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Approval of Proposed Amended Section 103.5 of the ISO Rules, AUC Decision 27200-D01-2022

Link to Decision Summarized

ISO Rules – Net Settlement Instruction

In this decision, the AUC approved amendments to s. 103.5 of the Independent System Operator (“ISO”) Rules, Net Settlement Instruction, as submitted by the Alberta Electric System Operator (“AESO”).

Introduction

A net settlement instruction allows the AESO to perform netting of metered energy to calculate power pool settlements. The registration of a net settlement instruction may affect the amount of financial security that a pool participant is required to provide to the AESO.

The AESO proposed amendments to s. 103.5 that require pool participants without adequate financial security, in place (as determined by s. 103.3 of the ISO Rules, Financial Security Requirements) to provide 15 business days’ notice to the AESO if they wish to de-register a net settlement instruction. The AESO submitted that the amendment will provide the AESO with sufficient time to request and obtain additional financial security from a pool participant or to exercise its rights and remedies under s. 103.7 of the ISO Rules, Financial Default and Remedies.

Issues

Do the rule amendments meet the criteria set out in the Electric Utilities Act

The AUC may approve the proposed amendments if the requirements of s. 20.21 of the Electric Utilities Act (“EUA”) are met.

The AUC determined that, as required by s. 20.21, the proposed amendments are not technically deficient, support the fair, efficient and openly competitive operation of the market to which it relates, and are in the public interest.

Did the AESO fulfill its obligation to adequately consult with stakeholders

The AESO argued that it had met its consultation obligations as set out in ss. 4 and 5 of Rule 017: Procedures and Process for Development of ISO Rules and Filing of ISO Rules with the Alberta Utilities Commission. The AESO submitted that its consultation process included any party interested in, or that may be directly affected by the proposed amendments to s. 103.5. All members of the consultation group had sufficient opportunity to make submissions on the proposed amendments.

The AUC was satisfied that the requirements set out in Rule 017 regarding information and consultation had been met.

AUC Decision and Order

Pursuant to subsection 20.21(1)(a) of the EUA, the AUC approved the proposed amendment to s. 103.5 of the ISO Rules, Net Settlement Instruction, to be effective 30 days after April 7, 2022.

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