This is an official version. Copyright © 2009: Queen's Printer, Important Information
Newfoundland and Labrador
Water
Management Regulations (Filed Under the authority of section 32 of the Electrical Power Control Act, 1994, the Lieutenant-Governor in Council makes the following regulations. Dated at Gary Norris REGULATIONS Analysis 1. Short title 2. Definitions 3. Objective of water management agreement 4. Reasonable time 5. Application of regulations 6. Written submission 7. Time period 8. Determination of disputes 9. Orders by board Short title 1. These
regulations may be cited as the Water
Management Regulations. Definitions 2. In these regulations (a) "Act" means the Electrical Power Control Act, 1994; (b) "board" means the Board of
Commissioners of Public Utilities for (c) "deficiency" means a failure to
satisfy the power generation and energy production requirements prescribed by
an independent coordinator; (d) "good utility practice" means those
practices, methods or acts, including but not limited to the practices, methods
or acts engaged in or approved by a significant portion of the electric utility
industry in Canada, that at a particular time, in the exercise of reasonable
judgment, and in light of the facts known at the time a decision is made, would
be expected to accomplish the desired result in a manner which is consistent
with laws and regulations and with due consideration for reliability, safety,
environmental protection, and economic and efficient operations. (e) "minister" means the minister
appointed under the Executive Council Act
to administer the Act; (f) "independent coordinator" means a
person appointed under a water management agreement to impartially determine suppliers'
power and energy production levels; (g) "production facilities" means all
components of a hydro-electric generating facility including any transmission
facilities associated with them; (h) "supplier" means a person owning
rights to produce power from hydro-electric facilities on a body of water; (i) "transmission provider" means any entity that owns,
operates or controls facilities used for the transmission of electric energy
between or amongst production facilities on the same body of water; and (j) "water management agreement" means
an agreement made under section 5.4 of the Act or imposed by the board under
section 5.5 of the Act, in accordance with these regulations. Objective of water management agreement 3. (1) The
objective of a water management agreement shall be the coordination of the
power generation and energy production in the aggregate for all production
facilities on a body of water to satisfy the delivery schedules for all
suppliers on the body of water, in a manner that provides for the maximization
of the long term energy-generating potential of a body of water, while ensuring
that the provisions of a contract for the supply of power governed by section
5.7 of the Act are not adversely affected. (2) To obtain the objectives in subsection (1) a
water management agreement shall: (a) require that suppliers jointly and
sufficiently fund the administration of the independent coordinator in
proportion to the energy benefits obtained by each supplier from the administration
of the water management agreement or according to that other methodology as may
be agreed upon by suppliers and approved by the board, or in the absence of
supplier agreement, imposed by the board, as the case may be; (b) require that suppliers provide the independent
coordinator with: (i) demand requirements of contracts for the supply
of power, (ii) the power and energy generation capacity of
each of the supplier's production facilities, (iii) equipment maintenance requirements, (iv) short and long term supplier forecast
requirements, (v) copies of a licence, lease or other instrument
granting water rights, (vi) plans and requirements respecting suppliers'
construction or commissioning activities, (vii) transmission availabilities, and (viii) the forecast of inflows, and regularly update any changes to them,
all prepared in a manner consistent with good utility practices; (c) require the independent coordinator, based on
the information received in paragraph (b) and in the exercise of reasonable
judgment, to establish short and long term production schedules for all
production facilities on a body of water, through the coordination of
production scheduling of the suppliers on the body of water based upon the use
of the aggregate generating capacity, storage and transmission facilities of
any supplier on the respective body of water, in accordance with the objectives
of these regulations and with the water management agreement; (d) require that suppliers adhere to the
production schedules set by the independent coordinator in paragraph (c); (e) provide that in no event shall: (i) the power requests made to the independent coordinator
by a supplier exceed the maximum power generating capability of the production
facilities of that supplier for the period requested, and (ii) the generating capacity, storage capacity, or
transmission capability available to a supplier from all facilities on the body
of water be less than the amounts of then available generating capacity,
storage capacity, or transmission capability of the production facilities owned
by that supplier on the body of water; (f) require that information and data be shared between suppliers and by suppliers with the independent coordinator as is necessary for the independent coordinator to perform its functions under the agreement, including records, data, models, as well as physical and computer access to those facilities as are required to obtain and verify that information; (g) require suppliers and the independent coordinator
to maintain, for a period of not less than 7 years, records required of them to
undertake their responsibilities under the agreement and these regulations
which shall be available, upon request, to the board or minister; (h) require an independent coordinator to (i) provide suppliers with reports on its
activities at regular intervals to be established in consultation with the suppliers, (ii) provide to the minister, and, on request, the board,
with an annual report summarizing its activities in a form acceptable to the minister; (i) require that when a deficiency occurs, or is
projected to occur: (i) appropriate adjustments shall be made to the
power and energy production levels and schedules of all production facilities
on that body of water to the extent practicable to remedy the deficiency or
anticipated deficiency, and (ii) where a deficiency occurs despite subparagraph
(i), and as a result of that deficiency, a supplier incurs damages under a
provision of a contract for the supply of power entered into by a person bound
by the water management agreement and a third party where that contract was
entered into before the water management agreement, those costs shall be paid
by the supplier who caused the deficiency; (j) include mechanisms to appropriately assign
energy storage amounts to each supplier for water stored in the body of water's
reservoirs and, if water spillage occurs, to assign the lost energy fairly to
each supplier; (k) require that the amount of energy in storage
shall be determined based upon average water to energy conversion rates for the
respective production facilities calculated based upon the best data source
available as tested in accordance with good utility practice; (l) include an appropriate method that ensures
that, at regular intervals not less frequently than annually, adjustments are
made to a supplier's available energy for subsequent intervals for energy
losses incurred in the previous period by each supplier as a result of changes
to its energy capability caused by the application of the water management agreement; (m) be governed by the laws of the province; and (n) include those other provisions that the board
determines are necessary or useful in achieving the objectives of the Act. (3) Where suppliers agree and the board determines
that the degree or amount of efficiencies to be gained through a water management
agreement that complies with subsection 3(2) do not justify the costs of its
implementation and administration, the board may approve or establish a water
management agreement that does not comply with all of the elements of subsection
3(2), provided that the board is satisfied that the water management agreement
it approves or establishes shall achieve the objectives of the Act. (4) Each supplier, in complying with the
requirements of subsection 3(2), shall: (a) maintain its production facilities in
serviceable and good repair; and (b) operate its facilities in a manner not
inconsistent with principles of good utility practice, but notwithstanding any other provision of
these regulations, nothing in these regulations shall require a supplier to
operate or maintain facilities or portions of facilities which, but for the
water management agreement, that supplier, acting reasonably, would no longer
operate or maintain. Reasonable time 4. For
the purpose of subsection 5.5(1) of the Act, "a reasonable time"
means 60 days. Application of regulations 5. The
Board of Commissioners of Public
Utilities Regulations, 1996 shall apply to the referral to the board of a
proposed water management agreement under section 5.4 of the Act, or the filing
of an application under subsection 5.5(1) of the Act, except to the extent
these regulations deviate from it, or the board believes the process under
those regulations are not necessary or useful, or would unnecessarily delay,
the establishment of a water management agreement. Written submission 6. Within
30 days of the referral to the board of a proposed water management agreement
under section 5.4 of the Act, or the filing of an application under subsection
5.5(1) of the Act, the applicant and each affected supplier shall file a
written submission with the board setting out: (a) the names of all suppliers on the body of water
and all affected transmission providers; (b) a summary of the facts and the issues in
dispute; (c) a proposed water management agreement; (d) copies of existing power contracts to which
affected suppliers are a party; and (e) any other matter considered relevant. 7. Notwithstanding section 5, the board shall
approve or establish a water management agreement within 120 days of the
referral to the board of a proposed water management agreement under section
5.4 of the Act, or the filing of an application under subsection 5.5(1) of the
Act. Determination of disputes 8. Disputes
between suppliers arising from the operation of a water management agreement or
involving the interpretation or application of a water management agreement may
be determined by the board upon application of one of the suppliers. Orders by board 9. Upon
an application under section 8, where the board determines that a supplier has
failed to comply with a water management agreement, the board may issue those
orders as are necessary to ensure compliance with it. ©Earl G. Tucker, Queen's Printer |