Views of EAL Sample Clauses

Views of EAL. EAL noted that the application dealt with an alternative proposal for part of the LBC SO requirement for the Grande Prairie Zone. XXX suggested that the two areas of contention were as follows: • whether the contract is prudent and appropriate for the circumstances, and • whether or not a 20-year contract binding future TAs should be permitted. EAL submitted that the combination of TCE’s generator providing 50 MW and ATCO Power providing a hybrid of synchronous condenser and generation offered a financially and technically prudent solution to the unique transmission needs in the Grande Prairie zone. EAL submitted that the higher heat rate of 10 gigajoules/MWh (GJ/MWh) compared to the standard LBC-SO heat rate of 7.5 GJ/MWh reflected the “give and take” in negotiations between EAL and ATCO Power. In EAL’s view, the higher heat rate will only cost ratepayers when TMR is provided in generation mode, which EAL has estimated will be significantly less often than when TMR is provided in synchronous condenser mode. XXX explained that the costs associated with running in synchronous condenser mode are economic and provide significant cost savings compared to a second generator in the Grande Prairie area. EAL argued that Valleyview TMR Agreement provided Alberta ratepayers with lower supplemental costs in exchange for potentially higher power generation mode costs. EAL further submitted that a cap of 1% on the time that a power generation mode dispatch could be issued at the higher heat rate of 10 GJ/MWh, as proposed by FIRM, would hinder the TA’s technical staff and possibly the System Administrator from utilizing the power generation mode when necessary. XXX explained that it was cognizant of affiliate relationship and code of conduct issues as they may affect the costs owing to ATCO Power under the Valleyview TMR Agreement. However, EAL saw no value in linking these issues, by inclusion of a “market price” restriction in the definition of “verifiable opportunity cost” given the term of the 20-year Valleyview TMR Agreement, since it would fail to accommodate future market price fluctuations. In the event of conduct by ATCO Power considered by EAL to be inappropriate, EAL felt that it had sufficient recourse under the Agreement by inspection of relevant documents, the dispute resolution process, and the Board (in case of a threat to system reliability and safety). While EAL acknowledged the Board’s power to require amendments to the Agreement in the public interes...
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