In the process of restructuring the Alberta electricity market, we acted as advisors to the industrial group and as its representative in the working group that designed the new market. This included the development of the vesting contracts to cover existing generation, (both generator obligations and distributor entitlements), as well as a host of other policy and technical issues related to the transition.
A client group asked us to evaluate proposed legislation that would pave the way for deregulation of the local utility. We reviewed the legislation and pointed out that although deregulation was mentioned two dozen times, the legislation said nothing about competition. The result would have been a deregulated monopoly hardly what the clients thought they were getting.
Among the issues that arise in competitive markets are:
- Identification and control of market power, the advisability of market price caps;
- treatment of heritage power;
- stranded costs; and
- rate unbundling
We have advised clients in all of these issues.