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AR 176/2014 TRANSMISSION DEFICIENCY REGULATION

(no amdt)

ALBERTA REGULATION 176/2014

Electric Utilities Act

TRANSMISSION DEFICIENCY REGULATION

Table of Contents

                1      Interpretation

                2      Consultation with market participants on particular matters

                3      Needs identification document not required

                4      Abbreviated needs approval process

                5      Proposal by market participant

                6      Approval of cost estimate

                7      Expiry

                8      Coming into force

Interpretation

1   In this Regulation, the following words and phrases have the meaning given to them by the Transmission Regulation (AR 86/2007):

                               (a)    Commission;

                              (b)    ISO;


                               (c)    market participant;

                              (d)    system access service;

                               (e)    transmission facility, except in section 6;

                               (f)    TFO.

Consultation with market participants on particular matters

2   The ISO must consult with those market participants that the ISO considers are likely to be directly affected by the ISO’s approval of an abbreviated needs approval process under section 4.

Needs identification document not required

3   Despite section 34(1) of the Act, a needs identification document is not required for those proposals described

                               (a)    in a rule made by the Commission that indicates a needs identification document is not required for those proposals, or

                              (b)    in a rule made or practice established by the ISO under section 4 for an abbreviated needs approval process.

Abbreviated needs approval process

4(1)  The ISO must make rules or establish practices for an abbreviated needs approval process for

                               (a)    each system access service interconnection, and

                              (b)    each transmission facility project of a nature, size and cost determined by the ISO rules.

(2)  In making rules or establishing practices under subsection (1), the ISO

                               (a)    must consult with the Commission,

                              (b)    must comply with any Commission directives or orders respecting an abbreviated needs approval process and the nature, size and cost of an interconnection or project referred to in subsection (1), and

                               (c)    may, where the ISO considers it appropriate to do so, omit any requirement respecting a needs identification document that is provided for in the Transmission Regulation (AR 86/2007) or modify how any such requirement applies in respect of an abbreviated needs approval process.

(3)  The ISO and Commission must each periodically review the nature, size and cost provisions of the rules made under this section.

(4)  Disputes respecting decisions made by the ISO resulting from the abbreviated needs approval process may be submitted to the Commission for determination.

Proposal by market participant

5(1)  For the purposes of this section,

                               (a)    “incumbent TFO”, in respect of a transmission facility that is the subject of a proposal, means

                                        (i)    the person determined under

                                              (A)    section 24(1)(a),

                                              (B)    section 24.1(1) as it read at any time before September 22, 2014, or

                                              (C)    section 24.2(2)

                                               of the Transmission Regulation (AR 86/2007) to be eligible to apply for the construction or operation, or both, as the case may be, of the transmission facility, or

                                      (ii)    a person having responsibility under section 24(1)(b) of the Transmission Regulation (AR 86/2007) in respect of the transmission facility;

                              (b)    “proposal” means a proposal under this section;

                               (c)    “successor” means a person who, at any time after ownership of a transmission facility that is the subject of a proposal is transferred by a market participant to an incumbent TFO, acquires ownership of the property in respect of which the transmission facility was constructed to provide system access service.

(2)  A market participant may, in accordance with this section, submit a proposal to the ISO for the construction and temporary operation of a transmission facility.

(3)  A proposal may be submitted under this section only

                               (a)    in respect of a radial transmission facility, unless the market participant and incumbent TFO agree to a different configuration of transmission facility,

                              (b)    if the transmission facility is proposed to be constructed by the market participant to provide system access service solely to the market participant, and

                               (c)    if the transmission facility is proposed to be jointly operated by the market participant and the incumbent TFO for a temporary period specified in the proposal.

(4)  Subsection (3) applies whether the proposal

                               (a)    is submitted for the purposes of section 35(1)(b) of the Act to meet a need identified in a needs identification document, or

                              (b)    is a proposal for which, pursuant to this Regulation, no needs identification document is required.

(5)  Where the proposal is one for which no needs identification document is required, the ISO must approve or refuse to approve the proposal in the same manner as if it were acting under section 36(1) of the Act.

(6)  If the ISO approves the proposal, it may specify a time within which the market participant and incumbent TFO must apply for a permit under the Hydro and Electric Energy Act to construct the transmission facility and a licence to jointly operate the transmission facility for the temporary period referred to in subsection (3)(c).

(7)  Where the ISO approves the proposal the market participant and incumbent TFO must,

                               (a)    before applying for any permit, licence or approval under the Hydro and Electric Energy Act to construct or operate the transmission facility, enter into a written agreement under which ownership of the transmission facility will transfer from the market participant to the incumbent TFO on the expiry of the temporary period referred to in subsection (3)(c), and

                              (b)    before operating the transmission facility, enter into a written agreement under which they will jointly operate it.

(8)  Despite a transfer of ownership of a transmission facility from the market participant to the incumbent TFO, the market participant and its successors, if any, remain responsible to pay the costs of any liability incurred by the incumbent TFO as a result of acts or omissions by the market participant during design or construction of the transmission facility.

(9)  Where

                               (a)    ownership of a transmission facility has transferred from the market participant to the incumbent TFO, and

                              (b)    the incumbent TFO is unable to recover costs referred to in subsection (8) from the market participant or its successor because of the insolvency of the market participant or successor,

the Commission must, in making a decision respecting rates for the TFO, consider that the costs are prudent unless an interested party satisfies the Commission that those costs are not prudent. 

Approval of cost estimate

6(1)  In this section, “transmission facility” means a transmission facility as defined in the Transmission Regulation (AR 86/2007) that is subject to a rule referred to in subsection (2).

(2)  Subject to subsection (3), the Commission must make rules identifying the transmission facilities or classes of transmission facilities to which this section applies.

(3)  This section does not apply to transmission facilities to which section 24.2 of the Transmission Regulation (AR 86/2007) applies.

(4)  Where construction of a transmission facility is proposed, the TFO must submit an estimate of the project costs to the Commission for approval.

(5)  The cost estimate must be submitted by the TFO

                               (a)    unless clause (b) applies, within 180 days after the day the Commission issues a permit to the TFO under the Hydro and Electric Energy Act to construct the transmission facility, or

                              (b)    within a time period ordered by the Commission, which may be a longer or shorter period than that provided in clause (a).

(6)  The Commission may make rules establishing factors for it to consider in determining whether to approve a cost estimate under this section.

(7)  If the Commission finds the cost estimate submitted by the TFO is too high or too low, the Commission may approve an amount of costs that is higher or lower than that in the cost estimate.

(8)  The TFO may, at any time after a cost estimate is approved but before construction of the transmission facility is completed, apply to the Commission to increase the approved cost estimate and where such an application is made, subsection (7) and any rules made under subsection (6) apply in respect of the application.

(9)  In making a decision respecting rates for the TFO, the Commission must consider the actual project costs of the transmission facility to be prudent if the actual project costs are equal to or less than a cost estimate approved under this section.

Expiry

7   This Regulation is made in accordance with section 142(2) of the Act and is repealed in accordance with section 142(3) of the Act.

Coming into force

8   This Regulation comes into force on September 22, 2014.