Bulletin – AUC Discussion Paper – Power Plant Self-Supply and Export
In the fall of 2019, the AUC conducted stakeholder engagement on the issue of power plant self-supply and export.
On June 5, 2020, the AUC provided the Department of Energy with a discussion paper which detailed the background and evolution of power plant self-supply and export in Alberta and summarized the views of market participants on how best to address that issue in the future. In the discussion paper, the AUC also identified 21 legacy facilities that appear to be engaged in self-supply and export without an industrial system designation (“ISD”). Approximately two-thirds of the legacy facilities (representing 90 percent of capacity) are cogeneration units that may be eligible for an ISD. The AUC indicated it is prepared to work directly with these operators to assess proactive ISD qualification.
The AUC has also explained that the approval holders for these legacy facilities have been operating their plants based upon a reasonable reliance on the approvals granted to them. Thus, the AUC confirmed that it does not consider that these approval holders have engaged in any form of intentional misconduct or non-compliance. Both the AUC and the Market Surveillance Administrator have stated that they are not investigating legacy facilities and do not intend to investigate legacy facilities while the Department of Energy’s consideration on the policy pertaining to power plant self-supply and export is ongoing.
The AUC noted that it would consult with the Department of Energy on next steps in the stakeholder engagement process and stakeholders would be advised of those steps in due course.