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AR 111/2003 INDEPENDENT POWER AND SMALL POWER REGULATION

(Consolidated up to 48/2013)

ALBERTA REGULATION 111/2003

Electric Utilities Act

INDEPENDENT POWER AND SMALL POWER REGULATION

Table of Contents

                1       Definitions

                2       Clarification of s3(3) of Act

                3       Deemed offer of zero cents

                4       Payments to and by Balancing Pool

                5       Repeal

                6       Expiry

                7       Coming into force


Definitions

1   In this Regulation,

                                 (a)    “Act” means the Electric Utilities Act;

                                 (b)    “existing independent power production contract” means an agreement in existence on May 17, 1995

                                           (i)    made between the owner of a generating unit that is connected with the interconnected electric system and the owner of an electric utility, and

                                          (ii)    that provides for the purchase of electric energy by the owner of the electric utility from the owner of the generating unit,

                                          but does not include a small power production contract;

                                 (c)    “owner”, in respect of an electric utility, includes a municipality or a subsidiary of a municipality that owns an electric distribution system;

                                 (d)    “public utility” has the meaning given to it in the Small Power Research and Development Act;

                                 (e)    “small power producer” has the meaning given to it in the Small Power Research and Development Act;

                                 (f)    “small power production contract” has the meaning given to it in the Small Power Research and Development Act.

Clarification of s3(3) of Act

2(1)  The phrase “is deemed to be amended to the extent necessary to make the agreement consistent with this Act” used in section 3(3) of the Act means, in respect of a small power production contract or an existing independent power production contract that contains provisions relating to the subject‑matter of clauses (a) and (b) of this subsection, that the owner of the electric utility that is a party to the contract

                                 (a)    is responsible for exchanging, including dispatch and receiving payments related to financial settlement for its account pursuant to section 17(d) of the Act, through the power pool the electric energy produced by the generating unit that enters the interconnected electric system in the amounts provided for under the agreement, and

                                 (b)    must continue to make payments to the owner of the generating unit in accordance with the agreement.

(2)  Notwithstanding subsection (1), the parties to a contract referred to in subsection (1) may agree that the owner of the generating unit or some other person must carry out the obligations in subsection (1)(a), as set out in the agreement, if the agreement is consistent with the Act.

Deemed offer of zero cents

3(1)  An eligible power production facility as defined in the Small Power Research and Development Act with a small power production contract is deemed to have a standing offer of zero cents per kilowatt hour for any electric energy offered to the power pool from the capacity allocated under the Small Power Research and Development Act.

(2)  For the portion of the production of small power production contracts that is in excess of the capacity allocated under the Small Power Research and Development Act and for existing independent power production contracts, the generating units are deemed to have a standing offer of zero cents per kilowatt hour for electric energy offered to the power pool unless

                                 (a)    the agreements contain specific dispatch requirements that are not supported by such a standing offer, or

                                 (b)    the owners of the generating units and the owner of an electric utility agree to some other dispatch requirements consistent with the Act.

Payments to and by Balancing Pool

4(1)  The following amounts must be calculated on an hourly basis and paid on a monthly basis:

                                 (a)    the Balancing Pool must pay to a public utility the amount by which

                                           (i)    the amount the public utility pays to a small power producer for electricity generated under the capacity allocated pursuant to the Small Power Research and Development Act, at a price equal to the price described in section 4(1)(b) of that Act,

                                          exceeds

                                          (ii)    the amount the public utility receives from the power pool for the electricity generated under the capacity allocated pursuant to the Small Power Research and Development Act;

                                 (b)    a public utility must pay to the Balancing Pool the amount by which

                                           (i)    the amount the public utility receives from the power pool for the electricity generated under the capacity allocated pursuant to the Small Power Research and Development Act,

                                          exceeds

                                          (ii)    the amount the public utility pays to a small power producer for electricity generated under the capacity allocated pursuant to the Small Power Research and Development Act, at a price equal to the price described in section 4(1)(b) of that Act.

(2)  The Balancing Pool must pay on a monthly basis the costs incurred by a public utility to administer its small power production contracts if, in the opinion of the Balancing Pool, the costs are reasonable for the capacity allocated under the Small Power Research and Development Act.

(3)  The Balancing Pool must pay the reasonable costs incurred by a small power producer as a result of the coming into force of the Act, the regulations or amendments to the regulations, including, but not limited to,

                                 (a)    costs of metering changes,

                                 (b)    fees payable under section 21(1) of the Act, and

                                 (c)    costs of any charges that may arise from system access service or distribution access service

to the extent that those costs are related to the capacity allocated under the Small Power Research and Development Act.

(4)  Subsection (3) does not prevent the Balancing Pool from paying a small power producer’s costs

                                 (a)    that are reasonable in the circumstances in which they were incurred and are appropriate for the capacity allocated under the Small Power Research and Development Act,

                                 (b)    that have been approved by the Minister, and

                                 (c)    the payment of which is not required under subsection (3).

(5)  In the event there is a dispute with respect to any matter set out in this section, the matter must be determined by the Minister.

Repeal

5   The Independent Power and Small Power Regulation (AR 285/95) is repealed.

Expiry

6   For the purpose of ensuring that this Regulation is reviewed for ongoing relevancy and necessity, with the option that it may be repassed in its present or an amended form following a review, this Regulation expires on June 30, 2019.

AR 111/2003 s6;48/2013

Coming into force

7   This Regulation comes into force on the coming into force of Parts 1 to 10 of the Electric Utilities Act.