Market Oversight and Enforcement – FEOC
In this decision, the AUC granted the application from BHE Canada Rattlesnake GP Inc. (“BHEC”) for an order permitting the sharing of records pertaining to the electricity and ancillary services markets under Section 3 of the Fair, Efficient and Open Competition Regulation (“FEOC Regulation”).
Introduction and Procedural Background
BHEC filed an application seeking permission to share records not available to the public between BHEC, BHE Canada Rattlesnake LP (“BHEC LP”), and URICA Energy Real Time Ltd. (“URICA”) relating to the 117.6 megawatt (“MW”) Rattlesnake Ridge Wind Power Plant (the “Power Plant”).
Subsection 3(3) of the FEOC Regulation authorizes the AUC to issue an order permitting the sharing of records on any terms and conditions that the AUC considers appropriate, provided that the records will not be used for any purpose that does not support the fair, efficient and openly competitive operation of the electricity market and that the sharing of records is reasonably necessary to carry out business. The AUC also takes market share control into account when making its determination.
The AUC was satisfied that BHEC had demonstrated that sharing the records with BHEC LP and URICA was reasonably necessary for BHEC to carry out its business as neither BHEC nor BHEC LP have the personnel or resources to accept energy or ancillary services dispatch orders on a 24-hour basis to manage the output of the power plant. It was also satisfied that the subject records would not be used for any purpose that did not support the fair, efficient and openly competitive operation of the Alberta electricity market, including the conduct referred to in Section 2 of the FEOC Regulation. Relying on submissions from BHEC and written representations from BHEC and URICA, the AUC was satisfied that the parties would conduct themselves in a manner that supports the fair, efficient and openly competitive operation of the market.
The AUC further found that the total offer control figures of BHEC, BHEC LP and URICA were well below the maximum of 30 per cent, set out in Subsection 5(5) of the FEOC Regulation.
Given the Market Surveillance Administrator’s (“MSA”)’s mandate under Subsection 39(2)(a)(vi) of the Alberta Utilities Commission Act, the AUC considered the MSA’s support of this application to have been a contributing factor in the decision to permit the sharing of records.
The AUC approved the application.