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							                               Power Pool of Alberta
                              Proposed Rule Changes
                            Council Meeting: March 2001


SECTION A                The rule changes introduced in Section A are Level II general changes,
                         corrections and clarifications to existing rules.

Proposed Change Number    A.1 Proposed Rule Location            Rule 4. Direct Sales
Reason for Change        Reorganize and simplify Direct Sales Rules. See Section B for proposed
                         rules 4.2.3 and 4.2.4. Also, to change the wording in Rule 4.2.2 to enable
                         an Eligible Direct Seller or Pool Purchaser to submit the Direct Sales
                         Contract.
Proposed Changes         4.2 Direct Sales
                         4.2.1 Direct Sales Requirements
                         a)
                          b) Participant must…Rule 4.2.2.
                         c)
                         d)

                         4.2.2     Submitting Direct Sales Contract Data

                                  Before HE 12 of the Business Day prior to the Dispatch Day an
                                  Eligible Direct Seller or Pool Purchaser must submit Direct Sales
                                  contract data using Pool Software and Procedures. Direct Sales
                                  contract data shall include the following for each Settlement Period
                                  the contract is in effect:
                                  a)          the Eligible Direct Seller; and,
                                  b)          the Direct Sales Source designated by the Eligible
                                                       Direct Seller; and,
                                  c)          the Pool Purchaser; and,
                                  d)          the Direct Sales Sink designated by the Pool
                                                       Purchaser; and,
                                  e)          the Direct Sales MW Volume.
                                  f)          Contract Duration – This is the beginning date
                                                       and the end date of the Direct Sales
                                                       Contract. The end date of the contract
                                                       can be blank if the contract is an
                                                       ongoing contract.

                                  4.4


Proposed Change Number   A.2     Proposed Rule Location        Rule 3.4.1.3 Voluntary
                                                               Restatement of Availability or
                                                               Operating Constraint for Bids
Reason for Change        The incorrect terminology is being used. The rule refers to “Offers” when
                         it should be referring to “Bids”
Proposed Changes         b)1) If this restated MW capacity is less than the day-ahead Bid MW
                         Capacity…

                          2)ii) Decrease…original Bid in order of ascending price;

                          c) At any time…revise a day ahead Bid has closed.

Proposed Change Number    A.3 Proposed Rule Location             Rule 1.1 Definitions
Reason for Change        To make the format of the definition consistent with other definitions.
                         Also, the definition is explained in the reverse order than what it should be.
Proposed Changes         “Dispatch Variance” means the metered volume (MW) minus the Dispatch
                         volume (MW) all divided by the Dispatch volume (MW) expressed as a
                         percentage.

Proposed Change Number    A.4 Proposed Rule Location             Rule 2.4 Limitation of Liability
Reason for Change        To correct the reference to the regulation, and to add a word.
Proposed Changes         The foregoing is subject to the provisions of the Liability Protection
                         Regulation (AR 42/2000), as amended or extended from time to time, and
                         to the extent that the Pool Rules are inconsistent with the Liability
                         Protection Regulation, the later shall prevail.

Proposed Change Number   A.5 Proposed Rule Location            Rule 3.8 Offer and Bid Default
Reason for Change        To correct how default Bids are considered within the Pool.
Proposed Changes 3.8
                                  a)        An Asset which does not have a valid Standing Offer or
                                            Bid in accordance with Rule 3.6 and for which a
                                            Participant does not submit a daily Offer or Bid in
                                            accordance with Rule 3.4.1.1 will be declared unavailable
                                            for the next Trading Day and for the Forecast Scheduling
                                            Period by the Pool Administrator. The Pool
                                            Administrator will assign a zero price and zero
                                            availability to Offer Assets and $1000 price and zero
                                            availability to Bid Assets for all Settlement Periods of the
                                            next Trading Day.


Proposed Change Number    A.6 Proposed Rule Location              Rule 1.1 Definitions
Reason for Change        The definition is not representative of how it is utilized within the Power
                         Pool.
Proposed Changes   3.8   "Asset" means a Power Pool identifier to enable a Participant to submit
                         Bids, Offers, state asset characteristics that are dispatchable, and/or identify
                         specific settlement information.

Proposed Change Number    A.7 Proposed Rule Location            Schedule 2
Reason for Change        Add words to help clarify.
Proposed Changes         4.5 All notices, communications, requests or other statements (collectively
                             "Notices") given hereunder shall be in writing and shall be deemed to
                             have been properly given if delivered by hand or sent by facsimile to
                             the number shown opposite its signature below. Any such Notice
                             shall be effective on the date delivered or sent, as the case may be,
                             unless delivered or sent other than on a business day or after 5:00 p.m.
                             at the place of delivery or receipt in which case it shall be effective on
                             the next business day.
Proposed Change Number    A.8 Proposed Rule Location            Rule 1.1 Definitions
Reason for Change        The definitions provide incorrect references.
Proposed Changes         “MW capacity” means an Asset's MW capacity is defined as the highest
                         MW value, after accounting for any restatements to the Asset's availability
                         to which the Asset may be dispatched in real-time operations.

                         “Transmission Constraint Information” means the information about
                         transmission constraints, which are necessary to address transmission
                         capacity concerns or to provide Ancillary Services.


Proposed Change Number    A.9 Proposed Rule Location             Rule 1.1 Definitions
Reason for Change        To provide a reference for the definition of Uplift.
Proposed Changes         “Uplift” refers to settlement calculations described in Rules 7.1.2 and 7.2.2.

Proposed Change Number   A.10 Proposed Rule Location             Rule 1.1 Definitions
Reason for Change        To clarify existing rules. The definition for Energy Consumption is not
                         specific enough, while its intended meaning is the same as Pool Purchaser
                         Load. Pool Purchaser Load is not used within the rules. Also, Energy
                         Production and Energy Consumption refer to strictly metered volumes.
                         Although the definitions may be technically correct, by indicating who the
                         energy is sold to may complicate the definition without adding any value.
Proposed Changes         “Energy Production” means for all Pool Suppliers
                          not importing to the Power Pool through use of an external tie, the
                             metered MWh value for the Settlement Period representing the actual
                             electric energy supplied by the Pool Supplier as recorded in the Power
                             Pool data base.
                          importing to the Power Pool through use of an external tie, the electric
                             energy Dispatched to be transferred across that tie during the
                             Settlement Period and as recorded in the Dispatch Log.

                         "Energy Consumption" means for all Pool Purchasers,
                          not exporting from the Power Pool through use of an external tie, the
                             metered MWh value for the Settlement Period representing the actual
                             electric energy received by the Pool Purchaser as recorded in the Power
                             Pool data base.
                          for all Pool Purchasers exporting from the Power Pool through use of
                             an external tie, the electric energy Dispatched to be transferred across
                             that tie during the Settlement Period and as recorded in the Dispatch
                             Log.




SECTION B                The rule changes introduced in Section B are Level I changes that only
                         apply to one area within the Rules.

Proposed Change Number    B.1 Proposed Rule Location               Schedule 3
Reason for Change        In order to properly assess Prudential Requirements, and consider the
                         potential risk of Participants, there is a need for the Pool to be aware if a
                         Participant has defaulted on any of its financial obligations.
Proposed Changes         6. The Power Pool of Alberta requires Participants to report any failure on
                         debt covenants with other organizations or a Material Adverse Change in
                         their financial position within 2 Business Days of said failure or change.

Proposed Change Number    B.2 Proposed Rule Location             Appendix 1
Reason for Change        In order to facilitate viewing the changes that have occurred in the rules, the
                         “Summary of Rule Changes”, which historically has been posted as a
                         separate document, will be included as an appendix. The appendix will be
                         updated after Council has approved the proposed rule changes, and will not
                         appear in the “proposed rule changes” with each set of changes.
Proposed Changes         APPENDIX 1 – SUMMARY OF RULE CHANGES

                         Appendix 1 is for reference purposes only, has not been reviewed by
                         Council and does not affect the interpretation of these Rules.

Proposed Change Number    B.3 Proposed Rule Location            Rule 4 Direct Sales
Reason for Change        To clarify that Direct Sales must be acknowledged before HE 12 on the
                         Business Day prior to the Dispatch Day by the Participant who did not
                         submit the contract.
Proposed Changes         4.2.3    Acknowledging Direct Sales Contract Data

                         Before HE 12 of the Business Day prior to the Dispatch Day, the Pool
                         Purchaser or Eligible Direct Seller who did not submit the Direct Sales
                         Contract, as outlined in Rule 4.2.2, must acknowledge a Direct Sales
                         Contract using Software and Procedures. If the Direct Sales Contract is not
                         acknowledged, the contract will be considered invalid, and the Pool
                         Administrator will not net out the Direct Sales MW Volume for purposes of
                         Power Pool Settlements.

Proposed Change Number    B.4 Proposed Rule Location             Rule 7.5.2
Reason for Change        To clarify that in instances where a levy for a default by another Participant
                         is to be charged to Participants, Direct Sales and Forward Position Volumes
                         will not necessarily be included in the calculation.
Proposed Changes         a) i) …The contribution shall be determined by prorating the shortfall
                               amount owed over the total of each of the Energy Production and
                               Energy Consumption imbalances between metered volumes in MWh
                               minus (Direct Sales MW Volumes plus Forward Position MW
                               Volumes) of each Participant during the affected Production Period.


Proposed Change Number    B.5    Proposed Rule Location            Rule 4.5 Terminating Direct Sales
                                                                   Contracts
Reason for Change        To clarify that either the seller or the buyer of a Direct Sales Contract may
                         terminate the contract.
Proposed Changes         4.2.4    Terminating Direct Sales Contracts

                                  a)       An Eligible Direct Seller or Pool Purchaser may submit,
                                           via fax, a notice to terminate a Direct Sales Contract for
                                           any future settlement period stating the date and Hour
                                           Ending (HE) the contract is to be terminated. The notice
                                           must clearly state the contract is to be terminated. The
                                           Power Pool will use the timestamp on the facsimile to
                                           determine what is a valid settlement period.
                                 b)        For the purposes of Power Pool Settlements…


Proposed Change Number    B.6 Proposed Rule Location           Schedule 1
Reason for Change        To ensure that new applicants will provide Banking information with the
                         application. Also to enable applicants to choose whether they would like to
                         have their company’s name added to the Power Pool’s website Energy
                         Bulletin Board.
Proposed Changes         11. Applicant Contact Information

                         e) Applicant Internal Treasury/Banking Contact – if different from (d)
                         Contact Name:
                         Telephone Number:
                         Fax Number:
                         Email Address:

                         12. Banking Information

                         The applicant has delivered a copy of a void cheque, which provides the
                         banking information for purposes of Power Pool Settlements.

                         13. Energy Bulletin Board

                         The applicant wishes to have their company administrative contact
                         information included on the Power Pool’s Energy Bulletin Board. The
                         Energy Bulletin Board is an Internet meeting place for electricity buyers
                         and sellers to try to arrange sales directly with one another.  Yes     No


SECTION C                The rule changes introduced in Section C are Level I changes that update
                         how the Pool Participant List is maintained. The proposed changes are a
                         more efficient method of maintaining the list, and also reflect more
                         accurately how the information is distributed.

Proposed Change Number    C.1 Proposed Rule Location           Rule 1.1 Definitions
Reason for Change        To define Pool Asset List.
Proposed Changes         “Pool Asset List” means the list of Assets as maintained by the Pool
                         Administrator as contemplated by Rule 2.5.2, which identifies current
                         Assets.

Proposed Change Number    C.2 Proposed Rule Location              Rule 2.5.2 Pool Participant List
Reason for Change        To divide the Pool Asset List from the Pool Participant List, and to clarify
                         how the Lists are to be distributed.
Proposed Changes                    2.5.2    Pool Participant List and Pool Asset List
                         2.5.2.1 The Pool Administrator will maintain a Pool Participant List. The
                         list will contain the following information.

                         a) Participant's name, mailing address, facsimile number;
                         b) Contact individual's name(s), phone number(s), facsimile number(s);
                         c) Where applicable, the Agent's name, mailing address, facsimile number;

                         d)Such other information as the Council may direct or that the Pool
                         Administrator considers appropriate.
                         A Participant’s name will remain on the list of Participants until the Council
                         directs that it be removed.

                         2.5.2.2 The Pool Administrator will maintain a Pool Asset List. The list
                         will contain all of the Assets and the Participant that possesses each Asset.

                         2.5.2.3 The Pool Participant List and the Pool Asset List are available on
                         the Power Pool of Alberta website.

                         2.5.2.4 Pending Pool Participant List


Proposed Change Number   C.3       Proposed Rule Location        Rule 2.5.1.2 Participant
                                                                 Amendment Requirements
Reason for Change        To clarify that a Participant’s Assets will be added to the Asset list upon
                         approval from the Pool Administrator.
Proposed Changes         The Pool Administrator will forthwith upon making his decision advise the
                         applicant and, if the application is approved, enter that Participant's name
                         on the Pool Participant List and enter that Participant’s Assets on the Pool
                         Asset List. If the Pool Administrator is of the opinion…

Proposed Change Number   C.4       Proposed Rule Location       Rule 2.5.1.2 Participant
                                                                Amendment Requirements
Reason for Change        To include the Pool Asset List as an area that will be amended.
Proposed Changes
                         2.5.1.2     Participant Amendment Requirements

                                     A Participant requesting an amendment to the Pool Participant
                                     List or Pool Asset List, must satisfy the Power Pool by meeting
                                     the following conditions:

                                     b)
                                            Having satisfied the foregoing requirements… conditions
                                            permitted under these Rules. The Power Pool will advise
                                            the applicant if the amendment is approved, and will
                                            amend the Pool Participant List, the Pool Asset List or
                                            any other necessary modification…
Proposed Change Number    C.5 Proposed Rule Location              Rule 2.5.3 Discipline by Council,
                                                                  Including Suspension or
                                                                  Termination of Participation
Reason for Change        To clarify that a Participant’s Assets will be deactivated when they are
                         suspended or terminated from participation.
Proposed Changes         Immediately upon termination…Pool Administrator. The Pool
                         Administrator will remove the Participant's name from the Pool Participant
                         List and deactivate the Assets on the Pool Asset List effective the date of
                         termination specified in the Power Pool Administrator's notice.

Proposed Change Number   C.6       Proposed Rule Location       Rule 2.5.4 Termination of
                                                                Participation by Participant
Reason for Change        To clarify the Assets will no longer be activated for the Participant who is
                         terminating their Participation.
Proposed Changes         Immediately upon receipt of such notice, … and the System Controller.
                         The Pool Administrator will remove the Participant's name from the Pool
                         Participant List and deactivate or transfer ownership of the Assets on the
                         Pool Asset List for that Participant effective the date of termination
                         specified in the Participant's notice.


Proposed Change Number   C.7     Proposed Rule Location        Rule 3.2 Who May Submit an
                                                               Offer or Bid
Reason for Change        To clarify which Assets a Participant may submit Bids or offers for.
Proposed Changes 3.2
                         b)    Participants may submit an Offer or Bid in respect to an Asset listed
                               opposite its name in the Pool Asset List but not otherwise, unless
                               they are representing a Participant as an Agent, approved under Rule
                               2.5.7.


Proposed Change Number   C.8     Proposed Rule Location         Rule 2.5.1.1 Pending Pool
                                                                Participants.
Reason for Change        To change reference.
Proposed Changes         Parties may be granted…List as outlined in Rule 2.5.2.4.


SECTION D                The rule changes introduced in Section D are Level I changes that indicate
                         who may supply metered volumes to the Power Pool, and how the Pool will
                         deal with disputes resulting from these metered volumes. The
                         Transmission Administrator will no longer be the sole source for generation
                         and load metered volumes. By ensuring that the metered volumes are being
                         provided by an appropriate source, the Pool can be reasonably satisfied that
                         the Participant likely has an agreement in place for system access or
                         distribution access.

Proposed Change Number    D.1 Proposed Rule Location            Rule 1.1 Definitions
Reason for Change        To define Meter Data Manager.
Proposed Changes         “Meter Data Manager” or “MDM” means the entity responsible for
                         collecting meter data, correcting and validating interval meter data, storing
                         historic data, and reporting meter data to appropriate parties.

Proposed Change Number    D.2 Proposed Rule Location          Rule 7.4.4 Disputes
Reason for Change        To include Meter Data Managers in the dispute process.
Proposed Changes         e)      Any disputes raised in accordance with b) or d) and relating to
                                 electric energy volumes or metered MWh information provided to
                                 the Power Pool by the Transmission Administrator, Meter Data
                                 Manager, or other source as approved by the Pool Administrator
                                 shall be communicated to therespective information source. The
                                 respective information source may participate in the resolution of
                                 such disputes.


Proposed Change Number   D.3     Proposed Rule Location     Rule 7.3 Other Calculations and
                                                            Information Requirements
Reason for Change        To clarify who may submit metered volumes, and how the Pool will treat
                         the data provided.
Proposed Changes         Rule 7.3.3 Submitting Meter Volumes
                         Meter data must be provided to the Power Pool by the Transmission
                         Administrator, Load Settlement Agent, Meter Data Manager or other source
                         as approved by the Pool Administrator. Meter data is to be provided to the
                         Power Pool as a single meter volume per Asset for each Settlement Period.


Proposed Change Number   D.4     Proposed Rule Location           Rule 2.5.1 Requirements of
                                                                  Becoming / Application to Become
                                                                  a Participant
Reason for Change        To change the requirement from ensuring that the Participant has system
                         access service to ensuring that the Participant’s metered information is
                         provided by an approved source. System Access Service is not relevant to
                         all Participants. It has been realized that this requirement is confusing to
                         some applicants, since they are unsure when this requirement applies. By
                         switching the requirement to look at metering, instead of the agreement, it
                         clarifies whom this requirement is for. Generally, if the metering is to be
                         provided by the appropriate source, a system access service agreement or
                         other satisfactory arrangement was likely reached. Furthermore, since the
                         settlement volumes for imports and exports are the Pool scheduled volumes
                         (rather than metered volumes), in this case, it is felt that it is better to ensure
                         that the System Access Service Agreement is in place prior to the
                         acceptance of these type of Assets.
Proposed Changes
                         d) that applicant will ensure metered volumes are provided to the Power
                         Pool by the Transmission Administrator, Meter Data Manager, Load
                         Settlement Agent and/or a source otherwise approved by the Pool
                         Administrator; or the applicant, if it intends to act as an Importer and/or
                         Exporter, has a valid System access service agreement with the
                         Transmission Administrator; and


Proposed Change Number   D.5     Proposed Rule Location       Schedule 1 – Power Pool
                                                              Application Form
Reason for Change        To update the application. See Proposed Change Number D.4 for the
                         explanation.
Proposed Changes         6. Metering and System Access Service Requirements

                         The Applicant, if intending to act as an Importer and/or Exporter, represents
                         and warrants that it has entered into either a valid system access service
                         agreement with the Transmission Administrator, dated ________________,
                         _______ and such agreement is in full force and effect, or that it is
                         otherwise eligible to receive system access service in accordance with the
                         current tariff schedule ___________ of the Transmission Administrator

                         The applicant, if it intends to financially settle on metered volumes,
                         represents and warrants that the metered volumes will be provided to the
                         Power Pool of Alberta by the Transmission Administrator, Meter Data
                         Manager, Load Settlement Agent and/or a source otherwise approved by
                         the Pool Administrator.
SECTION E                The rule changes introduced in Section E are mostly Level II changes that
                         correct and clarify the usage of terms in references for system reserves and
                         interchange transactions, in order to be consistent with NERC and the
                         Transmission Administrator.

Proposed Change Number    E.1 Proposed Rule Location         Rule 1.1 Definitions
Reason for Change        To add new definitions.
Proposed Changes         “Ancillary Services” has the same meaning as System Support Services
                         defined in the Act.

                         “Area Control Error” means the instantaneous difference between net
                         actual and scheduled interchange, taking into account the effects of
                         frequency bias including a correction for metering error.

                         “Contingency Reserve” means the reserve used to recover the Area Control
                         Error within 15 minutes of a contingency.

                         “Interchange Transaction” means a transaction that crosses one or more
                         control area boundaries.

                         “Intermediary Control Area” means a control area on the scheduling path
                         between the Source Control Area and Sink Control Area.

                         “NERC” means the North American Electric Reliability Council.

                         “Regulating Reserve” means the amount of Spinning Reserve responsive to
                         automatic generation control that is available within 10 minutes.

                         “Spinning Reserve” means the unloaded generation that is synchronized to
                         the System, responds automatically through governor action to fluctuations
                         in System frequency, and is capable of assuming load instantaneously.

                         “Supplemental Reserve” means generation that is capable of being
                         connected to the System and loaded within 10 minutes, or load that can be
                         reduced within 10 minutes.

Proposed Change Number    E.2 Proposed Rule Location          Rule 1.1 Definitions
Reason for Change        To modify or remove definitions. External Transaction and Total System
                         Operating Reserve are no longer used within the Rules.
Proposed Changes

                         “Sink Control Area” means the control areain which the load is located for
                         an Interchange Transaction.

                         “Source Control Area” means the control area in which the generation is
                         located for an Interchange Transaction.
                         “Total Curtailment Required” means the level of involuntary curtailment of
                         demand determined by the System Controller required to maintain
                         Regulating Reserve when Pool Demand and Regulating Reserve cannot be
                         met through dispatch instructions within Bid and Offer constraints.
Proposed Change Number   E.3    Proposed Rule Location         Rule 3.5 Interconnection
                                                               Transaction Declarations
Reason for Change        To change the terminology used, and to clarify that E-Tags are now
                         required for an Interchange Transaction.
Proposed Changes         3.5      Interchange Transaction Declarations

                                 For Interchange Transactions, the System Controller requires E-
                                 Tags, as per NERC policy 3, where a Participant must declare the
                                 Source Control Area, Sink Control Area and any intermediary
                                 control areas and transmission providers for each Interchange
                                 Transaction. This allows the System Controller to verify all paths
                                 and contact entities in the event that an Interchange Transaction
                                 change is required with outside jurisdictions.


Proposed Change Number   E.4    Proposed Rule Location        Rule 5.3.1 Determination of
                                                              Forecast Pool Price
Reason for Change        To change the terminology used.
Proposed Changes         b)       $1000 when, through Offers and Bids submitted, non-price
                                  responsive Pool Demand is forecast not to be met and
                                  Contingency Reserves are zero.


Proposed Change Number   E.5    Proposed Rule Location        Rule 6.5 Involuntary Load
                                                              Curtailment
Reason for Change        To change the terminology used.
Proposed Changes         During system conditions when Pool Demand and Regulating Reserve
                         cannot be met through Dispatch instructions within Bid and Offer
                         constraints


Proposed Change Number   E.6    Proposed Rule Location        Rule 3.4.1.4 Compulsory
                                                              Restatement of Available MW or
                                                              Operating Contraint
Reason for Change        To change the terminology used.
Proposed Changes         d)       the System Controller requests a participant to restate MW
                         volumes to match the actual interchange schedule for Interchange
                         Transactions;

Proposed Change Number    E.7 Proposed Rule Location          Various
Reason for Change        To change the terminology used, remove unnecessary sections and change
                         formatting to remain consistent.
Proposed Changes         Please see the attached document. Generally, the primary changes are:
                         “Ancillary” replaces “System Support”
                         “Ancillary Service” replaces “SSS”
                         “Regulating Reserve” replaces “Automatic Generation Control”
                         “RR” replaces “AGC”
                         “Supplemental Reserve” replaces “Non Spinning Operating Reserve” and
                         “Interruptible Load”
                         “SUP” replaces “NSR” and “IL”
                         “an” replaces “a” for grammatical purposes
                         Remove Pool Operating (“POB”) references and add the Pool Operating
                         Procedure (“POP”) references
                         Remove 10.3.2b)i)d) and 10.3.2b)ii)d), since timing requirements are
                         clarified in Rule 10.4.3a) (See Proposed Change Number E.8)
                         Remove 2nd Paragraph in Rule 10.4 b) since this is already explained in
                         other sections of the Rules.

Proposed Change Number   E.8     Proposed Rule Location         Rule 10.4.3a) Ancillary Service
                                                                Expectations
Reason for Change        To clarify that the timing requirements for following an Ancillary Services
                         Directive is 10 minutes. This is consistent with the NERC requirements.
Proposed Changes         Please see the attached document Rule 10.4.3 a).

SECTION F                The rule changes introduced in Section F are Level I changes that provide
                         consistency between Direct Sales and Forward Positions, yet differentiating
                         the two products.

Proposed Change Number    F.1 Proposed Rule Location           Rule 1.1 Definitions
Reason for Change        To add clarify existing definitions.
Proposed Changes         "Dispatch Day" means the Day in which the Direct Sales Contract or
                         Forward Position begins (start date).

                         “Forward Position” means the day ahead open energy positions in MWh
                         registered with the Power Pool of Alberta through Software and Procedures
                         by Participants or by a recognized Forward Market Operator on behalf of
                         Participants for a specified Settlement Period.




Proposed Change Number    F.2 Proposed Rule Location         Rule 1.1 Definitions
Reason for Change        To add new definitions.
Proposed Changes         “MAP Buyer” means the entity purchasing a MAP Product from the
                         Balancing Pool Administrator under a Balancing Pool Power Sale
                         Agreement of December 2000 and any permitted assignee or transferee of
                         those rights.

                         “MAP Product” means the energy rights purchased, under a Balancing
                         Pool Power Sale Agreement of December 2000, by a MAP Buyer.

Proposed Change Number    F.3 Proposed Rule Location             Rule 4. Direct Sales
Reason for Change        To consider Forward Positions and the requirements for submitting
                         Forward Positions. This issue was first raised in a discussion paper issued
                         December 22 and it is still subject to consultation.
Proposed Changes         4.      DIRECT SALES AND FORWARD POSITIONS

                         4.1      Purpose of Rule

                                  The purpose of this Rule is to prescribe the process and conditions
                                  by which Power Pool of Alberta will carry out net settlement of
                                  Direct Sales and Forward Positions for eligible parties.

                         4.3     Forward Positions

                         4.3.1    Forward Position Requirements

                         a) For the purposes of Power Pool of Alberta settlements, the Pool
Administrator will net out the Forward Position MW Volume specified by
valid Forward Position data prior to calculating the Pool Administrator's
settlements with Pool Participants. The Pool Administrator shall carry out
settlement taking into account valid Forward Positions as set out in Rule 7.

b) Participants and Forward Market Operators must submit Forward
Position data to the Power Pool of Alberta complying with the requirements
of Rule 4.3.2.

c) A Forward Position may be registered with the Power Pool for any
Asset, provided that
    i) the Forward Position is submitted by a Forward Market Operator;
         or
    ii) either the source Asset or the sink Asset is a metered Asset; or
    iii) the Asset is being used in the direct transfer of a MAP Product by
    a MAP Buyer or the transferee of a MAP Buyer.

4.3.2    Submitting Forward Position Data

4.3.2.1 Data Provided Directly from Participants

Before HE 12 of the Business Day prior to the day the Forward Position
begins, the Forward Position seller or the Pool Purchaser must submit
Forward Position data using Pool Software and Procedures. Forward
Position data shall include the following for each Settlement Period the
position is in effect:

a)   the Forward Position seller; and,
b)   the source Asset designated by the Forward Position seller; and,
c)   the Pool Purchaser; and,
d)   the sink Asset designated by the Pool Purchaser; and,
e)   the Forward Position MW Volume
f)   Duration – this is the beginning date and the end date of the Forward
     Position. The end date of the position can be blank if the position is an
     ongoing position.


4.3.2.2 Data Provided by Forward Market Operators

The Forward Position Data is to be received by the Power Pool of Alberta
in the format agreed to within the context of the operating agreement
arranged between the Forward Market Operator and the Power Pool.

4.3.3 Acknowledging Forward Position Data

For data provided directly from Participants outlined in Rule 4.3.2.1, before
HE 12 of the Business Day prior to the Dispatch Day, the Forward Position
Seller or Pool Purchaser who did not submit the Forward Position
information must acknowledge the Forward Position using Software and
Procedures. If the Forward Position is not acknowledged, the Forward
Position will be considered invalid, and the Pool Administrator will not net
out the Forward Position MW Volume for purposes of Power Pool
Settlements.

4.3.4    Terminating Forward Positions
                         a) For data provided directly from Participants, the seller or buyer of a
                            Forward Contract may submit, via facsimile, a notice to terminate a
                            Forward Position for any future settlement period stating the date and
                            Hour Ending (HE) the position is to be terminated. The notice must
                            clearly state the position is to be terminated. The Power Pool will use
                            the timestamp on the facsimile to determine what is a valid future
                            settlement period. Terminating Forward Positions registered with a
                            Forward Market Operator must be coordinated with the Forward
                            Market Operator.
                         b) For the purposes of Power Pool Settlements, the Pool Administrator
                            will not net out the Forward Position MW Volume if either the
                            Forward Position seller or Pool Purchaser ceases to be a Participant.




SECTION G                The rule changes introduced in Section G are Level I changes to how
                         Participants are allocated their share of the uplift charge.

Proposed Change Number    G.1 Proposed Rule Location             Rule 7.2.2.1 Exports
Reason for Change        To remove the ability of Participants with simultaneous imports and exports
                         to use direct sales to avoid paying uplift in the first calculation. The MW
                         volumes are subject to uplift in later calculations, but this removes any
                         question of arbitrage.
Proposed Changes         a) i)    If the Company is exporting less than or equal to the amount it is
                                  importing above Pool Price then:

                                  Import Adjustment Charge for Participants with Simultaneous
                                  Exports and Imports = (Import Offer Price minus Pool Price)
                                  multiplied by (Export MW Volumes)

                          ii)     If the Company is exporting more than it is importing then they
                                  will pay the full amount received for the Import Adjustment Uplift
                                  in $ calculated in Rule 7.1.2.




Proposed Change Number   G.2     Proposed Rule Location         Rule 7.1.3 Pool Supplier Assets
                                                                with Amounts Owing
Reason for Change        To remove the requirement that generators owing amounts to the Pool
                         because of a forward position or direct sale must pay their portion of uplift.
                         Since all load is already charged for uplift, it is felt that this may be seen as
                         allocating to the same MW twice. Also, it may provide a disincentive for
                         Direct Sales and Forward Positions.
Proposed Changes


Proposed Change Number   G.3     Proposed Rule Location        Rule 7.2.2.2 Intra Alberta Pool
                                                               Purchasers and Direct Sales
                                                               Exporters
Reason for Change        Please see G.2 for the reason for change.
Proposed Changes                  Where:

                                  Pool Purchaser Energy Consumption Volume is the Intra Alberta
Consumption Volume of a Pool Purchaser Asset, or the Export
Direct Sales MW Volumes not considered in Rule 7.2.2.1b).

						
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