The CAEM Canadian Energy Restructuring Forum (CERF)

Summary

    As an action step following the DOE-NARUC North American Summit on Energy Restructuring, the Center for the Advancement of Energy Markets is initiating the CAEM Canadian Energy Restructuring Forum (CERF). The purpose of the forum is to consolidate within one effort and report the state of play of gas and electric, wholesale and retail energy restructuring activity in Canada and to develop a consensus on a vision and gameplan for energy restructuring in Canada. Additionally, the Forum will analyze impediments and options to successful integration of energy restructuring between the US and Canada and make recommendations on steps to take to ensure an effective transition between the monopoly model of utility regulation and the competitive model. The Forum is scheduled to begin in the Fall of 2001 and to end by the Fall of 2002. The Forum will be made up of about 50 organizations, split evenly between public sector/public interest organizations and corporate (governmentally owned energy facilities are classified as corporate). The Forum is expected to have a significant impact on public officials in developing a coherent strategy on energy restructuring.

Overview

    There is no coordinated effort to pull together the Canadian energy restructuring story and to identify in a comprehensive forum the big picture of Canadian energy restructuring. It is evident that key stakeholders believe there is little informational integration that allows for cross fertilization among the Canadian provinces and utilities. Additionally, if the vision is to eventually forge a CANUS and eventually North American energy market consistent with the increasing integration of the Canadian and US economies, there is a poor understanding in the United States of energy restructuring developments in Canada. Lastly, Canadian institutions have some significant differences:

1. the limited role of the national government in the wholesale electric market and the predominance of Crown corporations to name
2. that will have differential impacts of energy restructuring's pace and politics.

    CAEM shares the growing apprehension of many industry stakeholders over the future of energy restructuring in the gas and electric sectors in a post-California environment, especially regarding the lack of an adequate informational foundation for Canadian energy restructuring. In response, CAEM is creating a blue ribbon panel of fifty leaders in the energy industry, public and private, to thoroughly analyze Canadian energy restructuring and most importantly, to make consensus-based policy recommendations to decision-makers at all levels of government. The Canadian Energy Restructuring Forum will release a number of white papers and a final report that are intended to have an immediate and important impact on policy and business decisions that affect energy restructuring over the next few years.

CERF Focus

The Forum will cover both wholesale and retail markets for both gas and electric. The Forum will focus on five primary subject areas:

• Vision: Developing a Comprehensive Vision for Energy Restructuring
• Foundation: Building the Information Foundation for Decision making
• Domestic Impediments and Options: Identifying Impediments and Options to Progress on Canadian Energy Restructuring
• Continental Impediments and Options: Identifying Impediments and options to an Integrated North American (beginning with US and Canada) Restructured Energy Market
• Recommendations: Developing Recommendations for Policy Makers to Overcome the Identified Impediments

Membership

    The Canadian Energy Restructuring Forum will be comprised of approximately 50 senior executives representing industry, regulators and legislators from all levels of government, and other leading stakeholders including consumer advocates and environmentalists. With the goal of building consensus on how to proceed, a careful balance will be maintained in regard to viewpoint, financial interests and geographic representation. Half of the Forum will be comprised of public sector/non-profit representatives and half from industry. There will be four categories of membership based on the applying organization's annual revenue:

• Small Organizations
  (annual revenue of less than $5 million) $10,000 CAN
• Medium Organizations
  (annual revenue of $5 million to $25 million) $25,000 CAN
• Large Organizations
  (annual revenue over $25 million) $50,000 CAN
• Public sector participants
  (except for grants from governmental organizations) No fee

CAEM encourages participation by the public sector/public interest organizations. There will be no fee for these participants. CAEM recognizes that many organizations are under budgetary constraints and pledges to be as flexible as possible in regard to project support commitments. On a case-by-case basis, CAEM is willing to consider split payments, in-kind contributions or other means of contributing to the effort.

Timeline

    The Forum is scheduled to begin in October 2001. The Forum will consist of five plenary sessions, two to be held in Toronto, one in Montreal, and one each on the west and east coasts, over the course of a year. Subcommittees will also be convened as necessary between plenary meetings. At the end of one year, the Forum will issue a report with policy recommendations that will be widely distributed to policymakers and stakeholders. The Forum will conclude with a conference that is open to all announcing the results of the Forum.

CAEM proposes the following timeline for the Canadian Energy Restructuring Forum:

• June-October: Solicit Project Support Commitments for the Forum, Develop Draft of Vision White Paper and Workplan.
• October: Meeting 1 of the Forum in Toronto to Discuss Vision and Workplan.
• October-January: Complete Vision and draft Foundation and Domestic Impediments section.
• January: Meeting 2 in Calgary primarily to discuss Foundation and Domestic Impediments.
• January-April: Prepare Continental Impediments White Paper.
• April: Meeting 3 in Halifax primarily to discuss Continental Impediments Paper.
• April-June: Prepare Recommendations Paper.
• June: Meeting 4 in Montreal primarily to discuss Recommendations.
• June-September: Draft of Final Report.
• September: Meeting 5 in Toronto to discuss Draft Final Report.
• October: Presentation of Final Report at a National Conference in Toronto.

Leadership

    CAEM is pleased to announce that Mike McLeod has agreed to serve as Project Director of the CAEM Canadian Energy Restructuring Forum. Mike brings a wealth of experience and dedication to the analysis of Canadian energy restructuring policies. He will be assisted by Nancy Etkin, CAEM Director of Advocacy and Policy Programs, and Ken Malloy, CAEM's CEO.

Contact

To join the Canadian Energy Restructuring Task Force or obtain more information, please contact:

Mike McLeod, Project Director
mmcleod@caem.org
(905) 707-7950

Documents Associated with the Canadian Forum

Project description [.pdf]