Canada: Applicable Legislation And Governing Agencies

Last Updated: October 18 2016
Article by Kent D. Howie and Alan Ross

Most Read Contributor in Canada, November 2016

Applicable Legislation

The Alberta Electricity Market is regulated by two primary statutes and a number of substantive regulations enacted under these statutes:

  1. Electric Utilities Act ("EUA"): The EUA is the main piece of legislation that governs the Alberta Electricity Market. Among other things, the EUA:
    1. Defines the structure of the Alberta Electricity Market, including the competitive aspects of generation and retail, and the regulated aspects of transmission and distribution.
    2. Establishes the Independent System Operator (the "Alberta Electric System Operator" or "AESO") and the Balancing Pool and sets out their roles and powers.
    3. Creates the Power Pool and provides for the making of rules by the AESO that define the fair, efficient and openly competitive (generally referred to as "FEOC") functioning of the Power Pool. The AESO is given authority to make ISO Rules in accordance with Section 20 of the EUA and that authority also requires market participants to comply with the ISO Rules. The AESO has made extensive ISO Rules (over 250 pages of them) that govern the Power Pool, including its operation, exchange of energy, transmission system planning and load settlement.
    4. Permits small consumers to have choice on whether to choose a retailer or choose the RRO.
    5. Provides for the continuation of the PPAs.
    6. Grants broad oversight powers to the AUC, especially with respect to the amounts charged by, and terms of service for, the TFOs, DFOs and the AESO.

Regulations passed under the EUA govern matters such as the role of the Balancing Pool in administering the PPAs, the content of customer bills, codes of conduct for market participants, the distribution tariff, the FEOC obligation, payments in lieu of taxes to be paid by non-taxable market participants (i.e. municipalities), the RRO, distribution connected micro-generation of less than 1 MW, and the regulation of transmission.

  1. Hydro and Electric Energy Act ("HEEA"): HEEA is the primary piece of legislation that governs how the AIES or grid is built. It ensures that generation, transmission and distribution facilities are constructed in an economic, orderly, efficient and safe manner that is in the public interest. To construct and connect new generation, transmission and distribution facilities, certain approvals under HEEA must be obtained from the AUC. There is only one regulation that has been enacted under HEEA and it deals with the requirement of generators and transmitters to provide certain statistical information about their operations.

Governing Agencies

In addition to the Department of Energy for Alberta, the Alberta Electricity Market has four key not-for-profit quasi-government agencies that play a significant role in regulating Alberta's Electricity Market.

The roles of the AESO and Balancing Pool have already been previously explained in some detail. The AESO is the public body that plans, develops and controls access to the transmission system, directs the operation of the AIES, and designs and operates the Power Pool that determines the Pool Price. The Balancing Pool is the public body that manages any PPAs for which there is no independent buyer, and also acts as a backstop for the other PPAs in the event of force majeure or termination by Buyers. Any profit or loss of the Balancing Pool from these PPAs is passed on to Alberta consumers.

The AUC is an independent, quasi-judicial agency of the province. The AUC is responsible for implementing the legislation, regulations and policies of the Department of Energy for Alberta. In addition, it is responsible for generation facility oversight; ensuring each facility is built, operated and decommissioned in an efficient and environmentally responsible manner. The AUC does not generally regulate REAs, municipally owned utilities (with the exception of EPCOR in Edmonton and ENMAX in Calgary), or competitive retailers.

The Market Surveillance Administrator ("MSA") is a public agency created under the Alberta Utilities Commission Act whose mission is to take action to promote effective competition and a culture of compliance and accountability in the Alberta Electricity Market. The MSA undertakes surveillance and investigation to ensure that market participants are conducting themselves in accordance with the FEOC (fair, efficient and openly competitive) obligation, the EUA and its regulations, and the ISO Rules. As an example, in 2015 the MSA assisted in the prosecution of TransAlta before the AUC for breaching the FEOC obligation in a manner that caused a manipulation of the Pool Price. This resulted in TransAlta agreeing to pay the MSA approximately $56 million to settle the FEOC prosecution.

Other non-profit agencies that participate on behalf of their members in shaping the Alberta Electricity Market include the Independent Power Producers Society of Alberta, the Industrial Power Consumers Association of Alberta, Alberta Direct Connect Consumer Association, Alberta Federation of Rural Electrification Associations, Canadian Wind Energy Association and the Canadian Solar Industries Association.

All of these public agencies and non-profit associations have websites that also provide useful background information about the Alberta Electricity Market.

<>Footnote

2. www.aeso.ca/29864.html

About BLG

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
 
In association with
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
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).
 
Email Address
Company Name
Password
Confirm Password
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement

Mondaq.com (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of www.mondaq.com

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about Mondaq.com’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.

Disclaimer

Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.

Registration

Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to unsubscribe@mondaq.com with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.

Cookies

A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.

Links

This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.

Mail-A-Friend

If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.

Security

This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to webmaster@mondaq.com.

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to EditorialAdvisor@mondaq.com.

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at enquiries@mondaq.com.

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at problems@mondaq.com and we will use commercially reasonable efforts to determine and correct the problem promptly.