Financial Presentation of Electricity Transactions Sample Clauses

Financial Presentation of Electricity Transactions. ‌ This section describes changes to the presentation of financial information as a result of the 2020 TPA and explains how many principles and components remain unchanged from the 2003 TPA. As discussed in section 4.1.6 above, under the 2003 TPA, electricity transactions between BC Hydro and Powerex were classified as either “Market Electricity Purchases”, “Surplus Sales” or “Net Purchases (Sales) From Powerex” in BC Hydro’s Fiscal 2020 to Fiscal 2021 Revenue Requirements Application. Under the 2020 TPA, electricity transactions between BC Hydro and Powerex are no longer allocated between domestic and trade activities. As a result, all electricity transactions between BC Hydro and Powerex under the 2020 TPA are classified as either “System Exports” or “System Imports”. The ability to defer variances between forecast and actual System Exports and System Imports is covered by the scope of existing orders and such variances will be deferred to the Non-Heritage Deferral Account.67 The starting balance in the Transfer Volume Account was the balance in the Trade Account upon transition from the 2003 TPA to the 2020 TPA. Similar to the Trade Account, discussed in section 4.1.6 above, the Transfer Volume Account will have a cumulative quantity that is either positive or negative, and changes in the fair market value of the Transfer Volume Account will result in a mark-to-market gain (or loss) for BC Hydro, with a corresponding offsetting loss (or gain) for Powerex. Similar to the 2003 TPA, these gains and losses do not result in any consolidated impact to BC Hydro’s financial statements, or any impact to ratepayers, because these intercompany transactions are offsetting. Trade Income68 will continue to be forecast based on a rolling five-year average, with the difference between forecast and actual Trade Income captured by the Trade Income Deferral Account. 67 In accordance with BCUC Order No. G-96-04, Directive 11, BC Hydro deferred variances between forecast and actual Market Electricity Purchases and Surplus Sales to the Heritage Deferral Account, and in accordance with BCUC Order No. G-96-04, Directive 12, BC Hydro deferred variances between forecast and actual Net Purchases (Sales) from/to Powerex to the Non-Heritage Deferral Account. The scope of variances covered by these existing orders is equivalent to the variances between forecast and actual System Exports and System Imports.