2021-2024 Strategic Plan - Alberta's independent utilities regulator - Alberta Utilities Commission
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Alberta’s independent utilities regulator 2021-2024 Strategic Plan
New methods
Modernizing
Sharpened focus Contents
Continuous improvement
Assertive case management 4 AUC Chair Carolyn Dahl Rees on the AUC strategic plan pillars
Responsive 6
8
Efficiency and limiting regulatory burden
Facilitating change in the sector
Agile 10People
Disciplined
12Commission
14 2020-21 Highlights
Streamlined processes 15 Measuring success: Chief Executive Bob Heggie
Accountable
Adaptive
Innovative
Transparent
Trusted
Measurable
Top-tier efficiency North America
One-third red tape reduction
AUC Chair
Carolyn Dahl Rees It is clear there is a strong conviction about
what needs to change and there is a real
by aligning our hiring and training efforts with
our strategic plan and objectives. Since the
on the strategic
energy, both within the AUC and in the feedback AUC can’t foresee all issues before they arise,
we’ve received, about the opportunity to make our teams must look at circumstances, identify
regulation work better for everyone. This issues and find new approaches and solutions
plan pillars
strategic plan discusses the initiatives we have in a rapidly changing environment. We have
set out to support this objective. had good success working in teams that move
beyond the traditional hierarchical structure,
While we will keep a sharp focus on ensuring allowing us to leverage specialization as
the timeliness of our work, it is clear that the applications or projects require.
I am pleased to share with you the Alberta Utilities sector is undergoing fundamental change,
Commission Strategic Plan for 2021-2024. I hope that you driven by decarbonization, technological and I’ll finish by emphasizing that reducing
– the public and all of our stakeholders – will agree that market changes. This change has caused us to regulatory burden and improving AUC efficiency
this plan meets the needs of these times in describing a move from an agency that reactively processes and effectiveness are key objectives for us in
regulatory approach that is prudent, cost-effective and applications, to an agency that proactively the coming year. I know firsthand from my time
sensitive to the regulatory burdens that stakeholders, confronts complex in the private sector
ratepayers and, ultimately, the Alberta economy bear. issues that arise the frustrations and
during a time of "Achieving effectiveness and costs that result
AUC resources: The past 12 months have been a time of significant change industry change. when requirements
for the AUC. efficiency is job one, maintaining are unclear,
• www.auc.ab.ca In my view, the inconsistent or
•
•
Annual reviews
Current applications
While the COVID-19 crisis has been a challenge for all AUC can and it is job two." inefficient. This
• Efficiency and reducing regulatory burden Albertans, the AUC has demonstrated terrific resiliency and should have a experience helped
co-operation as we look forward to supporting the recovery. role in facilitating lead me to return to
the evolution of the sector by assisting the the AUC after serving as its first interim chair in
In June of 2020 I became the chair of the AUC and, at the public, industry and government to understand 2008 – I want to see the AUC achieve ongoing
time of my appointment, the government launched a review the alternatives, and the implications of and continuous improvement.
of the AUC. the challenges the transition is presenting.
This does not usurp the government’s clear I can say with confidence that the AUC is
The objective of the government’s review was for the AUC responsibility to set policy, but simply moving to tackle these issues, but it is a
to strengthen its work through a strategy of continuous recognizes that critical informed debate and cultural change and it will require commitment
improvement by streamlining processes, reducing red tape analysis on industry matters often arise through from all stakeholders in the short, medium and
and increasing investor confidence. We have responded to the regulatory arena. Our work in relation to long-term to accomplish lasting change.
the government’s review by fundamentally examining and facilitating system transformation is set out in
changing how we work with the ambition of being one of the this plan. I would like to thank you for your confidence
fastest and most effective regulators in North America. and support as we work to achieve our goals. I
As we work to develop the processes and look forward to working with AUC colleagues,
I should emphasize that this does not come at the expense structures to meet future challenges, we must government, the energy sector and consumers
of ensuring the continued fairness of our adjudicative ensure that we have the ability to succeed in in meeting the important challenges facing us.
procedures. that pursuit. Our plan recognizes that we must
continue to develop and strengthen our team Carolyn Dahl Rees
I’m delighted to say that we are already implementing many
identified initiatives, however more work needs to be done.
4
5
The AUC's work will include:
Efficiency
Objective Outcome
The challenge:
The AUC must continue 1. Continuing to implement the Material, measurable
and limiting
to review its activities recommendations from the Report of the improvement in regulatory
to reduce or remove AUC Procedures and Processes Review effectiveness and efficiency.
regulatory requirements Committee to improve the regulatory
that have become efficiency of rate proceedings. For example,
burdensome. How can the explore greater use of existing and new
regulatory
AUC ensure its regulatory alternative dispute resolution approaches,
processes are clear, including advanced rulings, mediated
timely and appropriate, settlements, and consideration of revisions
so as not to impose required to AUC rates-related rules.
unnecessary regulatory
burden
burden, while ensuring
the public interest is 2. Developing new, more aggressive
protected? performance standards and processes for
rate-related applications to reduce full-cycle
timelines and align with the Commission’s
objective to be a North American benchmark
for operational and regulatory efficiency and
The manner in which the AUC itself is organized In particular, many of the AUC’s effectiveness effectiveness.
and conducts its processes and regulatory and efficiency initiatives will follow from its
proceedings is critical to ensure that industry adoption of virtually all the recommendations
is not unnecessarily burdened by regulatory of an independent panel of outside experts 3. Conducting an annual industry impact
time and cost, and that consumers bear the on how to implement changes to streamline assessment, as part of the AUC Annual
lowest prudent cost of regulation. The AUC rates proceedings. Recommendations included Report Card, to evaluate the cost benefits
is aware that its decisions have effects on adopting an overarching, assertive case and effectiveness of our processes, and to
investment and competitiveness, and that its management approach, a preference for written track continuous improvement through future
regulation needs to be cost-effective, timely hearings with oral argument, sharpening criteria business cycles.
and proportionate. around the scope of cross examination, and
adopting an issues-focused decision writing
The AUC is committed to ensuring cycle time template. 4. Enhance and standardize the process,
and duplication are minimized. Decision-making protocols and procedures for running
processes should be clear and designed to The AUC’s effectiveness and efficiency agenda effective and efficient virtual proceedings.
eliminate unnecessary applications, procedures supports provincial requirements and policy
and delays. Information required should be statements that the AUC show continuous
provided in a responsive, focused way and improvement in regulatory practices. 5. Review and revise AUC Rule 009: Rules on Effectively use the
limited to what the regulator requires to carry Local Intervener Costs and Rule 022: Rules on Commission’s cost authority
out its legislated responsibilities. Timeliness Costs in Utility Rate Proceedings to promote to improve participation and
in utility rate proceedings is of primary consistent and effective participation in encourage efficient, issue
importance. The AUC's work will include: AUC proceedings and provide clarity to focused proceedings.
participants.
6 7Facilitating
The AUC's work will include:
The challenge:
The energy sector is Objective Outcome
change in
transitioning and facing ever
more complex issues that
concern an extended group of 1. Assessing the experience with Understanding of the
stakeholders. As the regulatory performance-based regulation in Alberta successes and limitations
body responsible for regulating
the sector
to date, to determine if performance-based of the experience with
the natural gas and electricity regulation should be continued and if so, performance-based
sectors, what is the AUC’s role whether the design can be improved to regulation to date,
in helping to understand the ensure efficient outcomes. determining whether to
alternatives and implications proceed with a further PBR
of the inherent challenges the framework and improving
transition presents? any future PBR framework.
The gas and electric systems have undergone For example, in the AUC Distribution System 2. Collaborating with the Alberta Electric Clear and comprehensive
significant change over the last two decades. Inquiry Report published earlier this year, we System Operator (AESO), the Department requirements that create
Early changes were driven by deregulation and, identified a need for improved coordination of Energy and the Market Surveillance certainty and consistency
more recently, by both decarbonization and across the electric transmission and Administrator on a robust regulatory for market participants and
technological innovation. distribution grids in both planning and operating framework for electrical energy storage in promote efficient market
the system. Similarly, we identified that Alberta. outcomes.
With those changes, the traditional boundaries markets will invest in new technologies that
in the energy system are breaking down, have the potential to provide system benefits if
between markets and regulation, and between participants face cost-reflective price signals 3. Standardize (i) connection practices and
distribution and transmission boundaries, and related incentives. processes among Alberta electric distribution
among others. utilities to ensure there are no barriers to
As the energy system evolves, the additions entry for distributed energy resources and
This has forced changes to our approach to to the gas and electric transmission and (ii) terms and conditions of service required
regulation. With a mandate inherited from the distribution systems to accommodate new by Alberta’s distribution utilities to ensure
days when the critical regulatory functions generation, energy management and storage customers receive consistent treatment.
predominantly consisted of economic and solutions will have implications for consumers.
technical regulation, the AUC will redefine its To meet this challenge, the AUC must consider
approach and its work to ensure that the rate designs that promote the economic 4. Evaluating the development of uniform
inter-linked system evolves to deliver efficient and efficient use of that infrastructure while distribution planning and reliability
outcomes considered as a whole. recognizing shifts in the use of generation, requirements to better coordinate distribution
transmission and distribution resources. and transmission planning and ensure overall
In addition to maintaining the health of the system optimization and control costs.
regulated sector and providing effective We also recognize that coordination among
regulation of energy infrastructure projects, the AUC, the Alberta Electric System
we must align utility and consumer interests Operator, utility companies, customers and 5. Establishing an interdisciplinary, The AESO tariff creates
through well-designed incentives, systems and other stakeholders is required to facilitate cross-divisional team to provide information efficient incentives for
business models, and promote a level playing progress, and that responsibility for the overall in AESO stakeholder consultations regarding transmission connected
field between incumbents and new entrants, policy framework in these areas rests with the tariff for system access service, and customers, including
and ensure conditions for competition exist. government. anticipate market implications. improved price signals for
the incremental costs and
benefits their use creates.
8 9The challenge:
The AUC will play a central role as
People
competitive forces and technological The AUC's work will include:
advancements continue to reshape
the utilities sector. The AUC’s most
important challenge will be to
develop, attract and retain a diverse Objective Outcome
group of people with the skills,
experience and education required to
meet these demands, and to evolve 1. Modernizing the AUC’s workforce by Modernized employee
more innovative and adaptive work developing a human capital road map to competency and educational
approaches. But how? transform the skillset required to keep pace plans.
with an evolving utilities sector.
Alberta’s energy and utility sectors are entering backgrounds while maintaining and enhancing
an era of transition. As competitive forces our existing specialist skills and technical 2. Encouraging, tracking, recognizing and A more agile and innovative
and technological advancements begin capabilities. It must also instill and support a rewarding staff innovation. regulator striving for
to dramatically reshape this industry, this culture of continuous learning and innovation to continuous improvement in
transition has implications for all stakeholders, give staff the opportunity to acquire new skills the way we do our work.
including the regulator. Throughout this to tackle the challenges created by industry and
transition, the AUC will continue to play a consumer adoption of new technology.
central role. Delivering on its mandate in 3. Formalizing and evolving our succession Identification and
an industry on the cusp of a technological Learning and innovation are top priorities at the and leadership development plan. development of a diverse
transformation will require the AUC to broaden AUC. The AUC recognizes that innovation must group of future leaders
its core competency areas beyond traditional come from all quarters in our organization, that possess the required
expertise in engineering, accounting and law. and that we must value ideas and intellectual technical and leadership
curiosity from junior staff to senior executives. skills to succeed the current
Looking ahead, it is paramount that the AUC The AUC’s commitment to innovation will leadership team.
engage people with the skills, experience and invite and encourage employees to share their
education required to understand and analyze perspectives.
how emerging technologies will affect the 4. Evolving the AUC value proposition for Modern and flexible human
energy grids, consumer behaviour, the operation Attraction and retention of skilled staff, staff, which includes fair compensation, resource programs and
of emerging competitive markets, the financial both for core work and the work brought on benefits, pension and the ability to achieve benefits.
assessment of investments in new technology by technological change, shifting societal work-life balance and other human resources
and the analysis of data generated by advanced expectations and how we evolve better programs.
information technology. Also, the AUC must approaches to how we work, will be essential if
consider and incorporate new approaches to the AUC is to meet its statutory responsibility
how we work, implementing key effectiveness, of regulating the utility sector in the public 5. Modernizing our workplace, allowing for A more collaborative and
efficiency and regulatory burden reduction interest. This is especially true at a time when increased collaboration and implementation efficient organization.
initiatives. The AUC’s enforcement role in the new and existing skills and competencies of efficient approaches to our work.
changing utility sector as well as its evolving are in high demand in the energy and utility
role in consultation with First Nations and Métis sectors. As the AUC adapts its workforce to the
groups will also require specialists in these changing environment, it is acutely aware that
areas. failure to attract and retain a skilled, diverse
and motivated workforce could lead to a talent
To meet these demands, the AUC must or skills gap between the regulator and the
transform its workforce by hiring people with regulated at the expense of the public.
the necessary technology and rate-design
10 11Carolyn Hutniak Neil Jamieson
Commission
Carolyn Hutniak was Neil Jamieson was
appointed to the AUC on appointed to the AUC on
February 15, 2017, after January 1, 2011. Prior to
more than 12 years as joining the AUC,
hearing chair and appeals Mr. Jamieson worked
commissioner on the as a senior professional
The Commission is made up of not more than The AUC also utilizes acting Commission Appeals Commission for engineer and manager
nine members appointed by the Lieutenant- members, who are appointed by order-in- the Alberta Workers’ Compensation Board. Ms. Hutniak in infrastructure, public works, environment and public
Governor-in-Council, one of whom is designated council. They can be called upon by the chair to has also worked as an administrative law expert and utilities for nearly 30 years, across three provinces and
as chair and not more than two of whom may adjudicate matters before the Commission. tribunal management consultant to disciplinary, regulatory territories. He joined the AUC from the City of
be designated as vice-chairs. and rights tribunals throughout Alberta. Ms. Hutniak holds St. Albert, where he was general manager of planning and
The AUC's work is complex and is supported degrees in law and arts and has a background in labour, engineering. Mr. Jamieson is a civil engineer and certified
The AUC is made up of experts with senior by a team of approximately 132 expert staff employment and administrative law. local government manager.
decision-making experience in various with varying disciplines in law, economics,
disciplines, rather than generalists. Many of finance, engineering, environmental science
the AUC’s duties are adjudicative. Most of AUC and accounting, located at offices in Calgary Cairns Price Kristi Sebalj
regulation deals with investor-owned utility and Edmonton.
companies and market participants, and the Cairns Price was Kristi Sebalj was
issues are increasingly complex and often appointed to the AUC on appointed to the AUC
contentious. January 4, 2021. Prior to on July 9, 2018. Prior to
joining the AUC, joining the AUC,
Mr. Price worked as Ms. Sebalj was the
Members: senior legal counsel registrar for the
for MEG Energy Corp. Ontario Energy Board, an
specializing in regulatory, organization she joined
Chair Vice-chair environmental and Indigenous law. Earlier, he was in in 2005. Prior to the OEB, Ms. Sebalj was the co-chair of
similar roles with TransAlta Corporation and Nexen Inc. McMillan Binch LLP’s energy group. Ms. Sebalj is a lawyer
Carolyn Dahl Rees Anne Michaud and has appeared before various provincial and federal with bachelor's degrees in law and science, and holds
regulatory tribunals. Mr. Price has completed degrees in a master’s degree in science, as well as certificates in
Carolyn Dahl Rees was Anne Michaud was law, civil law and commerce, all with distinction. adjudication and marine environmental law.
appointed chair of the appointed to the AUC in
AUC on June 24,2020 2008 and named vice- Vera Slawinski
after rejoining the AUC chair in July, 2018.
as a member on March Prior to joining the Vera Slawinski was
25, 2020. Ms. Dahl Rees AUC, Ms. Michaud was appointed to the AUC in
had been a Commission member, an acting chair, and a tax partner with Deloitte & Touche, after a career in January 2021, rejoining
later vice-chair, between 2008 and 2012. Along with her international tax with a focus on energy, oil and gas the organization where Acting Commission members:
substantial history as an adjudicator at the AUC and and energy marketing. Ms. Michaud is a former federal she had previously
other tribunals, Ms. Dahl Rees, a lawyer, worked most Crown counsel. Ms. Michaud is a lawyer with a master’s served as legal counsel • j'Amey Bevan
recently in senior legal, regulatory and compliance roles degree in international law, and degrees in law and arts. to the AUC between April • Patrick Brennan
for TransAlta Corporation. She also has experience 2008 and March 2013. • Merete Heggelund
drafting legislation and regulations, and played a role Immediately prior to rejoining the AUC in 2021, • Vincent Kostesky
in the development of the regulatory framework and Ms. Slawinski had been legal counsel for ENMAX • Doug Larder
foundational laws to restructure Alberta’s electricity Corporation, focused on regulatory matters, and before • Koren Lightning-Earle
system in the 1990s. She has completed degrees in law, that gave advice on interpretation and drafting utilities • Rick Robinson
english and medieval studies. legislation to the Alberta Department of Energy. Ms. • Bohdan (Don) Romaniuk
Slawinski has completed degrees in law, fine arts and • John Whaley
12
mathematics. 132020-21 Highlights Measuring
Distribution System Inquiry Report
31 billing deferral program applications processed
success:
within seven days
Virtual hearings and consultations maintain timeliness
Chief
Virtual landowner engagement for info sessions
Trusted traveller approach cuts process time by two-thirds
Executive
Amended AUC Rule 007 Bob Heggie
Materiality thresholds
Mediated settlements
The AUC is committed to being a performance- Last year, for the first time, the AUC attempted
based organization. to quantify the benefits of its initiatives it has
taken to reduce regulatory burden and improve
Modernized rules focused and interactive We will report the progress we have made in
delivering on our commitments in our AUC
efficiency. Our goal is to identify the monetary
benefits resulting from our actions. Our initial
Annual Report Card to approach was focused
Outside experts recommendations accepted to our stakeholders that on our own internal
streamline rates applications will be published on our “The report card and impact direct costs and, as a
website. next step, we will be
assessment give us a real
More than 630 decisions issued Those commitments
arise from three aspects and practical way to ensure
soliciting cost savings
realized by utilities as a
result of our efficiency
More than 320 decisions and dispositions of our work:
we stay on track.”
improvements through
the AUC Industry Impact
issued on expedited basis • Our legacy
performance
Assessment tool.
2018-2022 performance-based regulation (PBR) issues measures that include, for example,
performance standards based on the
The published AUC Annual Report Card
provides clear, transparent and comprehensive
resolved providing greater certainty for utilities and consumers number of business days required to information allowing stakeholders to better
complete various application types. understand and assess our progress in
Initiated stakeholder review of PBR, including setting delivering on our commitments and meeting our
foundational service costs for period 2023 forward • The planned initiatives set out in this
strategic plan.
organizational objectives.
More than 980 applications filed • The progress we have made in reducing
regulatory requirements as required by the
Bob Heggie
Chief Executive
Benchmarking study Alberta government’s red tape reduction
plan.
14 15Vision:
To be a trusted leader that delivers innovative
and efficient regulatory solutions for Alberta.
AUC annual reviews:
www.auc.ab.ca/pages/annual-review.aspx
Contact us:
www.auc.ab.ca
info@auc.ab.ca
310-4282 (in Alberta)
1-833-511-4282 (outside Alberta)
Calgary:
Eau Claire Tower
1400, 600 Third Avenue S.W.
Calgary, Alberta T2P 0G5
Edmonton:
106 Street Building
Tenth Floor, 10055 106 Street
Edmonton, Alberta T5J 2Y2You can also read
