Alberta Electric System Operator Proceedings for Capacity Market Design and Implementation

Analysis Group was retained by Capital Power in connection with a capacity market mandated by Provincial legislation in Alberta. Principals Todd Schatzki and Paul Hibbard submitted evidence to the Alberta Utilities Commission regarding the capacity market’s design. The issues they addressed included energy market mitigation, capacity market mitigation, and the term of the capacity obligation (contract) period. Market mitigation issues were particularly complex, as the introduction of the capacity market necessitated the development of seller-side market mitigation rules. In addition, the changes in overall market structure prompted new ex ante mitigation rules for the energy market, whereas only ex post rules had been in effect previously. Dr. Schatzki also testified before the commission on behalf of Capital Power.