Market Oversight and Enforcement – FEOC
In this decision, the AUC approved the application from TransAlta Corporation, its subsidiaries TransAlta Generation Partnership and TransAlta Cogeneration Ltd. as general partner and on behalf of TransAlta Cogeneration L.P. (collectively “TransAlta”), and CPH Cogen Inc. (“CPH”), for the preferential sharing of records that are not available to the public between TransAlta and CPH.
Submissions of the Applicant
Is the Proposed Sharing of Records Reasonably Necessary?
TransAlta and CPH explained that CPH did not have offer control for any of its generation assets in Alberta and did not have the necessary expertise or resources to prepare daily energy offers and restatements for its interest in the Sheerness Generation Station. TransAlta noted that it did have the expertise and resources to provide dispatch services for electricity, as well as associated natural gas services and greenhouse gas management to CPH.
TransAlta and CPH submitted that their commercial arrangement made it necessary to share certain records which may not otherwise be available to the public. TransAlta indicated it would limit the scope of their sharing to the most general and minimum information necessary for the electricity market participant to carry out their business.
Fair Efficient and Openly Competitive Operation of the Electricity Market
TransAlta and CPH filed written representation indicating that the records subject to preferential information sharing will not be used for any purpose that does not support the fair, efficient and openly competitive operation of the Alberta electricity market, including but not limited to the conduct referred to in Section 2 of the Fair, Efficient and Open Competition Regulation (“FEOC Regulation“).
Offer Control
The offer control of TransAlta and CPH were 25 per cent and zero per cent, respectively. Both were less than the offer control limit of 30 per cent, set out in Section 5(5) of the FEOC Regulation.
AUC Findings
Subsection 3(3) of the FEOC Regulation authorized the AUC to issue an order permitting the sharing of records on any terms and conditions that the AUC considered appropriate, provided that certain requirements were satisfied. The AUC found that those requirements were met.
The AUC was satisfied that the applicants had demonstrated that the sharing of records was reasonably necessary for TransAlta and CPH to carry out their business. It was further satisfied that the subject records would not be used contrary to the fair, efficient and openly competitive operation of the Alberta electricity market, including the conduct referred to in Section 2 of the FEOC Regulation and that the applicants would conduct themselves in a manner that would support the fair, efficient and openly competitive operation of the market. The AUC also found that the offer control limit of the entities was less than 30 per cent, as required by Subsection 5(5) of FEOC Regulation. The AUC also noted that the Market Surveillance Administrator supported the application.
The AUC approved the application subject to the following conditions:
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The order applied to the sharing of non-public price, quantity and availability information, between TransAlta and CPH, pertaining to the Sheerness Generating Station, which may affect the Sheerness generating units’ participation in the Alberta electricity and ancillary services markets, as described in the application.
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TransAlta and CPH must notify the AUC of the termination of the commercial arrangements between TransAlta and CPH as soon as was practicable and within 30 days of the termination of such commercial arrangements.
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TransAlta and CPH must notify the AUC of any material changes to the information and continued applicability of any representations included within its application that may affect the compliance of TransAlta or CPH with the FEOC Regulation as soon as practicable and within 30 days of the material changes.
