Power Marketer's Council

The Power Marketer's Council focuses on promoting competitive and efficient operating markets in Canada and into adjacent regional wholesale power markets in the United States.  These markets are the natural export market for the generation capacity of the CEA electricity producers, as well as for emerging markets in environmental attributes.

Key Issues

• The PMC has followed closely the emergence of the Dodd-Frank Wall Street Reform and Consumer Protection Act that become law in July of 2010, bringing with it the goal of comprehensive market reform via the regulation of swaps, the derivative financial products that have been accused by many as the key to the 2008 financial crisis. Specifically, the Dodd-Frank bill was passed with the intent to regulate Swap Dealers by subjecting them to capital and margin requirements,  improve transparency and pricing in the derivatives markets by requiring real-time reporting of market activities to allow regulators to better oversee the markets, and lower risk to consumers by having most of the standardized derivatives move to centrally cleared markets.  PMC members are concerned about U.S. regulatory "overstep" into Canadian hedging and risk mitigation techniques with U.S. counterparties that provide lower costs to our consumers.

• PMC members are watching with interest the growing Congressional debate in the U.S. about the possibility of a Clean Energy Standard, tax credits for renewable energy that is set to expire over the coming years, EPA proposed regulatory oversight over both coal fired plants and new shale gas exploration, reliability and transmission expansion, and cyber security.

• The PMC has been closely following the resolution of the longstanding Lake Erie Loop Flow Effect (LELF).  The urgency to resolve the LELF issue is rooted in the need to improve regional and U.S. - Canada electricity interconnections, reduce costly electricity transmission congestion, line losses and emissions, reduce costs to consumers and resolve the longstanding electricity seams issue that impedes cost effective trade between our countries. Recent large congestion costs borne by consumers of the New York Independent System Operator (NYISO) of approximately USD$100m are a consequence of Lake Erie loop flows.

• The PMC in 2009 received amendments to the NEB Cost Recovery regulations sought since 2003.  PMC members will receive rebates as the full process occurs over the next few years. The NEB Cost Recovery Regulations had imprecisely charged Marketers’ for all NEB related Electricity sector costs, and that will now allocate the majority of NEB costs to the transmission tie-lies for both import and export of electricity.  The PMC will assist the NEB to amend the Cost Recovery process of non-jurisdictional IPL applicants. The PMC is monitoring NEB administrative costs for its energy studies while promoting “full” transparency of costs;

• The PMC continues to assess the progress of the CEA Amicus Brief to the U.S. Supreme Court on the Sanctity of Power Contracts that was filed in mid 2007. This case is extremely important as it would impinge on the very nature of power trading and the use of contracting with third parties which could reduce trade between Canada and the U.S. CEA was granted Cert Petition in 2007 on this very important case.;

• PMC members also are observing the change in key US issues such as Market Power Rules (FERC), the evolving status of NIETC corridors and designations, reviews of Cross Border Transmission Projects, and improving the process for Presidential Permits and Export Authorizations (DOE).

Members

Key Contact

Patrick Brown
Director, U.S. Affairs
613-627-4124
brown@electricity.ca