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Alberta Electric System Operator Rejection of Reliability Standard MOD-026-1 (AUC Decision 23917-D01-2018)

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Reliability Standard – Rejected

In this decision, the AUC rejected the adoption of reliability standard MOD-026-1 in Alberta, pursuant to section 19(6) of the Transmission Regulation.


The Alberta Electric System Operator (“AESO”) recommended that the AUC assess the reliability standard MOD-026-1 in the category of modelling, data, and analysis.

In Alberta, the AESO fulfils the role and obligations of Independent System Operator (“ISO”) as defined in the Electric Utilities Act.

Pursuant to section 19(4) of the Transmission Regulation, before adopting or making reliability standards, the AESO must consult with those market participants that it considers likely to be affected and it must forward the reliability standards to the AUC for review. The AESO also provides the AUC with a recommendation to approve or reject each of them.

Pursuant to sections 19(5) and 19(6) of the Transmission Regulation, the AUC must approve or refuse to approve each reliability standard in accordance with the recommendation of the ISO, unless an interested person satisfies the AUC that the ISO’s recommendation is:

(a) technically deficient, or

(b) not in the public interest.

In this instance, no objections were filed with the AUC.

AESO Recommendation to Reject Standard

The AESO recommended that the AUC reject the NERC MOD Standard, based on the following:

(a) the purpose of the North American Electric Reliability Corporation (“NERC”) reliability standard MOD-026-1 (“NERC MOD Standard”) was fulfilled by existing ISO rules, in particular, section 502.5 Generating Unit Technical Requirements, section 502.6 Generating Unit Operating Requirements and the associated Generating unit functional document submission form;

(b) the existing ISO rules have broader application and are more stringent regarding testing requirements than the NERC MOD Standard; and

(c) the NERC MOD Standard would impose a reporting requirement on legal owners of generating units, something that is already done on a voluntary basis. For all these reasons, the AESO recommended that the NERC MOD Standard be rejected and assessed as not applicable in Alberta.

No formal consultation with market participants was undertaken as the AESO expressed the view that market participants were not likely to be directly affected by the proposed rejection of the NERC MOD Standard.

AUC Findings

The AUC rejected the adoption in Alberta of the NERC MOD Standard, pursuant to section 19(6) of the Transmission Regulation, and based on the ISO’s recommendation.

The AUC accepted and relied on the AESO’s assertion that no market participant was likely to be affected by the rejection of the NERC MOD Standard and that no formal consultation was required.

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