Category Archives: Energy

The AUC Rejects an Application for an Industrial System Designation

By: Nigel Bankes

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Decision Commented On: AUC Decision 25117-D01-2020, TA Kaybob 3 Generation Facility Inc. Generation Facilities Applications; SemCAMS Midstream ULC Industrial System Designation Application, Kaybob 3 Generation Facilities Project, September 25, 2020;

Discussion Paper Commented On: AUC, Self-supply and export – Alberta Utilities Commission discussion paper, June 5, 2020 (published July 29, 2020, AUC Bulletin 2020-28)

Under the terms of the Hydro and Electric Energy Act, RSA 2000, c H-16 (HEEA) and the Electric Utilities Act, SA 2003, c E-5.1 (EUA), the holder of an Industrial System Designation (ISD or IS designation) is entitled to meet its own electricity needs and export any surplus electricity to the grid. In other words, the holder of an ISD is exempt from the ‘must offer, must exchange’ rules of the EUA for any generation that it self-consumes (EUA, s117, and conditions included in ISD approvals). A principal advantage of the ISD for the holder is that the holder does not incur distribution and transmission tariffs for electricity that it consumes on site. As previously canvassed on ABlawg (see here), other exemptions from the power pool rules do exist, but these are smaller scale exemptions and recent decisions of the Alberta Utilities Commission (AUC or Commission) (see AUC Decision 23418-D01-2019, EPCOR Water Services Inc., E.L. Smith Solar Power Plant, February 20, 2019 (EL Smith decision) and related decisions) have reduced the availability of one of these exemptions, thereby increasing interest in the ISD (see for example AUC Decision 24979-D01-2020, International Paper Canada Pulp Holdings ULC, Industrial System Designation and Permanent Connection Order for the Grande Prairie Pulp Mill Complex, January 10, 2020; and for a more general discussion see AUC, Self-supply and export – discussion paper).

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MSA Announces Investigation into the Bidding Practices of the Balancing Pool

By: Nigel Bankes

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Proceedings and Announcements Commented On: (1) MSA News Release, “MSA has issued a formal notice of investigation to the Balancing Pool related to offer strategies undertaken at PPA units”, September 2, 2020; and (2) AUC Decision 25809-D01-2020, Market Surveillance Administrator, Application to Make Public a Record that Identifies a Market Participant by Name, September 2, 2020

On September 2, 2020, the Market Surveillance Administrator (MSA) announced that it was initiating an investigation into the bidding practices of the Balancing Pool (BP) in relation to the remaining power purchase agreements (PPAs) for which it still has offer control. This follows an earlier MSA investigation into the BP’s bidding practices that resulted in a settlement agreement between the BP and the MSA that was ultimately approved (on the second go-around) by the Alberta Utilities Commission (AUC). For the two AUC decisions see: AUC Decision 23828-D01-2019, Market Surveillance Administrator, Application for Approval of a Settlement Agreement Between the Market Surveillance Administrator and the Balancing Pool, August 1, 2019; and AUC Decision 23828-D02-2020, Market Surveillance Administrator, Application for Approval of a Revised Settlement Agreement Between the Market Surveillance Administrator and the Balancing Pool January 14, 2020. The settlement agreement itself, from October 1, 2019, is posted here (you will need a free AUC account to access).

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Community Generation Projects in Alberta

By: Nigel Bankes

PDF Version: Community Generation Projects in Alberta

Regulation and Decisions Commented On: Small Scale Generation Regulation, Alta Reg 194/2018 and five decisions of the Alberta Utilities Commission (AUC): (1) AUC Decision 24857-D01-2020, Three Nations Energy GP Inc., Fort Chipewyan Solar Generation Facility (Phase 2),  January 15, 2020; (2) AUC Decision 25236-D01-2020, Peavine Metis Settlement, 4.97-Megawatt Community Solar Power Plant, May 4, 2020; (3) AUC Decision 25459-D01-2020, Innisfail Solar Corporation, Innisfail Solar Project Time Extension and Community Generation Designation, May 21, 2020; (4) AUC Decision 24845-D04-2020, 2113260 Alberta Ltd., Community Generation Designation for Oyen Community Solar Project, June 17, 2020; and (5) AUC Decision 25471-D01-2020, 2181731 Alberta Ltd., Vulcan County Community Solar Project, June 25, 2020.

While the Kenney government declined to commit to new rounds of procurements to meet the target of 30% renewables by 2030 established by the Renewable Electricity Act, SA 2016, c R-16.5 (surprisingly, still in force), it has continued with a renewables incentive program provided for under the Small Scale Generation Regulation, Alta Reg 194/2018 (SSGR), including the concept of community generation projects designed to foster community sponsored renewables projects. This post examines the terms of that regulation as well as practice to date under the regulation.

The SSGR applies to three categories of small scale generation projects: (1) small scale projects (generally), (2) small scale community generation projects, and (3) small scale community generation projects that are located within an isolated community. The second and third categories are sub-sets of the first. None of these projects require any degree of self-supply in order to qualify as eligible projects.

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Oil and Gas Consortium Intervenes in the Jurisdictional Challenge to the Alberta Inquiry into Anti-Alberta Energy Campaigns

By: Shaun Fluker

PDF Version: Oil and Gas Consortium Intervenes in the Jurisdictional Challenge to the Alberta Inquiry into Anti-Alberta Energy Campaigns

Case Commented On: Ecojustice Canada Society v Alberta, 2020 ABQB 364 (CanLII)

In July 2019, the Lieutenant Governor in Council commissioned the Allan Inquiry with Order in Council OC 125/2019, issued under section 2 of the Public Inquiries Act, RSA 2000, c P-39. The Order in Council directs Commissioner Steve Allan to investigate and report on any anti-Alberta energy campaigns that are supported, in whole or in part, by foreign organizations. Several ABlawg posts have been critical of the Allan Inquiry, commenting on its mandate, process, interference with the freedom of expression protected by the Charter, and lack of transparency. Ecojustice has brought an application for judicial review seeking an order quashing Order in Council 125/2019 and prohibiting the Allan Inquiry from proceeding. This post comments on a decision by Justice Karen M. Horner granting an application made by an “Industry Consortium” for leave to intervene in this proceeding.

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Oil Sands Approvals and Bill 22, the Red Tape Reduction Implementation Act, 2020

By: Nigel Bankes

PDF Version: Oil Sands Approvals and Bill 22, the Red Tape Reduction Implementation Act, 2020

Bill Commented On: Bill 22, Red Tape Reduction Implementation Act, 2020

This post deals with one aspect of this large omnibus bill, namely the proposed amendment to the Oil Sands Conservation Act, RSA 2000, c O-7 (OSCA). This amendment will remove the need to seek Cabinet authorization for the approval of new oil sands projects and related processing facilities. More specifically, this post assesses whether the amendment will have any implications for the Crown’s duty to consult First Nations and Métis communities, and to observe the honour of the Crown in its dealings with those communities. The main conclusion is that these proposed changes will not simplify or shorten the steps that the Crown needs to take to discharge its constitutional responsibilities. None of these responsibilities constitute “red tape.” Any shortening in project review timelines as a result of removing the opportunity for Cabinet review will be no more than a few months (a drop in the bucket in the time frame for characterizing and developing a new oil sands prospect), a steep price to pay for the loss of an opportunity to hit pause, or to impose additional terms and conditions to protect the public interest.

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