The University of Calgary

Transcription

1 Decision D Application for an Order Permitting the Sharing of Records Not Available to the Public Between the University of Calgary and URICA Energy Real Time Ltd. January 30, 2018

2 Alberta Utilities Commission Decision D Application for an Order Permitting the Sharing of Records Not Available to the Public Between Proceeding Application A001 January 30, 2018 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... 5 Decision D (January 30, 2018) i

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5 Alberta Utilities Commission Application for an Order Permitting the Sharing of Records Not Available to the Public Between the University of Calgary and URICA Energy Real Time Ltd. Decision D Proceeding Application A001 1 Decision summary 1. In this decision, the Alberta Utilities Commission must decide whether to approve an application by the University of Calgary, for the preferential sharing of records that are not available to the public with URICA Energy Real Time Ltd. (URICA). 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 that follow, the Commission has decided to grant the application because the University of Calgary has demonstrated that the sharing of records is reasonably necessary for the University of Calgary to carry out its business, and that the shared records would not be used for any purpose that will not support the fair, efficient and openly competitive operation of the electricity market. 2 Introduction and background 3. In its application, 1 the University of Calgary submitted that the information sharing would be with respect to its 13-megawatt natural gas-fired cogeneration facility (UOC1). UOC1 is located on the University of Calgary campus, and its primary purpose is to provide steam heat to various buildings on the campus, as well as to provide electricity to the campus buildings. The University of Calgary filed this application to share records relating to UOC1 that are not available to the public with URICA on November 27, URICA provides a 24-hour real-time dispatch desk service to clients for operational energy market services, ancillary services, 2 dispatch down services and energy restatements for events at generators, as required by Independent System Operator rules On December 19, 2014, the Commission issued Decision , which permitted the University of Calgary to share UOC1 records referred to in Section 3(1) of the Fair, Efficient and Open Competition Regulation with URICA. This decision permitted the sharing of records between the University of Calgary and URICA from December 19, 2014 until October 31, Application A001. As defined by the Alberta Electric System Operator (AESO), ancillary services are services that are required to ensure that electricity can be transmitted reliably, efficiently, and securely across Alberta s interconnected transmission system. Ancillary services include operating reserve, transmission must run, black start services, and load shed scheme services. Operating reserves consist of regulating reserves, spinning reserves and supplemental reserves, all products that the AESO s system controller utilizes to ensure that the supply-demand of electricity in Alberta is balanced seamlessly in real-time operations. Exhibit X0002, Preferential sharing of records application registered November 27, 2017, paragraph 13. Decision D (January 30, 2018) 1

6 Application for an Order Permitting the Sharing of Records Not Available to the Public Between 6. On October 29, 2017, the University of Calgary filed an application with the Commission pursuant to Section 3 of the Fair, Efficient and Open Competition Regulation seeking an interim order from the Commission regarding the sharing of records not available to the public between the University of Calgary and URICA. The Commission granted this interim order on October 31, 2017 in decisions D and D The term of the interim order commenced on November 1, 2017, and ends at the earlier of January 31, 2018, or the termination of the commercial arrangements between the University of Calgary and URICA. 7. submitted in this application that it was necessary to share records relating to UOC1 with URICA because it does not currently have the personnel or resources required to monitor facility operations on a 24-hour basis, and that UOC1 is not of sufficient size to justify the University of Calgary setting up a dedicated internal dispatch desk. 4 requested that the term for the order be from January 31, 2018, or as early as approved, to June 1, The Commission issued notice of the application on November 27, The notice specified that the only parties with standing in the proceeding were the University of Calgary and the MSA and 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 December 4, 2017, the MSA advised the Commission that it supported the application and did not require further evidentiary process 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 11. 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) establishes instances where records that are not available to the public may be shared. Section 3(3) 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 Exhibit X0002, Preferential sharing of records application, registered November 27, 2017, paragraph 23. Exhibit X0002, Preferential sharing of records application, registered November 27, 2017, paragraph 28. Exhibit X0012, Notice of Application, November 27, Exhibit X0013, MSA Statement of Intent to Participate, December 4, Decision D (January 30, 2018)

7 Application for an Order Permitting the Sharing of Records Not Available to the Public Between (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. 12. Another factor that the Commission must take into account when considering an application to share records is market share offer control. 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. 13. 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. 4 Views of the parties 4.1 Is the proposed sharing of records reasonably necessary 14. provided a representation from a senior officer in its application which stated that the sharing of preferential records described in the application is reasonably necessary for the University of Calgary to carry out its business as the University of Calgary does not currently have the personnel or resources required to monitor facility operations on a 24-hour basis has entered into commercial arrangements with URICA, which, among other things, appoints URICA as an agent to provide a dispatch service for UOC1. These arrangements will make it necessary for the University of Calgary and URICA to share certain records which may not otherwise be available to the public with each other. 4.2 Fair, efficient and openly competitive operation of the market 16. confirmed that the total market share offer control represented by it 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. 9 further submitted that URICA and its affiliates do not exceed the 30 per cent limit A senior officer of the University of Calgary provided a written representation which indicated 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. The representation also stated that the Exhibit X0008, Preferential sharing of records letter dated November 3, Exhibit X0002, Preferential sharing of records application registered November 27, 2017, paragraphs Exhibit X0002, Preferential sharing of records application registered November 27, 2017, paragraphs Decision D (January 30, 2018) 3

8 Application for an Order Permitting the Sharing of Records Not Available to the Public Between University of Calgary has in place a Code of Conduct Policy that is in alignment with the Fair, Efficient and Open Competition Regulation filed a similar representation from a senior officer of URICA to confirm that any records shared with URICA will not be used for any purpose that does not support the fair, efficient and openly competitive operation of the electricity market. The representation also stated that URICA has a formal compliance program that all employees and officers must read and comply with, and that all officers and employees of URICA and their respective affiliates must submit signed acknowledgements that they will comply with the compliance program and the Fair, Efficient and Open Competition Regulation Commission findings 19. The Commission finds that the University of Calgary has demonstrated that the sharing of records is reasonably necessary for it to carry out its business because the University of Calgary lacks the necessary personnel and resources to carry out certain business functions. 20. URICA has established a formal program for internal compliance to ensure that the information shared by the University of Calgary 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 of the Fair, Efficient and Open Competition Regulation. 21. All offer control figures for all entities involved (both before and after any approval to share records) 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. 22. and URICA each made representations that any 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. 23. Based on these measures, the Commission finds that the records shared between the University of Calgary and URICA 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. 24. Having regard to the foregoing, the Commission is prepared to issue an order allowing the University of Calgary to share records not available to the public with URICA, subject to the following terms and conditions: a) The order only applies to the sharing of information between the University of Calgary and URICA Energy Real Time Ltd., relating to price, quantity and availability information for the 13-megawatt natural gas-fired cogeneration facility (UOC1) with respect to offers in the Alberta electricity market. 11 Exhibit X0008, Preferential sharing of records letter dated November 3, Exhibit X0009, URICA preferential sharing of records letter dated November 15, Decision D (January 30, 2018)

9 Application for an Order Permitting the Sharing of Records Not Available to the Public Between b) must notify the Commission of the termination of the commercial arrangements between and URICA Energy Real Time Ltd. 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 the University of Calgary and URICA Energy Real Time Ltd. with the Fair, Efficient and Open Competition Regulation within 30 days of the material changes. 25. The order shall be effective from the date of this decision until the earlier of June 1, 2029, or the termination of commercial arrangements between the University of Calgary and URICA Energy Real Time Ltd. 6 Decision 26. 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 orders granted to, which is a separate disposition in this proceeding: Preferential Sharing of Records University of Calgary and URICA Energy Real Time Ltd. UOC1 Order D Dated on January 30, Alberta Utilities Commission (original signed by) Willie Grieve, QC Chair Decision D (January 30, 2018) 5