Capacity Market Stakeholder Involvement Engagement. November 17, 2017

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1 Capacity Market Stakeholder Involvement Engagement November 17, 2017

2 Fall 2017 Engagement Plan August September October November December Webinar Policy Paper release Session 1 Resource adequacy Session 2 Capacity market stakeholder involvement Session 3 Cost allocation Stakeholder involvement is the second of three capacity market-related engagement sessions. Online feedback for this session is open from November 6 to November 24. 2

3 Stakeholder Involvement - Engagement Session Outline Overview of stakeholder involvement discussion document Questions for discussion Next steps & closing remarks 3

4 Stakeholder Involvement in Capacity Markets A review of the Alberta Energy discussion document 4

5 Stakeholder Involvement in Capacity Markets In this session, we will review and gather your feedback on three topics: 1. Stakeholder Input Points Where in the process do stakeholders provide input? 2. Stakeholder Input Methods How do stakeholders provide input? 3. Stakeholder Input on Rules & Products What do stakeholders provide input on? 5

6 Stakeholder Input Points There are three main stakeholder input points in capacity markets: the development, approval, and appeal stages. Development Defining and revising rules, products, and parameters Approval Approval of final rules, products, and parameters Appeal Appeals/challenges of decisions In Alberta currently: - The Alberta Electric System Operator conducts most stakeholder input at the development stage. - The Alberta Utilities Commission provides the opportunity for stakeholder input at the approval and appeal stages. - Supporting organizations include the Market Surveillance Administrator, Alberta Energy, and Alberta Court of Appeal. 6

7 Stakeholder Input Methods Jurisdictions tend to adopt one of two input methods at the development stage: Pros: - May enhance accountability - Direct participation in rule development Cons: Formal Stakeholder Committees - May be administratively inefficient - May limit flexibility - Committee structure can influence outcomes Pros: - May be more administratively efficient - Any interested party may participate and view submissions Cons: Open Consultation Methods - May reduce accountability In Alberta currently: The AESO must provide market participants with the opportunity to comment on draft rules under AUC Rule 017. The AUC may make rules governing how the AESO may develop and file rules (Section 20.9, Electric Utilities Act). 7

8 Input on Rules & Products There are four general areas specific to capacity markets: 1. Resource adequacy studies 2. Market demand curve calculation 3. Auction parameters / decisions (including resource qualification) 4. Market rules (capacity market related) In Alberta currently: There are no mandated requirements (in legislation, regulation, or rules) to gather stakeholder input on the first three products/supporting parameters. The opportunity for market participants to provide comment on market rules is required through the Alberta Utilities Commission Rule

9 Q&A and Discussion 9

10 Discussion - Stakeholders will now have an opportunity to share and discuss their perspectives with one another, and to report back to the larger group. Table discussion (45 minutes) Reporting back/webinar Q&A (40 minutes) 11

11 Questions for discussion - Do the current input points for electricity sector stakeholders suffice for capacity market processes? - If used for the capacity market, should there be any changes to Alberta s current development, approval or appeal processes? We are specifically looking to hear back from stakeholders on areas of agreement and disagreement 12

12 Questions for discussion (cont d) How would you prefer to provide input on capacity market rules, products and parameters - via open consultation, stakeholder committees, or another method? We are specifically looking to hear back from stakeholders on areas of agreement and disagreement 13

13 Next steps Stakeholder input on this engagement session will be accepted until November 24, Submissions will be posted online. This presentation will be available online. A survey will be sent out to receive feedback on this session. Based on feedback from this engagement, policy work and agency collaboration, Alberta Energy will determine whether any changes are required to enable stakeholder involvement in the capacity market. 15

14 Closing remarks Thank you for your time and thoughtful feedback. Engagement Session 3 on cost allocation is scheduled for early December. A roundtable session with the Minister will be scheduled in mid- to late January. Contact us at electricity@gov.ab.ca with questions or comments related to today s session or the engagement process. 16