Category: Energy Page 11 of 50

Alberta Court of Appeal Rules on Role of Honour of the Crown and Reconciliation in AUC Rate Applications

Case Commented On: AltaLink Management Ltd v Alberta (Utilities Commission), 2021 ABCA 342 (CanLII)

The overarching mandate of the Alberta Utilities Commission (AUC or the Commission) is to ensure just and reasonable electricity rates for consumers, and much of the work they do is geared towards deciding whether the costs that businesses involved in the electricity sector have incurred or are set to incur can be passed down to ratepayers. AltaLink Management Ltd v Alberta (Utilities Commission), 2021 ABCA 342 (CanLII), a recent decision from the Alberta Court of Appeal (ABCA) adds a new dimension to what is usually a strictly fact-based economic calculation when the applicant is an Indigenous-owned company or partnership. The Court charts new territory by making it clear that the AUC’s decisions in such cases must uphold the honour of the Crown and be made in a manner consistent with the principle of Reconciliation.

Another Year Gone Under the Mine Financial Security Program

By Drew Yewchuk

On October 19, 2021

In Energy, Environmental

By: Drew Yewchuk

PDF Version: Another Year Gone Under the Mine Financial Security Program

Legislation Commented On: Annual Mine Financial Security Program Submissions, 2021 Submissions for 2020 Reporting Year

In a post back in May 2021, I complained about a change to Alberta’s Mine Financial Security Program (MFSP). This is a follow-up post in response to the Alberta Energy Regulator (AER) posting the annual submissions under the program on September 30, 2021. Note that each annual submission is for the September of the previous year, so the 2021 report is relevant to the situation in September 2020.

The MFSP is Alberta’s system for ensuring that companies pay for the reclamation and remediation of their mines, both oilsands and coal (but not conventional oil and gas, which is handled by a different liability management system that also does not work properly). In short, the MFSP allows companies to use an asset safety factor against their estimated future environmental liabilities, such that if a mine’s resource assets are worth more than three times the total anticipated reclamation costs (3:1), nothing beyond an initial (and wholly inadequate) ‘base deposit’ is required, provided also that the planned reclamation is conducted as scheduled, and the mine has more than 15 years of reserves remaining. Companies may also choose to skip those calculations and pay full security based on an estimate of the total cost of clean-up.

Energy Storage, Definition and Ownership Between Alberta and Texas

By Ahmed Selim

On October 18, 2021

In Energy

By: Ahmed Selim

PDF Version: Energy Storage, Definition and Ownership Between Alberta and Texas

Policy Commented On: Alberta Electric System Operator’s (AESO) Energy Storage

Alberta has the least regulated electricity market in Canada (see generally Natural Resources Canada, “About Electricity”). The Alberta market is an energy-only market where electricity generators are paid solely based on the amount of electricity they produce. In 2020, wind and solar power accounted for 11% and 1% of the installed electricity generation capacity in Alberta, respectively (AESO 2020 Annual Market Statistics at 13).

At the same time, the Alberta Utilities Commission (AUC) acknowledges how energy storage could potentially disrupt the wholesale energy market (Distribution System Inquiry: Final Report, at para 225). Gird-scale energy storage may be able to mitigate the intermittency of wind and solar power. However, as Eeles et al note, it is uncertain where energy storage stands in Alberta’s utilities legal framework (David Eeles et al, “Energy Storage: The Regulatory Landscape in Alberta” (2021) [unpublished, archived at Norton Rose Fulbright Canada LLP]). This blog post summarizes the four main types of energy storage and discuss uncertainties around the definition and ownership rules of energy storage in Alberta and Texas. Both the Alberta and Texas electricity markets are energy-only markets as opposed to capacity markets. Electricity producers are solely paid base on how much electricity they generate. In capacity market jurisdictions, electricity producers have a second revenue stream based on how much of their production capacity is made available to the grid, regardless of whether the whole capacity is utilized or not.

Alberta’s Plan for Climate Resilience is Government Propaganda

By Drew Yewchuk

On September 8, 2021

In Climate Change, Energy

By: Drew Yewchuk

PDF Version: Alberta’s Plan for Climate Resilience is Government Propaganda

Matter Commented On: The Canadian Energy Centre’s Request for Proposal for a Creative and Production Agency

After the 2019 Alberta election, the new government replaced the previous Carbon Competitiveness Incentive Regulation, Alta Reg 255/2017 with the new Technology Innovation and Emissions Reduction Regulation, Alta Reg 133/2019 (TIER). Both were regulations under the Emissions Management and Climate Resilience Act, SA 2003, c E-7.8. For the story of the development of TIER, refer to this post from Nigel Bankes.

TIER changed the name of the Climate Change and Emissions Management Fund to the Technology Innovation and Emissions Reduction Fund (TIER Fund). The fund accumulates money from emitters who fail to meet their emission targets. The fund can only be used for the purposes in section 10 (3)-(4.2) of the Act:

Off-Grid Energy for Bitcoin Mines in Alberta: A Problematic Legal Regime

By Nigel Bankes

On August 31, 2021

In Energy, Utility Regulation

By: Nigel Bankes

PDF Version: Off-Grid Energy for Bitcoin Mines in Alberta: A Problematic Legal Regime

Decision Commented On: Alberta Utilities Commission (AUC), Decision 26379-D02-2021, Allegations against Link Global Technologies Inc., Phase 1, August 19, 2021

I don’t know much about Bitcoin operations, but I do know that they need a lot of power to run large computers, and it therefore makes sense for them to locate near cheap sources of power. Over the last several months, there have been a number of stories about Bitcoin operators checking out Alberta locations. For example, Collin Gallant published a nice piece in the Medicine Hat News in April 2021. But this last week (August 25, 2021) the CBC ran with a more detailed story about one of the Bitcoin operators mentioned in Gallant’s piece (Link Global Technologies Inc.) that had co-located close to a shut in gas well to take advantage of cheap fuel to power their gas turbine generators.