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Reliability in the International Arena Alberta Perspective

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Presentation on theme: "Reliability in the International Arena Alberta Perspective"— Presentation transcript:

1 Reliability in the International Arena Alberta Perspective
Diana Pommen, Director Business Operations Alberta Electric System Operator WECC Member Meeting April 20, 2006

2 Overarching Concepts Support implementation of North America-wide mandatory reliability standards Jurisdictional authorities must be maintained The “what” can be defined by the ERO through the standard setting process, but the “how” rests with the provincial authorities Business relationships with ERO/RE must be customized to reflect legislative framework in Alberta Close cooperation with the WECC is essential

3 Key Activities to Date Alberta participation in Bilateral Group (US DOE, FERC, FPT Group) Submitted comments on FERC NOPR, Draft 1 and 2 of NERC Draft Application, Final FERC Rule (joint Alberta submission, AESO through CEA and ISO/RTO Council) ADOE, AEUB and AESO met with representatives from NERC to outline legislative framework in Alberta (December 2005) Ongoing discussions with WECC Alberta submitted information on reliability framework in Alberta to NERC (February 2006) WECC Bylaw Changes approved by membership and WECC Board to allow for 5 Canadian Board members (January 2006) Slate of Class 6 Directors elected by Canadian Member vote in April 2006 – 2 from Alberta, 2 from BC 1 N/A to be elected by WECC Membership

4 Reliability Framework in Alberta
Provincial authority – entities with powers and duties related to the electric industry, as provided through legislation (ERO Term – governmental authority) Minister of Energy – has responsibilities for the EUB and AESO ADOE – has overarching responsibility for development of policy framework EUB - Regulatory authority - implementing agency AESO - Compliance authority – implementing agency Applicable Legislation Electric Utilities Act Transmission Regulation Hydro and Electric Energy Act

5 Recognition of the ERO in Alberta
No jurisdictional authority will be surrendered to the ERO or RE Through a Memorandum of Understanding signed by Minister of Energy Recognition means: The acknowledgement of the ERO as the body certified in the US to develop and enforce mandatory reliability standards through a defined process ERO standards can be adopted by AESO and made mandatory in the operation of the electric system and enforced by the AESO Approval of adequate funding to carry out the duties performed by ERO/RE for Alberta. Alberta will share in proportion to its net energy for load

6 Current State of Mandatory Reliability Standards in Alberta
The current legislation in Alberta supports mandatory reliability standards Definition from the Transmission Regulation “Reliability standards agreements, criteria and directives of the WECC and the NERC or their successor organizations, and reliability standards, agreements, criteria or directives of any similar entity recognized by the ISO” AESO also develops standards that are mandatory AESO and market participants must comply with reliability standards AESO completed successful NERC/WECC Readiness Audit in 2005 RMS agreement between AESO and WECC - a contractual agreement that outlines compliance and penalties for specific reliability standards

7 Transition to North America-wide Mandatory Reliability Standards
Maintain Alberta jurisdictional authority and ensure there is clarity for NERC and WECC Alberta authorities have signed agreements with NERC/WECC Relationships developed between regulators – e.g. FERC and provincial regulators Undertake a project that: Defines how compliance will be managed Clarifies compliance mechanisms and processes in Alberta Transitions current internal-Alberta agreements and practices to specific reliability standards, performance standards and/or maintenance criteria Manages the transition in an efficient manner

8 Timelines First week of April - NERC filed application with FERC and Canadian Authorities (Alberta Minister of Energy) April 2006 onward – Alberta will work with NERC to finalize appropriate documents and processes April 2006 onward - Alberta will work with WECC re changes to RMS and details of contractual business arrangement including processes TBD – finalized timelines for Alberta implementation

9 Conclusion Significant activity in last quarter 2005 and first quarter 2006 Governance issue re Canadian Representation on WECC Board of Directors resolved Alberta timelines and activities for implementation of North America-wide mandatory reliability standards developed and defined in Q2 2006 Ongoing dialogue required with NERC and WECC

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