Rule 019: Specified Penalties for Contravention of ISO Rules

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Consultation has concluded

On February 24, 2021, the Alberta Utilities Commission approved amendments to Rule 019: Specified Penalties for Contravention of ISO Rules, with an effective date of March 1, 2021.

Background

On December 17, 2020, the AUC initiated a rule-review process in which it sought feedback from stakeholders on changes to Rule 019 as proposed by the Market Surveillance Administrator (MSA). The proposed changes involved having Rule 019 apply to all independent system operator (ISO) rules, collapsing the current three categories of contraventions into one category, and using the penalty escalation currently found in the Category 1 table to determine the penalty amount for subsequent contraventions of the same ISO rule.

Most stakeholders who provided comments were supportive of the MSA’s proposed changes. However, some stakeholders believed that treating all ISO rule contraventions with the same severity and risk may not provide the proper guidance regarding compliance.

While the Commission approved the amendments as proposed by the MSA, the AUC sees merit in exploring with market participants and other stakeholders the need to conduct a comprehensive review of Rule 019. Considering the regulatory schedule in the next six months, including the consultations scheduled separately by the AUC and the AESO and the proceedings before the AUC, the AUC believes it best to not commence this review until the fourth quarter of calendar 2021.

This bulletin, the final approved Rule 019, along with the corresponding blackline version of the rule, and the AUC’s responses to stakeholder’s comments are posted in the Rule-related consultations section of the AUC website.

The AUC thanks stakeholders for their time and participation in the consultation process and for their efforts in reviewing and providing comments on the proposed changes to the rule.

On February 24, 2021, the Alberta Utilities Commission approved amendments to Rule 019: Specified Penalties for Contravention of ISO Rules, with an effective date of March 1, 2021.

Background

On December 17, 2020, the AUC initiated a rule-review process in which it sought feedback from stakeholders on changes to Rule 019 as proposed by the Market Surveillance Administrator (MSA). The proposed changes involved having Rule 019 apply to all independent system operator (ISO) rules, collapsing the current three categories of contraventions into one category, and using the penalty escalation currently found in the Category 1 table to determine the penalty amount for subsequent contraventions of the same ISO rule.

Most stakeholders who provided comments were supportive of the MSA’s proposed changes. However, some stakeholders believed that treating all ISO rule contraventions with the same severity and risk may not provide the proper guidance regarding compliance.

While the Commission approved the amendments as proposed by the MSA, the AUC sees merit in exploring with market participants and other stakeholders the need to conduct a comprehensive review of Rule 019. Considering the regulatory schedule in the next six months, including the consultations scheduled separately by the AUC and the AESO and the proceedings before the AUC, the AUC believes it best to not commence this review until the fourth quarter of calendar 2021.

This bulletin, the final approved Rule 019, along with the corresponding blackline version of the rule, and the AUC’s responses to stakeholder’s comments are posted in the Rule-related consultations section of the AUC website.

The AUC thanks stakeholders for their time and participation in the consultation process and for their efforts in reviewing and providing comments on the proposed changes to the rule.

CLOSED: This discussion has concluded.
Discussions: All (4) Open (0)
  • Discussion 1: Elimination of 3.2(g)

    10 months ago
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    AUC staff invites you to provide your comments, if any, on the elimination of this bullet from subsection 3.2.

    Replies Closed
  • Discussion 2: Amendments to subsection 4.2

    10 months ago
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    AUC staff invites you to provide your comments, if any, on the proposed amendments to subsection 4.2.

    *12/18/2020 Update: 

    4.2          For contraventions of the ISO rules, the Market Surveillance Administrator shall escalate the amount of the specified penalty at the level of reoccurrence in the penalty table, by section of the ISO rules, by asset, in accordance with the number of contraventions which have been issued in the 12-month rolling period.

    Replies Closed
  • Discussion 3: Amendments to subsection 4.4

    10 months ago
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    AUC staff invites you to provide your comments, if any, on the proposed amendments to subsection 4.4.

    Replies Closed
  • Discussion 4: Amendments to Penalty Table

    10 months ago
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    The MSA and AUC proposes that the three categories of contraventions be collapsed into one category to determine the penalty amount for subsequent contraventions of the same ISO rule.


    AUC staff invites you to provide your comments, if any, on the proposed amendments to the Penalty Table.

    Replies Closed