City of Lethbridge Electric Utility

Decision 21664-D01-2016

Code of Conduct Regulation Compliance Plan

December 22, 2016

Alberta Utilities Commission Decision 21664-D01-2016 City of Lethbridge Electric Utility Code of Conduct Regulation Compliance Plan Proceeding 21664 Application 21664-A001

December 22, 2016

Published by the: Alberta Utilities Commission Fifth Avenue Place, Fourth Floor, 425 First Street S.W. Calgary, Alberta T2P 3L8

Telephone: 403-592-8845 Fax: 403-592-4406

Website: www.auc.ab.ca

Contents

1 Introduction ...... 1

2 Code of conduct compliance plan ...... 1 2.1 Overview of the City of Lethbridge ...... 2 2.2 Historical electricity or gas usage ...... 3 2.3 Preventing unfair competitive advantage ...... 3 2.3.1 Affiliated provider reference ...... 3 2.3.2 Arrangements creating unfair competitive advantage ...... 6 2.3.3 Entity carrying more than one business ...... 7 2.4 Notice to the public ...... 9 2.4 Minor changes ...... 10

3 Commission findings ...... 11

4 Order ...... 12

Appendix 1 – City of Lethbridge Electric Utility Code of Conduct Regulation compliance plan ...... 14

Decision 21664-D01-2016 (December 22, 2016) • i

Alberta Utilities Commission Calgary, Alberta

City of Lethbridge Electric Utility Decision 21664-D01-2016 Code of Conduct Regulation Compliance Plan Proceeding 21664

1 Introduction

1. On May 31, 2016, the City of Lethbridge Electric Utility (City of Lethbridge) filed an application1 with the Alberta Utilities Commission requesting approval of its proposed code of conduct compliance plan prepared pursuant to Section 30(1) of the Code of Conduct Regulation.

2. The Commission issued a notice of application on June 3, 2016, requesting written submissions by June 17, 2016.2 No written submissions were received. After reviewing the City of Lethbridge’s application, the Commission determined that further information was required, and asked information requests (IRs) on October 21, 2016.3 The Commission received IR responses on November 14, 2016.4 Also on November 14, 2016, the City of Lethbridge filed a revised version of the compliance plan (revised compliance plan) that reflected changes necessitated by the IR responses.5

3. The Commission considers the record for this proceeding to have closed on November 14, 2016. In reaching the determinations set out within this decision, the Commission has considered all relevant materials comprising the record of this proceeding. Accordingly, references in this decision to specific parts of the record are intended to assist the reader in understanding the Commission’s reasoning relating to a particular matter and should not be taken as an indication that the Commission did not consider all relevant portions of the record with respect to a particular matter.

2 Code of conduct compliance plan

4. The Code of Conduct Regulation came into effect on January 1, 2016. Under Section 45(6) of the Code of Conduct Regulation, the City of Lethbridge, an electricity distributor and regulated rate supplier in Alberta, was required to file a compliance plan with the Commission in sufficient time for the Commission to consider and approve the compliance plan before January 1, 2017.

5. Under Section 30(1) of the Code of Conduct Regulation, a compliance plan must set out the systems, policies and mechanisms that the City of Lethbridge intends to use to ensure that the City of Lethbridge and its officers, employees, agents and contractors will comply with the Code of Conduct Regulation.

1 Exhibit 21664-X0001, City of Lethbridge Code of Conduct Plan Application May 2016, May 31, 2016. 2 Exhibit 21664- X0004, Notice of application, June 3, 2016. 3 Exhibit 21664-X0005, AUC Information Request to the City of Lethbridge, October 21, 2016. 4 Exhibit 21664-X0007, Information response Lethbridge-AUC-2016OCT21-001 to 036, November 14, 2016. 5 Exhibit 21664-X0008, City of Lethbridge Code of Conduct Compliance Plan, November 14, 2016.

Decision 21664-D01-2016 (December 22, 2016) • 1 Code of Conduct Regulation Compliance Plan City of Lethbridge Electric Utility

6. The City of Lethbridge’s revised compliance plan is modeled on the requirements of the Code of Conduct Regulation, conforms to the Commission’s code of conduct compliance plan template, and is organized into sections consistent with the Code of Conduct Regulation. The revised compliance plan sets out the systems, policies and mechanisms that the City of Lethbridge intends to use to ensure that it and its officers, employees, agents and contractors will comply with the Code of Conduct Regulation.

7. The revised compliance plan requires the City of Lethbridge employees, officers, agents and contractors, to participate in a formal training program designed to convey the requirements of the Code of Conduct Regulation and the revised compliance plan. Contraventions of the revised compliance plan may result in disciplinary action, up to and including termination of employment or a contract with the City of Lethbridge.

8. The Commission has reviewed the IR responses and the revised compliance plan. Some sections of the revised compliance plan require additional discussion and comment and are discussed below.

2.1 Overview of the City of Lethbridge 9. In the definition section of the revised compliance plan and in the answers to the Commission’s IRs, the City of Lethbridge described its structure and the responsibilities of departments to comply with the Code of Conduct Regulation requirements. Excerpts of this explanation from the IR Lethbridge-AUC-2016-OCT21-002(e) 6 are included here for the convenience of the reader and to establish the context for the discussion that follows.

(e) In the City of Lethbridge organizational structure, all business functions relating to electric distribution and RRO ultimately report to the Director of Infrastructure Services. More than a dozen municipal departments report to the Director of Infrastructure Services, but the two relevant departments are the Electric Utility and Utility Customer Care.

The Electric Utility manages four cost centres representing transmission, distribution, fibre optic, and RRO. All Electric Utility personnel are employees of the City of Lethbridge, but all personnel costs are recorded within the appropriate cost unit based on the responsibilities of the position. The Electric Utility Department also manages outsourcing contracts for the provision of wholesale billing (Cognera), load settlement (Enmax Commercial Services, formerly Valeo), and the technical and operational aspects of meter data management (Rodan Energy Services). The cost of the wholesale billing and load settlement contracts is recorded under the Distribution Department cost centre. The City does not provide office space or office support to the outsourcing providers and the City only provides outsourcing providers with data and information that is necessary to perform their respective tasks.

Utility Customer Care is responsible for maintaining Customer Information, a call centre, and RRO/RDS billing. Also, the cost of the meter data management contract is recorded under Utility Customer Care.

6 Exhibit 21664-X0007, Information response Lethbridge-AUC-2016OCT21-001 to 036, November 14, 2016, PDF page 8.

2 • Decision 21664-D01-2016 (December 22, 2016) Code of Conduct Regulation Compliance Plan City of Lethbridge Electric Utility

10. The City of Lethbridge has confirmed that it is a distributor as defined in Section 1(1)(f)(i) and a regulated rate supplier as defined in Section 1(1)(o) of the Regulation.7

2.2 Historical electricity or gas usage 11. In response to Commission IR Lethbridge-AUC-2016OCT21-013, which enquired about the timeline for disclosing historical usage information, the City of Lethbridge noted that a mechanism had been added to Section 12 to address the requirements, as follows:8

Mechanism: … 2. Usage information will be provided within five (5) working days of request.

12. Section 12(1) of the Code of Conduct Regulation states:

Historical electricity or gas usage 12(1) Where a distributor or regulated rate supplier receives a request from a retailer in writing or electronic form for disclosure of a customer’s historical electricity or gas usage information, the distributor or regulated rate supplier shall, within 3 business days after receiving the request, disclose to the retailer the customer’s electricity usage information or gas usage information for the previous 12-month period. [emphasis added]

13. The Commission finds that the wording of the City of Lethbridge’s proposed Mechanism 2 is directionally correct, but that the timeline should be within three business days, as required by the Code of Conduct Regulation, rather than within five days.

14. Section 31(1)(a) of the Code of Conduct Regulation allows the Commission to approve a compliance plan with changes and therefore, the Commission has revised the City of Lethbridge’s compliance plan mechanism from five working days to three working days and approves the following revised wording:

Mechanism: … 2. Usage information will be provided within three (3) working days of request.

15. The approved plan reflecting this change, and others in this decision, has been appended to this decision.

2.3 Preventing unfair competitive advantage 2.3.1 Affiliated provider reference 16. Section 17 of the Code of Conduct Regulation contains the following requirements:

17(1) A distributor and an affiliated provider of the distributor shall not make arrangements that create an unfair competitive advantage for the affiliated provider.

7 Exhibit 21664-X0007, Information response Lethbridge-AUC-2016OCT21-001 to 036, November 14, 2016, Lethbridge-AUC-2016-OCT21-001 (c) and (d), PDF page 5. 8 Exhibit 21664-X0007, Information response Lethbridge-AUC-2016OCT21-001 to 036, November 14, 2016, Lethbridge-AUC-2016-OCT21-013, PDF page 27.

Decision 21664-D01-2016 (December 22, 2016) • 3 Code of Conduct Regulation Compliance Plan City of Lethbridge Electric Utility

(2) A regulated rate supplier and an affiliated provider of the regulated rate supplier shall not make arrangements that create an unfair competitive advantage for the regulated rate supplier or the affiliated provider.

(3) An entity, including a rural electrification association, that carries on both the business of a distributor and the business of a regulated rate supplier or retailer shall not make an internal arrangement that creates an unfair competitive advantage for itself as a regulated rate supplier or retailer.

(4) An entity, including a rural electrification association, that carries on both the business of a regulated rate supplier and the business of a retailer shall not make an internal arrangement that creates an unfair competitive advantage for itself as a regulated rate supplier or retailer.

(5) A distributor or regulated rate supplier and an affiliated provider of the distributor or regulated rate supplier may make arrangements to create cost efficiencies in their operations if, in the opinion of the Commission, the arrangements do not create an unfair competitive advantage for the regulated rate supplier or the affiliated provider.

(6) An entity referred to in subsection (3) or (4) may make internal arrangements to create cost efficiencies in its operations if, in the opinion of the Commission, the arrangements do not create an unfair competitive advantage for the entity as a regulated rate supplier or retailer.

17. In the compliance plan filed with its application, the City of Lethbridge described its relationships as follows:9

The City of Lethbridge has contractual arrangements with Contract entities to provide a variety of services including meter data management, meter services, load settlement, wholesale billing, service order management, electric regulated rate tariff and electric default supply matters, retail billing services, and related customer care matters.

18. In light of the role of each department discussed in Section 2.1 of this decision (utility customer care, utility distribution, and RRO), the Commission acknowledges that the City of Lethbridge is the regulated rate supplier as well as the distributor.

19. In its response to IR Lethbridge-AUC02016-OCT-21-018,10 the City of Lethbridge submitted that its interpretation of Subsection 1(1)(a)(i)(B) is that “the City of Lethbridge’s RRO function is an affiliated regulated rate supplier to the City of Lethbridge’s Electric Utility Distribution cost centre, even though there is one legal entity”, and “at first glance, this interpretation would not be the case because part (B) refers to a ‘regulated rate supplier that is authorized by the distributor’ and the City [of Lethbridge] has not authorized any other party to provide the RRO.”

20. Further in its response, the City of Lethbridge acknowledged that if it assumed that the RRO function is an affiliated regulated rate supplier of the distribution cost centre, the anti-

9 Exhibit 21664-X0001, City of Lethbridge Code of Conduct Plan Application May 2016, May 31, 2016, PDF page 4. 10 Exhibit 21664-X0007, Information response Lethbridge-AUC-2016OCT21-001 to 036, Lethbridge-AUC-2016- OCT21-018, PDF page 35, November 14, 2016.

4 • Decision 21664-D01-2016 (December 22, 2016) Code of Conduct Regulation Compliance Plan City of Lethbridge Electric Utility

competitive and other similar provisions of the Code of Conduct Regulation and the compliance plan would apply.

21. The Commission is satisfied with the City of Lethbridge’s explanations of the relationship of the affiliated provider. It recognizes that the City of Lethbridge is the entity that provides electric distribution and regulated rate supplier functions and that it does not engage in any sales or marketing. Therefore, the assumption that the City of Lethbridge’s RRO function is an affiliated regulated rate supplier of the distribution cost centre is not necessary to comply with the provisions of the Code of Conduct Regulation, and specifically sections 17, 18 and 23.

22. Section 31(1)(a) of the Code of Conduct Regulation permits the Commission to approve a compliance plan with changes. In order to promote regulatory efficiency, the Commission has changed the revised compliance plan, as indicated below, by removing the reference to an affiliated provider in Section 17, by removing the entire Mechanism 2 in Section 18, and by replacing the reference of the affiliated provider in Section 23 with the reference to the City of Lethbridge’s RRO function (changes are marked in bold, underline and strikethrough):

17.0 Arrangements creating unfair competitive advantage prohibited

Policy: The City of Lethbridge will not make any arrangements that create an unfair competitive advantage for the Affiliated Provider.

Mechanisms 1. Subject to arrangements that are permitted under Section 17(6) of the regulation, the City of Lethbridge will not make any arrangements that create an unfair competitive advantage for the Affiliated Provider. 2. …..

18.0 Information Sharing …

Mechanisms 1. The City of Lethbridge does not disclose Customer Information without written consent of the Customer as per the Regulation. Request for information form is available on city website. 2. Any information that is not Customer Information shared between the Distributor and Affiliated Provider fall under Section 17(6) and is not used for sales of marketing purposes. ….

23.0 Entities carrying on more than one business …

Mechanisms

1. Information that is not Customer Information shared between the Distributor and affiliated Provider the RRO function is not used for sales of marketing purposes. …

23. The Commission has made the above- noted changes to the compliance plan appended to this decision. Should the City of Lethbridge wish to use alternative wording for the compliance

Decision 21664-D01-2016 (December 22, 2016) • 5 Code of Conduct Regulation Compliance Plan City of Lethbridge Electric Utility

policies and mechanisms, it may file an application for a new compliance plan reflecting such preferred wording.

2.3.2 Arrangements creating unfair competitive advantage 24. In IR response Lethbridge-AUC-2016-OCT-21-018, the City of Lethbridge clearly described its role in meeting the requirement to prevent any unfair competitive advantage as quoted below: 11

However, the City’s proposed Code of Conduct should reasonably address all relevant issues, as the balance of the information responses should demonstrate. The most important and most relevant principal is that the City does not have any interest, financial or otherwise, in the competitive retail market. The City therefore has no interest, perceived or otherwise, to provide a competitive advantage to any competitive retailer.

Moreover, Section 17 of the Code of Conduct Regulation explicitly permits certain transactions in Subsection 5 in the following terms: “A distributor or regulated rate supplier and an affiliated provider of the distributor or regulated rate supplier may make arrangements to create cost efficiencies in their operations if, in the opinion of the Commission, the arrangements do not create an unfair competitive advantage for the regulated rate supplier or the affiliated provider”. The “transactions” that exist (including those of the nature described in Section 20.0) are merely a fair and transparent cost allocation that allows for the sharing of efficiencies that exist for the distributor.

25. The framework set out in the currently in-force Code of Conduct Regulation transplants the prohibition of creating an unfair competitive advantage from the previous Code of Conduct Regulation (Electric Utilities Act), AR 160/2003 and the Code of Conduct Regulation (Gas Utilities Act), AR 183/2003 (the previous regulations). The previous regulations set out the prohibition against the creation of an unfair competitive advantage in Section 19 of each regulation. The sections that followed discussed the specific instances where an unfair competitive advantage would exist, including sharing of customer information (Section 20 of the previous regulations), joint acquisitions, research and dispositions (Section 22 of the previous regulations), goods and services transactions (Section 23 of the previous regulations) and financial transactions (Section 24 of the previous regulations). These provisions of the previous regulations also carved out exemptions to a deemed unfair competitive advantage in the event certain circumstances existed or certain controls were in place.

26. The currently in-force Code of Conduct Regulation re-establishes in Section 17 that the creation of an unfair competitive advantage is prohibited. As in the previous regulations, the sections that follow provide guidance for positive identification of unfair competitive advantages and specify carve-out exemptions to the prohibition as it relates to information sharing (Section 18), acquisitions, research and dispositions (Section 20), goods and services transactions (Section 21), and financial transactions (Section 22). Section 23 provides similar guidance and exemptions to the prohibition specifically for entities carrying on more than one business. Together, sections 18 and 20 through Section 23 provide that an entity is deemed to have created an unfair competitive advantage unless it demonstrates that certain enumerated circumstances or controls exist.

11 Exhibit 21664-X0007, Information response Lethbridge-AUC-2016OCT21-001 to 036, Lethbridge-AUC-2016- OCT21-018, PDF page 37, November 14, 2016.

6 • Decision 21664-D01-2016 (December 22, 2016) Code of Conduct Regulation Compliance Plan City of Lethbridge Electric Utility

27. In addition to these exemptions, the Code of Conduct Regulation now regulates a previously un-regulated category of arrangements to create cost efficiencies which are addressed by subsections 17(5) and (6). Implicitly, these arrangements do not relate to one of the types of arrangements that create an unfair competitive advantage where the circumstances or controls exist, as enunciated in sections 18 and 20 through 22 or Section 23. It is this category of arrangement which now attracts the need to seek the opinion of the Commission that the arrangement does not create an unfair competitive advantage.

28. The Commission therefore considers that Section 17(6) requires an opinion of the Commission with respect to both existing and future arrangements and that mechanisms have to be added to Section 17 of the revised compliance plan in order to comply with this requirement. As indicated above in this decision, Section 31(1)(a) of the Code of Conduct Regulation permits the Commission to approve a compliance plan with changes. In order to promote regulatory efficiency, the Commission has changed the revised compliance plan as indicated below by adding the mechanisms to explicitly seek Commission opinion for arrangements that are not covered under Section 18 or Section 23:

3. In the event an arrangement of the type described in Section 17(6) of the Code of Conduct Regulation is not explicitly exempted as not creating an unfair competitive advantage by Section 18 or Section 23 of the Regulation, the City of Lethbridge will promptly notify the Commission, in writing, of the existing arrangement and will request an opinion of the Commission as to whether the existing arrangement creates an unfair competitive advantage. In the event that the Commission determines that an existing arrangement does create a prohibited unfair competitive advantage, the City of Lethbridge will modify or terminate the arrangement in accordance with the directions of the Commission.

4. In the event an arrangement of the type described in Section 17(6) of the Regulation is not explicitly exempted as not creating an unfair competitive advantage by Section 18 or Section 23 of the Regulation, the City of Lethbridge will notify the Commission, in writing, of the proposed arrangement before such arrangement takes effect and will request an opinion of the Commission as to whether the proposed arrangement would create an unfair competitive advantage.

29. The Commission has made this change to the compliance plan appended to this decision. Should the City of Lethbridge wish to use alternative wording for the compliance policies and mechanisms, it may file an application for a new compliance plan reflecting such preferred wording.

2.3.3 Entity carrying more than one business 30. In response to Commission IR Lethbridge-AUC-2016-OCT21-02412 regarding entities carrying more than one business, the City of Lethbridge addressed the provisions of Subsection 23(1) and stated that “it considers that it would be more expedient and more in keeping with the spirit and intent of the Code of Conduct Regulation to clarify in the City [of Lethbridge]’s Compliance Plan that it does not market or promote the RRO.”

12 Exhibit 21664-X0007, Information response Lethbridge-AUC-2016OCT21-001 to 036, Lethbridge-AUC-2016- OCT21-024 (a), PDF page 46, November 14, 2016.

Decision 21664-D01-2016 (December 22, 2016) • 7 Code of Conduct Regulation Compliance Plan City of Lethbridge Electric Utility

31. Further, the City of Lethbridge submitted that it interprets13 Section 21 (goods and services transactions) and Section 22 (financial transactions) of the Code of Conduct Regulation, as not applicable, because both sections refer to “transactions that would give an unfair competitive advantage to an ‘affiliated provider’” and do not refer to an entity such as the City of Lethbridge, which is a single legal entity that provides electric distribution and regulated rate supplier services. In its IR response, the City of Lethbridge confirmed that although the sections of the Code of Conduct Regulation referred to are not applicable, the “…financial records should be available and auditable” and that “[a]ll cost to provide electric distribution and RRO are recorded to the appropriate cost centre and such records are retained” 14 as described in Section 28 of the revised compliance plan.

32. Section 23 of the Code of Conduct Regulation specifically applies to such entities and provides guidance for what constitutes an internal arrangement that creates an unfair competitive advantage. It states:

23(1) For the purposes of section 17(3), an internal arrangement under which an entity that carries on both the business of a distributor and the business of a regulated rate supplier or retailer uses information that it obtains in carrying on business as a distributor for sales or marketing purposes in carrying on business as a regulated rate supplier or retailer is deemed to be an arrangement that creates an unfair competitive advantage for the entity as a regulated rate supplier or retailer. … (3) For the purposes of section 17(3), an internal arrangement under which an entity that carries on both the business of a distributor and the business of a regulated rate supplier or retailer records or allocates between those businesses the economic benefits or costs associated with (a) an acquisition, (b) research and development, or (c) a disposition of property so that the economic benefits or costs attributable to those respective businesses is not accurately reflected is deemed to an arrangement that creates an unfair competitive advantage for the entity as a regulated rate supplier or retailer.

33. The mechanisms that the City of Lethbridge included in Section 23 of its revised compliance plan focused on Subsection (1) of that section but did not specifically address Subsection (3).

34. If the City of Lethbridge was an entity described by sections 17(1) or 17(2) of the Code of Conduct Regulation, it would be obligated to comply and provide systems and mechanisms for sections 20 through 22 of the Code of Conduct Regulation. Sections 20, 21 and 22 would provide exemptions to the blanket prohibition against arrangements that create an unfair competitive advantage.

35. Given that the City of Lethbridge is an entity described by Section 17(3) of the Code of Conduct Regulation, the Commission agrees that the mechanisms are misplaced in Section 20 of

13 Exhibit 21664-X0007, Information response Lethbridge-AUC-2016OCT21-001 to 036, Lethbridge-AUC-2016- OCT21-021 (a), PDF page 43, November 14, 2016. 14 Exhibit 21664-X0007, Information response Lethbridge-AUC-2016OCT21-001 to 036, Lethbridge-AUC-2016- OCT21-021 (b), PDF page 52, November 14, 2016.

8 • Decision 21664-D01-2016 (December 22, 2016) Code of Conduct Regulation Compliance Plan City of Lethbridge Electric Utility

the revised compliance plan, and should be included in the properly applicable Section 23. Similar to other sections of this decision, for the sake of regulatory efficiency, the Commission has included the mechanism, set out below, as Mechanism 3 of Section 23 of the approved compliance plan, appended to this decision.

3. All City of Lethbridge’s transactions for joint acquisitions, shared costs or expenses associated with research and development, or selling, leasing or disposing of jointly acquired property are fairly and transparently recorded, as per the City of Lethbridge policies.

36. The Commission acknowledges that the City of Lethbridge has included policies and mechanisms for sections 21 and 22, although it has submitted that those sections do not apply to it. The Commission is supportive of the City of Lethbridge’s proposal to keep the mechanisms in the plan.

2.4 Notice to the public 37. Under Section 34(1) of the Code of Conduct Regulation, “[e]ach distributor, regulated rate supplier and affiliated provider of a distributor or regulated rate supplier shall give notice to the public in accordance with its compliance plan that complaints about contraventions of this Regulation may be made to the Commission or the Market Surveillance Administrator.” In IR response Lethbridge-AUC-2016OCT21-033,15 the City of Lethbridge confirmed that “it will post the notice for approval by Commission on its website”, but the actual wording for the notice was not provided.

38. As noted earlier, Section 31(1)(a) of the Code of Conduct Regulation states that the Commission has the authority to approve a compliance plan with changes. Therefore, the Commission has amended the City of Lethbridge’s revised compliance plan to include the following wording for the notice that should be posted on the website, which is the wording used by the Commission in its code of conduct template for varied compliance plans:

2. City of Lethbridge will ensure the following notice is available to all Customers on its website:

Complaints about contraventions of the Code of Conduct Regulation may be made to the Alberta Utilities Commission or the Market Surveillance Administrator. The Alberta Utilities Commission can be reached by contacting 1-780-427-4903 or [email protected]. The Market Surveillance Administrator can be reached by contacting 1-403-705-3181 or [email protected]. The Alberta Utilities Commission and the Market Surveillance Administrator are independent of City of Lethbridge and any regulated rate supplier or affiliated provider.

39. This wording has been included as Mechanism 2 of Section 34 of the compliance plan. As mentioned earlier, should the City of Lethbridge wish to use alternative wording for the compliance mechanism, it may file an application for a new compliance plan reflecting such preferred wording.

15 Exhibit 21664-X0007, Information response Lethbridge-AUC-2016OCT21-001 to 036, Lethbridge-AUC-2016- OCT21-033, PDF page 66, November 14, 2016.

Decision 21664-D01-2016 (December 22, 2016) • 9 Code of Conduct Regulation Compliance Plan City of Lethbridge Electric Utility

40. The Commission notes that should the City of Lethbridge voluntarily provide notice about complaints or contraventions of the Code of Conduct Regulation on customer bills, the City of Lethbridge must use the paragraph above. The City of Lethbridge should also make clear that any questions related specifically to customer bills should be directed to the City of Lethbridge, and not to the AUC or the Market Surveillance Administrator (MSA).

2.4 Minor changes 41. The City of Lethbridge indicated in certain IR responses that it agreed to or had made a number of changes; however, the agreed-to changes were not reflected in the revised compliance plan. In order to promote regulatory efficiency, the Commission has made the changes noted below in the plan appended to this decision. Rather than discuss each change in a separate section, the following table provides references to the IR responses, revised wording, and an explanation of the deficiency. The directed changes are noted with underline, bold, and strikethrough.

42. While reviewing the proposed compliance plan, the Commission also identified minor edits which it has addressed in the table.

Revised compliance Information request Revised content/wording Explanation plan reference16 response reference

Purpose; Lethbridge-AUC-2016OCT- Purpose, paragraph 3: An editorial error occurred when 21-008 incorporating the change for the Section 3.0; The purpose of this reference to “ officers, Section 38.0; Compliance Plan is to employees, agents and/or establish the systems, contractors”. The Commission policies, and mechanisms has corrected the error that The the City of throughout the compliance plan, Lethbridge will use to ensure including Section 3.0 and Section compliance with the Code of 38.0. Conduct by The the City of Lethbridge officers, employees, officers, agents and/or contractors, agents and contractors. …

Definition Lethbridge-AUC-2016OCT- d) AUC Rule 030 means The City of Lethbridge changed 21-036 AUC Rule 030: Compliance the appropriate name of the with the Code of Conduct regulation but not the proper Regulation name of the rule.

Section 14, Lethbridge-AUC-2016OCT- “City of Lethbridge Terms The City of Lethbridge indicated mechanism 2; 21-004 and Conditions” in the response that it had made the revision as requested. The Commission noted that the majority of the instances were changed but the few that were missed, were changed by the Commission.

16 Exhibit 21664-X0008, City of Lethbridge Code of Conduct Compliance Plan, November 14, 2016.

10 • Decision 21664-D01-2016 (December 22, 2016) Code of Conduct Regulation Compliance Plan City of Lethbridge Electric Utility

Section 19 Lethbridge-AUC-2016OCT- 19.0 Retailer seeking In its IR response, the City of 21-020 Customer information Lethbridge submitted that it does not engage in sales and Policy: The City of marketing activities and that a Lethbridge will not seek or mechanism in not required. The receive Customer Commission agrees that the City Information from a current of Lethbridge does not have a or former officer, competitive retailer function. In employee, agents or order to make Section 19 of the contractor of the City of revised compliance plan Lethbridge for sales or consistent with the IR response, marketing purposes. the Commission has revised the Mechanisms wording as indicated. 1. Not applicable – the City of Lethbridge has not and will not engage in any sales of marketing activities, or otherwise work to grow or retain Customers on the Regulated Rate Tariff. Section 30 30.0 Compliance Plan The Commission has revised the Required wording as indicated to include the name of the section and Policy: The City of delete the extra reference to the Lethbridge will develop City of Lethbridge. compliance training material that will be used to train officers, employees, officers, agents and/or contractors, agents and contractors of the City of Lethbridge and the City of Lethbridge on the provisions of the Regulation, the Compliance Plan, and their duties and responsibilities. …

Section 32, Lethbridge-AUC-2016OCT- 3. The City of Lethbridge will The Commission has revised the mechanism 3 21-031 notify employees, agents wording as proposed. officers and contractors of any amendments approved by the AUC as soon within 30 days of the approval.

3 Commission findings

43. Section 31(1) of the Code of Conduct Regulation allows the Commission to:

(a) approve a compliance plan, with or without changes and with or without conditions, ….

Decision 21664-D01-2016 (December 22, 2016) • 11 Code of Conduct Regulation Compliance Plan City of Lethbridge Electric Utility

44. The Commission accepts the changes the City of Lethbridge has made to its compliance plan in response to the Commission’s IRs. However, in accordance with the discussion above, the Commission has made additional modifications to the City of Lethbridge’s revised compliance plan in order that the compliance plan sufficiently addresses each of the requirements of the Code of Conduct Regulation.

45. Accordingly, the Commission approves the City of Lethbridge’s revised compliance plan, with the changes made by the Commission and discussed above, as attached to this decision as Appendix 1.

46. Section 31(4) of Code of Conduct Regulation also requires:

31(4) Each distributor, regulated rate supplier and affiliated provider of a distributor or regulated rate supplier shall, as soon as practicable after receiving the Commission’s approval of its compliance plan, send a copy of the compliance plan

(a) in the case of a distributor or regulated rate supplier, to the affiliated provider of the distributor or regulated rate supplier,

(b) in the case of an affiliated provider of a distributor or regulated rate supplier, to the distributors or regulated rate suppliers of which it is an affiliated provider, and

47. The Commission directs the City of Lethbridge to provide copies of the approved plan to its officers, employees, agents and contractors affected by the plan and to post a copy on its website.

48. The Commission reminds the City of Lethbridge that, in accordance with Rule 030: Compliance with the Code of Conduct Regulation and Section 33 of the Code of Conduct Regulation, the City of Lethbridge is required to file a compliance report with the Commission within 30 days of becoming aware of an incident of non-compliance with the Code of Conduct Regulation or its revised compliance plan. In addition, the annual compliance report is due 90 days following the end of each calendar year, with the first report due in March 2018 for the 2017 calendar year. For ease of reference, draft templates for the reports are posted on the Commission’s website under Rule 030.

49. These documents should be filed as reports in the AUC’s eFiling System as ‘Code of conduct regulation – self reporting’ or ‘Code of conduct regulation – annual compliance report’.

4 Order

50. It is hereby ordered that:

(1) The Commission approves the City of Lethbridge Electric Utility compliance plan, as attached to this decision as Appendix 1, effective January 1, 2017.

12 • Decision 21664-D01-2016 (December 22, 2016) Code of Conduct Regulation Compliance Plan City of Lethbridge Electric Utility

(2) The Commission approves the wording for the notice to be posted on the City of Lethbridge Electric Utility website in accordance with Section 34 of the Code of Conduct Regulation:

Dated on December 22, 2016.

Alberta Utilities Commission

(original signed by)

Anne Michaud Commission Member

Decision 21664-D01-2016 (December 22, 2016) • 13 Code of Conduct Regulation Compliance Plan City of Lethbridge Electric Utility

Appendix 1 – City of Lethbridge Electric Utility Code of Conduct Regulation compliance plan

City of Lethbridge Code of Conduct Compliance Plan.pdf (contains 22 pages)

14 • Decision 21664-D01-2016 ( December 22, 2016)

The City of Lethbridge Electric Utility

Compliance Plan to Code of Conduct Regulation

AUC Approval Date THE CITY OF LETHBRIDGE Code of Conduct Regulation Compliance Plan

PURPOSE ...... 3

PART 1 INTERPRETATION ...... 4

1.0 DEFINITIONS ...... 4 PART 2 CONDUCT AND BUSINESS PRACTICES ...... 6

3.0 CONDUCT ...... 6 DIVISION 1 CUSTOMERS ...... 6

4.0 TYING PROHIBITED ...... 6 5.0 TRANSFER OF CUSTOMERS ...... 7 6.0 PROHIBITED REPRESENTATIONS ...... 7 8.0 MEETINGS BETWEEN DISTRIBUTORS OR REGULATED RATE SUPPLIERS WITH RETAILERS AND CUSTOMERS ...... 8 DIVISION 2 CUSTOMER INFORMATION ...... 8

9.0 CONFIDENTIALITY OF CUSTOMER INFORMATION ...... 8 10.0 DISCLOSURE OF CUSTOMER INFORMATION ...... 9 11.0 CONDITIONS ON DISCLOSURE OF CUSTOMER INFORMATION ...... 9 12.0 HISTORICAL ELECTRICITY USAGE ...... 10 13.0 AGGREGATED CUSTOMER INFORMATION ...... 10 DIVISION 3 BUSINESS PRACTICES OF DISTRIBUTORS AND REGULATED RATE SUPPLIERS ...... 11

14.0 EQUAL TREATMENT OF RETAILERS ...... 11 15.0 PROHIBITIONS ...... 11 PART 3 ...... 12 RELATIONSHIPS AMONG DISTRIBUTORS, REGULATED RATE SUPPLIERS AND AFFILIATED PROVIDERS ...... 12 DIVISION 1 ...... 12 PREVENTING UNFAIR COMPETITIVE ADVANTAGE ...... 12

17.0 ARRANGEMENTS CREATING UNFAIR COMPETITIVE ADVANTAGE PROHIBITED ...... 12 18.0 INFORMATION SHARING ...... 13 19.0 RETAILER SEEKING CUSTOMER INFORMATION ...... 13 20.0 ACQUISITIONS, RESEARCH AND DISPOSITIONS ...... 13 21.0 GOODS AND SERVICES TRANSACTIONS TO BE AT FAIR MARKET VALUE ...... 14 22.0 FINANCIAL TRANSACTIONS ...... 14 23.0 ENTITIES CARRYING ON MORE THAN ONE BUSINESS ...... 14 24.0 ACCESS TO PUBLICLY AVAILABLE INFORMATION ...... 15 DIVISION 2 RECORDS AND ACCOUNTS ...... 15

25.0 RECORDS AND ACCOUNTS ...... 15 26.0 WRITTEN FINANCIAL TRANSACTIONS ...... 15 27.0 RECORDS OF TRANSACTIONS FOR GOODS AND SERVICES ...... 16

Code of Conduct Regulation Template Compliance Plan – AUC Approval Date 1 28.0 MAINTAINING RECORDS ...... 16

PART 4 COMPLIANCE REQUIREMENTS ...... 16 DIVISION 1 COMPLIANCE PLANS AND COMPLIANCE REPORTS ...... 16

30.0 PROHIBITION AGAINST PROVIDING RETAIL ENERGY SERVICES WITHOUT APPROVED COMPLIANCE PLAN...... 16 31.0 APPROVAL BY COMMISSION ...... 17 32.0 CHANGES TO COMPLIANCE PLAN ...... 17 33.0 QUARTERLY AND ANNUAL COMPLIANCE REPORTS ...... 18 34.0 INFORMATION ABOUT COMPLAINTS ...... 18 DIVISION 2 ...... 18 VARYING ARRANGEMENTS ...... 18

37.0 ALTERNATIVE COMPLIANCE ARRANGEMENTS ...... 19 38.0 EMERGENCY EXCEPTIONS ...... 19 DIVISION 3 ...... 19 COMPLIANCE AUDIT ...... 19

39.0 APPOINTMENT OF AUDITOR ...... 19 40.0 AUDIT ...... 19 41.0 AUDIT REPORT ...... 19 DIVISION 4 INVESTIGATIONS ...... 20

42.0 REFERRAL OF MATTERS TO MSA ...... 20 43.0 NOTICE TO COMMISSION OF MSA INVESTIGATIONS ...... 20

PART 5 TRANSITION PROVISIONS, REPEAL AND COMING INTO FORCE ...... 20

45.0 APPROVALS UNDER CODE OF CONDUCT REGULATION (AR 160/2003) ...... 20 46.0 APPROVALS UNDER CODE OF CONDUCT REGULATION (AR 183/2003) ...... 20 47.0 CONSENTS CONTINUED ...... 20 48.0 MARKET SURVEILLANCE AND COMMISSION DUTIES ...... 20 49.0 REPEAL ...... 21 50.0 EXPIRY ...... 21 51.0 COMING INTO FORCE ...... 21

Code of Conduct Regulation Template Compliance Plan – AUC Approval Date 2

THE CITY OF LETHBRIDGE Code of Conduct Regulation Compliance Plan

Purpose

The City of Lethbridge, as defined by the Electric Utilities Act, is both a Transmission Facility Owner (TFO) and a Distribution Facility Owner (DFO). As a DFO, the City of Lethbridge provides distribution services including a Regulated Rate Option and Regulated Default Supply for electric energy. The City of Lethbridge has service agreements in place with Retailers to offer retail services in the Lethbridge settlement zone.

Relationships

The City of Lethbridge has contractual arrangements with contractors to provide a variety of services including meter data management, meter services, load settlement, wholesale billing, service order management, electric regulated rate tariff and electric default supply matters, retail billing services, and related Customer care matters. The City of Lethbridge provides copies of the Compliance Plan when contracts are negotiated and provides updated Compliance Plans. The City is responsible for Code of Conduct compliance for the activities of the contractors. The City requires the contractors to abide by the Code of Conduct and all other relevant laws in respect of the services contracted.

The purpose of this Compliance Plan is to establish the systems, policies, and mechanisms that the City of Lethbridge will use to ensure compliance with the Code of Conduct by the City of Lethbridge officers, employees, agents and/or contractors. Contraventions of the Compliance Plan by individuals may result in disciplinary action, up to and including termination of employment or contract with The City of Lethbridge.

This Compliance Plan describes certain obligations and responsibilities of specified The City of Lethbridge management personnel. Notwithstanding this, and without otherwise reducing or eliminating the obligation and responsibility of the specified The City of Lethbridge management personnel to ensure any specific requirements of this Compliance Plan are satisfied, it is understood that all or a portion of the tasks described in this Compliance Plan may be delegated by the specified The City of Lethbridge management personnel to other The City of Lethbridge personnel.

Code of Conduct Regulation Template Compliance Plan – AUC Approval Date 3 Questions or comments concerning the Compliance Plan should be directed to the City of Lethbridge Compliance Officer (the Compliance Officer). Contact information for the Compliance Officer and a copy of the Compliance Plan are available at www.lethbridge.ca.

The numbering used in the Compliance Plan is consistent with the numbering used in the Regulation.

Part 1 Interpretation

1.0 Definitions

Capitalized words and phrases used in the City of Lethbridge Code of Conduct Compliance Plan shall have the meanings set out in the Code of Conduct Regulation (hereafter referred to as the Regulation). In the event of any inconsistency in the definitions between the Regulation and the Compliance Plan, the Regulation definitions will prevail. a) Annual Compliance Report contains:  any non-compliance with the Regulation or the Compliance Plan;  the action taken to remedy the non-compliance;  any complaints of non-compliance with the Regulation or the Compliance Plan, and how the complaints have been addressed. b) AUC or Commission means the Alberta Utilities Commission. c) AUC Rule 010 means AUC Rule 010: Rules on Standards for Requesting and Exchanging Site- Specific Historic Usage Information for Retail Electricity and Natural Gas Markets Rules. d) AUC Rule 030 means AUC Rule 030: Compliance with the Code of Conduct Regulation. e) Compliance Officer means an officer of The City of Lethbridge who is responsible and accountable for The City of Lethbridge compliance with the Code of Conduct Regulation Compliance Plan as approved by the AUC, made under the authority of the Regulation f) Compliance Plan means the Plan, put forward by the City of Lethbridge an approved by the AUC, for complying with Code of Conduct Regulation. g) Compliance Plan Committee means a committee composed of at least the following The City of Lethbridge personnel:  Electric Utility Manager  Rates & Regulatory Manager (reporting to the Electric Utility Manager).  Compliance Officer (if not one of the above); and  Utility Services Manager. h) Compliance Report contains:  any non-compliance with the Regulation or the Compliance Plan;  the action taken to remedy the non-compliance; and  any complaints of non-compliance with the Regulation or the Compliance Plan, and how the complaints have been addressed.

Code of Conduct Regulation Template Compliance Plan – AUC Approval Date 4 i) Electric Utility Department provides electrical utility services within the City of Lethbridge. It is comprised of four cost centres representing transmission, distribution, fibre optic, and RRO. j) Regulated Rate Option (RRO) is provided by the Distributor to those Customers who choose not to purchase energy from a Retailer and whose annual consumption is less than 250 MWh per year. k) Regulated Default Supply Option (RDS) Customer is a Customer who chooses not to purchase energy from a Retailer and whose annual consumption is more than 250 MWh per year. l) The City of Lethbridge Term and Conditions means the City of Lethbridge The City of Lethbridge Term and Conditions for Service: a document defining expectations for Distributor services. The City of Lethbridge Term and Conditions are available at www.lethbridge.ca/living-here/electric m) Utility Customer Care refers to the City of Lethbridge department that accepts payments for all City of Lethbridge utility services including electric, water, waste water and recycling. Said department is first line response for billing inquiries. n) As per AUC Rule 010 definitions, Representation and Warrant document means a document executed by a retailer and filed with a distributor providing a framework within which a distributor does not have to evaluate customer consent documentation.

2.0 N/A – retained for numbering consistency.

Code of Conduct Regulation Template Compliance Plan – AUC Approval Date 5 Part 2 Conduct and Business Practices

3.0 Conduct

Policy: The City of Lethbridge officers, employees, agents and/or contractors will conduct themselves and their activities so as to comply with and to ensure compliance with the Regulation and the Compliance Plan.

Mechanisms

1. The City of Lethbridge will provide Code of Conduct training to new contractors of the Electric Department or in Utility Customer Care before new contracts for service are finalized. 2. The City of Lethbridge will provide Code of Conduct training to all new employees, officers, and agents working in the Electric Department or in Utility Customer Care as part of their personnel training. 3. The City of Lethbridge will provide an annual refresher on the Code of Conduct for those employees, officers, agents and/or contractors working in the Electric Department or in Utility Customer Care. Training regarding updates to the Code of Conduct is provided within 30 days of AUC approved updates.

Division 1 Customers

4.0 Tying prohibited

Policy: The City of Lethbridge will not require or induce Customers to acquire goods or services from The City of Lethbridge (RRO service) or any other Retailer by making or appearing to make Regulated Energy Services conditional on the acquisition of those goods or services.

Mechanisms

1. As per the Regulated Rate Option Regulation 262/2005, as a Distributor, the City of Lethbridge provides energy to those Customers who do not choose a Retailer. 2. New Customers are referred to Utilities Consumer Advocate (UCA) Helps website for list of Retailers. New customers may be referred by Utility Customer Care employees, officers, agents and/or contractors or by Electric Department employees, officers, agents and/or contractors by phone, email or website.

Code of Conduct Regulation Template Compliance Plan – AUC Approval Date 6 3. Employees, officers, agents and contractors of the Electric Department and Utility Customer Care Department will be made aware of and comply with the tying prohibition through the Compliance training described in Section 3.0. 4. Customer concerns regarding any issues related to the linking of Distributor services and Retailers services may contact the Electric Department at [email protected] or by phoning (403) 320-4057.

5.0 Transfer of Customers

Policy: The City of Lethbridge will not, without the Customer’s consent, transfer the customer to a Retailer or Retail Energy Services tariff.

Mechanisms

1. The City of Lethbridge will only transfer customers to a competitive Retailer or to the Regulated Rate Option upon receipt of notification as per AUC Settlement System Code Rules. 2. Code of Conduct training included in Section 3.0 training addresses the requirement that customers are not to be transferred without their consent.

6.0 Prohibited representations

Policy: The City of Lethbridge will not represent or imply in any way in communications with customers or the public, that present or future customers of The City of Lethbridge will receive treatment from The City of Lethbridge that is different from the treatment received by present or future Customers of other Retailers.

Mechanisms

1. Only employees, officers, agents and/or contractors who work in Rates and Regulatory or in Utility Customer Care have the ability to access information on which customers are with a Retailer and which are provided with Regulate Rate energy. 2. Employees, officers, agents and/or contractors who provide the physical build and maintenance of infrastructure do not have access to information that would indicate whether a Distributor customer is with a Retailer or not. 3. All Customers requesting new service are directed to the UCA Helps website for a list of Retailers. 4. All Customers who contact the City of Lethbridge regarding energy services are directed to the UCA website. 5. Employees, officers, agents and contractors of the Electric Department and Utility Customer Care Department will be made aware of the obligations under Section 6.0 through the Compliance Training described in Section 3.0.

Code of Conduct Regulation Template Compliance Plan – AUC Approval Date 7

7.0 Advertising: this section does not apply. The City of Lethbridge does not have any affiliated Retailers or engage in any sale and marketing activities, including advertising.

8.0 Meetings between Distributors or regulated rate suppliers with Retailers and Customers

Policy: The City of Lethbridge will make reasonable efforts to be equally available to all Retailers for joint meetings with Retailers and Retailer’s customers.

Mechanisms

1. The City of Lethbridge is equally available to all Retailers for joint meetings with Retailers and Retailer’s Customers subject only to normal scheduling and timing conflicts that may occur from time to time. The City of Lethbridge will commit to meeting with Retailers and Retailer’s Customers within 15 business days of receiving a request to meet. 2. The City of Lethbridge will keep track of meetings with Retainers and Retailer’s customers and ensure that records are available for audit purposes.

Division 2 Customer Information

9.0 Confidentiality of Customer information

Policy: The City of Lethbridge will protect the confidentiality of Customer Information and not disclose Customer information except in accordance with the Regulation.

Mechanisms

Code of Conduct Regulation Template Compliance Plan – AUC Approval Date 8 all municipal employees sign a oath of confidentiality upon commencement of their employment. 4. The City of Lethbridge will only disclose Customer Information after the customer has submitted a consent form. 5. The City of Lethbridge will ensure that Customer Information is only disclosed to a Retailer that has executed and submitted a Representation and Warranty Agreement.

10.0 Disclosure of Customer information

Policy: The City of Lethbridge will only disclose Customer Information in accordance with the Regulation.

Mechanisms

1. Employees, officers, agents and contractors of the Electric Department and Utility Customer Care Department will be made aware of and comply with the customer confidentiality requirements through the Compliance Training described in Section 3.0. 2. Customer Information is only available to those employees, officers, agents and/or contractors who require the data for purposes within their scope of work, and they are only given access to customer data upon completion of the training described in Section 3.0. 3. As a municipal body, Customer Information is handled in accordance with the requirements of all applicable acts and regulations, including the Freedom of Information and Protection of Privacy Act, and the Code of Conduct Regulation and all municipal employees sign an oath of confidentiality upon commencement of their employment. 4. The City of Lethbridge will only disclose Customer Information after the Customer has submitted a consent form. 5. The City of Lethbridge will ensure that Customer Information is only disclosed to a Retailer that has executed and submitted a Representation and Warranty Agreement.

11.0 Conditions on disclosure of Customer information

Policy: The City of Lethbridge will only disclose Customer Information to a Retailer or Retailers in accordance with the Regulation.

Code of Conduct Regulation Template Compliance Plan – AUC Approval Date 9

Mechanisms

1. Employees, officers, agents and contractors of the Electric Department and Utility Customer Care will be made aware of and comply with the customer confidentiality requirements through the Compliance Training described in Section 3.0. 2. Customer Information is only available to those employees, officers, agents and/or contractors who require the data for purposes within their scope of work, and they are only given access to customer data upon completion of the training described in Section 3.0. 3. As a municipal body, Customer Information is handled in accordance with the requirements of all applicable acts and regulations, including the Freedom of Information and Protection of Privacy Act, and the Code of Conduct Regulation and all municipal employees sign an oath of confidentiality upon commencement of their employment. 4. The City of Lethbridge will only disclose Customer Information after the customer has submitted a consent form. 5. The City of Lethbridge will ensure that Customer Information is only disclosed to a Retailer that has executed and submitted a Representation and Warranty Agreement. 6. If such conditions are met, the City of Lethbridge will provide the requested information to the Retailer within 7 days. 7. Subject to receiving the required customer consent and Representation and Warranty Agreement, the City of Lethbridge will provide the requested information to the Retailer within 7 days. If the information is requested and conditions met by more than one Retailer, the City of Lethbridge will email the information to the Retailers simultaneously.

12.0 Historical electricity usage

Policy: The City of Lethbridge will only provide a Retailer with historical usage information in accordance with the Regulation and AUC Rule 010.

Mechanisms

1. Usage information is released only upon receipt of request. Form is available online at www.lethbridge.ca 2. Usage information will be provided within three (3) working days of request.

13.0 Aggregated Customer information

Policy: The City of Lethbridge will only provide a Retailer with aggregated Customer Information in accordance with the Regulation.

Code of Conduct Regulation Template Compliance Plan – AUC Approval Date 10

Mechanisms

1. The City of Lethbridge does not make aggregated information available about customers available to Retailer’s apart from what is transferred under the AUC Rule 021 Settlement System Code.

Division 3 Business Practices of Distributors and Regulated Rate Suppliers

14.0 Equal treatment of Retailers

Policy: The City of Lethbridge The City of Lethbridge Term and Conditions do not discriminate against any Retailer or against Customers of any Retailer, and any changes to the City of Lethbridge Regulated Energy Services or the City of Lethbridge Term and Conditions that apply to those services, will be communicated to all Retailers at the same time and in the same manner to meet the requirements in accordance with the Regulation.

Mechanisms

1. All changes to the City of Lethbridge Regulated Energy Services or the City of Lethbridge Term and Conditions are posted on the City of Lethbridge website. 2. Retailers are notified by email about any changes to Regulated Energy Services or the Terms and Conditions relevant to Retailers within 7 working days of City Council approval. The City of Lethbridge Terms and Conditions in their entirety and parts of the Distribution bylaw are posted on the City of Lethbridge website within 7 days of City Council approval.

15.0 Prohibitions

Policy: The City of Lethbridge will abide by the prohibitions contained in the Regulation.

Mechanisms

1. The City of Lethbridge does not provide links for or information about any Retailer. Requests regarding the services provided by all Retailers are directed to the UCA Helps website. 2. Referrals to the UCA Helps include web address and phone number for UCA helps. 3. Employees, officers, agents and contractors of the Electric Department and Utility Customer Care Department will be made aware of Regulation Section 15.0 prohibition through the Compliance Training described in Plan Section 3.0.

Code of Conduct Regulation Template Compliance Plan – AUC Approval Date 11

16.0 Information about retail energy services

Policy: When the City of Lethbridge receives a request for information about retail energy services it will refer Customers to a source where they may obtain a current list of Retailers that are licensed under the Fair Trading Act to engage in the marketing of electricity.

Mechanisms

1. Requests regarding the services provided by all Retailers are directed to the UCA Helps website. 2. Referrals to the UCA Helps website includes web address and phone number for UCA helps. 3. Employees, officers, agents and contractors of the Electric Utility Department and Utility Customer Care Department will be made aware of prohibition obligations under Section 15.0 through the Compliance Training described in Section 3.0.

Part 3 Relationships Among Distributors, Regulated Rate Suppliers and Affiliated Providers

Division 1 Preventing Unfair Competitive Advantage

17.0 Arrangements creating unfair competitive advantage prohibited

Policy: The City of Lethbridge will not make any arrangements that create an unfair competitive advantage.

Mechanisms

1. Subject to arrangements that are permitted under Section 17(6) of the regulation, the City of Lethbridge will not make any arrangements that create an unfair competitive advantage. 2. Employees, officers, agents and contractors of the Electric Utility Department and Utility Customer Care Department will be made aware of the requirements to prevent unfair Competitive Advantage through the Compliance Training described in Section 3.0. 3. In the event an arrangement of the type described in Section 17(6) of the Code of Conduct Regulation is not explicitly exempted as not creating an unfair competitive Code of Conduct Regulation Template Compliance Plan – AUC Approval Date 12

advantage by Section 18 or Section 23 of the Regulation, the City of Lethbridge will promptly notify the Commission, in writing, of the existing arrangement and will request an opinion of the Commission as to whether the existing arrangement creates an unfair competitive advantage. In the event that the Commission determines that an existing arrangement does create a prohibited unfair competitive advantage, the City of Lethbridge will modify or terminate the arrangement in accordance with the directions of the Commission. 4. In the event an arrangement of the type described in Section 17(6) of the Regulation is not explicitly exempted as not creating an unfair competitive advantage by Section 18 or Section 23 of the Regulation, the City of Lethbridge will notify the Commission, in writing, of the proposed arrangement before such arrangement takes effect and will request an opinion of the Commission as to whether the proposed arrangement would create an unfair competitive advantage.

18.0 Information Sharing

Policy: The City of Lethbridge will ensure that its Customer Information is not disclosed or made available to any Retailer for the purposes of marketing or sales of Energy Services, except in accordance with the Regulation.

Mechanisms

1. The City of Lethbridge does not disclose Customer Information without written consent of the Customer as per the Regulation. Request for information form is available on city website. 2. The City of Lethbridge has not and will not engage in any sales and marketing activities, nor will it otherwise work to promote or retain RRO Customers.

19.0 Retailer seeking Customer information

Policy: Not applicable – the City of Lethbridge has not and will not engage in any sales of marketing activities, or otherwise work to grow or retain Customers on the Regulated Rate Tariff.

20.0 Acquisitions, research and dispositions

Policy: To prevent the creation of an unfair competitive advantage, the City of Lethbridge will allocate and record the economic benefits or costs attributable to each party for joint acquisitions, shared costs or expenses associated with research and development, or selling, leasing or disposing of jointly acquired property.

Code of Conduct Regulation Template Compliance Plan – AUC Approval Date 13

Mechanisms

1. Subject to arrangements permitted under Section 17(6) of the regulation all the City of Lethbridge transactions for joint acquisitions, shared costs or expenses associated with research and development, or selling, leasing or disposing of jointly acquired property are fairly and transparently recorded, as per The City of Lethbridge Policies.

21.0 Goods and services transactions to be at fair market value

Policy: All transactions involving the sale, lease, exchange, transfer or other disposition of goods or services of the City of Lethbridge will be recorded and priced as per applicable provincial standards.

Mechanisms

1. The City of Lethbridge sells, leases, exchanges, transfers or disposes of goods or services in accordance with The City of Lethbridge policy which follows the provincial legislated requirements including: a. Freedom of Information and Protection of Privacy Act (FOIP) b. Agreement on Internal Trade (AIT) c. Trade, Investment, and Labour Mobility Agreement (TILMA) d. New West Partnership Trade Agreement (NWPTA) e. Public Sector Accounting Board (PSAB)

22.0 Financial transactions

Policy: The City of Lethbridge will not provide a loan, guarantee, security or other financial transaction on terms more favorable could be obtained in the open market to prevent the creation of an unfair competitive advantage.

Mechanisms

1. Other than arrangement permitted under Section 17(6), the City of Lethbridge will not provide a loan, guarantee, security or other financial transaction on terms more favorable could be obtained in the open market to prevent the creation of an unfair competitive advantage 2. Loans, guarantees, securities or other financial transactions provided by or to the City of Lethbridge must comply with the City of Lethbridge policy and applicable Provincial Legislation.

Code of Conduct Regulation Template Compliance Plan – AUC Approval Date 14

23.0 Entities carrying on more than one business

Policy: The City of Lethbridge will not make any internal arrangements that use information it obtains from one business that would create an unfair competitive advantage for another business. The City of Lethbridge will not incur or allocate economic costs or benefits that create an unfair competitive advantage. Mechanisms

1. Information that is not Customer Information shared between the Distributor and the RRO function is not used for sales of marketing purposes. 2. The City of Lethbridge has not and will not engage in any sales and marketing activities, nor will it otherwise work to promote or retain RRO Customers. 3. All City of Lethbridge’s transactions for joint acquisitions, shared costs or expenses associated with research and development, or selling, leasing or disposing of jointly acquired property are fairly and transparently recorded, as per the City of Lethbridge policies.

24.0 Access to publicly available information

Policy: The City of Lethbridge will not restrict access to information available to the public in accordance with the Regulation.

Mechanisms

1. Publicly available information is accessible by all Retailers either through the City website or by request. 2. In the event that the City of Lethbridge provides one Retailer with information of the kind described at Section 24 of the Code of Conduct Regulation the same information is simultaneously made available to other Retailers via email by the distribution manager.

Division 2 Records and Accounts

25.0 Records and accounts

Policy: The City of Lethbridge will keep accounts in accordance with generally accepted accounting principles as defined by the Public Sector Accounting Board (PSAB), in sufficient detail to enable an audit to be conducted.

Code of Conduct Regulation Template Compliance Plan – AUC Approval Date 15

Mechanisms

1. City of Lethbridge accounts are maintained as per the Public Sector Accounting Board (PSAB), and in sufficient detail to allow for an audit to be conducted.

26.0 Written financial transactions

Policy: Every financial transaction related to The City of Lethbridge will be documented in writing to prevent the creation of any unfair competitive advantage.

Mechanisms

1. As per PSAB standards all transactions are recorded at cost and are approved by Lethbridge City Council.

27.0 Records of transactions for goods and services

Policy: All transactions for goods and services The City of Lethbridge will be recorded in accordance with the Regulation.

Mechanisms

1. All transactions for goods as services are completed and recorded as per City procurement standard, which are approved by Lethbridge City Council and meet provincial requirements.

28.0 Maintaining records

Policy: The City of Lethbridge will retain records, accounts, records of financial transactions, reports and plans as per Municipal Government Act.

Mechanisms

1. The City of Lethbridge maintains records for a period of 10 years after which they are to be destroyed. 2. An Information Manager, reporting to the City Controller, is responsible for overseeing these records, records of financial transactions, reports and plans, and detail of the retention procedures.

Code of Conduct Regulation Template Compliance Plan – AUC Approval Date 16

Part 4 Compliance Requirements

Division 1 Compliance Plans and Compliance Reports

29.0 Prohibition against providing retail energy services without approved Compliance Plan

Policy: Before the City of Lethbridge begins to provide Retail Energy Services to Customers, The City of Lethbridge will prepare, file, receive approval of a Compliance Plan by the Commission and provide copies of the approved plan in accordance with the regulation. Mechanisms

1. Not applicable - The City of Lethbridge does not provide Retail Energy Services to Customers.

30.0 Compliance Plan Required

Policy: The City of Lethbridge will develop compliance training material that will be used to train officers, employees, officers, agents and/or contractors, agents and contractors of the City of Lethbridge on the provisions of the Regulation, the Compliance Plan, and their duties and responsibilities. The material will include the following topics:  Equal treatment of Customers;  Protecting confidential Customer Information; and  Equal treatment of Retailers.

Mechanisms 1. Employees, officers, agents and contractors of the Electric Utility Department and Utility Customer Care will be made aware of all Code of Conduct rules (including equal treatment of Customers; protecting confidential Customer Information; and equal treatment of Retailers) through the Code of Conduct training. 2. Code of Conduct and Compliance Plan information will be posted for all city employees, officers, agents and/or contractors on the City Intranet and reviewed for content annually by March 31 by a minimum of two (2) members of the City of Lethbridge Compliance Committee.

31.0 Approval by Commission

N/A - Retained for Numbering Consistency

Code of Conduct Regulation Template Compliance Plan – AUC Approval Date 17

32.0 Changes to Compliance Plan

Policy: The City of Lethbridge will review and amend the Compliance Plan annually to reflect changes in circumstances and changes to the Regulation.

Mechanisms

1. The City of Lethbridge Compliance Plan Committee will review the Code of Conduct Compliance Plan annually. 2. If any changes in circumstances, Regulation or other deficiencies are identified, changes will be made and submitted to the AUC for approval with 60 days of the meeting. 3. The City of Lethbridge will notify employees, agents, officers and contractors of any amendments approved by the AUC within 30 days of the approval.

33.0 Quarterly and Annual Compliance Reports

Policy: The City of Lethbridge will report within 30 days any non-compliance with the Regulation and the Compliance Plan and file annual reports in accordance with the Regulation and any applicable Commission rule.

Mechanisms

1. The Compliance Officer will prepare a Compliance Report each quarter describing any non-compliance in accordance with the Regulation, Compliance Plan and AUC Rule 030. The Compliance Officer will provide the reports to City Council for review. 2. The Compliance Officer will file a Compliance Report with the AUC for any instance of non-compliance with the Regulation or Compliance Plan within 30 days of becoming aware of the incident. 3. Within 90 days after the end of each calendar year, the Compliance Officer will file an Annual Compliance Report with the AUC which has been approved by City Council.

34.0 Information about complaints

Policy: The City of Lethbridge will provide information to the public that complaints about contraventions of the Regulation or the Compliance Plan may be made to the Commission or the Market Surveillance Administrator.

Mechanisms

1. The City of Lethbridge will follow the process outlined below for voluntary resolution of complaints about non-compliance with the Code of Conduct Regulation. The City of Lethbridge will post on the city website: Code of Conduct Regulation Template Compliance Plan – AUC Approval Date 18

 How to contact the City of Lethbridge  Acknowledge all disputes, complaints or inquiries within 5 working days of its receipt.  Respond to the dispute, complaint or inquiry within 21 working days.  A final resolution of the dispute, complaint or inquiry shall be completed as expeditiously as possible in the circumstances, and in any event within 60 days of the receipt of the dispute, complaint or inquiry, except where the party making the submission otherwise agrees. 2. The City of Lethbridge City of Lethbridge will ensure the following notice is available to all Customers on its website:

Division 2 Varying Arrangements

37.0 Alternative compliance arrangements

N/A - Retained for numbering consistency

38.0 Emergency exceptions

Policy: Any action taken by the City of Lethbridge in response to an emergency that threatens public safety, the safety of officers, employees, agents and/or contractors, the physical integrity of their facilities or system reliability does not contravene the Regulation or the Compliance Plan.

Mechanisms

The City of Lethbridge will report emergency situations that fall under Section 38 of the Code of Conduct Regulation and the Compliance Plan to the Commission within 30 days of such an emergency occurring and to the Compliance Committee at the first quarterly meeting following such an emergency occurring. All such emergency situations will be reported to and recorded by the Compliance Officer.

Code of Conduct Regulation Template Compliance Plan – AUC Approval Date 19

Division 3 Compliance Audit

39.0 Appointment of auditor

Retained for numbering consistency

40.0 Audit

Policy: The City of Lethbridge will give the auditor access to any information required to conduct the audit and will reimburse the Commission for the auditor’s costs and expenses in accordance with AUC Rule 030.

Mechanisms

1. The auditor may request, with reasonable notice, information directly applicable to the RRO and electric distribution business.

41.0 Audit report

Retained for numbering consistency

Division 4 Investigations

42.0 Referral of matters to MSA

Retained for numbering consistency

43.0 Notice to Commission of MSA investigations

Retained for numbering consistency

44.0 Information sharing between Commission and MSA

Retained for numbering consistency

Code of Conduct Regulation Template Compliance Plan – AUC Approval Date 20

Part 5 Transition Provisions, Repeal and Coming into Force

45.0 Approvals under Code of Conduct Regulation (AR 160/2003)

Policy: The City of Lethbridge will continue to comply with the Compliance Plan filed with and any approvals for exemptions given by the Market Surveillance Administrator that was in effect under Code of Conduct Regulation (AR 160/2003) until this Compliance Plan is approved by the Commission.

46.0 Approvals under Code of Conduct Regulation (AR 183/2003)

Policy: The City of Lethbridge will continue to comply with the Compliance Plan filed with and any approvals for exemptions given by the Commission that was in effect under Code of Conduct Regulation (AR 183/2003) until this Compliance Plan is approved by the Commission.

47.0 Consents continued

Retained for numbering consistency

48.0 Market Surveillance and Commission duties

Retained for numbering consistency

49.0 Repeal

Retained for numbering consistency

50.0 Expiry

Retained for numbering consistency

51.0 Coming into force

Policy: The Compliance Plan will be effective on the date it is approved by the AUC and remains effective until amended or revoked.

Code of Conduct Regulation Template Compliance Plan – AUC Approval Date 21