Alberta Record

· Order in Council / Electricity Statutes Act Proclamation · enacted

Electricity statutes modernizing albertas electricity grid amendment act 2022 proclamation

Proclaims most sections of the Electricity Statutes (Modernizing Alberta's Electricity Grid) Amendment Act, 2022, into force on March 6, 2024, with one subsection delayed until January 1, 2025.

High impactCentralization of powerInstitutional independenceThe public, directlyIndependent watchdogsMunicipalities

What changed

  • Sections 1, 2 (excluding subsection 18), and 3 of the Electricity Statutes (Modernizing Alberta's Electricity Grid) Amendment Act, 2022, are proclaimed into force on March 6, 2024.
  • Section 2(18) of the Electricity Statutes (Modernizing Alberta's Electricity Grid) Amendment Act, 2022, is proclaimed into force on January 1, 2025.
  • The Transmission Regulation (AR 86/2007) is amended to incorporate "energy storage resource" throughout its text, defining it as a new category of electricity market participant.
  • The Independent System Operator (ISO) is granted new authority to procure non-wires services from a broader range of electricity market participants, beyond just owners of transmission facilities or electric distribution systems.
  • The ISO is now required to competitively procure non-wires services, with specific exceptions for situations such as a sole participant, infeasibility, or technical appropriateness.
  • If the ISO determines that a non-wires service must be provided by a transmission facility owner for technical reasons, it must submit a needs identification document to the Commission for approval.
  • Sections 25.1 and 35 of the Transmission Regulation are repealed.
  • The sunset clause for the regulation is extended from December 31, 2024, to December 31, 2027.
  • Designates the Crown, represented by the Minister of Affordability and Utilities, as the entity to which "in lieu of tax payments" are to be made by the City of Medicine Hat.
  • Removes the Balancing Pool as the entity responsible for receiving and administering these specific payments.
  • Establishes new rules for the City of Medicine Hat to make monthly "in lieu of tax payments" to the Crown and reconcile annual amounts.
  • Transfers the administration of any outstanding "balancing pool payments" for 2024 or prior years from the Balancing Pool to the Minister.
  • The definition of "Crown" is added to the regulation, specifying it as the Crown in right of Alberta as represented by the Minister of Affordability and Utilities.
  • The Crown is designated as the entity responsible for receiving payments under section 147(3) of the Electric Utilities Act.
  • References to the "Balancing Pool" throughout the regulation are replaced with "Crown" concerning the receipt and payment of in lieu of tax amounts.
  • Municipal entities are now required to estimate and make in lieu of tax payments to, or receive them from, the Crown.
  • Transitional provisions are established for outstanding balancing pool payments for 2024 or previous years, directing these payments to be administered by the Minister on behalf of the Balancing Pool.

Why it matters

  • Activates new legislative provisions governing Alberta's electricity grid, as established by the Electricity Statutes (Modernizing Alberta's Electricity Grid) Amendment Act, 2022.
  • Establishes a phased implementation schedule for the Act, with the majority of its provisions becoming effective immediately upon the OIC's issue.
  • The full implications of these changes will depend on the specific content of the proclaimed sections of the Act, which address the modernization of the electricity grid.
  • Integrating energy storage resources into the regulatory framework expands the scope of the electricity market, potentially fostering innovation and new investment in these technologies.
  • Expanding the ISO's authority to procure non-wires services from a wider range of participants could increase competition and efficiency in the provision of grid services.
  • The introduction of competitive procurement requirements for non-wires services aims to ensure fair market practices and potentially reduce costs for consumers.
  • Requiring Commission approval for certain non-wires service procurements by transmission facility owners introduces an additional layer of regulatory oversight, affecting the ISO's discretion.
  • The repeal of sections 25.1 and 35 indicates a streamlining or restructuring of specific regulatory provisions within the Transmission Regulation.
  • Extending the regulation's sunset clause provides longer-term stability for the updated regulatory framework governing transmission and energy storage.
  • Centralizes the administration of specific financial flows related to the City of Medicine Hat's electric utility operations under the provincial Crown.
  • Reduces the administrative responsibilities of the Balancing Pool regarding these payments, potentially affecting its operational scope.
  • Establishes a direct financial relationship between the City of Medicine Hat and the provincial government for these payments, replacing a previous arrangement involving an arm's-length entity.
  • May alter the financial reporting and accountability mechanisms for these payments by shifting them to a ministerial portfolio.
  • Centralizes the administration and oversight of in lieu of tax payments for electric utilities under a provincial ministry.
  • Shifts the statutory authority for receiving and making these payments from the Balancing Pool, an independent entity, to the provincial government.
  • Alters the financial relationship between municipal entities and the provincial government regarding these specific utility-related payments.
  • The change in institutional authority may impact the mechanisms for transparency and accountability previously associated with the Balancing Pool's role in these transactions.

Other governance concerns

  • Impact on the regulatory framework for Alberta's electricity grid.
  • Potential changes to the operational structure and oversight of electricity generation and distribution.
  • Implications for consumers and industry participants due to new legislative requirements.
  • Changes to market participation rules for energy storage resources.
  • Altered scope of authority for the Independent System Operator.
  • Increased regulatory oversight by the Commission in specific procurement scenarios.
  • Impact on competition in the provision of non-wires services.
  • Shift of financial administration from an independent entity to a ministerial portfolio.
  • Reduction of the Balancing Pool's administrative scope regarding specific payments.
  • Shift of financial oversight from an independent body to a government ministry
  • Potential impact on municipal financial autonomy regarding utility payments

Primary sources (5)

Secondary sources (3)