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Recommendation to Reject for Adoption of NERC Reliability Standards: New Versions of NERC Reliability Standards and Intra-Balancing Authority Transaction Identification (AUC Decision 21075-D02-2016)

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Alberta Reliability Standards – AESO Process – Consultation

The Alberta Electric System Operator (“AESO”) applied to the AUC to reject eight reliability standards pertaining to Modeling, Data, and Analysis (“MOD”), Protection and Control (“PRC”) and Interchange Scheduling and Coordination (“INT”), as the AESO determined that the reliability standards it rejected did not apply.

The AESO also requested that, going forward, it would not formally consult or forward to the AUC any future versions of previously rejected reliability standards developed by the North American Electric Reliability Corporation (“NERC”), unless the AESO determined the NERC reliability standard should be adopted in Alberta. The AESO was of the view that this change would improve efficiency.

The AUC previously reserved its decision on the AESO’s proposal to not consult on future versions of rejected NERC standards in Decision 21075-D01-2016.

The AESO submitted that the legal authority for its proposal to not consult was based on its interpretation of section 19 and 21(3) of the Transmission Regulation, noting that the words “to the extent that those reliability standards are adopted by the AESO” delegated authority and discretion to the AESO to adopt Alberta reliability standards.

The AUC held that the Transmission Regulation requires that the AESO forward reliability standards along with a recommendation that the AUC either adopt or reject the reliability standard. The AUC held that implicit in the AESO’s responsibilities is to tender a copy of the reliability standard itself. The AUC also noted that it had its own obligation of procedural fairness to offer affected parties an opportunity to comment on the recommendation. Furthermore, the AUC held that it must confirm the adoption or rejection. On this basis, the AUC held that it was not within its purview to alter the obligations of the AESO or the AUC as prescribed by the Transmission Regulation. Therefore, the AUC rejected the AESO’s proposal, and directed the AESO to continue to bring forward new versions of previously rejected NERC reliability standards.

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