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AUC Bulletin 2018-09: Consultation Initiated for Changes to AUC Rule 017 to Reflect Amendments to the Electric Utilities Act

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AUC Bulletin – Stakeholder Consultation – Rule 017 Amendments – Bill 13: An Act to Secure Alberta’s Electricity Future – Capacity Market


In this Bulletin, the AUC announced upcoming amendments to Rule 017: Procedures and Process for Development of ISO Rules and Filing of ISO Rules with the Alberta Utilities Commission (“Rule 017”). The AUC explained that Rule 017 required significant changes as a result of Bill 13, An Act to Secure Alberta’s Electricity Future (“Bill 13”), which was introduced in the Legislative Assembly of Alberta on April 19, 2018. If passed, the proposed legislation would result in amendments to the Alberta Utilities Commission Act, the Electric Utilities Act, the Renewable Electricity Act and the Hydro and Electric Energy Act to enable the implementation and operation of the capacity market. The amendments to the Electric Utilities Act would result in new obligations for the AUC, including amended rule-making power.

In anticipation of the passing of Bill 13 and expected coming-in-to-force on August 1, 2018, the Commission issued this bulletin to begin consultation on Rule 017.

To initiate the discussion, the AUC prepared a revised draft Rule 017. The AUC is holding a formal stakeholder engagement process to consider the processes and information needed in Rule 017 to reflect the amendments proposed in Bill 13. A document outlining the proposed consultation process for Rule 017 and the draft rule may be found on the AUC website under Rule-related consultation: http://www.auc.ab.ca/regulatory_documents/Pages/ConsultationsRule017.aspx.

The proposed amendments to the Electric Utilities Act would change how independent system operator (“ISO”) rules will be developed and approved:

(a)     ISO rules would require Commission approval, with a specific process contemplated for the ISO rules considered essential to establish and operate the capacity market;

(b)     the proposed amendments would change how the AESO may implement rules on an expedited basis;

(c)     under Section 20.9 of the proposed amendments to the Electric Utilities Act, the Commission would be required to make rules that direct the AESO to consult with market participants, the Market Surveillance Administrator and other interested parties in developing ISO rules; and

(d)     The Commission would also have the ability to make rules respecting the AESO’s consultation process and the content of AESO applications for ISO rule approval.

The draft Rule 017 addresses the approval processes described above for:

  • ISO rules in the regular course;

  • ISO rules that will initiate the capacity market and during the transition period; and

  • ISO rules for which the ISO seeks expedited implementation.

The draft rule also addresses the following minimum application requirements:

  • information required to file an application for approval of an ISO rule, both in the regular course and during the transition period; and

  • information required to apply for expedited implementation of an ISO rule.

The first stakeholder consultation meeting was held in Calgary and Edmonton on May 31, 2018.

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