Presentation on theme: "Reliability in British Columbia"— Presentation transcript:
1 Reliability in British Columbia Lori Ann BoychukBCUC CommissionerWECC Annual MeetingApril 20, 2006San Diego
2 BC’s Energy Plan “Energy for our Future: A Plan for BC” November, 2002 Electric Reliability and Partial Industry RestructuringFour cornerstones:Low electricity rates and public ownership of BC HydroSecure, Reliable SupplyMore Private Sector OpportunitiesEnvironmental Responsibility and no nuclear power sourcesHigh reliability and energy security will be maintained through well- functioning natural gas markets and coordinated electricity planning (Policy Action #7).BC Transmission Corporation (BCTC) created as an independent entity to manage BC Hydro’s core transmission assets.BC Utilities Commission (BCUC) to have continued and expanded regulatory oversight of supply, transmission and distribution.
3 British Columbia’s Electrical System Industry structure:Generation: BC Hydro, FortisBC, IPPsDistribution: BC Hydro, FortisBC, municipal systemsTransmission: BC Transmission Corp., FortisBC, independentsCompany ownership:BC Hydro - BC provincial governmentFortisBC - investor-ownedIPPs - investor-ownedBCTC - BC provincial government with separate board, management and regulation from BC Hydro
5 Regulatory FrameworkProvincial: BC Ministry of Energy, Mines and Petroleum Resources- sets policy frameworkBC Utilities Commission- Provincial Regulatory Agency with primary regulatoryoversight for reliability under the Utilities Commission ActSet fair, just and reasonable utility ratesEnsure safe, adequate and secure operationsReview resource plansReview power purchase agreementsSet standards for utilities and monitor performanceApprove capital plans and CPCNs for B.C. facilitiesFederal: National Energy Board- Federal Regulatory AgencyIssue export permits or licencesConduct market monitoringIssue permits or certificates for international power lines
7 Reliability Management in British Columbia: Current State BC has embraced and complied with reliability standards through WECC and predecessor organizations for over 30 years.Mechanism: Reliability Management System (RMS) and Reliability Criteria (RC) Agreements – voluntary contracts between WECC and regulated BC entities – approved by the BCUC.RC Agreement, elements:Reliability criteriaData submission requirementsSanction measuresCompliance determination proceduresDispute resolution proceduresBCUC statutory authority over reliability measures for public utilitiesDetermine and set standards, including reliability standardsConsider complaints, conduct inquiries and order improved service by BC entities
8 Reliability Management in British Columbia: Current State Industry reliability practices (NERC/WECC) endorsed by the BCUC, through decisions on capital plan applications, CPCN applications and complaints related to service quality.Implementation through regulated utilities, notably BCTCInterconnection agreements with generatorsTransmission service agreementsTariffs
9 ERO Recognition in Canada - what NERC is seeking NERC reliability standards made mandatory and enforceableBackstop for compliance and enforcement efforts of NERC and Regional EntitiesAssurance for collection of a fair allocation of NERC’s reasonable costs in carrying out its programsCAMPUT Key Topics MeetingOttawa, March 29, 2006Ontario Energy Board
10 ERO Recognition in Canadian Jurisdictions: British Columbia Mandatory StandardsBCUC authority under UCA to determine and set standards, including reliability standards, for regulated utilities, i.e. BCTC, FortisBC.No statutory authority to “recognize” the ERO/RE or to delegate standard setting to another entity.Compliance and EnforcementBCUC responsibility and authority to impose sanctions.Penalty provisions under the UCA.No statutory authority to delegate responsibility to any other entity.Need to work with ERO and RE to build on existing successful relationships.ERO/RE CostsContinue the current WECC scheme; utilities include WECC-related costs in rates applications for BCUC consideration.No BCUC authority to approve ERO/RE budgets.
11 NERC Recognition in Canadian Jurisdictions: British Columbia NERC October 27, 2005 request to initiate discussionsBC/NERC Meeting in Vancouver on January 10, 2006NERC filed with BCUC “Notice of Filing” as the ERO April 4, 2006Continue to participate with the Canadian Council of Energy Ministers federal/provincial working group and with the Bilateral Group.Ongoing dialogue required with NERC and WECC.BC Energy Plan review underway; opportunity to reinforce BC policies and practices that contribute to enhancing the overall reliability of interconnected power system operations.