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The Manitoba Hydro Amendment and Public Utilities Board Amendment Act (Electricity Reliability)

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S.M. 2009, c. 17

Bill 20, 3rd Session, 39th Legislature

The Manitoba Hydro Amendment and Public Utilities Board Amendment Act (Electricity Reliability)

(Assented to June 11, 2009)

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows:

PART 1

THE MANITOBA HYDRO ACT

C.C.S.M. c. H190 amended

1           The Manitoba Hydro Act is amended by this Part.

2           Section 1 is amended by adding the following definitions:

"compliance body" means a body authorized under clause 15.0.1(1)(d) to monitor compliance with reliability standards in Manitoba; (« organisme de contrôle »)

"reliability standard" means a standard, rule or requirement for the planning, design or operation of electricity generation and transmission facilities and major electricity loads in Manitoba within a regional electricity grid, for the purpose of

(a) providing a continuous supply of power, at acceptable voltage and frequency, in Manitoba and within the regional electricity grid, and

(b) minimizing instability, uncontrolled separation or cascading failures, and uncontrolled electricity flows, in Manitoba and within the regional electricity grid; (« normes de fiabilité »)

"standards body" means a body that makes or recommends reliability standards; (« organisme des normes »)

3           Subsections 15(5) and (6) are repealed.

4           The following is added after section 15:

Regulations re electricity reliability

15.0.1(1)   The Lieutenant Governor in Council may make regulations

(a) adopting reliability standards for Manitoba that have been made or recommended by a standards body;

(b) specifying the persons or categories of persons required to comply with the reliability standards, including the corporation;

(c) for the purpose of section 15.0.2, requiring that the corporation not make standards that are less stringent than or not compatible with reliability standards adopted under clause (a);

(d) authorizing a body to monitor compliance with the reliability standards;

(e) requiring persons who violate reliability standards to prepare and implement plans to correct those violations and prevent their recurrence;

(f) in addition to the powers given to the Public Utilities Board under Part V of The Public Utilities Board Act, authorizing the Public Utilities Board to resolve specified disputes between a compliance body and persons required to comply with reliability standards, and respecting any related matters;

(g) respecting the payment of fees related to the making or enforcement of the reliability standards and other associated activities of a standards body or compliance body, including

(i) specifying the persons or categories of persons required to pay fees,

(ii) specifying how and to whom fees are to be paid, and

(iii) specifying the consequences for not paying fees;

(h) respecting non-binding guidelines to promote electricity reliability in Manitoba;

(i) respecting any other matter related to electricity reliability that the Lieutenant Governor in Council considers necessary or advisable.

Limits

15.0.1(2)   A reliability standard adopted under subsection (1) may not

(a) have the effect of requiring the construction or enhancement of facilities in Manitoba;

(b) apply to facilities in Manitoba that do not materially affect the regional electricity grid; or

(c) relate to the adequacy of generation resources for Manitoba.

Regulation prevails

15.0.1(3)   If there is a conflict between a regulation made under subsection (1) and an agreement between the corporation and a standards body or compliance body, the regulation prevails.

Corporation may make standards for reliability

15.0.2      Subject to the regulations, the corporation may make standards for the reliability of the electricity system in Manitoba, which are binding on the persons or categories of persons specified in the standards.

Corporation may make interconnection rules

15.0.3(1)   The corporation may

(a) make rules, set terms and conditions, or issue directions respecting

(i) the interconnection of the works of others with the corporation's works, and

(ii) the operation of the works of others that are interconnected with the corporation's works; and

(b) carry out studies to evaluate the effects of a proposed interconnection.

Interconnection rules may include reliability standards

15.0.3(2)   The rules, terms and conditions, or directions under subsection (1) may include a requirement that persons whose works are interconnected with the corporation's works must comply with

(a) reliability standards adopted under subsection 15.0.1(1); and

(b) standards for reliability made by the corporation under section 15.0.2.

Inspection power of compliance body

15.0.4(1)   A person authorized by a compliance body may, at any reasonable time and where reasonably required for a purpose relating to monitoring compliance with reliability standards adopted under subsection 15.0.1(1),

(a) enter land or premises and carry out an inspection, audit or investigation; and

(b) require any person to produce any relevant record for inspection or copying.

Inspection power of corporation

15.0.4(2)   A person authorized by the corporation may, at any reasonable time, and where reasonably required for a purpose relating to monitoring compliance with standards for reliability made by the corporation under section 15.0.2 or rules, terms and conditions, or directions made under subsection 15.0.3(1),

(a) enter land or premises and carry out an inspection, audit or investigation; and

(b) require any person to produce any relevant record for inspection or copying.

Identification

15.0.4(3)   A person authorized to perform a function under subsection (1) or (2) (in this section referred to as an "inspection") must show identification if requested to do so in the context of the inspection.

Records

15.0.4(4)   A person authorized to make an inspection may

(a) use equipment at the place of inspection to make copies of relevant records, or remove the records to make copies and return the original records to the person or place from which they were removed; and

(b) in the case of records maintained electronically at the place of inspection, require the owner or person in charge of the place or records to produce the records in the form of a printout or in an electronically readable format.

Entry with warrant

15.0.4(5)   If a justice is satisfied by information under oath that

(a) a person authorized to make an inspection has been refused entry to land or premises to carry out an inspection under this section; or

(b) there are reasonable grounds to believe that a person authorized to make an inspection will be refused entry to land or premises to carry out an inspection under this section;

the justice may issue a warrant permitting a person authorized by the compliance body or the corporation, as the case may be, to enter the land or premises to carry out the inspection.

When corporation may enforce rules, etc.

15.0.5(1)   In addition to any other legal remedy available to it, the corporation may take one or more of the actions described in subsection (2) if

(a) a person does not comply with the rules, terms and conditions, or directions made under subsection 15.0.3(1); or

(b) the corporation is satisfied that the interconnection of a person's works with the corporation's works could negatively impact power quality or the security or reliability of the supply of power.

Enforcement actions

15.0.5(2)   The corporation may take the following actions under subsection (1):

(a) refuse to connect the person's works with the corporation's works;

(b) disconnect the person's works from the corporation's works;

(c) refuse to supply, or limit the supply of, electricity to the person;

(d) refuse to provide, or limit the provision of, electricity transmission service to the person.

5           Section 16.3 is amended

(a) in clause (1)(a), by striking out "the North American Electric Reliability Council, Mid-Continent Area Power Pool or any other industry organization" and substituting "an industry organization"; and

(b) in clause (2)(b) of the English version, by striking out "the North American Electric Reliability Council, Mid-Continent Area Power Pool or any other industry organization" and substituting "an industry organization".

6           Subsection 24(1) is amended by striking out "and" at the end of clause (b), adding "and" at the end of clause (c) and adding the following after clause (c):

(d) enter upon any land or building to inspect, repair, alter or remove property or works, or take any other action necessary, for the purpose of enforcing the rules, terms and conditions, or directions made by the corporation under subsection 15.0.3(1) (interconnection of works of others with corporation's works).

PART 2

THE PUBLIC UTILITIES BOARD ACT

C.C.S.M. c. P280 amended

7           The Public Utilities Board Act is amended by this Part.

8           The following is added after section 130:

PART V

ELECTRICITY RELIABILITY

DEFINITIONS

Definitions

131         In this Part, "compliance body", "reliability standard" and "standards body" have the same meaning as in The Manitoba Hydro Act.

REVIEW OF FEES FOR STANDARDS BODY OR COMPLIANCE BODY

Advice to minister re fees

132(1)      The minister may at any time request advice and recommendations from the board respecting the fees payable to a standards body or compliance body in relation to the making or enforcement of reliability standards by those bodies, and associated activities of those bodies.

Information

132(2)      For the purpose of carrying out its responsibilities under this section, the board may consider the business plan, budget and funding mechanism of a standards body or compliance body, and is entitled to be provided with any information it requires.

REVIEW OF RELIABILITY STANDARDS

Application to review reliability standard

133(1)      Any person required to comply with a reliability standard or an amendment to a reliability standard that

(a) has been made by a standards body and adopted by regulation under subsection 15.0.1(1) of The Manitoba Hydro Act; or

(b) is proposed to be made by a standards body;

may apply to the board for a review of the reliability standard or amendment.

Board powers on review

133(2)      Upon completing the review, the board may, by order,

(a) confirm the reliability standard or amendment; or

(b) reject the reliability standard or amendment, in whole or in part, and remand it to the standards body for further consideration.

Reliability standard of no effect if remanded

133(3)      A reliability standard or amendment, or part of a standard or amendment, that is remanded under subsection (2) is of no effect in Manitoba, unless the board orders otherwise.

FINDING THAT RELIABILITY STANDARD VIOLATED

Request for determination

134(1)      When a compliance body considers that there has been an apparent violation of a reliability standard in Manitoba, it may request the board to make a determination about the violation and may recommend an appropriate penalty to the board.

Board order

134(2)      After considering a request under subsection (1), the board may, by order, determine that a person has violated a reliability standard in Manitoba and, where appropriate, impose a penalty for the violation, including a non-monetary sanction.

Factors

134(3)      In deciding on the imposition of a penalty, the board may consider any factor it considers appropriate, including, but not limited to, the desirability of a consistent approach to enforcing reliability standards throughout North America.

Only board may find non-compliance or order penalty

134(4)      No finding by a compliance body that a person has violated a reliability standard in Manitoba, and no imposition by a compliance body of a penalty for such a violation, is effective in Manitoba unless the board has made an order under subsection (2) determining that the violation has taken place or imposing the penalty.

Regulations re monetary penalty

134(5)      The Lieutenant Governor in Council may make regulations specifying to whom monetary penalties imposed under this section are to be paid.

GENERAL

Coordinating actions

135         The board may coordinate its actions under this Part with governmental and regulatory authorities outside Manitoba.

PART 3

COMING INTO FORCE

Coming into force

9           This Act comes into force on a day to be fixed by proclamation.