discussed late last year, the Ontario Energy Board has
signalled that it wants to focus on "Major Events" and
their impact on electricity distributor reliability and
performance. "Major Events" are extraordinary occurrences
out of a distributor's control that cause significant
disruptions on the distribution system. Examples are major
weather-related events such as ice storms, major floods and
On May 3, 2016, the OEB issued a Notice of Amendments to the Electricity
Reporting and Record Keeping Requirements (RRRs) regarding System
Reliability. This Notice sets out new and updated requirements for
reporting of "Major Events." These new requirements
generally follow the approach suggested in the OEB's earlier Report titled "Electricity Distribution
System Reliability: Major Events, Reporting on Major Events and
Customer Specific Measures." There are, however, a number of
areas where changes from the approach suggested in the Report have been made to address comments
received from stakeholders.
The OEB will define a "Major Event" as follows:
"... an event that is beyond the control of the
distributor and is:
c) unpreventable; or
Such events disrupt normal business operations and occur so
infrequently that it would be uneconomical to take them into
account when designing and operating the distribution system. Such
events cause exceptional and/or extensive damage to assets, they
take significantly longer than usual to repair, and they affect a
substantial number of customers."
The OEB's Notice of Amendments emphasizes that it views
"Major Events" to be "rare events." As a
result, the criteria for what constitutes a "Major Event"
are "strict" (to use the OEB's phrase). The OEB's
Notice also emphasizes that a "Major Event" must be
closely tied to causes that are outside of the distributor's
control. This addresses an apparent concern that otherwise, a
distributor may be able to exclude outage events that could have
been minimized through good asset management practices.
There are two main implications of the OEB's focus on
reporting for "Major Events."
The first is a requirement for distributors to provide notice of
and details about any "Major Event." The changes to the
RRRs will require a distributor to file a report within 60 days of
a Major Event (with a possible extension to 90 days). This report
will identify the Major Event and provide written answers to 28
listed questions about how the distributor prepared for, reacted to
and recovered from a "Major Event."
The other item is a change to the way that distributors will
report certain items within the RRRs. Starting for 2016 reporting
(to be filed in April 2017), distributors are to separate out
impacts of Major Events in reporting of System Average Interruption
Duration Index (SAIDI) and System Average Interruption Frequency
Canada is a constitutional monarchy, a parliamentary democracy and a federation comprised of ten provinces and three territories. Canada's judiciary is independent of the legislative and executive branches of Government.
The Government of Alberta recently announced a number of policy changes that will impact the Alberta Electricity Market, composed of its generators, transmitters, distributors, retailers, electricity consumers and wholesale electricity market.
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).