instead rely on its $90 million revolving line of credit to
cover a n y shortfall. En d in g the year with a negative c a sh balance would require a larger
consum er ch arge in 2017 to recover the shortfall from 2016. T h e risk with this approach
is that power p rices average below $17 per MWh a s a ssu m e d in the forecast, resulting
in a cash shortfall that e xce e d s the revolving line of credit limit.
A ssu m in g annual generation vo lum es at target availability, the annual revenues
a sso ciated with the P P A fleet fall b y approxim ately $35 million per dollar d e crea se in the
pool price. A reduction of only a few dollars from the $17 per MWh a ssu m e d price would
leave the B a la n cin g Pool overdraw n on its line of credit and unable to cover its cash
shortfall. G iven this level of exposure, it is recom m ended the Balancing Pool continue to
explore options for increasing its credit limit, e sp e cia lly if the decision is m ade to defer
ch a rg e s to con su m e rs until 2017. It should be noted that the ability to avoid a consum er
charge in 2016 is predicted on the condition that the current consum er allocation be
su sp en d e d im mediately; if the governm ent d o e s not allow the B alan cin g Pool to
suspend the allocation in a timely m anner, avoiding the introduction of a consum er
ch arge in late 2016 will be im possible.
Currently, the B a la n cin g Pool is facing great uncertainty with respect to governm ent
policy in relation to the P P A term inations. Th e c a sh flow forecast above m ay need to be
materially altered a s d e cisio n s are m ade by policym akers. For instance, if it is
determ ined by the court and/or the governm ent that a P P A B uyer is required to give six
m onths notice prior to returning a P P A to the B a la n cin g Pool, the B alancing Poo! would
recoup hundreds of m illions of dollars of P P A related e xp e n se s already incurred (or
soon to be incurred), thereby elim inating the need for a 2016 consum er charge
altogether. A s su ch , the B a la n cin g Pool m ay wish to de lay im plem enting a charge for
the time being. In the interim, it is recom m ended that the B alancing Pool continue to
advocate for a su sp e n sio n of the consum er allocation with governm ent. In addition, the
B a la n cin g Pool should continue to explore its options for e xpanding its a c c e s s to credit.
Th e cash flow forecast above d o e s not incorporate a n y future paym ents related to the
termination of the various P P A s . Shou ld the B a la n cin g Pool elect to terminate one or
m ore P P A s by paying the Net B oo k V a lu e s (N B V s ) a sso cia te d with the underlying units,
the consum er ch arge needed to generate the required ca sh payouts would increase
significantly. T o avoid the significant upfront charge to co nsum ers needed to fund these
paym ents, it m ay be preferable for the B a la n cin g Pool to source external financing to
cover the paym ent of the N B V s. O ptions for financing termination paym ents are being
explored concurrently with options to increase the revolving line of credit limit.
BAL000102
F12-2016
APPLICANT COPY

- 5th AVENUE SW, CALGARY, ALBERTA ON THURSDAY, MAY 19, 2016 AT 9:00 A.M._______
Non-responsive
31251757 2
F12-2016
BAL000103
APPLICANT COPY
Minutes ot the Board ot Directors

May 19,20)6
Non-responsive
CONSUMER ALLOCATION
Management provided an economic overview of its analysis as lo its cash management position and noted that given
the current bum rate of the Corporation, that there is a pressing need to consider turning off the Consumer
Allocation and potentially implementing a Consumer Charge at a later date. The requirement for this will largely
depend on the outcome of the termination decisions with respect lo the purported terminated PPAs. There had been
some discussions with Management about potentially taking out of a line of credit or some other financing to tund
die obligations rather than implementing a Consumer Charge. However, without the ability to collect funds in the
future, the ability to secure financing would be difficult. The Board asked a number of questions regarding the status
of the finances of the Corporation and determined that it will currently leave the analysis with Management, and if
there are material changes, then Management is to update and circulate a new analysis with this issue to be further
discussed in September. Management did note that if it is determined that the Consumer Allocation will be turned
off dial it will require a Board resolution to do so The Board advised that further clarity from the government will
be required before a decision is made in this regard, and they noted that the government has currently hired a PhD
student at the University of Calgary to look into the economics of die Consumer Allocation, the Consumer Charge,
and potential PPA terminations.
Non-responsive
31251757.2
F12-2016
BAL000107
APPLICANT COPY

(THE "CORPORATION) FIELD AT THE OFFICES OF THE CORPORATION, SUITE 2350, 330
- 5 th AVENUE S\V, CALGARY, ALBERTA ON THURSDAY, JUNE 1, 2016 AT 9:00 A.M.
Non-responsive
31259427.3
F12-2016
BAL000109
APPLICANT COPY

June 1: 2016
-3 -
Non-responsive
CONSUMER ALLOC ATION

Management advised that while the Consumer Allocation was on the agenda, there was no further information to
discuss at this point and Management simply wanted to advise that the Corporation is still m limbo with respect to
die Consumer Allocation. The Board has requested a regular monthly update of the cash flow forecast of the
Corporation at a high level and Management noted that about a One Dollar (SI.00) megawatt hour change in the
Alberta pool price will result in a net difference of about Thirty-Six Million Dollars (S36,000,000.00) to the balance
sheet of the Corporation.
Non-responsive
31259427,3
F12-2016
BAL000111
APPLICANT COPY
MINUTES OF A MEETING OF THE BOARD OF DIRECTORS OK THE BALANCING POOL

(THE "CORPORATION ") HELD AT THE OFFICES OF THE CORPORATION, SUITE 2350, 330
- 5 th AVENUE SW, CALGARY, ALBERTA ON TUESDAY, JULY 12, 2016 AT 9:30 A M.
Non-responsive
BAL000113
F12-2016
APPLICANT COPY
Minutcs of ihc Board of Directors

July 12,2016
-2-
Non-responsive
With respect to the Consumer Allocation, if the Corporation stays with the status quo there will be a cost of about
Fifteen Million Dollars (515,000,000.00) per month and to mitigate its liquidity issues. Management recommended
that the Corporation seek permission from the government to stop paying the Consumer Allocation
Non-responsive
BAL000114
F12-2016
APPLICANT COPY

(THE CORPORATION") HELD AT THE OFFICES OF THE CORPORATION, SUITE 2350, 330
- 5th AVENUE SW, CALGARY, ALBERTA ON TUESDAY. AUGUST 2, 2016 AT 9:30 A.M.
Non-responsive
CONSUMER CHARGE & FINANCING ISSUES

The Board began the meeting by discussing the fact that on Thursday July 28, 2016, David James ("Assistant
Deputy Minister"), on behalf of Minister Margaret McCuaig Boyd, Minister of Energy (the "Minister") in the
Government of Alberta ("Government") verbally instructed the Board not to proceed with a decision to change
the consumer allocation and not to institute a consumer charge without further instruction from the Munster on
behalf o f the Government.
The Chair stated that the Assistant Deputy Minister indicated that the Government will provide financing to the
Corporation by way o f some sort of backstop, but it does not know the details of such mechanism at this time
The Board noted that the Alberta Legislature may have to review the terms of the backstop, which may cause
delay, The Board further discussed the assurances it has received from the Government regarding backstop
support.
The Board noted that the Corporation has expressed concerns regarding the Corporations liquidity directly to the
Government. It has also provided pro forma financials to the Government, which reflect a negative cash position
for the Corporation occurring in November, Management concurred and stated that the Corporation has
communicated the fact that the money will run out sometime in the fall to the Government, Mr Stedman and
Management indicated that they intend to meet with the Assistant Deputy Minister following this Board meeting.
Non-responsive
31259539.4
F12-2016
BAL000116
APPLICANT COPY

Greg Pollard (External)
Thursday, August 18, 2016 8:49 AM
Michelle Manuliak
RE E&Y work
From:
Sent:
To:
Subject:
*** EXTERNAL email Please be cautious and evaluate before you click on links, open attachments, or provide
credentials.***
Michelle
No need for me to see the quote.
While I agree with not speculating as to future funding, I do think it is critical we state the facts as known today, i.e., they
have stated not to suspend the consumer allocation nor impose a consumer charge.
Greg Pollard, CA, CIRP (ret ), ICD.D

403 818-0710
gpeOshaw.ca
From: Michelle Manuliak fmailto:michelle.manuliak(S>balancinRpool.ca1

Sent: August 18, 2016 8:44 AM
To: Greg Pollard (External)
Subject: E&Y work
Hi Greg,
We are still in the early stages with E&Y. They requested a copy of the forecast spreadsheet so that they can prepare an
estimate of the cost associated with the review.
As discussed with Bill and Bruce, we are leaving the review of the energy and capacity payment models out of scope for
the time being (models aren't ready to be reviewed by E&Y, currently under construction). The forecast will reflect third
party estimates for energy and capacity payments.
Bill will be signing the engagement agreement. I will send you off a copy when Bill has signed the agreement or would
you first like to see the quote?
Bruce and I will complete the going concern questionnaire. Bill has instructed management to not speculate or make any
assumptions as to what the government will do in terms of funding, so we will leave that part plank.
Kind Regards,
2350, 330 - 5th Avenue S.W. ) Calgary, AB | T2P 0L4
direct line. 403.539.5357 | fax: 403.539.5366l
l
BAL000337
F12-2016
APPLICANT COPY

Bruce Roberts
Tuesday, August 23, 2016 10:32 PM
Ben Chappell
Re: Consumer Charge
From:
Sent:
To:
Subject:
Hi Ben;
No worries about contacting me. I have been keeping an eye out for any signs of a move by the DOE.
I am certain that my friend Bob Heggie will be able to accommodate a 1 month process time once again.
Under the circumstances I am highly confident that the Board will be able to meet on short notice to pass the resolution.
Is the government going to allow the $13/MWh charge?
BR
Sent from my iPhone
On Aug 23, 2016, at 14:28, Ben Chappell <ben.chappell(5)balancingpool.ca> wrote:
Hi Bruce,
Sorry to bother you on holiday, but...
The DOE is aiming to get a decision regarding the consumer charge by September 1st so that it can be in
effect on October 1st, thereby preventing the Balancing Pool's insolvency. There are two questions being
asked:
1. A change to the consumer allocation usually requires about six weeks to take effect. Do you
know if we can get that timeframe shortened to one month again (like the last time we
expected the allocation to change)?
2. I am sure the Board needs to approve the charge; do you know if they have the ability to pass a
resolution with short notice if needed? The DOE staff I spoke to are planning to ask David James
to contact Bill Stedman with the same question.
Sorry again to disrupt your holiday. Hope you're enjoying!
Ben
Balancing Pool
1403)S39-5361
ben.cna ppellgiba lancmgpool ca
BAL00054
F12-2016
APPLICANT COPY
Barb Le C la ire
Freeborn
From:
Sent:
To:
Subject:
Attachments:
Ben Chappell
Michelle Manuliak
Cash Forecast Going Concern August ll.xlsx
Cash Forecast Going Concern August ll.xlsx
B A L000338
F1 2 -2 0 1 6
APPLICANT COPY
Twelve Month Cash Forecast

1,2016
.As at July
jg )0 )'S
Actual
Jun
fcjU lem enl Month

9 o o ' Price
o n tb
Preliminary
Jul
io.
July
iia i
August
Forecast
Aug
t
Forecast
Oct
Forecast
Sep
17 00
September
17.00
October
'3V,
ob
November
(96,050)
PILOT Audit Costs & Refund lo ENMAX
Forecast
Nov
1
Forecast
17 00
December
Forecast
Jan
Dec
If i 00
January
IT'JKJ
February
Forecast
Feb
ir.o o
Forecast
Mar
t 'o c
Forecast
Apr
t
April
March
(50)
Forecast
May
Y7.00 #
100
June
May
(50)
General & AdmnsfralivQ
(360)
(350)
(350)
(500)
(500)
(500)
(500)
(500)
(500)
(500)
(500)
(500)
Other PPA (Force Maiuere Legal)
(503)
(300)
(300)
(300)
(200)
(200)
(200)
(200)
(200)
(200)
(200)
(200)
(29)
(20)
(20)
(20)
(20)
(20)
(20)
(20)
(20)
(50)
(720)
-.
c(670)
(720)
(6.500)
(7,220)
(20)
(30)
(20)
(892)
(20)
(60)
(96,930)
(720)
(720)
(720)
(720)
(9.871)
(6,561)
(11,018)
(5,478)
(6,862)
(6,983)
(5,586)
(159)
(465)
(30)
r
(14,992)
I W IC f)
(10.860)
(6.819)
(10,119)
(3.537)
(5,297)
(4,097)
(4.643)
(386)
(447)
(100)
(15,545)
(a*,o)
(11,690)
(6,538)
(9.900)
(4,410)
(5,023)
(5,141)
(4,878)
(1.055)
(468)
(100)
(1,000)
(15.438)
(65,1.411
(11,690)
(6538)
(9,900)
(4,410)
(5,023)
(5,141)
(4,878)
(2.105)
(703)
(100)
(1,000)
(17,690)
(6,538)
(9,900)
(4,410)
(5,023)
(5,141)
(4,878)
(1,253)
(658)
(100)
(1,000)
(11.616)
(6,684)
(9,860)
(4,379)
(5,029)
(6,452)
(4,729)
(2,483)
(510)
(1001
(1.000)
05438)
(11.354)
(6,691)
(9,600)
(4,208)
(4,795)
(6,218)
(4,468)
(1,883)
(582)
(100)
(1,000)
(8f,5?J5),
(11.952)
(6.531)
(10,160)
(4,586)
(5,256)
(5,376)
(5,140)
(1.638)
(591)
(100)
(1.000)
(15.438)
IM M8>
Opening Cash Balance J uly 1, 2016
388,710
319,813
257,243
190,932
25,837
(41,809)
(116,796)
(189,625)
(256,095)
(327,524)
(506.626)
(577,626)
Forecast Cash Inflow (O utflow )

Ending Cash Balance
(68,897)
(62,570)
(165,095)
(72,829)
(189,625)
(66,469)
(256,095)
(71,430)
(327,524)
(181,102)
(69,000)
257,243
(67,645)
(41,809)
(74,988)
319,813
(66,311)
190,932
(508,626)
(577,626)
(67,058)
(644,684)

DOE Mandated Costs
Sub-total Adm in & Other
G enesee
Battle River 5
Shoe m ess
Sundance A
Sundance B
Sundance C
K e e p h ilts
H fly ro
SPP
Is o la te d G e n e ra tio n
F o rc e M a je u ro (A IP )
Sub-total PPA Settlem ent
A c tu a l
E s tim a te d D e m a n d
C o n s u m e r A llo c a tio n (c re d it)
P re lim in a ry
(3.25) $
(3,25) S
4,750
(3.25) $
(11.952)
(6 531)
(10 160)
(4 586)
(5,256)
(5,376)
(5.140)
(2 149)
(477)
(100)
(1,000)
(15,438)
(68.10$)
25,837
4,750
(3.25) $
4,750
[3.25) $
(116,796)
4,750
(3.25) $
CD
>
l~
O
o
o
CO
CO
CO
APPLICANT COPY
(600)
(72,1)29)
4,750
(3.25) $
____ ILPOO) .
(1,770)
(11.354)
(12,140)
(6,691)
(6 671)
(9,600)
(10.380)
(4,208)
(4722)
(4,795)
(5,495)
(6,218)
(6,921)
(4,468)
(5,252)
(1,280)
(2 059)
(534)
(597)
(100)
1100)
(1.000)
(1,000)
(15.438)
(15,438)
(65.749)1 Z B S S R B T
4,750
(3.25) $
4,750
(3 25) $
(16,354)
(15,791)
(27,922)
(21.108)
(28.364)
(27.013)
(23.557)
(2.104)
(580)
(100)
(1.000)
(15,438)
4,750
(3.25) S
4,750
(3.25) $
4,750
(325)
B arb LeClaire
Freeborn
Ben Chappell
Tuesday, August 23, 2016 3 28 PM
Bruce Roberts
Michelle Manuliak
Consumer Charge
From:
Sent:
To:
Cc:
Subject:
Hi Bruce,
The DOE is aiming to get a decision regarding the consumer charge by September l rt so that it can be in effect on
October l 5', thereby preventing the Balancing Pool's insolvency. There are two questions being asked:
1. A change to the consumer allocation usually requires about six weeks to take effect. Do you know if we can get
that timeframe shortened to one month again (like the last time we expected the allocation to change)?
2. I am sure the Board needs to approve the charge; do you know if they have the ability to pass a resolution with
short notice if needed? The DOE staff I spoke to are planning to ask David James to contact Bill Stedman with the
same question.
Ben
Manager o f Strategy and Special Projects
Balancing Pool
(403) 539-S361
ben.chappelliabalanclneaool.ca
BAL000340
F12-2016
APPLICANT COPY

From:
Sent:
To:
Cc:
Subject:

Michelle Manuliak: Greg Pollard (External); Monica Sloan (External)
Bruce Roberts; Ben Chappell
Re: Potential Consumer Charge Approval
*** EXTERNAL email Please be cautious and evaluate before you dick on links, open attachments, or provide
credentials.***
I am around next week.
Greg, are you available?
Non-responsive
However, I believe we can proceed with a quorum of two directors.
I am scheduled to speak with the Deputy Minister tomorrow, and will try to get more colour from her
Michelle and Ben, we will need updated monthly cash forecasts to the end of 2017. Assume the PILOT payment is made
in Q l 2017. Perhaps use a range of Consumer Charges, say $10/MW, $13 and 15?
Bill Stedman
ENTx Capital Corp.
(403)999-1186
On Aug 24, 2016, at 10:58 AM, Michelle Manuliak <michelle.manuliak@balancinEPOol.ca> wrote:
Hello Bill,
We have heard from the Department of Energy that they will be presenting a recommendation to the
Energy Minister on August 31s' regarding the Consumer Charge.
Should that actually happen, would the Board be able to meet on September 1st or 2ni1 to approve the
Consumer Charge?
I spoke with John Martin at the AESO and they will be able to turnaround the tariff application in one
day. We would need to notify the AESO no later than the end of next week in order for the Consumer
Charge to be effective for October l".
Kind Regards,
Michelle Manuliak | Controller j Balancing Pool
2350, 330 - 5th Avenue S,W | Calgary, AB | T2P 0L4
direct line: 403.539.5357 | fax: 403.539.5366
F12-2016
BAL0009
APPLICANT COPY

From:
Sent:
To:
Subject:
Bruce Roberts
Ben Chappell
Re: Consumer Charge
Ben;
As we've done a couple of times previously, Michelle should contact John Martin at the AESO as soon as possible and let
him know that we are expecting to file the change in the CA - so they can get the paperwork started and can be in a
position on Sept 1 to file with the AESO.
S 2 4 (1 )(b)
BR
Sent from my iPhone
On Aug 24, 2016, at 07:55, Ben Chappell <ben.chappell@balancingpool.ca> wrote:
Hi Bruce,
Sounds good. Thanks for the clarifications.
The staff at the DOE originally sought a decision by this Friday, but (surprise) that deadline has been
pushed back to the 31st Whether or not a decision is actually made by the 31st remains to be seen,
however the DOE fully appreciates the urgency of the situation and understands that S13/MWh
consumer charge must be in effect October 1st in order to prevent the Balancing Pool from reach a state
of insolvency come November. I wanted to ensure we had our ducks in a row here so that we can move
forward as quickly as possible should a charge be authorized by the government
I shall keep you apprised!
Ben
From: Bruce Roberts
Sent: Tuesday, August 23, 2016 10:32 PM
To: Ben Chappell
Subject: Re: Consumer Charge
Hi Ben;
No worries about contacting me. I have been keeping an eye out for any signs of a move by the DOE.
I am certain that my friend Bob Heggie will be able to accommodate a 1 month process time once again.
Under the circumstances I am highly confident that the Board will be able to meet on short notice to
pass the resolution.
F12-2016
BAL00055
APPLICANT COPY
BR
Sent from my iPhone
On Aug 23, 2016, at 14:28, Ben Chappell <ben.chappell@balancineP00l.ca> wrote:
Hi Bruce,
Sorry to bother you on holiday, but.,.
The DOE is aiming to get a decision regarding the consumer charge by September 1st so
that it can be in effect on October 1st, thereby preventing the Balancing Pool's
insolvency. There are two questions being asked:
1. A change to the consumer allocation usually requires about six weeks to take
effect. Do you know if we can get that timeframe shortened to one month again
(like the last time we expected the allocation to change)?
2. I am sure the Board needs to approve the charge, do you know if they have the
ability to pass a resolution with short notice if needed? The DOE staff I spoke to
are planning to ask David James to contact Bill Stedman with the same question.
Ben
Balancing Pool
(403} 539-5361
ben.chappeliPbalancinepooi.ca
F12-2016
BAL00056
APPLICANT COPY

Ben Chappell
Michelle Manuliak
Bruce Roberts
FW: Consumer Charge
From:
Sent:
To:
Cc:
Subject:
Hi Michelle,
Please see Bruce's note below regarding the AESO
Ben
F rom : Bruce Roberts
To: Ben Chappell
S u b je c t: Re: Consumer Charge
Ben;
As we've done a couple of times previously, Michelle should contact John Martin at the AESO as soon as possible and let
him know that we are expecting to file the change in the CA - so they can get the paperwork started and can be in a
position on Sept 1 to file with the AESO.
S. 24(1)(a)
BR
Sent from my iPhone
On Aug 24, 2016, at 07:55, Ben Chappell <ben.chappell@balancinRpool.ca> wrote:
Hi Bruce,
The staff at the DOE originally sought a decision by this Friday, but (surprise) that deadline has been
pushed back to the 31st Whether or not a decision is actually made by the 315 remains to be seen,
however the DOE fully appreciates the urgency of the situation and understands that $13/MWh
consumer charge must be in effect October 1st in order to prevent the Balancing Pool from reach a state
of insolvency come November. I wanted to ensure we had our ducks in a row here so that we can move
forward as quickly as possible should a charge be authorized by the government.
Ben
From: Bruce Roberts
S ent: Tuesday, August 23, 2016 10:32 PM
To: Ben Chappell

S ubject: Re: Consumer Charge
BAL000341
F12-2016
APPLICANT COPY
Hi Ben;
Mo worries about contacting me. I have been keeping an eye out for any signs of a move by the DOE.
l am certain that my friend Bob Heggie will be able to accommodate a 1 month process time once again.
Under the circumstances I am highly confident that the Board will be able to meet on short notice to
pass the resolution.
BR
Sent from my iPhone
On Aug 23, 2016, at 14:28, Ben Chappell <ben.chappelU5)bal3ncinRpool.ca> wrote:
Hi Bruce,
The DOE is aiming to get a decision regarding the consumer charge by September 1st so
that it can be in effect on October 1st, thereby preventing the Balancing Pool's
insolvency. There are two questions being asked:
1. A change to the consumer allocation usually requires about six weeks to take
effect. Do you know if we can get that timeframe shortened to one month again
(like the last time we expected the allocation to change)?
2. I am sure the Board needs to approve the charge; do you know if they have the
ability to pass a resolution with short notice if needed? The DOE staff I spoke to
are planning to ask David James to contact Bill Stedman with the same question.
Ben
Balancing Pool
1403) 539-5361
beft.chaoaelltaibalanclngpool.ca
F12-2016
BAL000342
APPLICANT COPY

Ben Chappell
Michelle Manuliak
Bruce Roberts
FW: Consumer Charge
From:
Sent:
To:
Cc:
Subject:
Michelle,
Also, please see Bruce's note below regarding the Board.
Ben
From : Bruce Roberts
To: Ben Chappell
S u b je ct: Re: Consumer Charge
Ben;
Please ask Michelle to send a note to Bill Stedman advising him of the government's plans / timing. He'll need to have
the Board on Standby.
I'll call Bob Heggie this morning and let him know.
Thanks.
BR
Sent from my iPhone
On Aug 24, 2016, at 09:35, Ben Chappell < ben.chappell@balancingpool.ca> wrote:
Thanks Bruce.
What about the Board? Should they get a heads up that a quick approval may be required on the 31s( or
the l s!?
Ben
To: Ben Chappell
Subject: Re: Consumer Charge
Ben;
As we've done a couple of times previously, Michelle should contact John Martin at the AESO as soon as
possible and let him know that we are expecting to file the change in the CA - so they can get the
paperwork started and can be in a position on Sept 1 to file with the AESO.
S. 24(1 )(a)
BR
Sent from my iPhone
BAL000343
F12-2016
APPLICANT COPY
On Aug 24, 2016, at 07:55, Ben Chappell <ben.chappell(5>balancingpool,ca> wrote:

Hi Bruce,
The staff at the DOE originally sought a decision by this Friday, but (surprise) that
deadline has been pushed back to the 31st. Whether or not a decision is actually made
by the 31st remains to be seen, however the DOE fully appreciates the urgency of the
situation and understands that $13/MWh consumer charge must be in effect October
1st in order to prevent the Balancing Pool from reach a state of insolvency come
November. I wanted to ensure we had our ducks in a row here so that we can move
Ben
From: Bruce Roberts
To: Ben Chappell

Hi Ben;
No worries about contacting me. I have been keeping an eye out for any signs of a move
by the DOE.
I am certain that my friend Bob Heggie will be able to accommodate a 1 month process
time once again.
Under the circumstances I am highly confident that the Board will be able to meet on
short notice to pass the resolution.
BR
Sent from my iPhone
Hi Bruce,
The DOE is aiming to get a decision regarding the consumer charge by
September 1st so that it can be in effect on October l 5*, thereby
preventing the Balancing Pool's insolvency. There are two questions
being asked:
BAL000344
F12-2016
APPLICANT COPY
1. A change to the consumer allocation usually requires about six

weeks to take effect. Do you know if we can get that timeframe
shortened to one month again (like the last time we expected
the allocation to change)?
2. I am sure the Board needs to approve the charge; do you know
if they have the ability to pass a resolution with short notice if
needed? The DOE staff l spoke to are planning to ask David
James to contact Bill Stedman with the same question.
Ben
Balancing Pool
(403) 539-5361
iien.chaDpelltSbalancnEpool.ca
BAL000345
F12-2016
APPLICANT COPY

Bruce Roberts
Ben Chappell
Re: Consumer Charge
From:
Sent:
To:
Subject:
Ben;
Please ask Michelle to send a note to Bill Stedman advising him of the government's plans/timing. He'll need to have
the Board on Standby.
Thanks.
BR
Sent from my iPhone
On Aug 24, 2016, at 09:35, Ben Chappell <ben.chappeil(5)balancingpool.ca> wrote:
Thanks Bruce.
What about the Board? Should they get a heads up that a quick approval may be required on the 3 l" or
the 1st?
Ben
To: Ben Chappell
Ben;
As we've done a couple of times previously, Michelle should contact John Martin at the AESO as soon as
possible and let him know that we are expecting to file the change in the CA - so they can get the
paperwork started and can be in a position on Sept 1 to file with the AESO.
S.24(1)(b)
BR
Sent from my iPhone
Hi Bruce,
The staff at the DOE originally sought a decision by this Friday, but (surprise) that
deadline has been pushed back to the 31st. Whether or not a decision is actually made
by the 31" remains to be seen, however the DOE fully appreciates the urgency of the
situation and understands that $13/MWh consumer charge must be in effect October
l " in order to prevent the Balancing Pool from reach a state of insolvency come
t
F12-2016
BAL00057
APPLICANT COPY
November. I wanted to ensure we had our ducks in a row here so that we can move
Ben
From: Bruce Roberts
To: Ben Chappell

Hi Bert;
No worries about contacting me, i have been keeping an eye out for any signs of a
move by the DOE.
I am certain that my friend Bob Heggie will be able to accommodate a 1 month process
time once again.
Under the circumstances I am highly confident that the Board will be able to meet on
short notice to pass the resolution.
Is the government going to allow the $l3/MWh charge?
BR
Sent from my iPhone

Hi Bruce,
The DOE is aiming to get a decision regarding the consumer charge by
September 1st so that it can be in effect on October 1st, thereby
preventing the Balancing Pool's insolvency. There are two questions
being asked:1
1. A change to the consumer allocation usually requires about six
weeks to take effect. Do you know if we can get that timeframe
shortened to one month again (like the last time we expected
2. lam sure the Board needs to approve the charge; do you know
if they have the ability to pass a resolution with short notice if
needed? The DOE staff I spoke to are planning to ask David
James to contact Bill Stedman with the same question.
Ben
2
BAL00058
F12-2016
APPLICANT COPY

M a n a g e r o f S tra te g y a n d Special P ro je c ts
B a lancing P o ol
(4 0 3 ) S39-S 361
ben.th3ppell@batancinapool.ta
BAL00059
F12-2016
APPLICANT COPY
Barb LeCiaire Freeborn

Bruce Roberts
Ben Chappell
Re' Consumer Charge
From:
Sent:
To:
Subject:
Ive contacted Bob Heggie and left a voice mail asking him to assist us by expediting the process. I'll let you know if /
when I hear back from him.
BR
Sent from my iPhone
On Aug 24, 2016, at 09:40, Ben Chappell < ben.chappell<5>balancingpool.ca> wrote:
Michelle,
Also, please see Bruce's note below regarding the Board,
Ben
To: Ben Chappell
Ben;
Please ask Michelle to send a note to Bill Stedman advising him of the government's plans / timing. Hell
need to have the Board on Standby.
Thanks.
BR
Sent from my iPhone
On Aug 24, 2016, at 09 35, Ben Chappell <ben.chappelljSbalancinePooi.ca> wrote:
Thanks Bruce.
What about the Board? Should they get a heads up that a quick approval may be
required on the 315' or the 1st?
Ben
To: Ben Chappell
S ubject: Re: Consumer Charge
Ben,
l
BAL00060
F12-2016
APPLICANT COPY
As weve done a couple of times previously, Michelle should contact John Martin at the
AESO as soon as possible and let him know that we are expecting to file the change in
the CA - so they can get the paperwork started and can be in a position on Sept 1 to file
with the AESO.
S.24(1)(b)
BR
Sent from my iPhone
On Aug 24, 2016, at 07:55, Ben Chappell <ben.chappell(5>balancingpool.ca> wrote:
Hi Bruce,
The staff at the DOE originally sought a decision by this Friday, but
(surprise) that deadline has been pushed back to the 31st Whether or
not a decision is actually made by the 31'1remains to be seen, however
the DOE fully appreciates the urgency of the situation and understands
that $13/MWh consumer charge must be in effect October l 5' in order
to prevent the Balancing Pool from reach a state of insolvency come
November. I wanted to ensure we had our ducks in a row here so that
we can move forward as quickly as possible should a charge be
authorized by the government.
Ben
To: Ben Chappell
Hi Ben;
No worries about contacting me. I have been keeping an eye out for
any signs of a move by the DOE.
I am certain that my friend Bob Heggie will be able to accommodate a 1
month process time once again.
Under the circumstances I am highly confident that the Board will be
able to meet on short notice to pass the resolution.
BR
Sent from my iPhone
2
F12-2016
BAL00061
APPLICANT COPY
On Aug 23, 2016, at 14:28, Ben Chappell

<ben.chappell<5>balancinepool.ca> wrote:
Hi Bruce,
The DOE is aiming to get a decision regarding the
consumer charge by September 1st so that it can be in
effect on October 1st, thereby preventing the Balancing
Pool's insolvency. There are two questions being asked:
1. A change to the consumer allocation usually
requires about six weeks to take effect. Do you
know if we can get that timeframe shortened to
one month again (like the last time we expected
2. i am sure the Board needs to approve the
charge; do you know if they have the ability to
pass a resolution with short notice if needed?
The DOE staff I spoke to are planning to ask
David James to contact Bill Stedman with the
same question.
Sorry again to disrupt your holiday. Hope you're
enjoying!
Ben
Manager o* Strategy and Special Projects
B a la n c in g Pool
(403)539-5361
b e n .c h a o o e lliS lb a la n c in e p o o l.c a
BAL00062
F12-2016
APPLICANT COPY
S h a rle e n T r a y n o r
Michelle Manuliak
John Martin
LaRhcnda Papworth
RE: Possible Amendment to Balancing Pool Consumer Allocation
From;
Sent;
To:
Cc:
Subject:
Hi John,
Thank You, we will keep you posted on how events unfold on August 31"
Kind Regards,
Michelle Manuliak
Controller
From : John Martin
S ent; W ednesday, A u g u st 24, 2016 11:02 AM
To: M ichelle M anuliak
Cc: LaRhcnda Papw orth
S u b je c t: Possible A m e n d m e n t to Balancing Pool Consum er A llocation
Hi, M ichelle.
In folio w -u p to our tele p h o n e conversation, here is the sort o f inform ation we w ould include in a R ider F am endm ent
application to the C om m ission. T he table b e lo w breaks o u t the 2016 annual e n e rg y betw een J a n u a ry-S e p te m b e r and
O ctober-D ecem ber.
I think the am ount the legislation requires th e Balancing Pool to provide to the A E S O is th e annualized a m o u n t fo r the
year at th e bottom of colum n [B] {($ 1 1 ,4 7 2 ,4 6 0) in the table). You m a y also w ant to provide the co n su m e r allocation in
$/M W h.
[A]
Period
Jan-Sep 2016
Oct-Dec 2016
Annual
[B]
Annualized
Amount
Refund / (Charge)
$138,583,380
($150,055,840)*
($11,472,460)*
[C]
Metered
Energy
GWh
42,641
15,006
57,647
[D = B t- C]
Consumer
Allocation
$/MWh
$3.25/MWh
($10.00/MWh)*
* Amounts to be determined by Balancing Pool

If you need any addition a l inform ation, please co n ta ct me.
John Martin
Regulatory
Calgary, AB T2P 0L4
403-539-2465 direct
403-539-2949 fax
403-667-8040 cell
www.aeso.ca
www.powerinQalberta.ca
BAL000394
F12-2016
APPLICANT COPY

From:
Sent:
To:
Subject:
Attachments:
Ben Chappell
Thursday, A ug u st 25, 2016 9:48 AM
M ichelle M anuliak
C opy o f Cash Forecast G oing Concern 08112016 sl.xlsx
C opy o f Cash Forecast G oing Concern 08112016 s i xlsx
Changed the adjustment factor on the TAs and made BR's output a function of pool price.
BAL000346
F12-2016
APPLICANT COPY
Twelve Month Cash Forecast

^
at July 1, 2016
S cenario 1:
JJIDOI's
Price curve reflects 2016 YTD actual spot price o ff $17fflJWh

PILOT Refund due to Enmax rem itted in December 2016
NJ
Actual
Jun
N>
{Settlement Month
<7>ool Once
Actual
Jul
15
Month
18 21
August
July
Forecast
Sep
Forecast
Aug
17 00
September
IT C
October
Forecast
Oct
5
i? 00
N ovem ber
Forecast
Nov
i
ly.oo
December
(50)
PILOT Audit Costs & Refund to ENMAX
Forecast
Dec
17.00
January
Forecast
Jan
S
17 00
Forecast
Feb
I
February
. 10
Forecast
Mar
1
March
4ft
Forecast
Apr
5
April
Forecast
Mav
$
May
I ' ooj
June
(96 000)
(50)
(360)
(350)
(350)
(500)
1500)
(500)
(500)
(500)
(500)
(500)
(500)
(500)
Other PPA (Force Majuere Legal)
(503)
(300)
(300)
(300)
1200)
(200)
(200)
(200)
(200)
(200)
(200)
(200)
(29)
(20)
(20)
(20)
(20)
(20)
(20)
(20)
(20)
(20)
(50)
s
(670)
(60)
(6.500)
(103,220)
(1,000)
(1,770)
(720)
(20)
-
(930)
(720)
(20)
(720)
(11,952)
(6,534)
(10,177)
(4.599)
(5.273)
(5,392)
(5,158)
(2,149)
(477)
(100)
(1,000)
(15.4:18)
(11,690)
(6,541)
(9.916)
(4.424)
(5.040)
(5,158)
(4.896)
(2,105)
(703)
(100)
(1,000)
(15,438)
(11,952)
(6.534)
(10,177)
(4,599)
(5,273)
(5,392)
(5,158)
(1,638)
(591)
(100)
(1.000)
(15,438)
(16,354)
(15,794)
(27.940)
(21.121)
(28.381)
(27,030)
(23,575)
(2.104)
(580)
(100)
(1,000)
(15,438)
(11,616)
(6,687)
(9.877)
(4.392)
(5,045)
(6,468)
(4,747)
(2.483)
(510)
(100)
(1.000)
(15,438)
(11,354)
(6,694)
(9.618)
(4,221)
(4,812)
(6,235)
(4.486)
(1,883)
(582)
(100)
(1.000)
(15,438)
DOE Mandated Costs

Sub-total Adm in & Other
(892)
(720)
(50)
(30)
.
(800)
(720)
(720)
(17.690)
(6.541)
(9 918)
(4,424)
(5,040)
(5,158)
(4,696)
(1.253)
(658)
(100)
(1.000)
(15,438)
(72.) 16)
(11.354)
(6.694)
(9,618)
(4.221)
(4,812)
(6,235)
(4,486)
(1,280)
(597)
(100)
(1,000)
(15,438)
195.6361
(12.140)
(6,673)
(10.396)
(4,734)
(5,5101
(6,936)
(5,269)
(2.059)
(534)
(100)
(1,000)
(15,438)
<rti , me
H H H l
(9.871)
(6,561)
(11.018)
(5,478)
(6.862)
(6.983)
(5.586)
(159)
(465)
(30)
(14,992)
(61105,
(10,860)
(11 690)
(6.541)
(6,819)
(10,119)
(9.918)
(3,537)
(4.424)
(5,297)
(5,040)
(4.097)
(5,158)
(4,643)
(4.896)
(353)
(1.055)
(447)
(468)
*
(100)
(1,000)
(15,827) ____ ,115,438)
161,998)
^ 6 6 .7 * 1
Opening Cash Balance - J u ly 1, 2016
388,710
319,813
257,094
190,696
121.517
53,785
(117,286)
(190,202)
(256,758)
(328,266)
(509,454)
(578,538)

Ending Cash Balance
(68.897)
(62,719)
257,094
(66,398)
190,696
(69,179)
121,517
(67,732)
53,785
(171,072)
(117,266)
(72.915)
(190,202)
(66,556)
(71,508)
(256,758)
(328,266)
(181,188)
(509,454)
(69,084)
(578,538)
(67,144)
(645,682)
Genesee
Battle River 5
Sheemess
Sundance A
Sundance B
Sundance C
Keephills
Hdyro
SPP
Isolated Generation
Force Majeure (AIP)
Consumer Allocation
Sub-total PPA Settlem ent
Estimated Demand
Consumer Allocation (credit)
319,813
Actual
(3.25) $
Actual
(3.25) $
4.750
(3.25) $
a n
4,750
(3.25) $
!r.o<2)
4,750
(3.25) $
4,750
(3.25) $
CO
>
r~
o
o
o
CO
->4
4,750
(3,25) $
4.750
(325) S
4,750
(3 2 5 ) $
4,750
(3.25) $
4,750
(325) $
4,750
(3,25)

Ben Chappell
Thursday, August 25, 2016 1:27 PM
Bruce Roberts
Michelle Manuliak
RE: Consumer Charge
From:
Sent:
To:
Cc:
Subject:
Hi Bruce,
Did you hear back from Bob Heggie?
Here is the update on our end:
The Board and the AESO are organized to get the consumer charge in place once government approval has been
received. Michelle and I are preparing the write-up requested by Bill and Greg for the Board meeting
The DM told Bill she is uncertain what Notley (yes, Notley) will decide regarding the charge, but thinks
"something" will be approved. She also told Bill we might only get verbal authorization on the 31s' with written
authorization to follow a few weeks later. Bill indicated he will not move forward without something in writing.
In working through the twelve month cash flow forecast, we have estimated the 2017 SGER payment (for 2016
settlement) will be around $120 million. Even at the $13/MWh charge, the Balancing Pool will not be able to
cover that payment. In other words, $13/MWh will cover our needs for 2016, but not 2017.
All the best,

Ben
To: Ben Chappell
Okay - let's collectively keep our fingers crossed. GEI fe 3k

Sent from my iPhone
On Aug 24, 2016, at 09:48, Ben Chappell < ben.chaopell<5>balancingpool.ca> wrote:
Sounds good. Michelle is contacting the AESO and Bill. Once we have heard back from everyone, I will
contact the DOE and let them know we are prepared to move as soon as we get the governments
approval.
Ben
To: Ben Chappell
BAL000348
F12-2016
APPLICANT COPY
I've contacted Bob Heggie and left a voice mail asking him to assist us by expediting the process. I'll let
you know If / when I hear back from him.
BR
Sent from my iPhone
On Aug 24, 2016, at 09:40, Ben Chappell <ben.chappell(Sbalancinepool.ca> wrote:
Michelle,
Ben
To: Ben Chappell
Ben;
Please ask Michelle to send a note to Bill Stedman advising him of the government's
plans / timing. He'll need to have the Board on Standby.
Thanks.
BR
Sent from my iPhone
On Aug 24, 2016, at 09:35, Ben Chappell <ben.chappell(S)balancingpool.ca> wrote:
Thanks Bruce.
What about the Board? Should they get a heads up that a quick
approval may be required on the 31s' or the l 5'?
Ben
To: Ben Chappell
Ben;
As we've done a couple of times previously, Michelle should contact
John Martin at the AESO as soon as possible and let him know that we
are expecting to file the change in the CA - so they can get the
paperwork started and can be in a position on Sept 1 to file with the
AESO.
S. 24(1 )(a)
BR
2
BAL000349
F12-2016
APPLICANT COPY
Sent from my iPhone

<ben.chappeU(5>ba1ancingpool,ca> wrote:
Hi Bruce,
The staff at the DOE originally sought a decision by this
Friday, but (surprise) that deadline has been pushed
back to the 31sl. Whether or not a decision is actually
made by the 31st remains to be seen, however the DOE
fully appreciates the urgency of the situation and
understands that $13/MWh consumer charge must be
in effect October 1st in order to prevent the Balancing
Pool from reach a state of insolvency come November. I
wanted to ensure we had our ducks in a row here so
that we can move forward as quickly as possible should
a charge be authorized by the government.
Ben
To: Ben Chappell
Hi Ben;
No worries about contacting me. I have been keeping
an eye out for any signs of a move by the DOE.
I am certain that my friend Bob Heggie will be able to
accommodate a 1 month process time once again.
Under the circumstances I am highly confident that the
Board will be able to meet on short notice to pass the
resolution.
BR
Sent from my iPhone
<ben.chappeli|g>balancinepool.ca> wrote:
Hi Bruce,
3
BAL000350
F12-2016
APPLICANT COPY
Sorry to bother you on holiday, but..

The DOE is aiming to get a decision
regarding the consumer charge by
September 1st so that it can be in effect
on October l !f, thereby preventing the
Balancing Pool's insolvency. There are
two questions being asked:
1. A change to the consumer
allocation usually requires
about six weeks to take effect.
Do you know if we can get that
timeframe shortened to one
month again (like the last time
we expected the allocation to
change)?
2. I am sure the Board needs to
approve the charge; do you
know if they have the ability to
pass a resolution with short
notice if needed? The DOE staff
I spoke to are planning to ask
David James to contact Bill
Stedman with the same
question.
Sorry again to disrupt your holiday.
Hope you're enjoying!
Ben
M a n a g e r o f S tra te g y a n d S p ecial P ro je c ts
B a la n c in g Pool
(403) 539-5361
b e n chappelli[5>baJancingpool ca
<5
F12-2016
BAL000351
APPLICANT COPY
B arb LeCiaire Freeborn

Bruce Roberts
Thursday, August 25, 2016 2:43 PM
Ben Chappell
Re: Consumer Charge
From:
Sent:
To:
Subject:
Non-responsive
BR
Sent from my iPhone
On Aug 25, 2016, at 12:26, Ben Chappell <ben.chappell(abalancinepool.ca> wrote:
Hi Bruce,
Did you hear back from Bob Heggie?
Here is the update on our end:
The Board and the AESO are organized to get the consumer charge in place once government
approval has been received. Michelle and I are preparing the write-up requested by Bill and
Greg for the Board meeting.
The DM told Bill she is uncertain what Notley (yes, Notley) will decide regarding the charge, but
thinks "something" will be approved. She also told Bill we might only get verbal authorization on
the 31s1with written authorization to follow a few weeks later. Bill indicated he will not move
forward without something in writing.
In working through the twelve month cash flow forecast, we have estimated the 2017 SGER
payment (for 2016 settlement) will be around $120 million. Even at the $13/MWh charge, the
Balancing Pool will not be able to cover that payment. In other words, $13/MWh will cover our
needs for 2016, but not 2017
All the best,

Ben
To: Ben Chappell
Non-responsive
Sent from my iPhone
On Aug 24, 2016, at 09 48, Ben Chappell <ben.chappell(S>balancingpool.ca> wrote:
Sounds good. Michelle is contacting the AESO and Bill. Once we have heard back from
everyone, I will contact the DOE and let them know we are prepared to move as soon as
we get the government's approval.
BAL00063
F12-2016
APPLICANT COPY
Ben
S e n t: Wednesday, August 24, 2016 10:47 AM
To: Ben Chappel!
I've contacted Bob Heggie and left a voice mail asking him to assist us by expediting the
process. I'll let you know if / when I hear back from him.
BR
Sent from my iPhone
On Aug 24, 2016, at 09:40, Ben Chappell <ben.chappell(5>balancingpool.ca> wrote:
Michelle,
Ben
To: Ben Chappell
Ben;
Please ask Michelle to send a note to Bill Stedman advising him of the
government's plans / timing. Hell need to have the Board on Standby.
Thanks.
BR
Sent from my iPhone
<ben.chappell(5>balancinEPOol.ca> wrote:
Thanks Bruce.
What about the Board? Should they get a heads up that
a quick approval may be required on the 31t or the l sr?
Ben
To: Ben Chappell
Ben;
2
BAL00064
F12-2016
APPLICANT COPY
As we've done a couple of times previously, Michelle

should contact John Martin at the AESO as soon as
possible and let him know that we are expecting to file
the change in the CA - so they can get the paperwork
started and can be in a position on Sept 1 to file with
the AESO.
S.24(1)(b)
Sent from my iPhone

<ben.chappell(S)balancingpool.ca> wrote:
Hi Bruce.
Sounds good. Thanks for the
clarifications.
The staff at the DOE originally sought a
decision by this Friday, but (surprise)
that deadline has been pushed back to
the 31st. Whether or not a decision is
actually made by the 31st remains to be
seen, however the DOE fully
appreciates the urgency of the situation
and understands that $13/MWh
consumer charge must be in effect
October l !l in order to prevent the
Balancing Pool from reach a state of
insolvency come November. I wanted
to ensure we had our ducks in a row
here so that we can move forward as
quickly as possible should a charge be
authorized by the government
Ben
From: Bruce Roberts
Sent: Tuesday, August 23, 2016 10:32
PM
To: Ben Chappell
Hi Ben;
F12-2016
B A L00065
APPLICANT COPY
No worries about contacting me, I have

been keeping an eye out for any signs
of a move by the DOE.
I am certain that my friend Bob Heggie
will be able to accommodate a 1 month
process time once again.
Under the circumstances I am highly
confident that the Board will be able to
meet on short notice to pass the
resolution.
Is the government going to allow the
$13/MWh charge?
BR
Sent from my iPhone
<ben.chapoel1fa>balancingpool.ca>
wrote:
Hi Bruce,
Sorry to bother you on
holiday, but...
The DOE is aiming to
get a decision regarding
the consumer charge by
September 1st so that it
can be in effect on
October 1st, thereby
preventing the
Balancing Pool's
insolvency. There are
two questions being
asked:
1. A change to the
consumer
allocation
usually requires
about six weeks
to take effect.
Do you know if
we can get that
timeframe
shortened to
one month
4
BAL00066
F12-2016
APPLICANT COPY
again (like the

last time we
expected the
allocation to
change)?
2. I am sure the
Board needs to
approve the
charge; do you
know if they
have the ability
to pass a
resolution with
short notice if
needed? The
DOE staff I
spoke to are
planning to ask
David James to
contact Bill
Stedman with
the same
question.
Sorry again to disrupt
your holiday. Hope
you're enjoying!
Ben
Manager o f Strategy and Special
Projects
Balancing Pool
(403) S39-S361
bgn.ch3Dt>eli(5>t>alancinePOpl.ca
BAL00067
F12-2016
APPLICANT COPY

Sunday, August 28, 2016 7:58 AM
Monica Sloan (External); Greg Pollard (External)
Bruce Roberts, Michelle Manuliak, Ben Chappell; john carleton
Special Board Meeting Friday Sep 2
From:
Sent:
To:
Cc:
Subject:
credentials.*""*
Further to Barb Freeborn's note, we have scheduled a special board meeting for 9:00 AM, Friday September 2. Back up
materials are posted on Board Books. I expect the meeting will last about two hours.
Monica I hope you will be able to phone in, but understand if this is not possible. We will proceed in any case. If you
can't make the meeting, you and I will find a way to ensure your views are represented.
I expect to get verbal response and instructions (from either Graham Mitchell or Coleen Volk) on Wednesday as
feedback to our letter to the Minister. There will be a follow up letter from the Minister, which we may not have in hand
for our meeting on September 2.
I will summarize the verbal response as soon as I have received it.
Ben and Michelle advise that Sep 2 is likely the last day on which we can tell AESO to alter the Consumer Allocation and
have it effective for the month of October.
John Carleton will advise the Board on our options. I have asked him to speak to potential Director liability. John will
have a colleague with him to act as Secretary for this meeting.
Strange days, indeed.
Bill Stedman
ENTx Capital Corp.
(403) 999-1186
BAL00010
F12-2016
APPLICANT COPY

From:
Sent:
To:
Subject:
Bruce Roberts
Monday, August 29, 2016 8:21 AM
Re Special Board Meeting Friday Sep 2
Hi Bill;
I will not be able to participate on the call on Friday morning. Non-responsive
and will not have cell phone coverage.
I will be back in the office on Tuesday Sept 6th. We can catch up then.
Good luck.
BR
Sent from my iPhone
> On Aug 28, 2016, at 06:58, William Stedman (External) <wstedman(5>entxcapital.com> wrote:
>
>
>
> *** EXTERNAL email. Please be cautious and evaluate before you click on links, open attachments, or provide
credentials.***
>
> Further to Barb Freeborn's note, we have scheduled a special board meeting for 9:00 AM, Friday September 2. Back up
materials are posted on Board Books. I expect the meeting will last about two hours.
>
> Monica I hope you will be able to phone in, but understand if this is not possible. We will proceed in any case. If you
can't make the meeting, you and I will find a way to ensure your views are represented.
>
> I expect to get verbal response and instructions (from either Graham Mitchell or Coleen Volk) on Wednesday as
feedback to our letter to the Minister. There will be a follow up letter from the Minister, which we may not have in hand
for our meeting on September 2.
> l will summarize the verbal response as soon as I have received it.
>
> Ben and Michelle advise that Sep 2 is likely the last day on which we can tell AESO to alter the Consumer Allocation
and have it effective for the month of October.
>
> John Carleton will advise the Board on our options. S.27(1)(a)
.John will
have a colleague with him to act as Secretary for this meeting.
>
> Strange days, indeed.
>
> Bill Stedman
> ENTx Capital Corp.
>(403)999-1186
F12-2016
BAL00068
APPLICANT COPY

Carleton, John P.; Monica Sloan (External); Greg Pollard (External)
Bruce Roberts; Michelle Manuliak, Ben Chappell
Legal Advice on Government Response
From:
Sent:
To:
Cc
Subject:
credentials.***
S-27(1)(a)(c)
Bill
i
B A L00069
F1 2 -2 0 1 6
APPLICANT COPY

William Stedman (External); 'Carleton, John P.'; Monica Sloan (External)
Bruce Roberts; Michelle Manuliak; Ben Chappell
RE: Legal Advice on Government Response
From:
Sent:
To:
Cc:
Subject:
credentials.***
Bill
Thank you for the update.
You note no Consumer charge. Are they willing to remove the consumer allocation (i.e. set it to zero)?
Greg Pollard, CA, CIRP (ret.), ICD.D

403 818-0710
eoe@shaw.ca
From: Bill Stedman (mailto:wstedman@entxcapital.com1

Sent: August 30, 2016 5:49 PM
To: Carleton, John P .; Monica Sloan; Greg Pollard (gpe@shaw.ca)
Cc: Bruce Roberts; michelle.manuliak@balandnepool.ca; ben.chappell@balancinEPOol.ca
Subject: Legal Advice on Government Response
S.27(1)(a)(c)
BAL000352
F12-2016
APPLICANT COPY
S.27(1)(a)(c)
Bill
BAL000353
F12-2016
APPLICANT COPY
B a rb LeClaire Freeborn
From:
Sent:
To:
Cc:
Subject:

William Stedman (External); 'Carleton, John P.'; Monica Sloan (External)
Bruce Roberts; Michelle Manuliak; Ben Chappell
RE Legal Advice on Government Response
credentials.***
Bill
Thank you for the update.
You note no Consumer charge Are they willing to remove the consumer allocation (i.e. set it to zero)?
Greg Pollard, CA, CIRP (ret ), ICD.D

403 818-0710
gpe@shaw.ca
From: Bill Stedman [mailto:wstedman@entxcapital.com1

Sent: August 30, 2016 5:49 PM
To: Carleton, John P .; Monica Sloan ; Greg Pollard (gpe@shaw.cal
Cc: Bruce Roberts ; michelle.manuliak@balancingpool.ca; ben.chappell@balancingpool.ca
Subject: Legal Advice on Government Response
S.27(1)(a)(c)
F12-2016
BAL000166
APPLICANT COPY
S.27(1)(a)(c)
Bill
BAL000167
F12-2016
APPLICANT COPY

John Martin
Michelle Manuliak
RE: Possible Amendment to Balancing Pool Consumer Allocation
From:
Sent:
To:
Subject:
Hi, M ichelle,
C an you tel! m e if you have any better idea w hether w e will get an am ended notice from the Balancing Pool today or
tom orrow ? If so, I w ill get things s e t up to file an a p p lication with the C om m ission as soon as possible.
The A E S O 's o ffic e is closed on Friday (and M onday) and w e w ould p refer to get an application in this w eek rather than
w ait until T uesday.
T h a n ks fo r any up d a te you can provide!
John Martin
Regulatory
Calgary, AB T2P 0L4
403-539-2465 direct
403-539-2949 fax
403-667-8040 cell
www.aeso.ca
From: John M artin

Sent: W ednesday, A ugust 24, 2016 11:02 AM
To: M ichelle M anuliak
Cc: LaRhonda P apw orth
Subject: Possible A m e n d m e n t to Balancing Pool
C onsum er Allocation
Hi, M ichelle.
In follo w -u p to o u r telephone conversation, here is the sort o f inform ation w e w ould include in a R ider F am endm ent
application to the C om m ission. T h e ta b le below breaks out th e 2016 annual e n e rg y between Ja n u a ry-S e p te m b e r and
I th in k the a m o u n t the legislation requires the B alancing Pool to provide to th e A ES O is the annualized am ount fo r the
year a t the bottom o f colum n [B j (($11,472,460) in the table). Y ou m ay also w a n t to provide the co n su m e r allocation in
$/M W h.
(A)
Period
Jan-Sep 2016
Qct-Dec 2016
Annual
[C]
[6 ]
Metered
Energy
GWh
42,641
15,006
57,647
Annualized
Amount
Refund / (Charge)
$138,583,380
($150,055,840)*
($11,472,460)*
[D = 8 -T C]
Consumer
Allocation
$/MWh
$3.25/MWh
($10.00/MWh)*
BAL000397
F12-2016
APPLICANT COPY
* A m o u n ts to be d ete rm in e d by B alancing Pool

P lease let us know as soon as possible
If you
if and
when the Balancing Pool decides to am end its consum er allocation.
need any additional inform ation, please contact me.
John Martin

Regulatory
2500, 330-5th Avenue SW
Calgary, ABT2P0L4
403-539-2465 direct
403-539-2949 fax
403-667-8040 cell
www.aeso.ca
BAL000398
F12-2016
APPLICANT COPY
S h a r le e r ^ r a ^ n o r
From:
Sent:
To:
Subject:
M ichelle M anuliak
W ednesday, A ug u st 31,2016 1;4S PM
John M artin
RE: Possible A m e n d m e n t to Balancing Pool Consum er A llocation
Hi John,
T here w ill be no change co m in g to th e co n su m e r a llo c a tio n a t th is tim e . Have a g re a t w e e ke nd and T hank you so m uch
fo r being ready to roll.
A p p re ciate y o u r e ffo rts .
Kind Regards,
M ich e lle
From : John Martin

S ent: W ednesday, A ugust 31, 2016 1:38 PM
To: Michelle M anuliak
Subject:
RE: Possible A m e n d m e n t to Balancing Pool Consum er Allocation

Hi, M ichelle.
C an you tell m e if you have a n y better idea w h e th e r w e will get an am ended notice from the Balancing Pool to d a y or
tom o rro w ? if so, I w ill get things set up to file an application with the C o m m issio n as soon as possible.
T he A E S O 's o ffice is closed on Friday (and M onday) and w e w ould p re fe r to g e t an application in this w e e k rather than
w ait until T uesday.
T h a n ks fo r a n y update you can provide!
John Martin
Regulatory
Calgary, AB T2P 0L4
403-539-2465 direct
403-539-2949 fax
403-667-8040 cell
www.aeso.ca
From : John Martin
Sent:
W ednesday, A ugust 24, 2016 11:02 AM
To: Michelle M anuliak
Cc: La Rhonda Pa pw orth

Subject: Possible A m e n d m e n t
to Balancing Pool C onsum er Allocation

Hi, M ichelle.
In follow -up to o u r te le p h o n e conversation, here is the sort o f inform ation w e w ould include in a R ider F am e n d m ent
application to the C om m issio n . T he ta b le below breaks out th e 2016 annual e n e rg y betw een Janu a ry-S e p te m b e r and
I think the am ount the legislation requires the Balancing Pool to provide to th e A E S O is the annualized am ount fo r the
ye a r a t the bottom o f colum n [B] (($ 1 1 ,4 7 2 ,4 6 0 ) in the table). You m ay also w a n t to provide the co n su m e r a llocation in
$/M W h.
______________________________________________________________________________________
[A]
P eriod
[D = B
C]
[B]
[C]
A nnualized
M e te re d
C onsum er
Am ount
Energy
A llo ca tio n
Refund / (Charge)
GW h
$ /M W h
Jan-Sep 2016
$138,583,380
42 ,6 4 1
$ 3 .2 5 /M W h
O ct-D ec 2016
($ 1 5 0 ,0 5 5 ,8 4 0 )*
15,006
($ 1 0 ,0 0 /M W h )*
($ 1 1 ,4 7 2 ,4 6 0 )*
57,647
A nnual
BAL000395
F12-2016
APPLICANT COPY

Ben C happell
From:
Sent:
To:
Cc:
Subject:
W ednesday, A u g u st 31, 2016 3:49 PM

Carleton, John P.
M ichelle M anuliak; Eagle Kwok
RE: Consum er A llo ca tio n
S .2 7 (1 )(a )(c )
B A L000354
F1 2 -2 0 1 6
APPLICANT COPY
balancingpool
M e m o ra n d u m
To:
Board of Directors
From: Ben Chappell and Michelle Manuliak
Date: September 02, 2016
Re:
Credit Facility
Purpose
To provide an update to the Board of Directors on the Balancing Pool's credit facility status.
U pdate: Credit Facility
TD Commercial Banking has informed the Balancing Pool that, effective immediately, the
Balancing Pool's credit facility has been reduced from $90 million to $4 million. The credit
facility had been approved on the basis that the Balancing Pool had the authority to
independently set and adjust a consumer charge to cover its financial requirements if need be.
Now that that authority is in question, the bank has been forced to adjust the capacity of the
credit facility.
In addition to providing access to a revolving line of credit, the credit facility had an important
role in the monthly settlement function. The timing of cash inflows and outflows during
settlement do not coincide and, as a result, the Balancing Pool's cash account will normally
have negative balance for a few hours on settlement days (up until the time all cash inflows
have been received). In the past, this negative balance has been covered by the credit facility
and so the Balancing Pool was only required to deposit an amount of cash equal to the net
outflow. With the facility effectively removed, the Balancing Pool must now make a deposit
equal to the total cash outflows in advance, regardless of the expected inflows. Once the
Balancing Pool's cash on hand falls below the amount needed for this deposit, the Balancing
Pool will not be able to complete settlement in a timely manner. Under this scenario, the
Balancing Pool would face penalty payments and would technically be in default under the
PPAs.
TD explained that any future lending or increase to the current credit facility would require
either an explicit government guarantee or a clear indication that the Balancing Pool has
regained its authority over the consumer charge.
BAL000356
F12-2016
APPLICANT COPY
balancingpool
M em orandum
To:
Board of Directors
From: Ben Chappell and Michelle Manuliak
Date: September 02, 2016
Re:
2016/2017 Cash Forecast Scenarios and Estimated Consumer Charge
Purpose
To provide an update to the Board of Directors of the Balancing Pool's financial status, including
an assessment of the impact of various consumer charge options.
Update: Greenhouse Gas Emission Levies
The cash flow forecasts in this document extend over a twelve month period. In preparing the
2017 forecast, the Balancing Pool has estimated that approximately $120 million in greenhouse
gas emission levies will need to be paid under the Specified Gas Emitters Regulation (SGER) in
April 2017. With the Balancing Pool's fund nearly depleted and the credit facility no longer
available, this payment materially affects the consumer charge required for next year.
Financial Assessment
The following assumptions were used to generate the cash flow estimates reflected in the three
forecast scenarios presented below:
market starting at the date the PPA was deemed terminated by the various Buyers.
No termination payments will be made to the PPA Owners.
The average wholesale power price over the period is assumed to equal $16 per M Wh.
Majeure claims estimated at $1 million per month1
BAL000359
F12-2016
APPLICANT COPY
The forecast scenarios reflect the ENMAX PILOT refund of $96 million. The payment is
forecast to be made in January 2017.
Approximately $120 million in greenhouse gas emission levies required under the SGER
is expected to be paid in April 2017.
The forecasts are presented on the following pages. The figures presented are best estimates
made with the information available as at the time of this writing. Actual costs have been
incorporated into the forecast where possible.
BAL000360
F12-2016
APPLICANT COPY
F1 2 -2 0 1 6
Forecast Scenario - C o n s u m e r Charge of $ 1 0 . 0 0 / M W h effective October 1, 2016
The forecast presented below is based on a consumer charge of $10 per MWh effective October 1, 2016. At this level, the charge
would not be sufficient to cover the Balancing Pool's monthly expenditures and cash reserves would be fully depleted with the PILOT
payment. Even without the PILIOT payment, the Balancing Pool would become insolvent in April when the PPA expenses are
expected to include the $120 million SGER payment.
M o n th ly C a sh F o re c a st
A s a t A u g u st 25, 2016
(OOO)-S
p f ir t
Forecast
Actual
Jul
Settlem ent M onth

S
*8 21
UUO
Se p te m b e r
A ugust
M o n th
Forecast
Forecast
Oct
Aug
O c to b e r
PILOT Audit Costs ft Refund to ENMAX
Forecast
Nov
M* fW
N ovem ber
Forecast
Forecast
Jan
Dec
>
D e ce m b e r
is tw
Ja n u a ry
I t 00
Fe b ru a ry
ib ft f
Forecast
M ar
5.
<-00
Forecast
Apr
3
A p r il
M a rch
(9 6 ,0 5 0 )
(5 0 )
Forecast
Feb
.6 0 0
Forecast
May
s
1 *0 0
Ju n e
M ay
(SO)
General & A dm inistrative
(3 6 0 )
(3 6 0 )
(3 6 0 )
(3 6 0 )
(3 6 0 )
(3 6 0 )
(3 6 0 )
(3 6 0 )
(3 6 0 )
(3 6 0 )
(3 6 0 )
O ther PPA (Force Majuere Legal)

Strip C ontract Expense
(3 0 0 )
(3 0 0 )
(3 0 0 )
(2 0 0 )
(2 0 0 )
(2 0 0 )
(2 0 0 )
(2 0 0 )
1200)
(2 0 0 )
(2 0 0 )
(2 0 )
(2 0 )
(2 0 )
(2 0 )
(2 0 )
(2 0 )
(2 0 )
(2 0 )
(2 0 )
(2 0 )
(2 0 )
(SO)
(6 0 )
*
-
(3 0 )
'
*
-
Investm ent M anagem ent Fees
P O t M andated Costs
S u b - t o t a l A d m in & O t h e r
Genesee
Battle River 5
Sheerness
Sundance A
Sundance B
Sundance C
(7 ,5 0 0 )
(5 8 0 )
(5 8 0 )
(9 6 ,6 6 0 )
(5 8 0 )
(sao)
(6 3 0 )
(8 ,0 8 0 )
(5 8 0 )
(1 0 ,8 4 8 )
(1 1 ,0 5 3 )
(1 2 ,4 1 6 )
(1 2 ,1 6 9 )
(1 2 ,4 1 6 )
( 1 8 ,1 6 9 )
(1 1 ,8 3 3 )
(1 2 .5 7 2 )
( 1 6 .8 3 3 )
(1 2 ,0 7 9 )
(1 1 ,8 3 3 )
(5 ,7 3 6 )
(6 ,3 9 6 )
(6 ,6 3 9 )
(6 .6 2 9 )
(6 ,6 3 9 )
(6 ,7 9 2 )
(6 ,7 6 2 )
(1 5 ,8 9 2 )
(6 .7 8 2 )
(6 ,7 9 2 )
(1 0 .1 1 9 )
(9 ,2 8 7 )
(6 .6 2 9 )
(1 0 .6 3 7 )
(1 0 ,3 9 2 )
(1 0 .6 3 7 )
(1 0 ,3 9 2 )
(1 0 ,0 9 2 )
(1 0 ,8 2 4 )
(2 8 .4 1 4 )
(1 0 ,3 3 6 )
(1 0 ,0 9 2 )
(4 ,4 6 9 )
(3 ,9 9 7 )
(4 .9 0 9 )
(4 ,7 4 4 )
(4 .9 0 9 )
(4 ,7 4 4 )
(4 ,5 3 4 )
(S .0 1 6 )
(5 .6 9 6 )
(4 ,4 7 4 )
(5 ,6 8 4 )
(5 ,4 6 5 )
(5 ,6 8 4 )
(5 ,4 6 5 )
(5 ,2 3 7 )
(5 ,8 9 4 )
(2 1 .5 2 8 )
(2 8 ,8 0 6 )
(4 .6 9 5 )
(5 ,4 5 6 )
(4 ,5 3 4 )
(5 ,2 3 7 )
(5 ,3 0 4 )
(4 ,5 8 9 )
(5 .8 0 7 )
(5 ,5 8 6 )
(5 ,8 0 7 )
(5 ,5 8 6 )
(6 ,6 6 2 )
(5 ,6 1 9 )
(5 .6 1 9 )
(5 ,3 7 4 )
(2 4 ,0 5 2 )
(5 ,2 0 8 )
(3 5 3 )
(1 ,0 5 5 1
(2 ,0 7 6 )
(5 ,3 7 4 )
(2 ,1 6 2 )
(7 ,3 2 2 )
(5 ,6 9 9 )
(6 ,8 8 2 )
(4 ,2 6 2 )
(6 ,6 6 2 )
(4 ,9 6 3 )
( 2 7 ,4 5 7 )
(4 .2 6 6 )
(1 ,6 9 9 )
(1 ,3 4 6 )
(2 ,5 4 2 )
(4 .9 6 3 )
(1 ,9 4 4 )
(4 6 8 )
(4 6 7 )
(7 1 4 )
(6 0 0 )
(6 0 6 )
(2 .1 2 1 )
(5 4 3 )
(2 .1 6 4 )
(4 4 7 )
-
( 1 ,3 1 3 )
(6 6 8 )
(5 9 0 )
(1 0 0 )
(1 0 O )
(1 0 0 )
(1 0 0 )
(1 0 0 )
(1 0 0 )
(1 0 0 )
(1 0 0 )
(1 ,0 0 0 )
(5 1 8 )
(1 0 0 )
(5 9 1 )
(1 0 0 )
(1 ,0 0 0 )
(1 ,0 0 0 )
4 7 .SO O
4 7 ,5 0 0
4 7 ,5 0 0
B A L0 0 0 3 6 1
(1 ,0 0 0 )
(1 ,0 0 0 )
(1 5 .4 3 8 )
(1 5 .4 3 8 )
( 6 3 ,0 6 5 )
(62 J t i
| 20,7811
O p e n i n g C a s h B a la n c e - A u g 1, 2 0 1 6
3 1 7 ,3 1 3
2 5 3 ,5 1 8
1 9 0 ,7 2 0
F o r e c a s t C a s h I n llo w ( O u t f lo w )
( 6 3 ,7 9 5 )
(6 2 ,7 9 8 )
(7 1 ,5 7 1 )
E n d in g C a s h B a la n c e
2 S 3 ,S 1 8
1 9 0 ,7 2 0
1 1 9 ,1 4 8
1 1 1 ,7 2 3
4 ,7 5 0
4 ,7 5 0
4 ,7 5 0
4 ,8 7 0
5
(7 9 0 )
( 1 5 ,8 2 ? )
C o n su m e . A d o c ^ o n le e d d ic h a t g e
1 6 80 )
Keephills
Hdyro
SPP
Isolated Generation
Force M ajeure (AIP)
Consumer Allocation
Estim ated Demand
(7 3 0 )
(3 -2 5 )
Id 2S1 5
i3 ?51 ?
(1 ,0 0 0 )
(1 ,0 0 0 )
(7.6*41)
(6,1146)
(7 ,4 2 6 )
ID IAJ
(8 ,1 8 0 )
1 0 3 ,5 4 3
jt r i x .
(1 .0 0 0 )
4 7 ,S 0 0
( 1 5 S .3 9 3 )
1 0 3 ,5 4 3
(5 ,0 6 9 )
(1 1 ,3 1 5 )
(2 2 ,2 4 6 )
(1 4 2 ,2 1 4 )
(1 0 8 ,6 1 1 )
(6 ,2 4 8 )
(1 0 ,9 3 3 )
(1 1 9 ,9 6 7 )
jlM 7 9 ) _
(6 ,8 2 9 )
(5 ,0 6 9 )
(1 1 ,3 1 5 )
(2 2 ,2 4 8 )
(1 4 2 ,2 1 4 )
(1 5 8 ,3 9 3 )
(1 6 5 ,2 2 2 )
4f 7 5 0
4 ,7 5 0
4 ,7 5 0
%
4 7 ,5 0 0
1U.9S1)
1 1 1 ,7 2 3
1 1 9 ,1 4 8
(1 .0 0 0 )
( 1 ,0 0 0 )
4 7 ,5 0 0
4 7 ,5 0 0
4 7 ,5 0 0
1 0 .O T
U UO 5
4 ,7 5 0
4 ,7 5 0
1 0 ,0 0
to o 0
4 ,7 5 0
uon
4 ,7 5 0
uxoo
APPLICANT COPY
F12-2016
Forecast Scenario - Consumer Charge of $13.00/MWh effective October 1. 2016

would be sufficient to cover the Balancing Pool's monthly expenditures and the PILOT payment. However, since the Balancing Pool's
fund has been significantly depleted and the credit facility is no longer available, the organization would still become insolvent in
April when the PPA expenses are expected to include the $120 million SGER payment.
Cash Forecast
As a t A u g ust 2S. 2016
(000)s
Actual
Jul
Settlement Month
P o o l Price
M o n th
Forecast
Aug
18-21
A ugust
18.J3
S eptem ber
Forecast
5eP
5
1 600
O cto b e r
1360)
1300)
(20)
(50)
S u b -to ta l A d m in & O th e r
(730)
(680)
(790|
(10,848)
(5,736)
(10,119)
(4,469)
(5,696)
(S,304)
(4.266)
(3S3)
(447)
(11,053)
(6,396)
(9,287)
(3,997)
(4,474)
(4,589)
(4,262)
(1,055)
(468)
(100)
(1,000)
(15,438)
G enesee
Battle River 5
Sheerness
Sundance A
Sundance B
Sundance C
Keephills
Hdyro
SPP
Isolated Generation
Force Majeure (AIP)
Consumer Allocation
BAL000362
Sub to ta l PPA S e ttle m e n t
(15,827)
(63.065)
O pe n in g Cash Balance Aug 1, 2016

Forecast Cash In flo w (O u tflo w )
Ending Cash Balance
317,313
(63,795)
2&3.518
Fstim ated Demand

Consumer A llo t atton |crecJlt)U>erge
4,870
(3 25) S
(360)
(300)
(20)
1400
N ovem ber
(50)
(360)
(300)
(201
(60)
PILOT Audit Costs & Refund to ENMAX

Other PPA (Force Majuere legal)
Investment M anagement Fees
DOE Mandated Costs
Forecast
Oct
Forecast
Dec
Forecast
Nov
5
1 600
D ecem ber
(580)
(12.169)
(6,639)
(10,392)
(4,744)
(5,465)
15,586)
15,374)
12,162)
(714)
(100)
(1,000)
61,750
(12,416)
(6,629)
(10,637)
(4,909)
(5,684)
(5,807)
(5,619)
(1,699)
(600)
(100)
(1,000)
61,750
6.650
(18,169)
(6,639)
(10,392)
(4,744)
(5,465)
(5,586)
(5,374)
(1,313)
(668)
(100)
(1,000)
61,750
k n s
(12,416)
(6,629)
(10,637)
(4,909)
(5,684)
(5,807)
(5,619)
(2,076)
(467)
(100)
(1,000)
(15,433!
r /o .r u )
253,518
(62,798)
190,720
190,720
(71,571)
119,148
119,148
6,824
125,973
125.973
6,070
132.043
132,043
(94.3611
37,681
4,750
(3 251 S
4,750
WOO
1300
4,750
I3H0
161)0
M a rch
(360)
(200)
(20)
IM G
Forecast
Apr
5
A p ril
1600
June
(360)
(200)
(20)
(360)
(200)
(20)
(7,500)
(8,080)
(580)
(580)
(630)
(11,833)
(6,792)
(10,092)
(4,534)
(5.237)
(6,662)
(4,963)
(1.346)
(606)
(100)
(1,000)
61,750
! SC,
(12,572)
(6,762)
(10,824)
(5,016)
(5,894)
(7,322)
(5,699)
(2,121|
(543)
(100)
(1,000)
61,750
(16.833)
(15,892)
(28,414)
(21.434)
(28,806)
(27,457)
(24,052)
(2,164)
(5901
(100)
(1,000)
61.750
IS O ia p i)
(12,079)
(6,782)
(10,336)
(4,695)
(5,456)
(6,882)
(5,208)
(2,542)
(518)
(100)
(1,000)
61,750
6,151
(11.833)
(6.792)
(10,092)
(4.534)
(5.237)
(6.662)
(4.963)
(1,944)
(591)
(100)
(1.000)
61,750
WW1
37,681
8,004
45,685
45,685
3,317
49,002
49.002
(105,623)
(56,620)
(1,929)
(58,549)
(58,549)
7,421
(51,128)
3.897
4,750
i
1600
Forecast
May
M ay
(50)
(360)
1200)
(20)
(360)
(200)
(20)
2.299
4,750
$
VOX)
Forecast
Mar
Forecast
Feb
February
(96.050)
(360)
(200)
(20)
(30)
(96,660)
(580)
4,750
(3,M
>
January
(360)
(200)
(20)
(360)
(200)
(20)
16 00
Forecast
Jan
13.00
4,750
13,00
<56,M0J.
4,750
iim
(580)
4,750
>
i3 ,o c
4,750
5
13.00
A
APPLICANT COPY
F12-2016
Forecast Scenario - Consumer Charge of $15.00/MWh effective October 1, 2016

would be sufficient to cover the Balancing Pool's monthly expenditures, the PILOT payment, and the SGER payment. In the months
following the SGER payment, the Balancing Pool would be expected to operate at an approximate $16 million surplus.
C ash Fo re ca st
As a t A u g ust 25, 2016
(000)5
Pool Price
Forecast
Actual
Jut
Settlem ent M onth

S'
18 21
A ugust
M o n th
S eptem ber
.
PILOT A udit Costs & Refund to ENMAX

General & Adm inistrative
O ther PPA (Force Majuere Legal)
Strip co ntra ct Expense
Investm ent Managem ent Pees
OOE M andated Costs
S u b -to ta l A d m in & O th e r
Forecast
____ __________ __ 5p_____

S
13.3S !
I4 0G *
(360)
(300)
(20)
(360)
(300)
(20)
(SO)
O c to b e r
Forecast
Forecast
Oct
U lV i
N ovem ber
(50)
(360)
(300)
(20)
(60)
Forecast
Dec
Nov
U Ofl
Decem ber
'
:.on
January
(20)
L&.66
Forecast
Feb
February
(96.050)
(360)
(200)
(20)
(30)
(360)
(200)
(20)
(360)
(200)
Forecast
Jan
Forecast
Mar
U.GQ
Forecast
May
16-00
16.00 |
Ju n e
M ay
(50)
(360)
(200)
<20)
(360)
(200)
(20)
on
16
A p ril
M a rch
(360)
(200)
(20)
Forecast
(360)
(200)
(20)
(360)
(200)
(20)
(5B0)
(730)
(680)
(790)
(S80)
(580)
(96.660)
(580)
(580)
(630)
(7.500)
(8,080)
Genesee
( 1 0 ,8 4 8 )
B a t t le R iv e r 5
(5.736)
(10.119)
(4,469)
(5.696)
(5.304)
(4,266)
(11,053)
(6.396)
(9.287)
(3.997)
(4.474)
(4,589)
(4,262)
(1,055)
(468)
(12,416)
(6.679)
(10,637)
(4,909)
(5.684)
(5,807)
(5,619)
(2,076)
(467)
(12.169)
16.639)
(30.392)
(4,744)
(5.465)
(S,S86)
(5.374)
(2.162)
(714)
(12,416)
(6,629)
(10,637)
(4.909)
(18,169)
(6,639)
(10,392)
(4,744)
(5,465)
(5,586)
(5,374)
(1,313)
(G68)
(11.833)
(6.797)
(10,092)
(4,534)
(5.237)
(6.662)
(4,963)
(1,3461
(606)
(12,572)
(6,762)
(10,824)
(5,016)
(5,894)
(7,322)
(5.699)
(543)
(16,833)
(15.892)
(28,414)
(21,434)
(28,806)
(27.457)
(24 052)
(2.164)
(590)
(12.079)
(6,782)
(10,336)
(4.695)
(5,456)
(6.882)
(5,208)
(2.542)
1518)
(11.833)
(6.79?)
(10.09?)
(4.S34)
(5,237)
(6.662)
(4.963)
(1.944)
(591)
(1 0 0 )
(1 0 O )
(1 0 0 )
(1 ,0 0 0 )
(1 0 0 )
(1 .0 0 0 )
(1 0 O )
(1 ,0 0 0 )
(3 0 0 )
(1 ,0 0 0 )
(1 0 0 )
(1 .0 0 0 )
(1 0 0 )
(1 ,0 0 0 )
(15,438)
162, U )
253,S18
(62,798)
190,720
Sheerness
Sundance A
Sundance B
Sundance C
Keepbills
Hdyro
SPP
Isolated Generation
Force M ajeure (AIP)
Consumer Allocation
S u b - t o t a l PPA S e t t le m e n t
(353)
(447)
317,313
(63,795)
253,511
O p e n in g Cash Balance - A u g 1, 2016
BAL000363
F o r e c a s t C a s h I n f lo w ( O u t f lo w )
E n d in g Cash B a la n c e
Estimated Demand
ffn n s lrp v r A llo t a no n (cre d lT K Jw fP
4,870
[) l
4,750
5
(5 .6 8 4 )
(5,807)
(5,619)
11.699)
(2 .1 2 1 )
(1 .0 0 0 )
(6 0 0 )
(1 0 0 )
(1 ,0 0 0 )
(15,438)
(70.7*1)
71,250
16^04
71,250
:u 150
71,250
71,250
13,397
71,250
11.799
71,250
J8,OM
(1 0 0 )
(1 ,0 0 0 )
/ 1 .2 S 0
19S 4931
V6S1
190,720
(71,571)
119.148
119,148
16,324
135,473
135,473
15,570
151.043
151,043
(4,861)
66.181
66,181
17.S04
83.685
83,685
12.817
96.502
(96,323)
380
4,750
4.7S0
1 50 0
4,750
F
'
,ooo)
4.750
4,750
is U O ffc
O jOO j
380
7,571
7.951
96,502
4.750
f
7,951
16,921
24,877
4.750
4,750
4,750
i
71.250
17.5011
'
*& *>
APPLICANT COPY
Borrowing Funds to Cover Large Payments

In discussing options to cover the lump sum payments associated with PILOT and SGER, the
option of borrowing funds has been identified. This section provides a brief assessment this
option.
PILOT Payment
The table below provides a summary of the impact on the Balancing Pool's monthly cash flows
and the consumer charge brought about by debt financing the PILOT payment:
Principal
Interest Rate
Amortization
Monthly
Payment
Consumer
Charge Impact
$96 million
5%
4 Years
$2.2 million
$0.47/MWh
Assuming a five percent interest rate and a four year amortization period, the Balancing Pool
would face a monthly payment of $2.2 million to debt finance the PILOT payment. To cover this
payment, the consumer charge would need to increase by approximately $0.47 per MWh.
SGER Payment
Next, we provide a summary of the impact associated with debt financing the SGER payment.
Two scenarios are considered:
1. The consumer charge is set to less than $13 per MWh. Any rate less than $13 per MWh
would generate insufficient income to cover the Balancing Pool's monthly cash flow
requirements. As such, it is assumed that the full $120 million SGER payment is debt
financed.
2. The consumer charge is set to exactly $13 per MWh. This rate would generate sufficient
income to cover the Balancing Pool's monthly cash flow requirements. As such, only the
shortfall in the month the payment is made (April 2017) is assumed to be debt financed.
The shortfall is calculated in the cash flow analysis above under the $13 per MWh
consumer charge scenario and is estimated to be $56.6 million. (We have rounded this
figure up to $60 million for the purposes of this analysis). Note that the PILOT payment
is fully paid under this scenario.
As shown in the cash flow analysis above, a $15 per MWh charge would eliminate the need to
debt finance the SGER payment.
BAL000364
F12-2016
APPLICANT COPY
The table below presents the results of the analysis under both scenarios:
Consumer
Charge
Principal
Interest Rate
Amortization
Monthly
Payment
Consumer
Charge
Impact
<$13/M W h
$120 million
5%
12 Months
$10.3 million
$2.16/MWh
$13/MWh
$60 million
5%
12 Months
$5.1 million
$1.08/MWh
Assuming a five percent interest rate and a twelve month amortization period, the Balancing
Pool would face a monthly payment of $10.3 million (or $2.16 per MWh in required consumer
charge) if the full SGER payment is debt financed. If the consumer charge is set to $13 per
MWh, the monthly payment is halved to $5.1 million ($1.08 per MWh).
Note that the SGER payment is amortized over twelve months. This amortization period was
selected because the payment is a reoccurring annual charge. However, it should be also noted
that the levies associated with SGER will increase in 2017 and the Balancing Pool will face
approximately double the charge ($240 million) in 2018 as a result. Starting in 2018, the levies
will change again as SGER will be replaced by the new levies under the government's Climate
Leadership Plan. These levies are expected to be orders of magnitude higher than the levies
under SGER.
F12-2016
BAL000365
APPLICANT COPY
B a rb L e C la ire F re e b o rn
From:
Sent:
To:
Subject:
Attachments:

Thursday, September 01, 2016 1:41 PM
john carleton; Monica Sloan (External); Greg Pollard (External); Ben Chappell, Michelle
Manuliak; Bruce Roberts
Fwd: RESPONSE: Letter from Mr William Stedman
266S4 WSteadman_Balancing Pool.pdf; ATT00001.htm
** EXTERNAL email. Please be cautious and evaluate before you click on links, open attachments, or provide
credentials.***
Bill Stedman
Begin forwarded message;

From: "Brendalee Gardner" <brendalee.gardnergov.ab ca>
To: "Bill Stedman" <wstedmanentxcapital.com> . 1"Barb. Freeborn batancingpoolca"'
<Barb.Freeborn balancingpool.ca>
Cc: "Coleen Volk" <Coleen.Volkgov.ab.ca>. "David James" < DavidJamesgov.ab.ca>
Subject: RESPONSE: Letter from Mr William Stedman
Please find attached response from the Minister of Energy
Thank you.
Minister's Office
Energy
Phone:(780)427-3740
From: Minister of Energy
Sent: September 1, 2016 12:59 PM
To: 'wstedmanentxcapital.com'; Barb.Freebornbalancingpool.ca'
Cc: Coleen Volk; David James
Subject: RE: RESPONSE: Letter from Mr William Stedman
Kindly disregard the attached letter.
We apologize for the inconvenience.
Thank you
From: Minister of Energy
Sent: September 1, 2016 12:34 PM
To: 'wstedmanentxcapital.com': ,Barb.Freebornbalancingpool ca
Cc: Coleen Volk; David James
Subject: RESPONSE: Letter from Mr William Stedman
F12-2016
BAL000168
APPLICANT COPY
In response to your August 12, 2016 letter, please see attached response from the Minister of Energy.
The original will be mailed to your office.
Thank you.
Minister's Office
Energy
Phone:(780)427-3740
From: Barb LeClaire Freeborn fmailto:Barb.Freeborn@balancingpool,ca1

Sent: August 12,2016 10:14 AM
To: Minister of Energy
Cc: Coleen Volk; David James; Bruce Roberts
Subject: Letterfrom Mr William Stedman
Good morning Ms. McCuaig-Boyd:
Please see attached correspondence from Mr. William Stedman, Chairman of the Board for Balancing
Pool. We will be sending a hard copy by courier to follow.
Sincerely
Barb Freeborn | Office Manager) Balancing Pool

2350, 330 - 5th Avenue SW | Calgary, AB | T2P 0L4
Direct Line: (403) 539-5350 | Fax: (403) 539-5366
This email and any files transmitted with it are confidential and intended solely for the use of the
individual or entity to whom they are addressed. If you have received this email in error please
notify the system manager. This message contains confidential information and is intended only
for the individual named. If you are not the named addressee you should not disseminate,
distribute or copy this e-mail.
F12-2016
BAL000169
APPLICANT COPY
A I M Is I A
I M Itt \
r iIht. m i/i Wiumii
'<1/
I. /
hnni
in ih il
/ ' wi
\W n
September 1, 2016
AR266W
Mr. W illiam Stedm an, C hair

Board of Directors
Balancing Pool
2350, 330 - 5 Avenue SW
C algary AB T2P 0L4
D e ar Mr. Stedm an:
I am writing with respect to your letter dated August 12. 2016, outlining the Balancing
Pool's financial position. On behalf of the G overnm ent of Alberta, thank you for your
diligence in bringing these im portant m atters forw ard to our governm ent. W e can
appreciate the scale and urgency of the Balancing Pool's financial position. W e want you
to know that this is not only a financial issue, but it also has broad policy im plications to
individuals, businesses, and industry across Alberta.
C abinet discussed the Balancing Pool's financial position on A ugust 30, 2016, and it has
given us direction to table legislation in the Legislative A ssem bly at the earliest
possibility, which is at the end of O ctober 2016. The proposed legislation w ould allow the
G overnm ent of Alberta to lend m oney to the B alancing Pool, effective D ecem ber 1,
2016, to fund the Balancing P o ols future m onthly expenses. Further, w e intend to
propose am endm ents that alter the Balancing P ool's and C a bin et's responsibilities
regarding this matter.
W hile the legislation m oves through governm ent process, the Balancing Pool can expect
a grant from the G overnm ent of Alberta of up to $70,000,000 as early as O ctob er 2016
to assist its financial position in the im m ediate term . The se m easures are expected to
allow the Balancing Pool to m eet its statutory duty at current C onsum er Allocation levels.
M y departm ent has advised that the regulation provisions that are referred to in section
82 of the Electric Utilities Act are not in place. W e are intending to use the M inisterial
regulation-m aking powers set out in section 88 of the act:
to define the annualized am ount for this fiscal year and next as the am ount that it
is currently set at; and
...12
< U ^ i ' h t u u Httililim:, I ilimifinut! \ H m i i
I 'K 'fH*
F12-2016
Ml
1 <0 I i
S<* tri | J J J
BAL000170
APPLICANT COPY
-2-
to include any necessary clarifications respecting the determination of the

annualized amount that are required to ensure that the Balancing Pool will be able
to both implement the amounts determined above and fulfil its duties under
section 82 and 85 of the act.
My staff will be contacting you in the near term to seek your input on wording for these
provisions.
Thank you for your patience and understanding in this matter.
Sincerely,
Margaret McCuaig-Boyd
Minister
cc: Coleen Volk, Deputy Minister
Alberta Energy
David James
Alberta Energy
BAL000171
F12-2016
APPLICANT COPY
2015 Cash Forecast

(000)'s
September 10, 2015

September 9. 2015
Prepared Date:
Forward Curve Date:
2015
Month
September
PILOT Revenue
Other PPA. Trading Charge, Bank Charge
DOE Mandated Costs
25
(244)
(250)
100
(228)
(250)
(20)
(228)
(20)
(500)
Sub-total Cash Flow from Admin & Other
October
December
November
January
100
(216)
(250)
(20)
100
(234)
(250)
(20)
100
(216)
(250)
(20)
(898)
u 'i 1
Aug
5,864
>3
5
Sep
5,814
Oct
5,864
Nov
5,814
Dec
5,864
Genesee Revenue
Genesee Costs
Net Cash Inflow (Outflow)
12.620
(20,728)
10,741
(20557)
14,244
(20.728)
13,606
(20,557)
14,706
(20.919)
(8.109)
(9.816)
(6,484)
(6,952)
(6,212)
Hydro Revenue
Hydro Costs
8,841
(5,381)
5,873
(5,380)
7.807
(5.380)
8,527
(5,380)
10,043
(5.380)
2,427
3,147
4,663
B
Settlement Month
Strip Contracts (200 MW)
3.460
SPP Contract Inflow (Outflow)

Costs
(463)
(6)
(470)
Hedging Gam (Loss)

Isolated Generation
Force Majeure
Consumer Allocation

Opening Cash Balance - Sept 10
Settlement Date
fi
493
38.50
'
38 00
(886)
t
39.75
(3,290)
$
38.56
Forecast
29.220
(37,573)
14,190
(609)
(7)
(612)
(8)
(579)
(8)
(596)
(9)
(616)
(621)
(587)
(604)
(2,898)
(250)
(250)
(250)
(28,615)
(1,028)
(62)
(139,743)
(28)
(62)
(27,448)
(25,928)
(250)
(27,573)
t28 7*t(
'W -un'
Iif- 9JT1
3,149
(27,507)
1,642
(31,201)
1,440
(27,041)
(27.828)
1,571
(27,605)
26,000
1,642
31.000
1,440
27,000
1,399
28,000
1,571
23,000
1,966
29-Sep
(100)
(1.228)
(386)
(716)
Pool Price
425
(1.138)
(1,250)
(500)
(404)
Forecast
29-Oct
30-Nov
(30,179)
(137,893)
1,399
30-Dec
140,000 Expected Withdrawl
29-Jan
195.000
335.000
(57,629)
277,371
APPLICANT COPY
Year-To-Date Withdrawl
Total
Less: Re-invested Div & Gains
Net Exptected Withdrawl
September
PILOT Revenue
Other PPA, Trading Charge, Bank Charge
DOE Mandated Costs
25
(244)
100
(228)
(250)
(20)
(250)
(20)
(500)
October
November
December
100
(234)
(250)
(20)
-
100
(216)
(250)
(20)
-
September 24, 2015

September 24, 2015
100
(216)
(250)
(20)
(500)
425
(1.138)
(1,250)
(100)
(1,000)
(886)
(3,063)
(898)
(404)
(386)
34 11 $
Aug
5,864
20.00 S
Sep
5,814
35.U0 S
Oct
5,864
39.00 $
Nov
5,814
42,00
Dec
5,864
Genesee Revenue
Genesee Costs
12,620
(20,728)
7,161
(20,557)
12,949
(20,728)
13.964
(20,557)
15,539
(20,919)
(8,109)
(13,396)
(7,779)
(6,594)
(5,380)
Hydro Revenue
Hydro Costs
8,841
(5,381)
3,756
(5,380)
7,054
(5,380)
8,764
(5,380)
10,639
(5,380)
3,460
(1,624)
1,674
3,384
5,259
t
Setllement Month

Costs
Net Cash inflow (Outflow)
Hedging Gain (Loss)
Isolated Generation
Force Majeure
Consumer Allocation
Settlement Date
37,70
Forecast
29,220
(41,258)
12,153
(463)
(6)
(740)
(7)
(668)
(8)
(564)
(8)
(470)
(747)
(559)
(9)
(677)
(572)
(568)
(3,033)
(28)
(62)
(27,448)
(250)
(250)
(250)
(250)
(1,028)
(62)
(139.743)

Opening Cash Balance Sept 10
2015
Forecast
January
(489)
Pool Price
3,149
(27,280)
26,000
1,869
29-Sep
(25,928)
(V
(27,573)
1.869
(37.029)
36,000
840
840
(29,146)
29,000
694
29-0 ct
(28,615)
B A L000175
Month
Prepared Date:
Forward Curve Date:
(30,179)
(143,750)
30-Nov
694
(27,218)
28,000
1,477
30-Dec
1,477
(26,140)
26,000
1,337
29-Jan
195.000
340.000
(57,629)
282,371
APPLICANT COPY
Year-To-Date Withdraw!
Total
F 1 2-2016
2015 Cash Forecast

(OOO)'s
2015 C ash Forecast
Prepared Date:
Forward Curve Date:
(000)'s
October 2, 2015
October 1,2015
2015
Month
October
PILOT Revenue
100
General 8 Administrative
(228)
Other PPA, Trading Charge. Bank Charge
(250)
(20)

investment Management Fees
DOE Mandated Costs
(500)
(898)
Pool Price
Genesee Revenue
Genesee Costs
Hydro Revenue
Hydro Costs
Costs
January
100
100
(250)
(216)
(250)
(216)
(250)
(20)
-
(20)
-
(20)
(500)
(404)
37 00 1
Nov
5,814
41.00|
Dec
5,864
7,465
(20.557)
12,024
(20,728)
13,247
(20,557)
15,159
(20.919)
(13,092)
(8.704)
(7,310)
(5.750)
3,938
(5,380)
6,515
(5,380)
6,290
(5.380)
10,374
(5.380)
(1,444)
1,135
2,910
4,994
(728)
(7)
(736)
(200)
(73)
(25,926).
135.659)
Opening Cash Balance - Oct 2

3,370
(36,557)
36,000
2,813
29-Od
3250
(708)
400
(894)
(1.000)
(80)
(1,000)
-
(886)
Oct
5,864
20.85
Forecast
(366)
Sep
5,814
Hedging Gain (Loss)

Isolated Generation
Force Majeure
Consumer Allocation
Settlement Date
December
100
(234)
Settlement Month
November
(2,574)
$
37.32
Forecast
23,356
(34,856)
7,595
(8)
(716)
(594)
(8)
(575)
(9)
(602)
(584)
(2,638)
(250)
(27,573)
(250)
(28,615)
(250)
(30,179)
(950)
(73)
(112,295)
^053)
2,813
(30,648)
30,000
2,164
30-Nov
2,164
(28,439)
28,000
1,726
30-Dec
(119.861)
1,726
(26,791)
27,000
1,935
29-Jan
221.000
342.000
(57,629)
284,371
F12-2016
Total
BAL000176
APPLICANT COPY
2015 C ash Forecast

(000)'s
Prepared Date:
Forward Curve Date:
October 21,2015
2015
Month
October
November
PILOT Revenue
100
(76)

(125)
(10)

DOE Mandated Costs

Pool Price
(211)
|S
Settlement Month
Genesee Revenue
Genesee Costs
Hydro Revenue
Hydro Costs
Costs
Hedging Gain (Loss)
Isolated Generation
Force Majeure
Consumer Allocation

Opening Cash Balance - Oct 21
Settlement Date
December
20-85 5
(234)
(250)
(20)
(500)
-
100
(216)
300
(742)
(250)
(20)
(250)
(20)
(875)
37 20
41J00
Oct
5,864
Nov
5,814
8,555
(21,900)
8,500
(20,728)
13,247
(20,557)
(20,919)
(13,345)
(12,219)
(7,310)
(5,750)
4,470
(5.380)
8,290
(5,380)
10,374
(910)
2,910
Dec
5,864
(5,380)
4,994
(594)
(8)
(498)
(867)
(602)
(9)
(584)
(101)
(73)
(25,720)
(250)
(27,573)
(250)
(28,615)
(28 0S3)
(250)
(30,179)
(25,965
2,285
(28,439)
28,000
1,846
1,846
(26,791)
27,000
2,055
3,075
(35,931)
35,000
2,144
29-Oct
2,144
(36,859)
37,000
2,285
30-Nov
30-Dec
(2,387)
$
36.53
Forecast
23,558
15,169
(859)
(8)
^35726)
(886)
Sep
6,016
(1,999)
(70)
(1,000)
(500)
(386)
i
Forecast
100
(216)
(904)
23.00
January
(38,624)
4,995
(575)
(2.551)
(851)
(73)
(112,087)
(125,633)
29-Jan
221.000
348.000
(57,629)
290,371
F12-2016
Total
Less: Re-invested Dlv & Gains
Net Exptecteo Withdrawl
BAL000177
APPLICANT COPY
2015 Cash Forecast

(OOO)'s
Month
PILOT Revenue
DOE Mandated Costs
Pool Price
Settlement Month
Prepared Date:
Forward Curve Date:
November
December
50
(117)
(125)
(10)
(250)
-
50
(216)
(250)
(20)
-
(452)
(436)
16.00
|$------ f T S T T "
Nov
Oct
5,814
5,898
November 17, 2015
January
2015
Forecast
150
(549)
(625)
(50)
(750)
50
(216)
(250)
(20)
(500)
(936)
35 09
Dec
5,864
(1.B24)
$
3431
Forecast
17,576
Genesee Revenue
Genesee Costs
8,958
(21,414)
(12,455)
6,445
(20,557)
(14,112)
12,949
(20,919)
(7,970)
(34,537)
Hydro Revenue
Hydro Costs
3,963
(5,361)
(1,398)
3,781
(5,380)
(1,599)
8,785
(5,380)
3,404
407
(429)
(5)
(434)
(881)
(8)
(889)
(672)
(9)
(681)
(2,004)
(250)
(80)
(26,586)
(250)
(28,615}
(3#,851J
(250)
(30,179)
(29.8
(750)
(80)
(85,379)
(104,767)
1,518
(40,087)
41,000
2,431
30-Dec
2,431
(30,747)
30,000
1,684
29-Jan

Costs
Hedging Gain (Loss)
Isolated Generation
Force Majeure
Consumer Allocation
Opening Cash Balance - Nov 17
Settlement Date
1,275
(35,757)
36,000
1,518
30-Nov
256.000
363.000
(57,629)
305,371
Total
Less: Re-invested Dlv & Gains
BAL000178
F12-2016
APPLICANT COPY
Month
November
21.47
Oct
Setllement Month
Genesee Revenue
Genesee Costs
Hydro Revenue
Hydro Costs
Costs
Opening Cash Balance - Dec 1

Settlement Date
!"
- ,
1,536
1,536
30-Nov
21.17
2015
Forecast
100
(432)
(500)
(40)
(750)
(1,622)
50
(216)
(250)
(20)
(500)
(936)
(686)
If
Hedging Gain (Loss)

Isolated Generation
Force Majeure
Consumer Allocation
January
December
50
(216)
(250)
(20)
(250)
PILOT Revenue
DOE Mandated Costs
Pool Price
December 1,2015
November 30, 2015
Prepared Date:
Forward Curve Date:
2015 Cash Forecast

(OOO)'s
33.00
34.41
Forecast
11,678
Nov
5,814
Dec
5,864
7,580
(20,557)
(12,977)
12,209
(20,919)
(8,710)
(21,687)
4,534
(5,380)
(846)
8,255
(5,380)
2,874
2,028
(833)
(8)
(841)
(705)
(9)
(713)
(121)
(73)
(28,615)
(37.680)
(250)
(30,179)
1,536
(38,346)
40,000
3,190
30-Dec
( 1,555)
(371)
(73)
(58,794)
(68,773)
3,190
(32,049)
32,000
3,140
29-Jan
292.000
364.000
(57,629)
306,371
Total
Less; Re-invested Div & Gains
BAL000179
F12-2016
APPLICANT COPY
P repared Date: January 4, 2016

F o rw a rd C urve Date: Decem ber 31, 2015
2015 C a sh F o re c a s t
(OOO)'s
(216)
(250)
(20)
(500)

Investment Management Fee s
D O E Mandated C osts
20.93
D ec
S e tile m e n t M o n th
G enesee Revenue
G enesee C osts
Net C a sh Inflow (Outflow)
9,233
(20,919)
Hydro Revenue
Hydro C osts
Net C ash Inflow (Outflow)
4,307
(5,347)
(11,686)
S P P Contract Inflow (Outflow)

C o sts
Net C ash Inflow (Outflow)
Hedging Gain (Lo ss)
Isolated Generation
Force Majeure
F o re c a s t
5,864
(11,686)
(1,040)
(727)
(727)
(29,204)
(29,204)
(3 6 ,7 9 3 |
(36,793)
5,070
F o re c a s t C ash In flo w (O u tflo w )

C a sh T ra n s fe r fro m In v e s tm e n ts
37,000
Settlement Date
33.41
(1,040)
(38,279)
E n d in g C a sh B a la n c e a t M o n th End
5,864
-6000 U C A Cost
(1,486)
(1,486)
$
O p e n in g C a sh B a la n c e - Ja n 4
(250)
(20)
(500)
-
S u b -to ta l C a sh F lo w fro m A d m in & O th e r
S u b -to ta l C a sh F lo w a fte r S e ttle m e n t
(500)
(216)
(500)
P ILO T Revenue (Co sts)

Other PP A , Trading Charge, Bank Charge
P o o l P rice
2015
F o re c a s t
J a n u a ry
M o n th
3,791
29-Ja n
332.000
369.000
(57,629)
311,371
Total
Less: Re-invested Div & G ains
BAL000180
F12-2016
APPLICANT COPY

PPA Terminations
in millions
2016
2017
2018
2019
2020
T o ta l
$23.33
$30.69
$39.75
$48.50
$50.25
$39
(233)
O p e r a tin g C a s h F lo w
PPA Cash Flow (net of PPA payments)

Genesee
E xtra o rd in a ry PPA C ash F low s
PPA Cash Flows:
Genesee Carbon Tax Adjustment
Battle River
Sheerness
Sundance A
Sundance 8
Termination Costs:
Saltle River
Net Cash Flow from PPAs
Hydro PPA (net of PPA payments)
PILOT Revenue
Total O perating Cash Flow
(126)
(93)
(41)
10
17
(62)
(66)
(41)
(43)
(61)
<69)
(74)
(61)
(38)
(38)
(65)
(43)
(31)
(45)
(16)
(27)
(108)
(467)
(250)
(231)
(118)
(116)
(1,182)
(6)
(7)
5
16
(5)
5
42
(4)
5
68
(0)
5
69
188
(17)
25
(47 S)
(235)
(189)
(46)
(43)
(326)
(78)
(4.624)
D isbursem ents
Operating:
Subtotal
Provisional:
Other PPA Costs
Decommissioning (Sundance 1/2 and H R. Milner)
Subtotal
Total D isbursem ents
5
3
10
ie
3
10
13
3
11
13
3
11
14
3
15
3
15
18
3
15
15
33
3
15
18
3
15
13
31
18
15
75
28
118
31
44
47
32
189
36
11
14
5
13
53
71
Net C ash Ftow
(511)
(268)
(232)
(93)
[74)
. H.812)

Add: Net Cash Flow
Add: Return of Investment Portfolio
Deduct: Consumer Allocation
700
(511)
121
(266)
(144)
(232)
(377)
(93)
(469)
(74)
(1,175)
E n ding C ash Balance

C o n su m e r A llo ca tio n
(nveslmfin! A c c e n t 1 ra iw ta .ii W I J Wan>
(68)
(69)
121
____
_______ S2IZJ____ ______ H 2 1 ___________I 5 l
WOI
APPLICANT COPY

Pool Price
(1,274)
5
Settlement Month
May
16,00
Mar
1,834
June
(729)
18.00
Apr
(1,517)
(702)
1,844
16 00
May
1,834
August
July
'8.no
Jun
1.844
September
(706)
(728)
14.00
Jul
1,834
October
18,00
Aug
1,834
November
(919)
is.on
Sep
1.844
December
:6J0
Oct
1 834
(877)
(6,902)
(719)
$
January
16 00
Nov
1,844
18,00
Dec
1 834
7,836
(21.149)
(13.313)
7,836
(21,149)
(13,313)
7,583
(20,992)
(13,408)
7,836
(21 149)
(13,313)
7 583
(21,372)
(13,789)
7,836
(21,149)
(13,313)
7 836
(21.149)
(13,313)
7,583
(20,992)
(13,408)
7.836
(21,149)
(13,313)
7.583
(20,992)
(13,408)
(6,500)
(6,500)
(6.500)
(6.500)
(6,500)
(6,500)
(6 500)
(6,500)
(108,000)
(10,400)
(10,400)
(10.400)
(10 400)
(10.400)
(10,400)
(10,400)
(10,400)
(10,400)
(12,500)
Sundance A
(5,400)
(5.400)
(5,400)
(5.400)
(5,400)
(5.400)
(5,400)
(5,400)
(5,400)
(6,500)
Sundance 6
(6,100)
(6,100)
(6,100)
(6,100)
(6.100)
(6,100)
(6,100)
(6,100)
(6,100)
(7.300)
Sundance C
(7 100)
(8.500)
(8,500)
(8 500)
(8,500)
(8,500)
(8,500)
(8,500)
(8,500)
(8,500)
(5.300)
(5,300)
(5,300)
(5,300)
(5,300)
(5,300)
(5,300)
(5,300)
(8,500)
4,418
(5.859)
(1,440)
(58,394)
(465)
(5)
(470)
(250)
(1,250)
3.312
(5,858)
(2,546)
(60,700)
(464)
(5)
(469)
(250)
(1.250)
3,356
(5.858)
(2.502)
(60,517)
(685)
(6)
(691)
(250)
(1.250)
-
3.872
(5,858)
(1.985)
(161,079)
(576)
(6)
(582)
(250)
(1.250)
4,282
(5.858)
(1.576)
(59,766)
(641)
(6)
(647)
(250)
(1.250)
(58.278)
(58 373)
185,960
(2,839)
(59,198)
123,922
(2,844)
Genesee Revenue
Genesee Costs
Genesee
Battle River 5
Sheemess
Keephills
Hydro Revenue
Hydro Costs
Hdyro
Costs
SPP
Isolated Generation
Force Majeure
Consumer Allocation

Other Adjustments

Settlement Date
3,305
(5,858)
(2,553)
(53,918)
(841)
(8)
(848)
(250)
(1.250)
(16,315)
,38,195)
2,977
(5.858)
(2,881)
(61,370)
(769)
(7)
(776)
(250)
(1,250)
(15,159)
(S T U 3 0 )S
3,518
(5,858)
(2.339)
(60,192)
(855)
(8)
(863)
(250)
(1.250)
5,105
(5.859)
(754)
(57.497)
(570)
(6)
(576)
(250)
(1,250)
5,111
(5,859)
(748)
(57,008)
(483)
(5)
(488)
(250)
(1,250)
( '!
K - X
' >4.4 5)
579,283
(2,519)
507,295
(2,871)
367,688
(69,469)
(74,809)
429,615
(2,844)
(59,083)
306,422
(2,746)
(57,143)
507,295
28-Apr
429,615
30-May
367,686
28-Jun
(2.774)
(58,492)
306,422
29-Jul
246,534
29-Aug
(57,089)
246,534
(2.779)
(57,795)
185,960
29-Sep
APPLICANT COPY
123,922
31-Oct
(59,092)
61,987
29-Nov
<se 4M)|
61,987
(7,892)
(166,233)
(112,138)
(2,850)
(59,379)
(112,138)
(174,367)
30-Dec
30-Jan
F1 2 -2 0 1 6
April
Month
B A L000182
2016 Cash Forecast

(000)s
2016 Cash Forecast

(000)'s
201S
April
Month
Pool Price
(1,274)
t
Settlement Month
Strip C ontract (10G M W )
Total P P A C ash Flows
May
18.00
Mar
1,834
June
(729)
6
16 00
Apr
1.844
(702)
i
18 no
May
1,834
August
July
(728)
(1,517)
s
moo
Jun
1,844
isoo
1,834
(61.370)
(60,192)
(57 497)
(57,008)
(848)
(776)
(250)
(1 250)
(15,1591
(863)
(250)
(1,250)
(576)
(250)
(1,2 50)
J 16.315)
(2 5 0 )
(1 250 )
(488)
(250)
(1,196)
(74,080)
(5? 381)
(5fe 975)
579,283
507,295
429,615
367.688
Force M ajeure
C o n su m e r Allocation
O ther A d justm e nts

S e ttlem ent Date
(1.250)
*
306,422
October
(706)
18.00. r s
Jul
Aug
(53,918)
SP P
September
1,834
November
(919)
1
1880
Sep
1,844
December
(719)
i
il:a,ou
Oct
1,834
January
(6,902)
S
8 00
Nov
1,844
(877)
:5
IS, Off
Dec
1,834
(66,266)
(470)
(469)
(691)
(582)
(647)
(7,089)
(2 5 0 )
(1,250)
(250)
(1.250)
(250)
(1.250)
(250)
(1,250)
(250)
(1,2501
(2,500)
(12,500)
(47,041)
<57 089)
(58.279)
(58,373)
(57,831)
(65,003V
246,534
185,960
123,922
61,987
(5,563)
(2,746)
(2,779)
(2,839)
(2,844)
(2,817)
(3,175)
(69,469)
(74,809)
(59,083)
(58,492)
(57,143)
(57,795)
(59,198)
(59,092)
(64,733)
(65,879)
367,688
28-Jun
306,422
29-Jul
246,534
29-Aug
20,149
(59,579)
(2,774)
429,615
18.50
Forecast
(60,517)
(2,844)
30-M ay
(60,700)
(2,8 71)
507,295
(15,317)
(58.394)
(2,5 19)
28-Apr
Forecast
185,960
29-Sep
123,922
31-Oct
61,987
29-N ov
(5,563)
30-D ec
B A L00018I
Prepared Date:
Forward Curve Da
(641,217)
(74,617)
30-Jan
F1 2 -2 0 1 6
Charge
APPLICANT COPY
AdOO IN V O H d d V
F1 2 -2 0 1 6
86*0
DO 9
uer-oc
MCHS
PO IE
AQNB3
6ny-62
fls-ee
E8C'20l
2 t6 'm
m eet
221*212
o*6m
*0*9X3
<62t*9E>
(521*8)
2C6*m
(M2XC)
(218*2)
llit 'd l
vH82>
1869(2)
(eess.i
096*112
(56282)
(6222)
VtQ'922
(c is ' 22 )
(912*2)
221'90C
ODS'63
(052*1)
(052)
(289)
19)
(tW )
(992*95)
DOS 53
(0 52 l)
(052)
(295)
OOS'63
(052*1)
(052)
(021)
(95
(591)
(168*95)
DOS'S3
(052*1)
(052)
(981)
(S)
(681)
(800 25)
mr-63
u rr-K
J9y 9Z
*<V 06
qej-62
ievoi 62
bjbq >ooLiJ!Mes
uer-63
889*296
S19*6Z1
562'105
682*615
pug miuqm >e aoueieg usen fiuipug
(261*85)
(122*2)
99929E
(680*68)
(119*2)
519*621
(6 m i i )
(1282)
S62 205
(698*69)
(6(5*2)
882*625
( iK 't r i
(928*1)
000*829
( M > y |n o ) A n u yu i m s 3 i v * o j o j
<052'l)
(052)
(925)
<6SlSD
(052* l)
(052)
(922)
(2l
(692)
(028 19)
I21E'9D
(052*0
(052)
(916)
til
(tis )
(916*85)
<092*00
-
(0251
U612S)
(052*1)
(052)
(C98)
*9]
(658)
(261*09)
(55*2)
tls is l
s o rt
(188*2)
33*W
sjuduns*w\m uioji ja^!ucix msbq
(212*191)
656*62 (
(005*21)
(005*2)
(680*2)
OC'S'63
1052 l)
(052)
U69)
(925)
(62S*6S>
(599)
(21S09)
COS 63
(052 l)
(052)
(691)
IS)
(191)
i00i'09>
f9)
siuoiuji'ilpv -qiO
l |u d v - dtxieieg
B u ju adg
UOqeDQlIV 4ftuinsJOO
a..raBis
j
uoiffisuar) pajpfosi
(626)
ddS
SISCQ
(*08110) *0liUt JOSitiitJO ddS
S.WOIj qSB;} Vdd P P l
(029*82)
o/Aph
spsoo ojpAn
enoaêy ojp^p
(925* l l
(9585)
393>
(596 1)
(9585)
3zee
(205 2)
(8585)
9SE
19152)
(858'S)
3lC*E
(O il l)
(658*5)
8 l* '*
(812)
(658*51
LU'S
(152)
(658*5)
SOLS
(688*2)
!SS85)
9tSC
(189*2)
(8585)
33B3
(006*06)
(005*8)
(008*5)
(008 5)
(008*5)
(008*5)
loot's)
fo o ts )
(008 *5)
(OOt'S)
(009*88)
(005*8)
(009*8)
(005*9)
(005*8)
'005*8!
(005*9)
(005*8)
(006*8)
1005*8)
tOO1*2)
o squepung
(002*29)
(008*2)
(001*9)
(OOl 9)
(001*9)
(001 9)
(301*9)
(001*9)
(001*9)
(001*9)
(001*9)
9 irtuwpung
(001*55)
(009*9)
(001*5)
(001*5)
(Od *5)
'001S)
(001*5)
(001*5)
(OOl'S)
(0015)
(001*5)
(001*901)
(005*21)
(001*01)
(001*01)
1001*011
(001*01)
)00l*0l)
(001*01)
(001*01)
(00101)
(001*01)
(11S*12>
(005*9)
(005*9)
(006*9)
(005*9)
(0059)
(005*9)
(005*9)
(005*9)
(005*9)
(005*9)
>115*9)
( itlC S l)
(8(881)
(611*12)
9E9 'L
K *1
MO
308.
(BC!*8l)
(266*02)
E9SY
m *t
AON
(618 81)
(611 12)
9E97
(801*81)
1266*02)
E8S7
we i
<leS
t t ie ti)
(611'12)
997
*9 1.
BnV'
( t lt 't i)
(611*12)
9C07
*87
inr
(682'tl)
<228*12)
C8S7
**8 i
unp
180181)
(266*32)
E8S7
**97
<dv
(816X1)
(6 11 *12 )
9CV l
*07
(212*61)
(852*92)
910*6
u a
qj
OS 81
B A L000184H
U lC Sl)
(001*9)
(526)
(022)
(222 *6)
(681*2)
(0S2* ()
(SBSOiOJ
paiedejd
221*212
(691*22)
(285*85)
asc'6 c
6*1-03
0AJHO pjkmjoj
286*621
(228)
(S2t)
(02)
(09)
(222)
loot)
Ajtmuef*
>10 81
Pttl
1*0
C O H
S 10 81
(206*9)
1002*9)
(612)
(616)
(02)
(098)
(222)
(OOl)
(02)
(658)
(012)
(OOl)
(002)
(02)
(998)
(882)
(OOl)
jaqtuooaQ
ioquuaAON
jftq o p o
Oo. >
61 91
(902)
*
_A
(922)
(02)
(858)
(282)
(001)
(02)
(99CI
(212)
(OOl)
iequ)0|des
isnfiny
10*1
(215*1)
Toos)
(052)
(021
(S9E)
(282)
(OOl)
w
( tie d )
(611*12)
9E07
*m
few
t -1*111
Sil|d83X
ssujdoq$
i ii(
00 J i.
(202)
(622)
(122*0
(512)
(02)
(556)
(822)
(OOl)
(02)
1228)
(282)
(M l)
(008)
(02)
(658)
(512)
(058)
(021
(050
(52)
aimp
>
V Sttuepung
fen
IM^V
MDJBW
S j9/mh Bineg
sasauao
sjsao assauao
ar
ouiau)
uer
t.
**i*
IAW8 001) weiiooo d.s

MIUOM iuauia|us
sea
>
>*'
3Wd l<X>d
<
J#MK) S u|iupV
*AO|j qsco
S00 fieoue>\ 30 a
5aaj joauia&eutw iuoiujsoAui
osuadxg ;>bj|ooo duis
a6ieuo >(083 *86jeoo Sdipejj. vd .l JiO
&Ai)8JiSiuiLupv y lejauJQ
(sisoo) 3nu9.8H j.OHd
Ajcruqaj
Xienuep
MIUOW
s.(OOO)
istêjod mskq 9(02
Prepared
Forward Curve
2015
Month
April
March
P H O T Revenue (Costs)
June
May
July
August
September
October
November
December
January
Forecast
(350)
(100)
(100)
(100)
(100)
(100)
(100)
(100)
(100)
(100)
(1.250)
(75)
(245)
(232)
(223)
(282)
(242)
(232)
(233)
(240)
(222)
(222)
(2,449)
(150)
(209)
(227)
(209)
(215)
(216)
(203)
(216)
(209)
(210)
(210)
(2.272)
(20)
(20)
(20)
(20)
(20)
(20)
(20)
(20!
(20)
(20)
(20)
(220)
Investm ent M anagem ent Fees
(176)
(925)
G eneral & Administrative

O ther PPA. Trading Charge, Bank Charge
DOE Mandated Costs
Sub total Cash Flow from Admin & Other

Pool Price
Strip Contract (100 M W )
1f
(250)
(552)
(2 )
}
Settlement Month
(300)
Feb
18.00
Mar
1 771
(579)
(1,124)
J
14.50
Apr
1,834
1,844
16.00
May
1,834
(867)
S
18.00
Jun
1,844
(578)
1 6 .0 0
Jul
(556)
%
10,00
Aug
1,834
(200)
(769!
18 00
Sep
1,834
1,844
(569)
l
1B.OO
Oct
18 Oli
Nov
1,834
1,844
(727)
(552)
(7,117)
$
Dec
1,834
1850
Forecast
20,1*9
(19,242)
(15,678)
(15,698)
(15,678)
(16,078)
(15.678)
(15,678)
(15,698)
(15.678)
(15.698)
(15,678)
(176,484)
(6.544)
(6,500)
(6,500)
(6,500)
(6,500)
(6,500)
(6,500)
(6.500)
(6.500)
(111,500)
(6,500)
(176,544)
Sheem ess
(12,500)
(12,500)
(12,500)
(12,500)
(12,500)
(12,500)
(12,500)
(12,500)
(12,500)
(12,500)
(125,000)
Sundance A
(6,500)
(6,500)
(6,500)
(6,500)
(6,500)
(6,500)
(6.500)
(6,500)
(6.500)
(6.500)
(65,000)
Sundance B
(7,300)
(7,300)
(7.300)
(7,300)
(7,300)
(7,300)
(7,300)
(7,300)
(7 300)
(7,300)
(73,000)
Sundance C
(1.000)
(8,500)
(8,500)
(0,500)
(8,500)
(0,500)
(8.500)
(8,500)
(8,500)
(8.500)
(77,500)
KeepMKs
(6,500)
(6,500)
(6,500)
(6,500)
(6,500)
(6,500)
(6,500)
(6,500)
(6,500)
(2,054)
(2,553)
(2.001)
(2,339)
(754)
(748)
(1,440)
(2.546)
(2.502)
(1,985)
(1,578)
(22,159)
(079)
(040)
(226)
(883)
(576)
(488)
(470)
(469)
(691)
(582)
(647)
(7,089)
*
(15.5681
(100)
(50)
(100)
(50)
(100)
(50)
(750)
I* '
(#7.11.11,
(50)
(15.159)
W flV lW
(100)
(16.315)
624,450
579,733
(2,552)
508,596
(1,376)
(3,266)
(3,242)
(3,168)
(3.144)
(43,3*1)
(68,504)
(81,099)
(65,499)
(64,281)
(63,558)
Battle River 5
Hdyro
SPP
Isolated Generation
Force M anure
Opening Cash Balance April 1

GST on PPAs
Settlem ent Date
579.733
29-M ar
508,596
28-Apr
424,232
30-May
424,232
355,491
28-Jun
(100)
(50)
44.000
44.000
44,000
44.000
(J " * !
I2.W0)
('8.885)
IW 7 1
U0.38S*
355,491
288,042
221,340
198,002
(3,233)
173,231
(3,178)
(3,242)
(8.461)
(20,160)
(21,538)
(21,457)
(125,872)
288,042
29-Jul
221,340
29-Aug
198,002
29-Sep
173,231
31-Oct
148,532
29-N ov
25.12 i
148.532
14,199
30-Dec
: ! ts |
128,959
(87,373)
14,199
(3,193)
(64,645)
(53.640)
30-Jan
F1 2 -2 0 1 6
Genesee
B A L00018I
2016 Cash Forecast

(000)'S
APPLICANT COPY
M onth
May
June
July
A ugust
Septem ber
O ctober
N ovem ber
December
2016
Forecast
January
PILO T R e venue (C osts)
(100)
(IDO)
(100)
(100)
(100)
(100)
(100)
(100)
(100)
(900)
G eneral & A d m inistra tive
(232)
(223)
(282)
(242)
(232)
(233)
(240)
(222)
(222)
(2.129)
O ther PPA, Trading Charge Bank Charge
(227)
(209)
(215)
(216)
(203)
(216)
(209)
(210)
(210)
(1,914)
Strip C ontract Expense
(20)
(20)
(20)
(20)
(20)
(20)
(20)
(20)
(20)
(180)
Investm ent M anage m ent Fees
DOE M andated C osts
(1.000)
(2,383)
(2,648)
(2,578)
GST on PPAs
(250)
(2,554)
(200)
(2,585)
(2.6371
(6,200)
(2,646)
(2.616)
(175)
B A L000186
2016 Cash Forecast

(000)s
(625)
(7.200)
(2.600)
(12,948)
t
Setllem ent M onth
' 08
A pr
A dm in & O ther
Strip C ontract (100 M W )
G enesee
1-7.00
May
r-
17 CO
Jun
17.00
Jul
1T.00
Au0
'7 00
Sp
1700
O ct
17 00
Nov
17.00
Dec
1700
Forecast
(2,962)
(3.199)
(4,445)
(3,132)
(3,141)
(3,406)
(3,216)
(9,368)
(3.327)
1.908
1.900
1.908
1,900
1.900
1,908
1.900
1.908
1.9C0
17,128
(16,992)
(15,982)
(16,372)
(15,982)
(15,982)
(15,992)
(15.982)
(15.992)
(15,982)
(144,258)
Battle River 5
(6.500)
(6,500)
(6.500)
(6,500)
(6,500)
(6,500)
(6.500)
(6,500)
(6,500)
(58,500)
S h eem ess
(8.300)
(8,300)
(8,300)
(8,300)
(8,300)
(8,300)
(8.300)
(8.300)
(8,300)
(74.700)
S undance A
(4,720)
(4,720)
(4.720)
(4,720)
(4 720)
(4,720)
(4 720)
(4.720)
(4.720)
(42,480)
S u ndance B
(5,020)
(5,020)
(5,020)
(5.020)
(5 0 2 0 )
(5,020)
(5.020)
(5,020)
(5.020)
(45,180)
S undance C
(5,250)
(5,250)
(5,250)
(5,250)
(5 250 )
(5.250)
(5,250)
(5,250)
(5.250)
(47,250)
(5.720)
(5,720)
(5,720)
(5,720)
(5,720)
(5,720)
(5.720)
(5.720)
(45.760)
(2,993)
(2,480)
(997)
(989)
(1,638)
(2,677)
(2.634)
(2.141)
(1.755)
(18,305)
(51.768)
(56.453)
(53.877)
(53.471)
(54 769)
(56,856)
(56 760)
(55,783)
(55,003)
(790)
(877)
(585)
(496)
(477)
(477)
(703)
(591)
(658)
(5.652)
(100)
C.OOO)
(100)
(1,0 00)
(16,001)
(100)
(1,000)
(100)
(1,000)
(100)
(1 000)
(100)
(1,000)
(100)
(1,000)
[8 8 l7 s r -
i3 2 *i(ia i
1.841!
(900)
(9,000)
(61.753)
154.0291
I5.V42S)
153.106)1
323,178
251,867
195,913
138,664
81,419
18.626
(71,311)
251,867
(55,949)
195,918
(57,254)
138,664
(57,245)
81,419
(62.793)
18.626
(56,433)
(37,807)
K eepbills
Hdyro
T otal PPA Cash Flows
SPP
Force M a n u re
(100)
(1,000)
A !5 J 5 9 j,
(15,153)
(100)
(1,000)
(15,440)
Sub-total Cash Flow after Settlem ent
- ! * > '<&)
(65 2%4f
l68 il# )>y,
Opening Cash Balance A p ril 1
535.000
(66,877)
468,123
Forecast Cash In flo w (O utflow )

E nding Cash Balance at M onth End
S e ttlem ent Date
Consumer Charge
3 0 -May
468.123
(72.403)
395,719
2 8 -J u r
395,719
(72.541)
323,178
29-Jul
29-Aug
29-Sep
3 1 -O c t
29-N ov
APPLICANT COPY
30-D ec
3 0-Jan
(272,741)
F1 2 -2 0 1 6
Pool Price
May
June
July
August
September
October
November
December
January
2016
Forecast
P IL O T R e ve n u e (C o s ls )
(1 0 0 )
(10O)
(1 0 0 )
(100)
(1 0 0 )
(1 0 0 )
(1 0 0 )
(1 0 0 )
(1 0 0 )
(900)
G e n e ra l & A d m in is tra tiv e
(2 3 2 )
(2 2 3 )
(2 8 2 )
(2 4 2 )
(2 3 2 )
(2 3 3 )
(2 4 0 )
(2 2 2 )
(2 2 2 )
(2 .1 2 9 )
O th e r P P A . T ra d in g C harge, B a nk C h a rg e
(2 2 7 )
(2 0 9 )
(2 1 5 )
(216)
(2 0 3 )
(2 1 6 )
(209)
(2 1 0 )
(2 1 0 )
(1 ,9 1 4 )
S trip C o n tra c t E xp e n se
(20)
(20)
(20)
(2 0 )
(2 0 )
(2 0 )
(2 0 )
(2 0 )
(2 0 )
(1 8 0 )
Investm ent M a n a g e m e n t Fees
O O E M a n dated C o sts

Pool Price
(579)
S
(552)
(250)
(1 .0 0 0 )
(1,667)
(578)
(2 0 0 )
(1 7 5 )
(556)
(769)
(552)
(569)
(6 2 5 )
(1 .0 0 0 )
(727)
(6,748)
S tn p C o n tra c t (100 M W )
17 00 1I
17 00 S
Apr
May
1,908
1,900
17.00 $
Jun
1.908
Jul
1,900
u no I
Aug
1,900
17.00 5
Sep
1,908
17.00
Oct
1,900
G e n e se e
(15,992)
(15.982)
(16.372)
(15.982)
(15,982)
(15,992)
(15,982)
(15,992)
(15,982)
(144,258)
(6,500)
(6.500)
(6,500)
(6,500)
(6,500)
(6,500)
(6,500)
(6,500)
(6,500)
(58.500)
(12,500)
(12,500)
(12,500)
(12,500)
(12,500)
(12,500)
(12,500)
(12,500)
(12,500)
(112,500)
Settlement Month
B a ttle R iv e r 5
Sheerness
UOO
17.00
Nov
1,908
17 00|
Dec
1,900
1700
Forecast
17,128
Sundance
(6.500)
(6,500)
(6,500)
(6,500)
(6.500)
(6.500)
(6,500)
(6,500)
(6,500)
(58,500)
Sundance
(7,300)
(7,300)
(7,300)
(7.300)
(7.300)
(7.300)
(7,300)
(7,300)
(7,300)
(65,700)
Sundance C
(8,500)
(8,500)
(8,500)
(8,500)
(8.S00)
(8,500)
(8,500)
(8.500)
(8,500)
(76,500)
(6,500)
(6,500)
(6,500)
(6,500)
(6,500)
(6,500)
(6,500)
(45.500)
(2,993)
(2.480)
(997)
(989)
(1,638)
(2.677)
(2,634)
(2,141)
(1,755)
(18,305)
(790)
(877)
(585)
(496)
(477)
(477)
(703)
(591)
(658)
(5,652)
(900)
(9.000)
(61.753)
(222,741)
Keephills
H dyro
SPP
iso la te d G e n e ra tio n
F o rce M ajeu re
C o n su m e r A llo ca tio n

GST on PPAs
S e ttle m e n t D ate
(1 0 0 )
(1 0 0 )
(1 0 0 )
(1 0 0 )
(tOO)
(1 0 0 )
(100)
(1 0 0 )
(1 0 0 )
(1 .0 0 0 )
(1 .0 0 0 )
(1 ,0 0 0 )
(1 ,0 0 0 )
(1 .0 0 0 )
(1 .0 0 0 )
(1 .0 0 0 )
(15,159)
(1 .0 0 0 )
(1 5 ,1 5 3 )
(ja o o n
(34 994)
(16.440)
nO 4*7'.
(1 000)
.C -fM JS)
(06,319)
(65.715)
456,037
(2,937)
(75,546)
377,554
377,554
(3,192)
(82,254)
292,108
292,108
(3,168)
(81,047)
207,893
139,040
(3,252)
(66,907)
68,831
68,881
(3,261)
(66,888)
(1,268)
(1.268)
(3,231)
(66,267)
(70,766)
535,000
(2,958)
(76,005)
456,037
30-May
2 8 -Jun
29-Jul
'
2 9 -A u g
207,893
(3.200)
(65,654)
139,040
2 9 -S e p
31-O ct
2 9 -Nov
APPLICANT COPY
30-D e c
( .* *
(70,766)
(3,215)
(66,122)
(140,103)
3 0 -Jan
F 12-2016
Month
B A L000187
2016 Cash Forecast

(000)'s
|s
Month
Admin & Other
SPP
Isolated Generation
Force Majeure
Consumer Allocation
Total Cash Outflow
Opening Cash Balance - July 1
Total Cash Outflow
Ending Cash Balance
16.00
July
(3.919)
1.971
(61,426)
(594)
(200)
(1.000)
(15.440)
E
ii
1 8 .0 0
16 .0 0
August
September
(11,504)
(3,612)
1,965
1,965
(60,989)
(61,606)
(503)
(485)
(100)
(100)
(1,000)
(1,000)
(16,001)
-
1 6 .0 0
1 6 .0 0
1 6 ,0 0
1 5 .0 0
October
(3,877)
1,971
(62,641)
(484)
(100)
(1.000)
-
November
(3,684)
1,965
(62,551)
(714)
(100)
(1,000)
-
December
(10,143)
1,971
(62,188)
(600)
(100)
(1,000)
-
January
(3,800)
1.965
(61,774)
(668)
(100)
(1,000)
-
(8 0 ,6 0 8 )
(6 8 ,1 3 3 )
164,833)
(6 6 ,1 3 0 ]
(6 6 ,0 8 4 )
(7 2 ,0 6 0 )
(6 5 3 7 7 )1
389,520
(80,608)
308,912
308,912
(88,133)
220,779
220,779
(64,838)
155,942
155,942
(66,130)
89,812
89,812
(66,084)
23,728
23,728
(72,060)
(48,332)
(48,332)
(65,377)
(113,709)
F1 2-2 01 6
Pool Price
B A L000188
APPLICANT COPY
Settlement Month
Jun
Pool Price Forecast
|s
ten e
Jul
S
1C 00
Aug
%
6 (in
Sep
i
1800
Oct
*
IP-00
Nov
S
16.00
Dec
S
1600
2016
June
Ju ly

Other PPA 5. Trading Charge
DOE Mandated Costs
(100)
(180)
(180)
(20)
(480)
September
(100)
(282)
(215)
(20)
(250)
(867)
(8,000)
(242)
(216)
(20)
(100)
(232)
(203)
(20)
(8,478)
1.971
(16.000)
(6.800)
(12,500)
(5,800)
(7.100)
(6.800)
(5,500)
(926)
(594)
(200)
(1.000)
{15,000/
*V 1?.246>
1,965
(15,568)
(6,800)
(12,500)
(5,800)
(7,100)
(6,800)
(5,500)
(921)
(503)
(100)
(1,000)
(^ 0 0 0 )
H H H i
389,520
(3.052)
______ ( 4 8 0 L _ (77.116)
389,520
309,352
309,352
(3,026)
(84.105)
222,220

Genesee
Battle River 5
Sheerness
Sundance A
Sundance 8
SundanceC
Keephills
Hdyro
SPP
Isolated Generation
Force Majeure
Consumer Allocation

Opening Cash Balance - Jun 15
G ST on PPAs
Ending Cash Balance
August
390,000
-
October
November
(100)
(240)
(209)
(20)
(556)
(100)
(233)
(216)
(20)
(200)
(769)
1.965
(15,568)
(6.800)
(12,500)
(5,800)
(7,100)
(6,800)
(5,500)
(1.538)
(485)
(100)
(1.000)
1,971
(15,619)
(6.800)
(12,500)
(5,800)
(7,100)
(6.800)
(5,500)
(2,521)
(484)
(100)
(1,000)
December
January
(569)
(100)
(222)
(210)
(20)
(6.500)
(7,052)
(100)
(222)
(210)
(20)
(176)
(727)
(8,700)
(1,854)
(1,658)
(160)
(625)
(6,500)
(19,497)
1,965
(15,568)
(6,800)
(12,500)
(5.800)
(7,100)
(6,800)
(5,500)
(2,483)
(714)
(100)
(1,000)
1,971
(15,619)
(6,800)
(12,500)
(5,800)
(7,100)
(6,800)
(5,500)
(2.069)
(600)
(100)
(1.000)
1.965
(15,568)
(6.800)
(12,500)
(5 800)
(7,100)
(6,800)
(5,500)
(1,705)
(668)
(100)
(1.000)
13,775
(109,512)
(47,600)
(87,500)
(40,600)
(49,700)
(47,600)
(38,500)
(12,163)
(4,048)
(800)
(7,000)
(30,000)
(461,249)
91,253
(3,115)
(62,969)
25,169
25,169
(3,091)
(68,969)
(46,891)
(46,891)
(3.074)
(42 753)
222,220
(3,056)
(61,781)
157,383
157,383
(3.108)
(63,022)
91,253
Forecast
(62,303)
(112,268)
F1 2 -2 0 1 6
Month
B A L000189
2016 Cash Forecast

(OOO)'s
APPLICANT COPY
Settlement Month
Jun
Pool Price Forecast
11
16 'Ml
Jul
!
Â uci
16 "fl
Sep
I t Oil
Oct
1600
16.00
NOV
i
Dec
is on
16 00 |
2016
Month
June
Ju ly
August
September
(100)
(180)
(100)
(282)
(8,000)
(242)
(180)
(20)
-
(215)
(20)
(250)
*
(216)
(20)
(480)
(867)
(8.478)
(556)

Genesee
Battle River 5
Sheerness
Sundance A
Sundance B
Sundance C
Keephills
Hdyro
SPP
Isolated Generation
Force Majeure
Consumer Allocation
1,971
(16.000)
(6,800)
(12.500)
(5.800)
(7,100)
(6,800)
(5,500)
(926)
(594)
(200)
(1.000)
(15,000)
1,965
(15,568)
(6,800)
(12,500)
(5,800)
(7,100)
(6,800)
(5,500)
(921)
(503)
(100)
(1,000)
)
1,965
(15,568)
(6,800)
(12,500)
(5,800)
(7,100)
(6.800)
(5,500)
(1,538)
(485)
(100)
(1,000)
(15,000)
!7$.7W)
(75M7\
HUM
391,520
(3,052)
(77,116)
311,352
311,352
(3,026)
(84,105)
224,220
224,220
(3,056)
(76,781)
144,383
Opening Cash Balance

G ST on PPAs
Ending Cash Balance
392,000
(480)
391,520
(100)
(232)
(203)
(20)
-
November
(100)
(233)
(100)
(240)
(2 16)
(20)
(200)
(209)
(20)
(100)
(222)
(210)
(20)
-
(6,500)
(769)
December
January
(100)
(222)
(210)
(20)
(175)
-
Forecast
(8,700)
(1,854)
(1,658)
(160)
(625)
(6,500)
(569)
(7,052)
(727)
(19,497)
1,971
1,965
(15,619)
(15,568)
(6.800)
(6,800)
(12,500)
(12,500)
(5,800)
(5.800)
(7,100)
(7,100)
(6,800)
(6,800)
(5,600)
(5,500)
(2,521)
(2,483)
(484)
(714)
(100)
(100)
(1 000)
(1,000)
(15.000)
(15,000)
(77 JS3) C i S S S i L
1,971
(15,619)
(6,800)
(12,500)
(5,800)
(7.100)
(6,800)
(5,500)
(2,069)
(600)
(100)
(1,000)
(15,000)
(76,917)
1,965
(15,568)
(6,800)
(12,500)
(5,800)
(7,100)
(6,800)
(5,500)
(1,705)
(668)
(100)
(1,000)
(15,000)
JIMMi
13,775
(109,512)
(47,600)
(87,500)
(40,600)
(49,700)
(47,600)
(38,500)
(12,163)
(4,048)
(800)
(7,000)
(105,000)
(536,249)
(17,831)
(3,091)
(83,969)
(104,891)
(104,891)
(3,074)
(77,303)
(185,268)
144,383
(3,108)
(78,022)
63,253
63,253
(3,115)
(77,969)
(17,831)
F1 2 -2 0 1 6

Other PPA 8 Trading Charge
DOE Mandated Costs
October
B A L000190
2016 Cash Forecast

(OOO)'s
APPLICANT COPY
in millions
2016
2017
2018
2019
2020
$25
$45
$58
$61
$62
(155)
72
(19)
(0)
6
(7)
(79)
66
58
6
(4)
(84)
46
Operatinq:
Subtotal
5
3
10
18
3
10
13
Provisional:
Other PPA Costs
Decommissioning (Sundance 1/2 and H R Milner)
Subtotal
3
15
18
3
15
Total Disbursements
Total
$50
BAL000191
2016 C o n s u m e r Allocation Forecast

September 24, 2015
Operating Cash Flow

Genesee PPA (net of PPA payments)
MAP strip revenue
PILOT Revenue
(2)
104
6
(0)
103
6
-
(262)
138
359
30
(14)
78
107
103
251
3
11
14
3
11
14
3
11
15
5
16
53
74
3
15
15
33
3
15
18
3
15
25
43
18
15
75
40
130
36
31
57
47
33
204
Net Cash Flow
(120)
15
22
60
70
47

Add: Net Cash Flow
Add: Return o f Investment Portfolio
700
(120)
23
(194)
409
15
14
(151)
287
22
11
(61)
259
60
10
(92)
236
70
(217)
Ending Cash Balance

Consumer Allocation
409
$3.25
287
$2.50
259
$1.00
236
$1.50
96
$3.50
400
300
150
too
94
6
(3)
(6)
Disbursements
APPLICANT COPY
47
65
(715)
F12-2016
investm ent A ccount Tiaieefcary (2D 1.1 Pln'.
in millions
2016
37
2017
$
45
2018
S
58
2019
$
61
2020
S
62
Total
$53
BAL000192

October 28, 2015
Operating Cash Flow

MAP strip revenue
PILOT Revenue
(106)
72
34
6
(6)
(79)
66
58
6
(4)
(19)
94
6
(2)
104
6
(0)
103
6
-
(213)
138
393
30
(12)
46
78
107
103
336
Opera tinq:
Subtotal
5
3
10
18
3
10
13
3
11
13
3
11
14
3
11
14
5
13
53
71
Provisional
Other PPA Costs
Decommissioning (Sundance 1/2 and H.R. Milner)
Subtotal
3
15
18
3
15
3
15
15
33
3
15
18
3
15
25
43
18
15
75
40
130
Total Disbursements
36
31
56
47
32
201
Net Cash Flow
(34)
15
22
60
71
135

Add: Net Cash Flow
700
(34)
24
(194)
496
15
17
(196)
333
22
12
(122)
245
60
a
(154)
159
71
4
(186)
135
6b
(852)
Ending Cash Balance

Consumer Allocation
496
$3.25
333
$3.25
245
$2.00
159
$2.50
48
$3.00
400
3QU
250
150
100
(3)
(6)
Investm ent A ccount T rajecto.v (2013 P
APPLICANT COPY
F12-2016
Disbursements
September 24, 2015
in millions
2016
2017
2018
2019
2020
$25
$45
$58
$61
$62
(165)
72
(0)
6
(7)
(79)
66
58
6
(19)
Total
$50
BAL000193
Operating Cash Flow

MAP strip revenue
PILOT Revenue
(3)
(6)
(262)
138
359
30
(14)
104
6
(0)
103
6
(4)
94
6
(2)
(84)
46
78
107
103
Operatinq:
Subtotal
5
3
10
18
3
10
13
3
11
14
3
11
14
3
11
15
Prpvjjign?!;
Other PPA Costs
Subtotal
3
15
18
3
15
3
15
15
33
3
15
18
3
15
25
43
18
15
75
40
130
Total Disbursements
36
31
57
47
33
204
Net Cash Flow
(120)
15
22
60
70
47

Add: Net Cash Flow
Add: Return of Investment Portfolio
700
(120)
23
(194)
409
15
14
(136)
302
22
11
(76)
259
60
8
(169)
158
70
5
(124)
47
62
(699)
Ending Cash Balance

Consumer Allocation
409
$3.25
302
$2.25
259
$1.25
158
$2.75
110
$2.00
400
joe
250
150
251
Disbursements
'i a n i
*.
APPLICANT COPY
5
16
53
74
F12-2016
u n r T fflja e io r y ( j r
January
O pe ra ting Cash
February
March
April
May
June
5,073
2,573
1,790
162
57
1,868
In ve stm e n t P o rtfo lio
704,719
655,693
610,657
598,282
537,597
462,893
Total Opening Cash & Investment Balance
709,792
658,266
612,447
598,444
537,654
464,761
PPA Cashflow
(14,266)
(20,290)
(54,895)
(56,775)
Adm in, R eclam ation, SPP, PILOT and O th e r Cashflows
(10,924)
(2,957)
17,734
8,379
(9,024)
(7,032)
12,631
315
Consum er A llo ca tio n D is trib u tio n
(17,312)
(15,540)
(16,077)
(14,589)
(14,726)
(14,800)
Total Cash Outflow
(Sl,526)
(45,818)
(14,003)
(60,790)
(72,893)
(72,819)
In ve stm e n t P o rtfo lio Cashflow
O p e ra tin g Cash
(28,291)
(1,688)
296
BAL000194
(In thousands o f dollars)
(60,049)
1,680
350
1,790
162
57
1,868
50
655,693
610,657
598,282
537,597
462,893
391,892
Total Ending Cash & Investment Balance
658,266
612,447
598,444
537,654
464,761
391,942
F12-2016
2,573
In ve stm e n t P o rtfo lio
APPLICANT COPY
in millions
2016
2017
2018
2019
2020
$25
$43
$52
$55
$56
Total
$46
BAL000195

November 12, 2015
Operating Cash Flow

MAP strip revenue
PILOT Revenue
(154)
72
(2)
54
87
6
(0)
87
6
-
(0)
6
(6)
(83)
74
52
6
(3)
35
(81)
47
117
147
150
379
5
3
10
18
3
10
13
3
11
14
3
11
14
3
11
15
5
16
53
74
3
15
3
15
3
15
15
33
3
15
18
15
75
40
130
78
6
57
-
(91)
146
305
30
(11)
Operating:
Subtotal
Provisional:
Other PPA Costs
Subtolal
18
18
3
15
25
43
Total Disbursements
36
31
57
47
33
204
Net Cash Flow
(117)
16
61
100
117
175

Add: Net Cash Flow
680
(117)
22
(197)
388
16
14
(124)
294
61
11
(110)
255
100
9
(193)
170
117
5
(197)
Ending Cash Balance

Consumer Allocation
388
$3.25
294
$2.00
255
170
$1.75
$3.00
96
$3.00
400
300
250
ISO
190
In v c s ine i! A c c o u n t T r a ja tto iy (2013 P lan )
APPLICANT COPY
F12-2016
Disbursements

Balancing Pool FOIPS

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Barb LeClaire Freeborn

Submitted by: Bruce Roberts

Awrage Pool price per MWh

Operating Cash Flow

Total Operating Cash Flow

Net Cash Flow

Ending Cash Balance

Price Curve ($/MWh)

comment [ b c i ]: vm w e jbouinunc juhihss

consumer allocation rate set at $2.50/MWh for 2016 to 2020.

Form atted: List Paragraph, Iso bullets or

{ Comment 1&C2): Right >Cdf?

Investment Fund Drawdown

2016 Allocation to Consumers

Average Pool price per M W h

Operating Cash Flow

Hydro P P A (net of P P A paym ents)

Total Operating Cash Flow

Beginning C ash B alance

Ending Cash Balance

Price Curve ($/MWh)

Is based on the price curve and generation volumes set at

2. Genesee PPA cash flo w :

Two key assumptions are as follows:

Investment Fund Drawdown

Prepared: December 4, 2015

Financial Highlights (Please read highlights with Page 3 to 6 materials as reference)

Cash & Cash Equivalents - Opening

Cash & Cash Equivalents - Closing

Increase (decrease) in cash and cash equivalents

General & Administrative Expenses

Appendix 1 - Alberta Market Overview

O cto b e r Monthly Dashboard

Pool price for October averaged $21,47/MWh,

YTD Demand (MW)

M o n th ly Gas Price ($/GJ)

YTD Gas Price ($/GJ)

Supply remained strong over the month, with no

Futures Market Snapshot

Novem ber 2015

Prepared: January 11, 2016

Financial Highlights {Please read highlights with Page 3 to 6 materials as reference)

November 30, 2015

Increase (decrease) in cash and cash equivalents

Cash & Cash Equivalents - Opening

General & Administrative Expenses

Appendix 1 - Alberta Market Overview

M o n th ly Gas Price ($/GJ)

YTD Gas Price (S/GJ)

Supply remained strong over the month, with no

Futures Market Snapshot

B arb LeClaire Freeborn

B arb LeClaire Freeborn

On Nov 14, 2015, at 2:11 PM, Greg Pollard <gpe@shaw.ca> wrote:

Barb LeClaire Freeborn

From: Michelle Manuliak

Please find the 2016 Consumer Allocation letter attached.

From: John Martin

From: John Martin

To: Michelle Manuliak

Senior Tariff and Regulatory Advisor

From: Michelle Manuliak

From: John Martin

From: Michelle Manuliak

_ _____ _ -------------