ISO Rules
Compliance with the Rules of the Alberta Electric System Operator
Compliance with the rules of the Alberta Electric System Operator (AESO or ISO) is a key element of both system reliability and the operation of a fair, efficient and openly competitive market. The AESO is committed to working with market participants and interested parties to foster an understanding of the ISO Rules, to meet the obligation of market participants to comply with these rules, and to establish and maintain an infrastructure to ensure compliance with these rules.
The Electric Utilities Act (SA 2003 cE-5.1) as amended enables the ISO to make rules regarding various aspects of the Alberta Interconnected Electric System. These rules address items such as the practices and procedures of the ISO; the operation of the power pool and the exchange of electric energy through the power pool; the operation of the interconnected electric system; and the provision of ancillary services. Section 20 of the Electric Utilities Act outlines the process by which the ISO may make rules and includes a complete list of these rules.
The Electric Utilities Act requires that market participants must comply with ISO Rules. Except as otherwise provided by the regulations, if the ISO suspects that a market participant has contravened an ISO rule, the ISO must refer the matter to the Market Surveillance Administrator (MSA).
ISO Rule 12
ISO Rule 12 defines the process by which the ISO will monitor, investigate and enforce ISO Rules. It describes how the ISO learns of cases of potential non-compliance and how the ISO carries out a Preliminary Analysis to review the facts available in regards the issue. It describes the Information Request process by which the ISO provides an opportunity for a participant, suspected of potential non-compliance, to review the relevant facts and provide additional facts and perspective relevant to the analysis. It also describes the MSA Referral process by which the ISO, after coming to a determination that it suspects an ISO rule was contravened, refers the matter to the Market Surveillance Administrator.
MSA Compliance Process
Once a suspected ISO rule contravention has been referred to the MSA from the AESO, the MSA assumes sole carriage of the matter and becomes the primary contact for the participant. As part of the referral the AESO will make available to the MSA information obtained in the course of its compliance monitoring activities. The MSA then assesses the relevant circumstances and information and determines whether enforcement action is appropriate. The MSA may issue a Notice of Specified Penalty or the MSA may recommend an administrative penalty.
The process by which the MSA receives reviews and handles referrals of suspected rule contraventions from the ISO is described in detail in the MSA document MSA Compliance Process.