Notice Re: Intertie Conduct in the Post Quick Hits World

May 7, 2008

NOTICE TO: MARKET PARTICIPANTS

Re: Stakeholder Consultation Process – Intertie Conduct in the Post Quick Hits World

In July 2005 the MSA released to the market a notice providing guidance around ‘Intertie Conduct’.  This notice can be accessed through the following link:

Notice: Intertie Conduct

This guidance was the result of extensive work by the MSA seeking to understand uneconomic activity on the interties.  The guidance provided the MSA views around how participants might avoid breaching the requirements of Section 6 of the EUA, i.e. engage in conduct that supports a fair, efficient and openly competitive market.

The AESO’s Market Policy Implementation Phase I (also known as ‘Quick Hits’) was implemented in December 2007 and contained a number of significant changes to market rules.  One of these changes resulted in import and export offers being fixed at t-2 hours.  Changes after this time are allowable only for acceptable operational reasons (ISO rule 3.5.4.2 and 6.3.3).  Some participants have contacted the MSA to verify whether its guidance remains unchanged and / or whether it is possible to provide additional clarity under the new rules. The MSA believes this is a reasonable request.  Imports and exports remain constrained within the market design to not offer/bid at a price.  This structural difference from intra-Alberta generators/loads results in an increased risk of undesirable outcomes and consequently the MSA believes it is an area in which guidance continues to be required.

In accordance with the MSA’s Stakeholder Consultation process the MSA has produced a ‘Strawdog’.  The Stakeholder Consultation process provides an opportunity for stakeholders to provide written comment prior to the formulation of a draft guideline (or other notice to the market).  For a full description of the MSA’s stakeholder engagement process see http://www.albertamsa.ca/140.html .  Until the Stakeholder Consultation process has concluded, the MSA’s current view on ‘Intertie Conduct’ remains that expressed in the July 2005 notice.

The Strawdog can be found at the following link:

 

Notice Re: Intertie Conduct in the Post Quick Hits World

The planned schedule for the Stakeholder Consultation Process is set out at the back of the Strawdog and at each stage of the process will be amended/updated as relevant.  For clarity, the process is currently at the ‘Initiate’ stage.  The MSA will post all written comments on its website, in furtherance of the consultation process.

Interested parties are asked to provide their written comments on the ‘Strawdog’ document by not later than May 23, 2008.  All communications in this regard should be addressed to the MSA via email to stakeholderconsultation@albertamsa.ca or by delivery to the address set out above.

We appreciate and look forward to your participation in this Stakeholder Consultation Process.

Yours truly,

“Original signed”

W.W. (Wayne) Silk
Vice-President, Chief Operating Officer
Market Surveillance Administrator