Market Oversight and Enforcement – FEOC
In this decision, the AUC approved the application by WCSB Power Holdings GP Ltd. (“WCSB”) for the preferential sharing of records that are not available to the public between WCSB, WCSB Holdings Limited Partnership (“WCSB LP”), URICA Energy Real Time Ltd. (“URICA Real Time”) and URICA Asset Optimization Ltd. (“URICA Optimization”), relating to the eReserve2 Battery Energy Storage Power Plant (“eReserve2”), which consists of 14 1.5-megawatt (MW) lithium-ion batteries, for a total generating capacity of 20 MW (the “Power Plant”).
Submissions of the Applicant
Is the Proposed Sharing of Records Necessary?
WCSB identified that it had entered into commercial arrangements with URICA Real Time and URICA Optimization that necessitate that WCSB and WCSB LP share offer information with URICA Real Time and URICA Optimization that is not available to the public.
WCSB explained that neither it nor WCSB LP has the expertise and resources to accept energy or ancillary services dispatch orders to manage the Power Plant’s output in the Alberta energy or ancillary services markets on a 24-hour basis. URICA Real Time has the expertise and resources to assist by providing the needed real/time dispatch desk service. URICA Optimization has the expertise and resources needed to assist WCSB with establishing and optimizing offer strategies for the Power Plant.
FEOC Operation of the Electricity Market
WCSB 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
WCSB submitted that WCSB and WCSB LP’s total offer control is 0.6 per cent, that URICA Real Time’s total offer control is zero per cent, and that URICA Optimization’s total offer control is 1.0 per cent, all of which are less than the offer control limit of 30 per cent, as set out in Subsection 5(5) FEOC Regulation.
AUC Findings
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 certain requirements are satisfied. The AUC found that these requirements were met in this application.
The AUC was satisfied that WCSB had demonstrated that the sharing of records is reasonably necessary for WCSB to carry out its 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 noted that the Market Surveillance Administrator supported the application. The AUC was prepared to issue the order approving the applied-for sharing of records, subject to terms and conditions set out in the decision.
