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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 Approval of Alberta reliability standard BAL-002-AB-1 Application No. 1607900 Proceeding ID. No. 1631 December 20, 2011 Published by The Alberta Utilities Commission Fifth Avenue Place, Fourth Floor, 425 First Street S.W. Calgary, Alberta T2P 3L8 Telephone: 403-592-8845 Fax: 403-592-4406 Web site: Hwww.auc.ab.ca

Contents 1 Introduction... 1 2 Background... 2 3 Commission findings and decision... 2 List of Tables Table 1. Reliability standard filed November 23, 2011... 1 Table 2. Effective date... 3 AUC Decision 2011-501 (December 20, 2011) i

The Alberta Utilities Commission Calgary, Alberta Alberta Electric System Operator Decision 2011-501 Approval of Alberta reliability standard Application No. 1607900 BAL-002-AB-1 Proceeding ID. No. 1631 1 Introduction 1. On November 23, 2011, the Alberta Electric System Operator (AESO) 1 filed the following Alberta reliability standard with the Alberta Utilities Commission (AUC or the Commission) pursuant to Section 19(4)(b) of the Transmission Regulation. The Commission registered this filing as Application No. 1607900. Table 1. Reliability standard filed November 23, 2011 Reliability standard category Resource and Demand Balancing (BAL) Reliability standard BAL-002-AB-1 Description Disturbance Control Performance 2. Pursuant to Section 19(4) of the Transmission Regulation, the 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 approve or reject them. 3. Pursuant to sections 19(5) and 19(6) of the Transmission Regulation, the Commission must approve or refuse to approve the reliability standards 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 December 2, 2011, the Commission issued a notice of filing and notice for objection for the reliability standard identified in Table 1 by posting the notice on the Commission website and emailing the notice to market participants. 5. No objections were filed with the Commission by the December 16, 2011 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. AUC Decision 2011-501 (December 20, 2011) 1

Alberta reliability standard BAL-002-AB-1 Alberta Electric System Operator 2 Background 6. The AESO advised that the purpose of reliability standard BAL-002-AB-1 is to ensure the AESO is able utilize its contingency reserve to balance resources and demand and return interconnection frequency within defined limits following a disturbance resulting from a loss of supply. The AESO further advised that BAL-002-AB-1 is applicable to the AESO. 7. The AESO filed its consultation record with the Commission and indicated that the reliability standards that apply in Alberta are those of the Electric Reliability Organization and any other reliability standards, to the extent that such reliability standards are adopted by the AESO after consultation with market participants and after receipt of Commission approval. 8. The AESO attached a copy of the reliability standard to Application No. 1607900 and submitted that reliability standard BAL-002-AB-1 complies with the requirements of the Transmission Regulation. 3 Commission findings and decision 9. The Commission must follow the recommendation of the ISO to approve or reject reliability standards unless the recommendation is demonstrated to be technically deficient or not in the public interest, pursuant to sections 19(5) and 19(6) of the Transmission Regulation: 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 (a) technically deficient, or (b) not in the public interest. 10. The ISO forwarded the proposed reliability standard in Table 1 to the Commission with a recommendation that the Commission approve the reliability standard. 11. The Commission finds that the ISO consulted with those market participants it considers are likely to be directly affected by the reliability standard pursuant to Section 19(4)(a) of the Transmission Regulation. No party filed an objection with the Commission indicating that reliability standard BAL-002-AB-1 is either technically deficient, or not in the public interest. 2 AUC Decision 2011-501 (December 20, 2011)

Alberta reliability standard BAL-002-AB-1 Alberta Electric System Operator 12. Accordingly, pursuant to Section 19(6) of the Transmission Regulation, the Commission approves reliability standard BAL-002-AB-1 contained within Application No. 1607900 in accordance with the recommendation of the ISO and advises that reliability standard BAL-002- AB-1 will be effective as follows: Table 2. Effective date Reliability standard Effective date BAL-002-AB-1 October 1, 2012 Dated on December 20, 2011. The Alberta Utilities Commission Tudor Beattie, QC Commission Member AUC Decision 2011-501 (December 20, 2011) 3