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Exploring Market Concerns and Tariff Issues Related to Self-Supply and Export Reform (AUC Bulletin 2020-01)

Link to Bulletin Summarized

Self-Supply – Export Reform

In several recent decisions, the AUC found that, subject to limited exceptions, the owner of a generating unit was prohibited from using that generating unit to self-supply its own load and export excess electricity produced by that generating unit to the power pool. In AUC Bulletin 2019-16: Consultation on the issue of power plant self-supply and export, the AUC sought feedback from stakeholders on whether changes to the statutory scheme may be necessary to resolve the issues arising from those decisions. The AUC, on behalf of the Department of Energy, asked stakeholders to comment on three options to address the self-supply and export issue.

(a)      option 1: Status quo;

(b)      option 2: Limited self-supply and export; or

(c)      option 3: Unlimited self-supply and export.

Stakeholder responses

The majority of stakeholders preferred Option 3. While not all stakeholders agreed with the AUC’s interpretation of the legislation, there was widespread support for statutory amendments to clarify whether self-supply and export are available to all generators. Stakeholders emphasized the need for regulatory certainty and recognized that a clear statutory direction could achieve this.

Next steps

The Department of Energy requested that the AUC follow up with a second round of consultation focused on the market and tariff implications of unlimited self-supply and export. Accordingly, the AUC sought additional stakeholder feedback by February 14, 2020.

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