Tomahawk Rural Electrification Association Limited
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1 Decision D Varied Code of Conduct Regulation Compliance Plan December 22, 2016
2 Alberta Utilities Commission Decision D Varied Code of Conduct Regulation Compliance Plan Proceeding Application A001 December 22, 2016 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 Introduction and process Analysis Commission findings Order... 6 Appendix 1 varied Code of Conduct Regulation compliance plan... 7 Decision D (December 22, 2016) i
4 Alberta Utilities Commission Calgary, Alberta Decision D Varied Code of Conduct Regulation Compliance Plan Proceeding Introduction and process 1. On May 31, 2016, EQUS Rural Electrification Association Ltd. (EQUS), filed an application with the Alberta Utilities Commission on behalf of Tomahawk Rural Electrification Association Limited (Tomahawk REA) seeking approval of a varied compliance plan pursuant to Section 30(1) of the Code of Conduct Regulation and Rule 030: Compliance with the Code of Conduct Regulation. A draft of the varied compliance plan was included with the application The Commission issued a notice of application on June 2, 2016, requesting written submissions by June 16, On July 6, 2016 the Tomahawk REA Membership Society (the Society) filed a late statement of intent to participate raising concerns about Tomahawk REA and the application. 3 On July 13, 2016, Tomahawk REA filed a response to the Society 4 contending that the Society had not properly expressed a relevant interest in the proceeding. Therefore, Tomahawk REA submitted that the interest of the Society was out of scope of the compliance plan proceeding and the Commission should proceed to consider and approve the varied compliance plan without further process. 3. On July 20, 2016, the Commission issued a letter requesting clarification that the individuals who signed the statement of intent to participate were members of the Tomahawk REA and also representatives of other Tomahawk REA members. 5 The same letter established an information request (IR) process setting IRs due to the Tomahawk REA on or before August 11, 2016 and IR responses due from the Tomahawk REA by September 16, The Society filed a letter confirming that the directors of the Society are members of Tomahawk REA on July 29, In that same letter, the Society requested further information on how to submit IRs and on August 3, 2016, the Commission provided further guidance to the Society in this regard. 7 On August 8, 2016 Tomahawk REA filed a letter indicating that it maintained its objection to the participation of the Society and that it would not be responding to any IRs from the Society Exhibit X0001, TREA Varied Compliance Plan , May 31, Exhibit X0008, Notice of application, June 2, Exhibit X0010, Tomahawk REA Membership Society Letter to AUC, July 6, Exhibit X0011, Letter of Applicant re SIP Filing ID 21657, July 16, Exhibit X0012, AUC letter to parties - process for Proceeding 21657, July 20, Exhibit X0013, Letter to AUC, July 29, Exhibit X0015, AUC to Tomahawk - Further direction regarding information requests, August 3, Exhibit X0016, Letter of Applicant re Tomahawk REA Membership Society ID 2165, August 8, Decision D (December 22, 2016) 1
5 Varied Code of Conduct Regulation Compliance Plan 5. On August 11, 2016 both the Commission and the Society sent IRs to the Tomahawk REA. 9, 10 The Society submitted an additional letter to the Commission on August 21, 2016, which included correspondence received by a Society member from Tomahawk REA Tomahawk REA filed IR responses with the Commission on September 9, , 13 Tomahawk REA included a revised version of its compliance plan (revised compliance plan) that reflected changes necessitated by the IR responses The Society filed a motion 15 on September 20, 2016 seeking an order or orders from the Commission that the Tomahawk REA provide full and complete responses to several of the Society s IRs, set out in an attachment to its submission. 16 The Commission issued a letter on September 21, 2016, establishing a process to address the Society s motion. 17 In accordance with the process schedule, the Tomahawk REA filed its response to the motion on September 28, and the Society filed its reply submission on October 5, On November 10, 2016, the Commission issued a ruling on the Society s motion directing Tomahawk REA to respond to a further question from the Commission. 20 The additional IR response was received from Tomahawk REA on November 15, On November 16, 2016, Tomahawk REA submitted that no further process was required 22 and the Society responded with comments regarding the Tomahawk REA IR response The Commission determined that parties were permitted to submit written argument and reply argument by November 30, 2016 and December 5, 2016, respectively. 24 Argument was submitted by both Tomahawk REA 25 and the Society 26 on November 30, Reply argument Exhibit X0018, Information request, August 11, Exhibit X0022, TREA-TREAMS-2016AUG and Exhibits X0023 to X0035, Attachments to information requests, August 11, Exhibit X0036, Letter to AUC and Exhibit X0037, Ltr from TREA to B. Bundt, August 21, Exhibit X0039, ID TREA Responses to Commission Information Requests, September 9, Exhibit X0042, ID TREA Responses to Society Information Requests, September 9, Exhibit X0040, TomahawkREA-AUC-2016AUG Attachment 1, September 9, Exhibit X0047, Letter to AUC, September 20, Exhibit X0049, TREAEnergyOptionInformationSheet_0043-TREAMS, September 20, Exhibit X0051, AUC letter - process to consider Tomahawk REA motion to compel responses to information requests, September 21, Exhibit X0053, Submissions ID Tomahawk REA in Response to Motion, and Exhibit X0054, Appendix A Tomahawk REA Response to Society Motion ID 21657, September 28, Exhibit X0055, Letter to AUC and Exhibit X0056, AppendixATREAMSocietyResponseMotion, October 5, Exhibit X0057, AUC Ruling and Exhibit , Appendix A Commission Ruling , November 10, Exhibit X0059, ID Tomahawk REA Responses to AUC Round 2 IR, November 15, Exhibit X0061, Tomahawk REA Letter re Further Process, November 16, Exhibit X0060, Letter to AUC, November 16, Exhibit X0062, Letter to Parties re Further process, November 18, Exhibit X0063, ID Tomahawk REA Argument, November 30, Exhibit X0065, TREAMS Argument, November 30, Decision D (December 22, 2016)
6 Varied Code of Conduct Regulation Compliance Plan was submitted by Tomahawk REA. 27 The Society declined to file reply argument 28 on December 5, Concurrent with its December 5, 2016 submission, the Society filed correspondence from the Office of the Minister of Agriculture and Forestry of Alberta, that confirmed that the Minister has conducted an investigation of Tomahawk REA and has reached conclusions under Section 27(1) of the Rural Utilities Act. 29 The Commission understands that a formal decision from the Minister pursuant to the Rural Utilities Act is pending. 11. The matters described above are separate and apart from the AUC proceeding which is the subject of this decision. The Commission has consequently confined its deliberations to the requirements of the Code of Conduct Regulation and will not consider or make findings related to matters that are properly before the Minister. 12. Under Section 45(6) of the Code of Conduct Regulation, Tomahawk REA, an electricity distributor, was required to file a new compliance plan in sufficient time for the Commission to consider and approve same before January 1, 2017 and was permitted to file a varied plan, under Rule 030. The Commission is of the view that a Code of Conduct Regulation compliance plan is of benefit to customers and, if further changes occur as a result of the pending decision pursuant to the Rural Utilities Act, a further revised compliance plan may be required. The Commission will consider any such application when it is filed. 13. The Commission considers the record of this proceeding to have closed on December 5, In reaching the determinations set out 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 a particular matter. 2 Analysis 14. Section 37(1)(a) of the Code of Conduct Regulation authorizes the Commission to make a rule to vary the requirements of Section 30(4) in the case of a distributor with a small number of customers. On March 31, 2016, the Commission issued Bulletin approving Rule 030, which came into effect on April 1, Section 3(1) of Rule 030 provides that a distributor that has 5,000 customers or less may file a varied compliance plan. Section 3(3) of Rule 030 requires a varied plan to include at least the following: (a) (b) A list of the distributor s affiliated providers. A description of how the notice required by Section 34 of the Code of Conduct Regulation will be given to the public Exhibit X0068, ID Tomahawk REA Reply Submissions, December 5, Exhibit X0066, Letter to AUC Reply Argument, December 5, Exhibit X0067, posted on TREA website (pg 5 highlighted), December 5, Decision D (December 22, 2016) 3
7 Varied Code of Conduct Regulation Compliance Plan (c) A description of the procedure that may be used for the voluntary resolution of complaints about non-compliance with the Code of Conduct Regulation or the compliance plan. 15. Sections 3(3)(a), 3(3)(b) and 3(3)(c) of Rule 030 correspond to the compliance plan requirements in sections 30(4)(a), 30(4) (i), and 30(4) (j) of the Code of Conduct Regulation respectively. 16. In its proposed compliance plan, Tomahawk REA confirmed that it has fewer than 5,000 members, in accordance with the limit specified in Section 3(1) of Rule 030. The Tomahawk REA is therefore eligible for a varied compliance plan. Its proposed compliance plan included the information specified in Rule 030 for a varied code of conduct compliance plan. 17. The Commission understands that Tomahawk REA has entered into an agreement for cooperation and joint venture with EQUS, which contracts for various services to be provided to Tomahawk REA by EQUS. The Commission further understands that no new legal entity was created by this agreement. 30 In IR response TomahawkREA-AUC-2016NOV15-001(f), Tomahawk REA clarified the responsibility of the compliance officer, an EQUS employee, and the procedure for reporting complaints to the Tomahawk REA board of directors: 31 Accordingly, the support to be provided by EQUS REA to Tomahawk REA includes the provision of staff performing the role of compliance officer for the purposes of the varied compliance plan of Tomahawk REA. However, consistent with its powers under the Rural Utilities Act and under the varied compliance plan, the board of directors of Tomahawk REA receives and considers all complaints and approves the annual compliance plan filed with the Commission. [footnote omitted] 18. With this clarification, the Commission considers that, in this instance, having a compliance officer available to Tomahawk REA in the manner described is of benefit to customers. Further, the Commission is satisfied that the arrangement requires no further scrutiny as it relates to the requirements of the Code of Conduct Regulation. 19. Section 34(1) requires that notice be given to the public that complaints about contraventions of the Code of Conduct Regulation may be made to the Commission or the Market Surveillance Administrator. Section 34(2) requires that the Commission approve the notice and that it be made clear that the AUC and the Market Surveillance Administrator are independent of distributors, regulated rates suppliers and affiliated providers. The Commission finds that the proposed notice wording, as reproduced below from the proposed compliance plan, satisfies the requirements of Section 34 of the Code of Conduct Regulation: 3.1 Tomahawk REA will inform the public and provide the following notice of how complaints about the contraventions of the Regulation or this compliance plan may be made to the Commission or the Market Surveillance Administrator on its website ( Exhibit X0059, ID Tomahawk REA Responses to AUC Round 2 IR, November 15, 2016, PDF page 1. Exhibit X0059, ID Tomahawk REA Responses to AUC Round 2 IR, November 15, 2016, PDF page 6. 4 Decision D (December 22, 2016)
8 Varied Code of Conduct Regulation Compliance Plan Complaints about contraventions of the Code of Conduct Regulation may be made to the Alberta Utilities Commission or the Market Surveillance Administrator. The Alberta Utilities Commission can be reached by contacting or The Market Surveillance Administrator can be reached by contacting or The Alberta Utilities Commission and the Market Surveillance Administrator are independent of Tomahawk REA and the regulated rate suppliers and affiliated providers. 3 Commission findings 20. The Commission finds that the compliance plan appended to this decision meets the requirements for a varied compliance plan. It is therefore approved by the Commission effective January 1, 2017 and, if applicable, should be distributed to the regulated rate supplier and affiliated providers. The approved compliance plan should also be posted on Tomahawk REA s website. 21. The Commission is mindful that the list of retailers included in the varied compliance plan will change over time. Should the list of retailers require updating, Tomahawk REA is directed to include the updated list in its annual report filed with the Commission, rather than seek approval of a revised compliance plan. 22. The Commission also wishes to remind Tomahawk REA of the following two reporting requirements. Under Section 4 of Rule 030, any non-compliance with the Code of Conduct Regulation or the compliance plan is to be reported to the Commission within 30 days of Tomahawk REA becoming aware of the non-compliance. Under Section 33(2) of the Code of Conduct Regulation, an annual compliance report is required and must be approved by the board of directors of Tomahawk REA and filed with the Commission within 90 days after the end of each calendar year. The first such report will be due in March 2018 for the 2017 calendar year. For ease of reference, templates for the reports are posted on the Commission s website under Rule These documents should be filed as reports in the AUC s efiling System as Code of conduct regulation self reporting or Code of conduct regulation annual compliance report. For assistance with the AUC s efiling System, please contact info@auc.ab.ca or Decision D (December 22, 2016) 5
9 Varied Code of Conduct Regulation Compliance Plan 4 Order 24. It is hereby ordered that: (a) The wording and method of providing notice to the public in Section 3.1 of the varied compliance plan attached as Appendix 1 to this decision, is approved. (b) The varied compliance plan attached as Appendix 1 to this decision is approved effective January 1, Dated on December 22, Alberta Utilities Commission (original signed by) Anne Michaud Commission Member 6 Decision D (December 22, 2016)
10 Varied Code of Conduct Regulation Compliance Plan Appendix 1 varied Code of Conduct Regulation compliance plan Tomahawk REA varied Code of Conduc (contains 2 pages) Decision D (December 22, 2016) 7
11 TomahawkREA-AUC-2016AUG Attachment 1 Code of Conduct Regulation (AR 58/2015) Compliance Plan (Varied) 1.0 Introduction 1.1 (Tomahawk REA) is a distributor of electricity. This compliance plan has been prepared as a varied compliance plan in accordance with AUC Rule 030: Compliance with the Code of Conduct Regulation, Section 3. Tomahawk REA has 685 members to which it provides regulated rate services and which is less than the 5,000 limit, as specified in Section 3(1) of Rule 030. Tomahawk REA has entered into an Agreement for Cooperation and Joint Venture with EQUS REA LTD. ( EQUS ) and adopts EQUS compliance plan, as applicable. 1.2 The contact for any compliance matters is: Name: Charlene Glazer Position: Business Alignment Manager, EQUS Address: Street (Box 6199) Innisfail, AB T4G 1S8 Phone Number: cglazer@equs.ca 2.0 Affiliated Providers 2.1 EQUS is the regulated rate provider to Tomahawk REA as defined in Section 1(1)(o) of the Code of Conduct Regulation. 2.2 Tomahawk REA offers its members a Co-operative Energy Rate, which is an affiliated provider function on behalf of its members under s. 6.1(1) of the Roles, Relationships and Responsibilities Regulation. 2.3 Tomahawk REA has made arrangements with the following retailers to provide retail energy services to Tomahawk REA members: Alberta Cooperative Energy Alberta Power (2000) Ltd. AltaGas Ltd. Direct Energy Marketing Limited Fluent Utilities Inc. Hudson Energy Canada Corp. Just Energy Alberta L.P. Link Energy Supply Inc. Mountain View Power Park Power Spot Power Utility Network and Partners Inc. Tomahawk REA is not affiliated with any of the above retailers. Code of Conduct Compliance Plan AUC approval date
12 TomahawkREA-AUC-2016AUG Attachment Information about Complaints 3.1 Tomahawk REA will inform the public and provide the following notice of how complaints about the contraventions of the Regulation or this compliance plan may be made to the Commission or the Market Surveillance Administrator on its website ( Complaints about contraventions of the Code of Conduct Regulation may be made to the Alberta Utilities Commission or the Market Surveillance Administrator. The Alberta Utilities Commission can be reached by contacting or consumer-relations@auc.ab.ca. The Market Surveillance Administrator can be reached by contacting or compliance@albertamsa.ca. The Alberta Utilities Commission and the Market Surveillance Administrator are independent of Tomahawk REA and the regulated rate suppliers and affiliated providers. 3.2 Tomahawk REA will report to its board of directors within 30 days, any non-compliance with the Regulation and this compliance plan, the action taken to remedy any non-compliance, and any complaints of non-compliance and how the complaints have been dealt with. 3.3 No later than March 31 each year, the compliance officer will send the Commission an annual compliance report that has been approved by the board of directors for the previous calendar year which will include any non-compliance, complaints and remedies from the quarterly reports. 3.4 Tomahawk REA s compliance officer will keep a record of all complaints regarding non-compliance with its plan or the Regulation for a minimum of six years. Code of Conduct Compliance Plan AUC approval date
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