Upload
others
View
11
Download
1
Embed Size (px)
Citation preview
Decision 21901-D01-2016
Irrigation Canal Power Co-op Ltd. Preferential Sharing of Records Between Irrigation Canal Power Co-op Ltd., URICA Energy Real Time Ltd., and URICA Asset Optimization Ltd. September 30, 2016
Alberta Utilities Commission
Decision 21901-D01-2016
Irrigation Canal Power Co-op Ltd.
Preferential Sharing of Records Between Irrigation Canal Power Co-op Ltd.,
URICA Energy Real Time Ltd., and URICA Asset Optimization Ltd.
Proceeding 21901
Application 21901-A001
September 30, 2016
Published by the:
Alberta Utilities Commission
Fifth Avenue Place, Fourth Floor, 425 First Street S.W.
Calgary, Alberta
T2P 3L8
Telephone: 403-592-8845
Fax: 403-592-4406
Website: www.auc.ab.ca
Decision 21901-D01-2016 (September 30, 2016) • i
Contents
1 Decision summary ................................................................................................................. 1
2 Introduction and background .............................................................................................. 1
3 Relevant statutory and regulatory provisions .................................................................... 2
4 Discussion and findings ........................................................................................................ 4 4.1 Fair, efficient and openly competitive operation of the market ..................................... 4
4.2 Reasonably necessary..................................................................................................... 6
4.3 Terms and conditions ..................................................................................................... 7
5 Decision .................................................................................................................................. 8
Appendix 1 – Abbreviations ......................................................................................................... 9
Decision 21901-D01-2016 (September 30, 2016) • 1
Alberta Utilities Commission
Calgary, Alberta
1 Decision summary
1. In this decision, the Alberta Utilities Commission must decide, in accordance with
Section 3 of the Fair, Efficient and Open Competition Regulation , whether Irrigation Canal
Power Co-op Ltd. (IRRICAN) may preferentially share records that are not available to the
public with URICA Energy Real Time Ltd. (URICA Real Time), and URICA Asset
Optimization Ltd. (URICA Asset Optimization). For the reasons set out below, the Commission
has decided to grant the application for the sharing of records. In the Commission’s view,
IRRICAN has established that the shared records will not be used for any purpose that will not
support the fair, efficient, and openly competitive operation of the electricity market, and that the
sharing of records is reasonably necessary for IRRICAN to carry out its business.
2 Introduction and background
2. On August 11, 2016, IRRICAN filed an application1 with the AUC pursuant to Section 3
of the Fair, Efficient and Open Competition Regulation. The application sought an order from
the Commission permitting the sharing of records between IRRICAN, URICA Real Time, and
URICA Asset Optimization, which are not available to the public, relating to IRRICAN’s power
generation facilities.
3. On August 17, 2016, the Commission issued notice of the application made by
IRRICAN, in which it advised that the parties granted standing in the proceeding were limited to
IRRICAN and the Market Surveillance Administrator (MSA) in accordance with Section 3(5) of
the Fair, Efficient and Open Competition Regulation. The notice of application established a
process and schedule for the MSA to determine whether it would intervene in the proceeding and
to advise the Commission whether it required an evidentiary process.2
4. On August 18, 2016, the MSA filed a statement of intent to participate in the proceeding,
and advised that it supported the application. The MSA added that it did not require an
evidentiary process involving information requests and the filing of evidence.3
5. In its application, IRRICAN submitted that the information sharing would be with respect
to IRRICAN’s power generation facilities that have an aggregate capacity of 43 megawatts
1 Application 21901-A001.
2 Exhibit 21901-X0012, Notice of Application, August 17, 2016.
3 Exhibit 21901-X0014, MSA Statement of Intent to Participate, August 18, 2016.
Irrigation Canal Power Co-op Ltd.
Preferential Sharing of Records Between Irrigation Canal
Power Co-op Ltd., URICA Energy Real Time Ltd., and
URICA Asset Optimization Ltd.
Decision 21901-D01-2016
Proceeding 21901
Application 21901-A001
Preferential Sharing of Records Between Irrigation Canal Power Co-op Ltd., URICA Energy Real Time Ltd., and URICA Asset Optimization Ltd. Irrigation Canal Power Co-op Ltd.
2 • Decision 21901-D01-2016 (September 30, 2016)
(MW). These three units are Chin Chute (15 MW), IRRICAN Hydro Drops 4, 5, and 6 (7 MW),
and Raymond Reservoir (21 MW).4
6. URICA Real Time provides a 24-hour real time dispatch desk service to clients for
operational energy market services, ancillary services,5 dispatch down services and energy
restatements for events at generators as required by Independent System Operator rules.
URICA Asset Optimization is an organization that works with clients in establishing and
optimizing offer strategies. 6
7. On February 26, 2016, IRRICAN filed an application with the AUC pursuant to Section 3
of the Fair, Efficient and Open Competition Regulation seeking an order permitting the sharing
of records not available to the public between IRRICAN and URICA Real Time relating to
IRRICAN’s power generation facilities mentioned above in paragraph five. This application was
considered by the AUC in Proceeding 21371.
8. On April 1, 2016, the Commission, in Decision 21371-D01-2016, ordered that, pursuant
to the provisions of Section 3 of the Fair, Efficient and Open Competition Regulation, IRRICAN
be permitted to share records referred to in Section 3(1) of the Fair, Efficient and Open
Competition Regulation with URICA Real Time from April 1, 2016 until the earlier of June 1,
2029 or the termination of the commercial agreement between IRRICAN and URICA Real
Time.
9. In its August 11, 2016 application, IRRICAN sought an order from the Commission
permitting the sharing of non-public records between IRRICAN, URICA Real Time, and
URICA Asset Optimization, relating to IRRICAN’s power generation facilities. IRRICAN also
requested that the Commission rescind and replace Decision 21371-D01-2016 effective the same
day as the issue of its new order as requested in Application 21901-A001.7
10. In reaching the determinations contained within this decision, the Commission has
considered all relevant materials comprising the record of this proceeding. Accordingly,
references in this decision to specific parts of the record are intended to assist the reader in
understanding the Commission’s reasoning relating to a particular matter and should not be taken
as an indication that the Commission did not consider all relevant portions of the record with
respect to that matter.
3 Relevant statutory and regulatory provisions
11. The relevant statutory provisions respecting the sharing by market participants of records
that are not available to the public are found in the Fair, Efficient and Open Competition
Regulation, the Alberta Utilities Commission Act, and the Electric Utilities Act, under which that
regulation was enacted.
4 Exhibit 21901-X0008, Preferential sharing of records application registered August 11, 2016, page 3.
5 As defined by the Alberta Electric System Operator (AESO), ancillary services are services that are required to
ensure that electricity can be transmitted reliably, efficiently, and securely across Alberta’s interconnected
transmission system. Ancillary services include operating reserve, transmission must run, black start services,
and load shed scheme services. Operating reserves consist of regulating reserves, spinning reserves and
supplemental reserves, all products that the AESO’s system controller utilizes to ensure that the supply-demand
of electricity in Alberta is balanced seamlessly in real-time operations. 6 Exhibit 21901-X0008, Preferential sharing of records application registered August 11, 2016, page 2.
7 Ibid., page 12.
Preferential Sharing of Records Between Irrigation Canal Power Co-op Ltd., URICA Energy Real Time Ltd., and URICA Asset Optimization Ltd. Irrigation Canal Power Co-op Ltd.
Decision 21901-D01-2016 (September 30, 2016) • 3
12. Section 5 of the Electric Utilities Act lists some of its purposes as follows:
…
(b) to provide for a competitive power pool so that an efficient market for electricity
based on fair and open competition can develop, where all persons wishing to
exchange electric energy through the power pool may do so on non-discriminatory
terms …;
(c) to provide for rules so that an efficient market for electricity based on fair and open
competition can develop in which neither the market nor the structure of the Alberta
electric industry is distorted by unfair advantages of government-owned participants
or any other participant;
…
(e) to enable customers to choose from a range of services in the Alberta electric
industry, including a flow-through of pool price and other options developed by a
competitive market, and to receive satisfactory service;
…
(h) to provide for a framework so that the Alberta electric industry can, where necessary,
be effectively regulated in a manner that minimizes the cost of regulation and
provides incentives for efficiency.
13. The Electric Utilities Act further states in Section 6 that “[m]arket participants are to
conduct themselves in a manner that supports the fair, efficient and openly competitive operation
of the market.”
14. Section 3(1) of the Fair, Efficient and Open Competition Regulation establishes that a
market participant shall not share records that are not available to the public relating to any past,
current or future price and quantity offer made to the power pool or for the provision of ancillary
services. Section 3(2) of the Fair, Efficient and Open Competition Regulation establishes
instances where records that are not available to the public may be shared. Section 3(3) of the
Fair, Efficient and Open Competition Regulation allows the Commission to issue an order
permitting the sharing of records, stating:
(3) The Commission may, on application by a market participant that is otherwise
prohibited from sharing records referred to under subsection (1), issue an order
permitting the sharing of those records on any terms and conditions the Commission
considers appropriate where the market participant establishes that
(a) the records will not be used for any purpose that does not support the fair, efficient
and openly competitive operation of the electricity market, including the conduct
referred to in section 2, and
(b) the sharing of the records is reasonably necessary for the market participant to carry
out its business.
Preferential Sharing of Records Between Irrigation Canal Power Co-op Ltd., URICA Energy Real Time Ltd., and URICA Asset Optimization Ltd. Irrigation Canal Power Co-op Ltd.
4 • Decision 21901-D01-2016 (September 30, 2016)
15. Section 2 of the Fair, Efficient and Open Competition Regulation identifies conduct by a
market participant that does not support the fair, efficient and openly competitive operation of
the market. Relevant to the sharing of records, prohibited conduct would include:
…
(h) restricting or preventing competition, a competitive response or market entry by
another person, including
(i) a market participant directly or indirectly colluding, conspiring, combining,
agreeing or arranging with another market participant to restrict or prevent
competition, …
…
(j) manipulating market prices, including any price index, away from a competitive
market outcome;
4 Discussion and findings
4.1 Fair, efficient and openly competitive operation of the market
16. IRRICAN submitted that the total market share offer control represented by the
Generation Assets is 0.3 per cent of the energy market and 4.1 per cent of the ancillary services
market,8 and that IRRICAN does not have any affiliates that are market participants.9 IRRICAN
further submitted that URICA Real Time has an offer control of 0.7 per cent of the energy
market and 13.4 per cent of the ancillary services market,10 and that URICA Asset Optimization
has no calculated offer control in the energy market or the ancillary services market.11
17. A senior officer of IRRICAN provided a written representation indicating that any
preferential records shared between IRRICAN, URICA Real Time, and URICA Asset
Optimization would not be used for any purpose that does not support the fair, efficient and
openly competitive operation of the Alberta electricity market. The representation also stated that
IRRICAN has in place a Code of Conduct that all employees, officers, and its affiliates must read
and comply with, and submitted that this Code of Conduct is in alignment with and complies
with the Fair, Efficient and Open Competition Regulation.12
18. IRRICAN filed a similar representation from senior officers at URICA Real Time and
URICA Asset Optimization to confirm that any preferential records that URICA Real Time and
URICA Asset Optimization receives will not be used by URICA Real Time or URICA Asset
Optimization for any purpose that does not support the fair, efficient and openly competitive
operation of the electricity market, including the conduct referred to in Section 2 of the
Fair, Efficient and Open Competition Regulation. The representation also stated that URICA
Real Time and URICA Asset Optimization currently have a formal compliance program
regarding the conduct of their employees and the confidentiality of information, and that all
employees, officers, and affiliates must read and comply with, and that all officers and
employees of URICA Real Time and URICA Asset Optimization must submit signed
8 Exhibit 21901-X0008, Preferential sharing of records application registered August 11, 2016, page 6.
9 Ibid., page 1.
10 Ibid., page 7.
11 Ibid.
12 Exhibit 21901-X0002, IRRICAN preferential sharing of records letter dated July 26, 2016.
Preferential Sharing of Records Between Irrigation Canal Power Co-op Ltd., URICA Energy Real Time Ltd., and URICA Asset Optimization Ltd. Irrigation Canal Power Co-op Ltd.
Decision 21901-D01-2016 (September 30, 2016) • 5
acknowledgements that they will comply with the compliance plan and the Fair, Efficient and
Open Competition Regulation.13
19. Information on various aspects of URICA’s internal compliance program was outlined as
follows:
(a) an information confidentiality policy14 that states that URICA Energy Management
Corporation, URICA Real Time, URICA Asset Optimization, and any subsidiaries are
committed to keeping client information private and confidential, and that URICA
identifies the confidentiality of client information as the backbone of its business model
to maintain impartial treatment of each URICA Real Time and URICA Asset
Optimization client15
(b) a Fair, Efficient and Open Competition Regulation Compliance Plan that lists those
responsible for compliance at URICA Real Time and URICA Asset Optimization, and
outlines a code of conduct that specifies that URICA Real Time and URICA Asset
Optimization will comply with all the provisions and requirements of the Fair, Efficient
and Open Competition Regulation16
(c) compliance reporting at URICA Real Time and URICA Asset Optimization that is
voluntarily reported to the presidents of URICA Real Time, URICA Asset Optimization,
and URICA Energy Management Corporation regularly as required, along with voluntary
self-reporting to the MSA on all compliance issues and any internal investigations on
potential issues of compliance 17
(d) that there will be no communication of price, quantity or outage information from
URICA Real Time to URICA Asset Optimization, and that URICA Real Time and
URICA Asset Optimization have separate staff, separate systems access, and separate
office locations18
Commission findings
20. In determining whether the records shared will not be used for any purpose that does not
support the fair, efficient and openly competitive operation of the electricity market, the
Commission has considered the following:
(a) The formal program for internal compliance at URICA Real Time and URICA Asset
Optimization, and the commitment of URICA Real Time and URICA Asset Optimization
to comply with all provisions and requirements of the Fair, Efficient and Open
Competition Regulation.
(b) The controls over client confidentiality at URICA Real Time and URICA Asset
Optimization, along with the assurances from URICA Real Time and URICA Asset
Optimization that there will be impartial treatment of each client.
13
Exhibit 21901-X0001, URICA preferential sharing of records letter dated August 4, 2016, page 1. 14
Exhibit 21901-X0003, URICA confidentiality policy dated June 27, 2016. 15
Exhibit 21901-X0008, Preferential sharing of records application registered August 11, 2016, page 9. 16
Exhibit 21901-X0005, URICA FEOC compliance plan dated August 4, 2016, pages 4-5. 17
Ibid., page 8. 18
Exhibit 21901-X0008, Preferential sharing of records application registered August 11, 2016, page 2.
Preferential Sharing of Records Between Irrigation Canal Power Co-op Ltd., URICA Energy Real Time Ltd., and URICA Asset Optimization Ltd. Irrigation Canal Power Co-op Ltd.
6 • Decision 21901-D01-2016 (September 30, 2016)
(c) The segregation of offer strategy setting and real-time offers between URICA Asset
Optimization and URICA Real Time, along with the assurance that there will be no
communication of price, quantity or outage information from URICA Real Time to
URICA Asset Optimization.
(d) The size of the Generation Assets as well as the degree of offer control that IRRICAN,
URICA Real Time, and URICA Asset Optimization have in the Alberta energy and
operating reserve markets.
(e) The representations from IRRICAN, URICA Real Time, and URICA Asset Optimization
that the preferential records in respect of the Generation Assets will not be used for any
purpose that does not support the fair, efficient and openly competitive operation of the
market.
21. The Commission accepts and will rely on the representations of URICA Real Time and
URICA Asset Optimization regarding their programs and existing plans for internal compliance
to manage confidential information as contemplated by the Fair, Efficient and Open Competition
Regulation. The Commission finds that these measures provide sufficient assurance that the
records shared between IRRICAN, URICA Real Time, and URICA Asset Optimization will not
be used for any purpose that does not support the fair, efficient and openly competitive operation
of the electricity market, including conduct referred to in Section 2 of the Fair, Efficient and
Open Competition Regulation.
22. Based on the statements and representations of the parties, the Commission finds that
IRRICAN has demonstrated that it has taken sufficient measures to ensure that the preferential
records are not likely to be used for any purpose that does not support the fair, efficient and
openly competitive operation of the Alberta electricity market.
4.2 Reasonably necessary
23. IRRICAN indicated that it does not have the personnel or resources to monitor facility
operations on a 24-hour basis in order to optimize its generation assets.19
24. IRRICAN has entered into commercial arrangements with URICA Real Time and
URICA Asset Optimization, which among other things, appointed URICA Real Time and
URICA Asset Optimization as IRRICAN’s agent to provide a dispatch service and consider
different offer strategies for IRRICAN. These arrangements will make it necessary for
IRRICAN, URICA Real Time, and URICA Asset Optimization to share with each other certain
records that may not otherwise be available to the public.
25. IRRICAN submitted that the sharing of preferential records described in the application
is reasonably necessary for IRRICAN to carry out its business.20
Commission findings
26. The Commission accepts the statements of IRRICAN regarding the nature of the records
that will be shared and the purpose for sharing the records. The Commission accepts and will
19
Exhibit 21901-X0002, IRRICAN preferential sharing of records letter dated July 26, 2016. 20
Ibid.
Preferential Sharing of Records Between Irrigation Canal Power Co-op Ltd., URICA Energy Real Time Ltd., and URICA Asset Optimization Ltd. Irrigation Canal Power Co-op Ltd.
Decision 21901-D01-2016 (September 30, 2016) • 7
rely upon the representation provided by a senior officer of IRRICAN that the proposed sharing
of information is reasonably necessary for IRRICAN to carry out its business.
27. For the above reasons, the Commission finds that IRRICAN has established that the
sharing of the records as described in the application is reasonably necessary for IRRICAN to
carry out its business.
4.3 Terms and conditions
28. Section 3(3) of the Fair, Efficient and Open Competition Regulation authorizes the
Commission to issue an order permitting the sharing of records on any terms and conditions that
the Commission considers appropriate.
29. IRRICAN submitted that the term for the requested order is from September 30, 2016 to
June 1, 2029,21 also requesting that the Commission rescind and replace
Decision 21371-D01-2016, effective the same day as the issue of its new order as requested in
Application 21901-A001.22
Commission findings
30. The issuance of an order permitting the sharing of records not available to the public
pursuant to Section 3 of the Fair, Efficient and Open Competition Regulation is governed by
Section 3(3) of the Fair, Efficient and Open Competition Regulation, which reads as follows:
Preferential sharing of records that are not available to the public
3(3) The Commission may, on application by a market participant that is otherwise
prohibited from sharing records referred to under subsection (1), issue an order
permitting the sharing of those records on any terms and conditions the Commission
considers appropriate where the market participant establishes that
(a) the records will not be used for any purpose that does not support the
fair, efficient and openly competitive operation of the electricity market,
including the conduct referred to in section 2, and
(b) the sharing of the records is reasonably necessary for the market participant to
carry out its business.
31. Accordingly, the following terms and conditions apply to the orders, which grant
permission for IRRICAN to share records not available to the public with URICA Real Time and
URICA Asset Optimization, as referred to in Section 3(1) of the Fair, Efficient and Open
Competition Regulation:
a) The orders only apply to the sharing of information between Irrigation Canal Power Co-
op Ltd., URICA Energy Real Time Ltd., and URICA Asset Optimization Ltd. relating to
price, quantity, and availability information for the 15 MW Chin Chute hydroelectric
plant, the 7 MW IRRICAN Hydro Drops 4, 5, and 6 hydroelectric plant, and the 21 MW
Raymond Reservoir hydroelectric plant with respect to offers in the Alberta electricity
and ancillary services markets.
21
Exhibit 21901-X0008, Preferential sharing of records application registered August 11, 2016, page 1. 22
Ibid., page 12.
Preferential Sharing of Records Between Irrigation Canal Power Co-op Ltd., URICA Energy Real Time Ltd., and URICA Asset Optimization Ltd. Irrigation Canal Power Co-op Ltd.
8 • Decision 21901-D01-2016 (September 30, 2016)
b) Irrigation Canal Power Co-op Ltd. must notify the Commission of the termination of any
commercial arrangements between Irrigation Canal Power Co-op Ltd., URICA Energy
Real Time Ltd., and URICA Asset Optimization Ltd. within 30 days of the termination of
commercial arrangements.
c) Irrigation Canal Power Co-op Ltd. must notify the Commission of any material changes
to the information and continued applicability of any representations within its
application that may affect the compliance of Irrigation Canal Power Co-op Ltd.,
URICA Energy Real Time Ltd., or URICA Asset Optimization Ltd. with the Fair,
Efficient and Open Competition Regulation within 30 days of the material changes.
32. The orders shall be effective from the date of this decision until the earlier of June 1,
2029 or the termination of the dispatch service agreement between IRRICAN, URICA Real
Time, and URICA Asset Optimization.
5 Decision
33. Pursuant to the provisions of Section 3 of the Fair, Efficient and Open Competition
Regulation, the Commission grants the application for the sharing of records set out in the
following orders granted to IRRICAN, which are included as separate dispositions in this
proceeding:
Preferential Sharing of Records – Chin Chute Order 21901-D02-2016
Preferential Sharing of Records – IRRICAN Hydro Drops 4, 5, and 6
Order 21901-D03-2016
Preferential Sharing of Records – Raymond Reservoir Order 21901-D04-2016
Dated on September 30, 2016.
Alberta Utilities Commission
(original signed by)
Mark Kolesar
Vice-Chair
(original signed by)
Henry van Egteren
Commission Member
Preferential Sharing of Records Between Irrigation Canal Power Co-op Ltd., URICA Energy Real Time Ltd., and URICA Asset Optimization Ltd. Irrigation Canal Power Co-op Ltd.
Decision 21901-D01-2016 (September 30, 2016) • 9
APPENDIX 1 – Abbreviations
Abbreviation Name in Full
AESO Alberta Electric System Operator
AUC or the Commission Alberta Utilities Commission
FEOC Fair, efficient and open competition
Generation Assets Three existing hydroelectric generation assets that have an aggregate capacity of 43 MW. These three units are Chin Chute (15 MW), IRRICAN Hydro Drops 4, 5, and 6 (7 MW), and Raymond Reservoir (21 MW).
IRRICAN Irrigation Canal Power Co-op Ltd.
MSA Market Surveillance Administrator
MW Megawatt(s)
URICA Asset Optimization URICA Asset Optimization Ltd.
URICA Real Time URICA Energy Real Time Ltd.