Alberta Electric System Operator

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Milton Strickland
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Decision 20509-D01-2015 Approval of Alberta

1 Decision D Approval of Alberta reliability standard BAL-002-WECC-AB1-2 June 26, 2015

2 Alberta Utilities Commission Decision D Approval of Alberta reliability standard BAL-002-WECC-AB1-2 Application A001 Proceeding June 26, 2015 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 0BIntroduction Background BCommission findings and decision... 2 List of Tables Table 1. 3BReliability standard filed June 5, Table 2. Effective date... 3 Decision D (June 26, 2015) i

5 Alberta Utilities Commission Calgary, Alberta Decision D Approval of Alberta reliability standard Application A001 BAL-002-WECC-AB1-2 Proceeding BIntroduction 1. On June 1, 2015, the (AESO)F1 filed an application to the Alberta Utilities Commission (AUC or the Commission). On June 4, 2015, the Commission responded to the AESO indicating the application it had filed was incomplete, as well as had been improperly filed as one document. The Commission directed the AESO to resubmit its application. On June 5, 2105, the AESO filed the following Alberta reliability standard with the Commission for review pursuant to Section 19(4)(b) of the Transmission Regulation. The AUC registered this filing as Application A001 and designated it as Proceeding Table 1. 3BReliability standard filed June 5, 2015 Reliability standard category Reliability standard Reliability standard name Proposed Action Resource and Demand Balancing (BAL) BAL-002-WECC-AB1-2 Contingency Reserve Amend 2. Pursuant to Section 19(4) of the Transmission Regulation, the Independent System Operator (ISO), before adopting or making reliability standards, must consult with those market participants that it considers are likely to be directly affected and must forward the reliability standards to the Commission for review, along with the ISO s recommendation that the Commission either approve or reject each of them. 3. Pursuant to sections 19(5) and 19(6) of the Transmission Regulation, the Commission must approve or refuse to approve each reliability standard in accordance with the recommendation of the ISO, unless an interested person satisfies the Commission that the ISO s recommendation is: (a) technically deficient, or (b) not in the public interest. 4. On June 9, 2015, the Commission issued a notice of filing and notice for objection for the reliability standard identified in Table 1 by uploading the notice to the Commission s efiling system and posting the notice on the AUC website. 5. No objections were filed with the Commission before or after the June 23, 2015 deadline specified in the notice of filing and notice for objection. 1 The Independent System Operator (ISO) is established under Section 7(1) of the Electric Utilities Act and operates under the trade name AESO. Decision D (June 26, 2015) 1

6 Alberta reliability standard BAL-002-WECC-AB Background 6. The AESO stated in its application that Alberta reliability standard BAL-002-WECC- AB-2, a Western Electricity Coordinating Council (WECC) regional variance to BAL-002-AB-1, detailed the quantity and types of contingency reserve the AESO is required to have access to in order to cover either the AESO s most severe single contingency or the combination of three percent of the hourly integrated amount of load plus three percent of the hourly integrated amount of net generation, whichever is greater. The AESO stated that because of the increase in total import capability between Alberta and other members of the WECC, there is an increased likelihood that imports on these interconnections may be the most severe single contingency. 7. The AESO stated it has determined that, where it loses synchronism with the other members of the WECC, it is not necessary for the AESO to be bound by the quantities and types of contingency reserve required by BAL-002-WECC-AB-2 to ensure the reliable operation of the Alberta interconnected electric system. The AESO proposed that the standard be amended to BAL-002-WECC-AB1-2 such that it will not be applicable in the event of contingencies that result in the Alberta interconnected electric system losing synchronism with the WECC. 8. The AESO issued a consultation letter on March 5, 2015, requesting written comments from market participants and other interested parties with respect to the proposed amended reliability standard BAL-002-WECC-AB1-2. The AESO further stated that on March 24, 2015, it posted on its website and in its stakeholder newsletter the written comments it received from market participants and other interested parties. On May 12, 2015 the AESO posted replies to the comments on its website and stakeholder newsletter, and included the final proposed amended reliability standard BAL-002-WECC-AB The AESO attached its consultation letter, comments from market participants, its replies to the comments, a clean copy and a blackline copy of the amended reliability standard BAL- 002-WECC-AB1-2 to Application A001, submitted that the reliability standard is compliant with the requirements of the Transmission Regulation, and recommended that the Commission approve the proposed amended BAL-002-WECC-AB1-2, pursuant to Section 19 of the Transmission Regulation. 3 2BCommission findings and decision 10. Pursuant to sections 19(5) and 19(6) of the Transmission Regulation the Commission must follow the recommendation of the ISO to either approve or reject proposed reliability standards unless the recommendation is demonstrated to be technically deficient or not in the public interest: Reliability Standards [ ] 19(5) Subject to subsection (6), the Commission must approve or refuse to approve the reliability standards, agreements, criteria or directives, and must inform the ISO of its decision. (6) The Commission must follow the recommendation of the ISO that the Commission approve or reject the proposed reliability standards, agreements, criteria or directives unless an interested person satisfies the Commission that the ISO s recommendation is 2 Decision D (June 26, 2015)

7 Alberta reliability standard BAL-002-WECC-AB1-2 (a) technically deficient, or (b) not in the public interest. 11. The ISO forwarded the amended reliability standard in Table 1 to the AUC with a recommendation that the Commission approve the amended reliability standard. 12. The Commission finds that the ISO consulted as required with those market participants that it considers are likely to be affected by the approval of the amended reliability standard in Table 1 and that the ISO complied with Section 19(4)(a) of the Transmission Regulation. 13. No party filed an objection with the AUC indicating that the approval of amended reliability standard BAL-002-WECC-AB1-2 is either technically deficient, or not in the public interest. 14. Accordingly, pursuant to Section 19(6) of the Transmission Regulation, the Commission approves the amended reliability standard BAL-002-WECC-AB1-2 contained within Application A001 in accordance with the recommendations of the ISO. The Commission advises that the reliability standard will be effective as follows: Table 2. Effective date Reliability standard Effective date BAL-002-WECC-AB1-2 Approved, effective July 26, Dated on June 26, Alberta Utilities Commission (original signed by) Tudor Beattie, QC Commission Member Decision D (June 26, 2015) 3

Alberta Electric System Operator

Decision 2011-501 Alberta Electric System Operator Approval of Alberta reliability standard BAL-002-AB-1 December 20, 2011 The Alberta Utilities Commission Decision 2011-501: Alberta Electric System Operator