Fair, Efficient and Open Competition Regulation

Metropolitan Centre

August 28, 2009

Preferential Sharing of Records Not Available to the Public

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Agenda

1. Background

2. Timeline

3. Process Template• Stakeholder Feedback

4. Minimum Filing Requirements• Stakeholder Feedback

5. Questions & Discussion• Process Template

• Filing Requirements

• Other

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Background• The Fair, Efficient and Open Competition Regulation (FEOC)

Regulation comes into force on September 1, 2009

• FEOC Regulation covers 5 main areas:– Conduct

– Preferential Sharing of Records

– Outage Records

– Offer Control

– Commercial Information

• With respect to Preferential Sharing of Records, the regulation prohibits market participants from sharing past, current or future price and quantity offer information regarding offers made to the power pool or provision of ancillary services that is not available to the public.

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Background (cont’d)

• Examples of records that are not available to the public that may be shared:– between Market Participants that are

affiliates of each other;

– 60 days after the offers were made;

– shared with ISO, MSA, broker, brokerage, forward exchange, person who prepares price index, or person permitted by law;

– in accordance with Commission Order;

– for the sole purpose of financial settlement;

– covered by ISO-approved sharing arrangements until the earlier of termination or September 1, 2010

• Refer to section 3(2)(a-h) in the FEOC Regulation

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Timeline

• August 14, 2009

– Written comments on the discussion paper due

• September 1, 2009

– FEOC Regulation comes into force

• September 15, 2009

– Parties with existing arrangements expiring in 2009 must notify the AUC if they intend to file an application under s.3(3) of FEOC Regulation

• October 15, 2009

– Parties with existing arrangements expiring in 2010 or beyond must notify the AUC if they intend to file an application under s.3(3) of FEOC Regulation

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Process TemplatePreferential Sharing of Records Proceedings

Market Participant files

Preferential Information

Sharing Application AUC Notice

of Filing

1 Week

Not Public

Public

Legend

Flexible

Notice of Proceeding;Proceeding

Schedule Issued

1 Week

MSA files Statement of Intent to Participate

1 Week

Information Requests from AUC

and/or MSA to Applicant

1 Week

Filing of Information

Request Responses

from Applicant

2 Weeks

Filing of MSA

Evidence (if any)

1 Week

Information Requests to

MSA (if any)

1 Week

Information Request

Responses from MSA

10 days

Rebuttal Evidence (if any)

2 Weeks

Written Argument

(if any)

10 Days

Written Reply

Argument (if any)

Up to 90 Days

Notice of Order of the

AUC

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Process TemplateStakeholder Feedback

• Shorter Process if MSA Not Involved

AUC Response: Commission will deal with on a case by case basis; timing concerns should be brought to the Commission’s attention

• Request for Clarity on Oral Hearings, Template Timing and Information Requests

AUC Response: Template for Oral hearings similar to Written hearings

AUC Response: Revised steps 5 and 6 of Template Process to make timing work

AUC Response: Information Requests at the discretion of the Commission panel

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Proposed Minimum Filing RequirementsPreferential Sharing of Records

(a) Description & Duration

(b) Grounds for Application*

(c) Statutory Provision

(d) Authority & Offer Control

(e) Agreement Copy

(f) List of Affiliates

(g) Confirmation of FEOC*

(h) Other Relevant Information

(i) Contact Information for Applicant

(j) Contact Information for Representative

(k) Confirmation of Internal Compliance**Amended in response to stakeholder comments

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Minimum Filing RequirementsStakeholder Feedback

• Representation of FEOC by Senior Officer AUC Response: Revised requirement (b) and

eliminated requirement (g)

• MSA request for information on internal compliance

AUC Response: Revised requirement (k) to provide relevant details including how records will be controlled and monitored

• Request for Clarity

AUC Response: Provided clarity on who files the application and the need for a copy of the agreement between the parties on Preferential Sharing of Records

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Contact Information

John Esaiw

Executive Director, Markets

403.592.4479

John.Esaiw@auc.ab.ca

Darin Lowther

Director, Market Rules

403.592.4507

Darin.Lowther@auc.ab.ca

Presentation and Handout will be posted at www.auc.ab.caClick on Market Consultations

Presentation and Handout will be posted at www.auc.ab.caClick on Market Consultations

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Questions & Discussion