Decision U99113 - Proceeding No. 990277: Board review of the Independent Assessment Team's report of power purchase arrangements and other determinations. Phase two

On July 9, 1999, pursuant to section 45.9(1)(b) of the Electric Utilities Act, the Independent Assessment Team (IAT) filed for approval with the Alberta Energy and Utilities Board (EUA/the Board) a report setting out its determinations on deregulation of electricity generation in Alberta. Included in the report were copies of the Power Purchase Arrangements (PPAs) for Regulated Generating Units listed in part 1 of the Schedule in the EUA. In filing its report, the IAT also advised the Board that, because of time pressures, the report might contain errors that would have to be corrected. The report did not include the Hydro PPA, which was subsequently filed on August 10,1999. Upon receipt of the IAT's filing, the Board reviewed its legislative authority under section 45.91 of the EUA and concluded that the section lends itself to the consideration of two questions, and, as a result, the Board developed a two phase approach to dealing with a request for variance. In phase 1, the Board would address the question of whether it should have had a variance hearing for the power purchase arrangements or other determinations made by the IAT. The Board considered that at this stage an applicant would need to satisfy the Board that there was a concern about the PPAs of sufficient importance that to require a formal process of review. If the first question was answered affirmatively, then in phase 2 the Board would address the second question of whether it should vary the power purchase arrangements and other determinations made by the ITA. Having regard to the evidence and argument presented and considered and having regard to its own knowledge and findings therein, the Board was not satisfied by those parties making the requests that the ITA did not carry out its duties in accordance with the EUA or that the PPAs and relevant determinations of the ITA are obviously unreasonable, and are not supported adequately by economic analysis, or are not in the public interest. The Board hence made no variations to the PPAs