TransCanada Energy Ltd.

Transcription

1 Decision D Request for Permitting the Sharing of Records Not Available to the Public Between and Pembina Pipeline Corporation May 26, 2017

2 Alberta Utilities Commission Decision D Request for Permitting the Sharing of Records Not Available to the Public Between and Pembina Pipeline Corporation Proceeding Application A001 May 26, 2017 Published by the: Alberta Utilities Commission Fifth Avenue Place, Fourth Floor, 425 First Street S.W. Calgary, Alberta T2P 3L8 Telephone: Fax: Website:

3 Contents 1 Decision summary Introduction and background The Commission s authority to allow record sharing Views of the parties Is the proposed sharing of records reasonably necessary? Fair, efficient and openly competitive operation of the market Commission findings Decision Additional comments of Panel Chair Anne Michaud... 5 Appendix 1 Abbreviations... 6 Decision D (May 26, 2017) i

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5 Alberta Utilities Commission Calgary, Alberta Request for Permitting the Sharing of Records Not Available to the Public Between and Pembina Pipeline Corporation Decision D Proceeding Application A001 1 Decision summary 1. In this decision, the Alberta Utilities Commission must decide whether to approve an application by (TransCanada) to preferentially share, with Pembina Pipeline Corporation (Pembina), scheduling and outage information records that are not available to the public that TransCanada characterized as pertaining to quantity offers. The application was brought under Section 3 of the Fair, Efficient and Open Competition Regulation. The Market Surveillance Administrator (MSA) has supported the application. 2. For the reasons set out below, the Commission has decided to grant an order pursuant to Section 3 of the Fair, Efficient and Open Competition Regulation to share the information described in the application. 2 Introduction and background 3. In its application of December 22, 2016, 1 TransCanada applied to preferentially share, with Pembina, records that are not available to the public relating to scheduling and outage information for the Redwater co-generation facility (Redwater). TransCanada requested that the term of the order, if granted, expire on December 31, TransCanada stated that Redwater provides thermal energy for Pembina s operations and as a result, Redwater is closely integrated with Pembina s operations. It submitted that the information sharing would be with respect to the Redwater unit with Alberta Electric System Operator (AESO) asset ID TC02 (maximum capacity of 46 MW). 3 TransCanada is the owner of Redwater, and as such, has offer control of the unit. 5. The Commission issued notice of the application on January 4, 2017 that specified that the only parties with standing in the proceeding were TransCanada and the MSA. It also established a process and schedule for the MSA to determine whether it would intervene in the proceeding, and to advise the Commission whether it required an evidentiary process On January 9, 2017, the MSA advised the Commission that it supported the application and did not require further evidentiary process Application A001. Exhibit X0001, TCE Redwater FEOC Section 3 Application, December 22, 2016, page 4. Exhibit X0001, TCE Redwater FEOC Section 3 Application, December 22, 2016, page 2. Exhibit X0004, Notice of application, January 4, Exhibit X0005, MSA statement of intent to participate, January 9, Decision D (May 26, 2017) 1

6 Request for Permitting the Sharing of Records Not Available to the Public Between and Pembina Pipeline Corporation 7. On February 16, 2017, the Commission issued information requests (IRs) to TransCanada in an effort to better understand the information proposed to be shared between TransCanada and Pembina. 6 Further to a requested 7 and granted 8 deadline extension, IR responses were filed by TransCanada on March 10, In reaching the determinations contained within this decision, the Commission has considered all relevant materials comprising the record of this proceeding. Accordingly, references in this decision to specific parts of the record are intended to assist the reader in understanding the Commission s reasoning relating to a particular matter and should not be taken as an indication that the Commission did not consider all relevant portions of the record with respect to that matter. 3 The Commission s authority to allow record sharing 9. Section 3(1) of the Fair, Efficient and Open Competition Regulation establishes that a market participant shall not share records that are not available to the public relating to any past, current or future price and quantity offer made to the power pool or for the provision of ancillary services. Section 3(2) of the Fair, Efficient and Open Competition Regulation establishes instances where such price and quantity offer records that are not available to the public may be shared. Section 3(3) of the Fair, Efficient and Open Competition Regulation allows the Commission to issue an order permitting the sharing of records, stating: (3) The Commission may, on application by a market participant that is otherwise prohibited from sharing records referred to under subsection (1), issue an order permitting the sharing of those records on any terms and conditions the Commission considers appropriate where the market participant establishes that (a) the records will not be used for any purpose that does not support the fair, efficient and openly competitive operation of the electricity market, including the conduct referred to in section 2, and (b) the sharing of the records is reasonably necessary for the market participant to carry out its business. 10. In addition to the considerations in Section 3, the Commission must also take into account market share offer control when considering an application to share records. Section 5(5) of the Fair, Efficient and Open Competition Regulation states that a market participant shall not hold offer control in excess of 30 per cent of the total maximum capability of generating units in Alberta. 11. The Commission is also cognizant of the requirement in Section 6 of the Electric Utilities Act that [m]arket participants are to conduct themselves in a manner that supports the fair, efficient and openly competitive operation of the market Exhibit X0006, IR round 1 AUC to TCE, February 16, Exhibit X0007, LT AUC requesting extension, March 2, Exhibit X0008, AUC Letter to TransCanada Energy Ltd - granting extension of time, March 3, Exhibit X0009, TCE Round 1 Responses to AUC IRs, March 10, Decision D (May 26, 2017)

7 Request for Permitting the Sharing of Records Not Available to the Public Between and Pembina Pipeline Corporation 4 Views of the parties 4.1 Is the proposed sharing of records reasonably necessary? 12. TransCanada filed representations from senior officers at TransCanada and Pembina that indicate that the sharing of preferential records as described in the application is reasonably necessary for the applicant to carry out its business with respect to Redwater. 13. TransCanada stated that it manages Redwater s obligations to the wholesale electricity market, including the submission of energy and ancillary services price and quantity offer pairs. In an information request, the Commission asked TransCanada what it meant by the phrase certain scheduling information. TransCanada stated that it referred to various types of information that describe the operational capabilities of Redwater which may impact its physical availability. 10 TransCanada also provided a detailed list of the non-public information it shares with Pembina that could be considered related to quantity, but noted that it is not the actual quantity component of a price and quantity offer pair. 11 TransCanada stated that that operational information is not accompanied by a price. It added that Redwater s price and quantity pairs are solely determined by TransCanada, that they are not shared with Pembina, and that Pembina does not have any input into Redwater s offers to the AESO. 12 In both its application and information responses, TransCanada stated that due to the high degree of integration with Pembina, operational information must be shared between the parties. 4.2 Fair, efficient and openly competitive operation of the market 14. TransCanada confirmed that the total market share offer control represented by each entity, including associates, and collectively, is less than the offer control limit of 30 per cent set out in Section 5(5) of the Fair, Efficient and Open Competition Regulation. 5 Commission findings 15. The Commission finds that TransCanada has demonstrated that the sharing of records is reasonably necessary for it to carry out its business due to the level of integration between it and Pembina at the Redwater facility. 16. TransCanada stated that it solely determines the price and quantity offers to the AESO and explained in an information response that certain scheduling information refers to operational information that describes the operational capabilities of Redwater and which may impact its physical availability. 17. The application stated that operational information is shared between TransCanada and Pembina operational staff as a result of the integration between the Redwater unit and Pembina s facility. Furthermore, TransCanada reiterated several times that Pembina staff is not privy to price or quantity offer information. TransCanada also stated specifically in its IR responses that it is its non-trading personnel that may interact with Pembina personnel Exhibit X0009, TCE Round 1 Responses to AUC IRs, March 10, 2017, page 2. Exhibit X0009, TCE Round 1 Responses to AUC IRs, March 10, 2017, pages 5-6. Exhibit X0009, TCE Round 1 Responses to AUC IRs, March 10, 2017, pages 5-6. Decision D (May 26, 2017) 3

8 Request for Permitting the Sharing of Records Not Available to the Public Between and Pembina Pipeline Corporation 18. TransCanada stated that Pembina has a formal program for internal compliance in place regarding information sharing requirements under the Fair, Efficient and Open Competition Regulation to prevent the use of any non-public quantity offer information for any purpose that does not support the fair, efficient and openly competitive operation of the electricity market. 19. The offer control figures for TransCanada and Pembina are less than the offer control limit of 30 per cent set out in Section 5(5) of the Fair, Efficient and Open Competition Regulation. 20. TransCanada and Pembina have each made representations that the preferential records relating to Redwater will not be used for any purpose that does not support the fair, efficient and openly competitive operation of the Alberta electricity market, including conduct referred to in Section 2 of the Fair, Efficient and Open Competition Regulation. 21. The Commission finds, on the basis of the measures described above, that the records shared between TransCanada and Pembina will not be used for any purpose that does not support the fair, efficient and openly competitive operation of the electricity market, including conduct referred to in Section 2 of the Fair, Efficient and Open Competition Regulation. 22. Having regard to the foregoing, the Commission is prepared to issue an order allowing to share records not available to the public with Pembina Pipeline Corporation, subject to the following terms and conditions: (a) The order only applies to the sharing, by with Pembina Pipeline Corporation, of certain scheduling information pertaining to the 46-MW Redwater unit that may relate to quantity offers in the Alberta electricity and ancillary services markets, as described in the application. (b) must notify the Commission of the termination of the commercial arrangements between and Pembina Pipeline Corporation within 30 days of the termination of such commercial arrangements. (c) must notify the Commission of any material changes to the information and continued applicability of any representations contained within its application that may affect the compliance of and Pembina Pipeline Corporation with the Fair, Efficient and Open Competition Regulation within 30 days of the material changes. 23. The order shall be effective from the date of this decision until the earlier of December 31, 2021 or the termination of the commercial arrangements between and Pembina Pipeline Corporation. 4 Decision D (May 26, 2017)

9 Request for Permitting the Sharing of Records Not Available to the Public Between and Pembina Pipeline Corporation 6 Decision 24. Pursuant to the provisions of Section 3 of the Fair, Efficient and Open Competition Regulation, the Commission grants the application for the sharing of records set out in the following order granted to, which is a separate disposition in this proceeding: Preferential Sharing of Records Redwater Order D Additional comments of Panel Chair Anne Michaud 25. I am concurring with the outcome of this decision but wish to express my views on the necessity of the granted order in these circumstances. 26. The evidence in this proceeding has established that the requesting party will not be sharing price and quantity information. TransCanada has described the information to be shared as related to the availability and operational capabilities of the Redwater unit. Outage records, and their use, are addressed by Section 4 of the Fair, Efficient and Open Competition Regulation. It states: 4(1) A market participant shall not, directly or indirectly, use outage records to trade unless permitted to do so under this section. (2) Subject to subsection (6), market participants shall provide outage records to the ISO as soon as reasonably practicable, in a form and manner and containing the content required by the ISO. 27. The parties to this application are therefore prohibited from trading on this information before it is public, whether or not an order granting preferential sharing of non-public price and quantity information is in place. I must conclude that an order granting preferential sharing of non-public information relating to price and quantity offers is not required in this case. However, in light of the request made by TransCanada, and out of respect for its abundance of caution, I am agreeing to grant the order in this instance. Dated on May 26, Alberta Utilities Commission (original signed by) Anne Michaud Panel Chair (original signed by) Bill Lyttle Commission Member Decision D (May 26, 2017) 5

10 Request for Permitting the Sharing of Records Not Available to the Public Between and Pembina Pipeline Corporation Appendix 1 Abbreviations Abbreviation AESO IR MSA MW Pembina Redwater TransCanada Name in full Alberta Electric System Operator information request Market Surveillance Administrator megawatt(s) Pembina Pipeline Corporation Redwater cogeneration facility, TC02 with a capacity of 46 MW 6 Decision D (May 26, 2017)