Market Oversight and Enforcement – FEOC
In this decision, the AUC approved the application from Fengate Central Utilities Block GP Inc. (“Fengate”) for the preferential sharing of records that are not available to the public between Fengate, Fengate Central Utilities Block LP (“Fengate LP”), Heartland Petrochemical Complex Limited Partnership (“Heartland”), Inter Pipeline Propylene Ltd. (“Inter Pipeline”), URICA Energy Real Time Ltd. (“URICA Real Time”) and URICA Asset Optimization Ltd. (“URICA Optimization”).
Introduction and Background
Fengate LP acquired the Heartland Petrochemical Complex Central Utility Block Power Plant (“CUB Power Plant”) from Inter Pipeline and entered into a long-term agreement with Inter Pipeline managing the construction and day-to-day operation of the CUB Power Plant. Fengate LP and Heartland had further entered into agreements with URICA Real Time and URICA Optimization to provide advisory and real-time services dispatch and restatement services related to the CUB Power Plant.
Submissions of the Applicant
Is the Proposed Sharing of Records Reasonably Necessary?
Fengate explained that neither Fengate LP nor Heartland has adequate personnel or the resources to accept energy or ancillary services dispatch orders in order to manage the output of the CUB Power Plant in the Alberta energy or ancillary services markets on a 24-hour basis. It submitted that URICA Real Time has the expertise and resources to provide these services and or operational energy market services and energy restatements for events at generators as required by the independent system operator (“ISO”) rules.
URICA Optimization has the expertise and resources to assist the applicant by helping them to establish and optimize offer strategies for the CUB Power Plant.
Accordingly, Fengate submitted that the sharing of non-public records relating to the CUB Power Plant is reasonably necessary for it to carry out its business related to the CUB Power Plant.
Fair, Efficient and Openly Competitive Operation of the Electricity Market
Fengate, on behalf of itself and Fengate LP, and Inter Pipeline, and on behalf of itself and Heartland filed written representation from senior officers of Fengate and Inter Pipeline 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 total offer control of Fengate and Fengate LP is 0.4 percent. Heartland and Inter Pipeline’s total offer control is 0.4 percent, URICA Real Time’s total offer control is zero percent and the offer control of URICA Optimization is 1.0 percent. All of these are less than the offer control limit of 30 percent, as set out in subsection 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 considers appropriate, provided that certain requirements are 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 Fengate LP and Heartland 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, both before and after any approval to share records, was less than 30 percent, as required by subsection 5(5) of the FEOC Regulation. The AUC also noted that the Market Surveillance Administrator supported the application.
The AUC approved the application subject to conditions.
