The Alberta Utilities Commission regularly reviews rules 002 and 003 and initiates consultation with stakeholders to ensure consistency in reporting metrics, standardize the reporting format and streamline the reporting process.
Consultation on these rules primarily involves engagement from representatives of companies who are responsible for reporting the metrics required in these rules.
Rule 002 sets out the reporting requirements for owners of electricity distribution systems. The most recent version of Rule 002 was approved on December 15, 2015, with Bulletin 2015-22 and AUC responses to stakeholder comments involving a review of the requirements for service quality measurement and the reporting under performance-based regulation.
Rule 003 sets out the reporting requirements for regulated rate providers and default supply providers. The most recent version of Rule 003 was approved on July 1, 2010.
Both rules were put in place to set minimum performance standards of service quality and reliability for electricity distributors and regulated retailers and to facilitate the monitoring of performance in relation to those standards through consultative processes.
Consultation on Asset Monitoring
Asset monitoring provides increased visibility into the asset management practices of the distribution utilities and insight into the condition of the distribution utilities' assets, as set out in Decision 2012-237. Bulletin 2013-07 was released February 15, 2013, announcing the initiation of an asset monitoring consultation process as per Decision 2012-237. The outcome of the consultation process was a commitment by the distribution utilities to provide with their 2016 Rule 002 annual report filing a description of their distribution systems, their asset management programs and how the success of their asset management programs is measured.
The Commission released Decision 20414-D01-2016 on December 16, 2016, which establishes the parameters such as the indexing mechanism that tracks the rate of inflation, less the offset of productivity improvements plus other adjustments for the performance-based regulation plans. These performance-based plans will be used to set utility rates for Alberta electric and gas distribution utilities from January 2018 to December 2022. The Commission considers that Rule 002, with its associated performance metrics reporting, along with asset monitoring reporting, will provide visibility into the service quality and asset management activities of the distribution utilities. In accordance with the initiative set out in Decision 2012-237, the Commission will continue stakeholder consultations regarding further refinements to asset management reporting in 2017.
AUC Asset monitoring consultation meeting summary for electric distributors
Asset monitoring reporting for electric distributors
AUC Asset monitoring consultation meeting summary for gas distributors
Asset monitoring reporting for gas distributors
History of the development of Rule 002 and Rule 003
The Alberta Energy and Utilities Board, predecessor to the Alberta Utilities Commission, issued directives on December 18, 2008, to set minimum performance standards of service quality and reliability and to facilitate the monitoring of performance in relation to those standards. Directive 002 was the starting point that the AUC used to implement Rule 002 when the AUC was created on January 2, 2008. Likewise, Directive 003 was the document used to create Rule 002 for owners of electricity distribution systems.
Significant revisions were made to Rule 002 and Rule 003 when they were approved in 2010. Rule 002 was expanded to include both electricity distribution system owners and gas distributors. Changes to rules 002 and 003 were primarily:
The Commission approved performance-based regulation in Decision 2012-237 and this approval meant that changes to Rules 002 needed to be made. The AUC issued Bulletin 2012-09 on September 13, 2012 to announce the initiation of a Rule 002 consultation process in preparation.
On September 13, 2012, the Commission initiated a rule consultation process with industry stakeholders and subsequently revised Rule 002, effective January 1, 2013, to include the addition of new metrics and the establishment of service standards.