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Decision 21776-D01-2016

Direct Energy Marketing Limited Direct Energy Regulated Services Inter-Affiliate Code of Conduct and Compliance Plan November 25, 2016

Alberta Utilities Commission

Decision 21776-D01-2016

Direct Energy Marketing Limited

Direct Energy Regulated Services Inter-Affiliate Code of Conduct and Compliance Plan

Proceeding 21776

Application 21776-A001

November 25, 2016

Published by the:


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 Decision summary ................................................................................................................. 1

2 Introduction ........................................................................................................................... 1

3 Background ........................................................................................................................... 2

4 Inter-affiliate code of conduct and compliance plan ......................................................... 3 4.1 Inter-affiliate code of conduct ........................................................................................ 4

4.1.1 Definition of affiliate ........................................................................................ 4

4.1.2 Definition of DERS Affiliates and Section 2.3 ................................................. 5

4.2 Compliance plan............................................................................................................. 6

4.2.1 Sharing of employee, physical facilities and information systems ................... 6

4.2.2 Value of transactions requiring a business case and agreement ....................... 7

4.2.3 Minor changes ................................................................................................... 8

5 Order .................................................................................................................................... 11

Decision 21776-D01-2016 (November 25, 2016) • 1


Calgary, Alberta

Direct Energy Marketing Limited Decision 21776-D01-2016

Direct Energy Regulated Services Inter-Affiliate Proceeding 21776

Code of Conduct and Compliance Plan Application 21776-A001

1 Decision summary

1. In this proceeding, the Alberta Utilities Commission was asked to approve changes to the

Direct Energy Regulated Services (DERS) inter-affiliate code of conduct previously approved by

the Commission in Decision 21218-D01-2016,1 and to approve DERS’ inter-affiliate code of

conduct compliance plan (compliance plan). For the reasons that follow, the Commission denies

the proposed changes to DERS’ inter-affiliate code of conduct. The Commission is also directing

Direct Energy Marketing Limited (DEML) to modify certain compliance measures contained in

DERS’ compliance plan. In accordance with the directions contained within this decision,

DEML is directed to complete a compliance filing application for the revised compliance plan

integrated with the previously-approved inter-affiliate code of conduct.

2 Introduction

2. In Decision 21218-D01-2016, the Commission approved an inter-affiliate code of

conduct for DERS, a business unit of DEML. The Commission also directed DEML to file a

compliance plan for DERS before July 1, 2016.

3. On June 30, 2016, DEML filed an integrated inter-affiliate code of conduct and

compliance plan for DERS. DEML submitted that the integration was necessary because of the

relationship between DEML and Direct Energy, LP (DELP). The inter-affiliate code of conduct

and the compliance plan were integrated in part by designating the specific sections of the

previously approved inter-affiliate code of conduct as policies and adding compliance measures

to address the policies as appropriate. DEML noted that, as part of its application, it was also

requesting approval of changes to the inter-affiliate code of conduct approved by the

Commission in Decision 21218-D01-2016.

4. The Commission issued a notice of application on July 5, 2016. The Office of the

Utilities Consumer Advocate (UCA) submitted a statement of intent to participate on

July 13, 2016, requesting an opportunity to clarify the application through information requests.

5. On August 16 and 17, 2016, the UCA and the Commission, respectively, submitted their

information requests. DEML provided its responses on August 31, 2016.

6. On September 7, 2016, the UCA advised that additional process steps were not required.

On September 12, 2016, DEML concurred with the UCA’s position and submitted that the

1 Decision 21218-D01-2016: Direct Energy Marketing Limited Direct Energy Regulated Services Inter-Affiliate

Code of Conduct, March 14, 2016.

Direct Energy Regulated Services Inter-Affiliate Code of Conduct and Compliance Plan Direct Energy Marketing Limited

2 • Decision 21776-D01-2016 (November 25, 2016)

Commission could proceed to issue a decision. The Commission considers the record for this

proceeding to have closed on September 12, 2016.

7. 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.

3 Background

8. In Decision 2957-D01-2015,2 the Commission directed DERS to develop and file an

inter-affiliate code of conduct to ensure that interactions between regulated and unregulated

affiliated companies are conducted in a manner consistent with the principles set out in decisions

2002-0693 and 2003-040.4,5

9. In Decision 2003-040,6 the Alberta Energy and Utilities Board (EUB), the Commission’s

predecessor, summarized the purpose and objectives of an inter-affiliate code of conduct as

follows:

Purpose of the Code

The purpose of this Code is to establish standards and conditions for interaction between

each ATCO Utility and its Utility and Non-Utility Affiliates. This Code attempts to

anticipate and adjust for the potential misalignment of interest between shareholders and

Utility customers occasioned by Affiliate interactions through the establishment of

parameters for transactions, information sharing and the sharing of services and

resources, while permitting economies of scale and operating efficiencies.

These parameters are intended to:

(a) prevent Utilities from cross-subsidizing Affiliate activities;

(b) protect confidential customer information collected in the course of providing Utility

services;

(c) ensure Affiliates and their customers do not have preferential access to Utility

services; and

(d) avoid uncompetitive practices between Utilities and their Affiliates, which may be

detrimental to the interests of Utility customers.

2 Direct Energy Regulated Services 2012-2016 Default Rate Tariff and Regulated Rate Tariff, July 7, 2015. 3 Decision 2002-069: ATCO Group, Affiliate Transactions and Code of Conduct Proceeding Part A: Asset

Transfer, Outsourcing Arrangements, and GRA Issues, Application 1237673, July 26, 2002. 4 Decision 2003-040: ATCO Group, Affiliate Transactions and Code of Conduct Proceeding Part B: Code of

Conduct, Application 1237673-1, May 22, 2003. 5 Decision 2957-D01-2015: Direct Energy Regulated Services, 2012-2016 Default Rate Tariff and Regulated Rate

Tariff, Proceeding 2957, July 7, 2015, paragraph 422. 6 EUB Decision 2003-040: ATCO Group Affiliate Transactions and Code of Conduct Proceeding Part B: Code of

Conduct, May 22, 2003, pages 38-39.



Objectives of Code

While the overall purpose of the Code is to establish standards and parameters which

prohibit inappropriate Affiliate conduct, preferences or advantages, which may adversely

impact the customers of regulated businesses, this purpose reflects several important

underlying objectives, including:

(a) creating a clearly defined set of rules designed to enhance inter-affiliate transparency,

fairness and senior management accountability with respect to inter-affiliate

interactions impacting regulated businesses;

(b) providing an environment in which inter-affiliate economies and efficiencies can

legitimately occur for the mutual advantage of both a Utility’s customers and its

shareholders;

(c) developing support and respect for the Code by the employees, officers and directors

of the ATCO group of companies, which will in turn promote ratepayer confidence in

the application of the Code; and

(d) the creation of regulatory processes and cost efficiencies through the consistent

application of a clear set of standards and reporting requirements to Utility inter-

affiliate transactions, enhanced by a practical, resolution driven, dispute process.

10. In that same decision, the EUB developed and approved each specific provision of the

ATCO Group inter-affiliate code of conduct, which is attached as Appendix 5 of that decision.

Regarding the scope of the compliance plan, the EUB held:

The Compliance Plan should detail the measures, policies, procedures and monitoring

mechanisms that the Utility will employ to ensure its full compliance with the provisions

of the Code by the Utility its directors, officers, employees, consultants, contractors and

agents, and by Affiliates of the Utility with respect to the interactions of the affiliates

with the utility.7

11. DEML’s application for Commission approval of DERS’ inter-affiliate code of conduct

was considered in Proceeding 21218. In Decision 21218-D01-2016 the Commission, approved

DERS’ inter-affiliate code of conduct and directed DEML to file a compliance plan with the

Commission for approval.

4 Inter-affiliate code of conduct and compliance plan

12. The Commission finds that generally, the revised inter-affiliate code of conduct and

compliance plan8 for DERS both detail the measures, policies, procedures and monitoring

mechanisms that DERS will employ to ensure full compliance with the provisions of the inter-

affiliate code of conduct by DERS, its directors, officers, employees, consultants, contractors and

agents, and by affiliates of DERS with respect to the interactions of the affiliates with DERS.

7 EUB Decision 2003-040, page 103. 8 Exhibit 21776-X0014, Attachment DEML-AUC-2016AUG17-004 DERS Revised IACC & CP.



13. However, for the reasons provided below, the Commission denies the proposed changes

to DERS’ inter-affiliate code of conduct and directs DEML to modify certain compliance

measures contained in DERS’ compliance plan. Because DEML submitted an integrated inter-

affiliate code of conduct and compliance plan, the Commission is requiring DEML to make

changes to DERS’ revised inter-affiliate code of conduct and compliance plan9 in a compliance

filing application in accordance with the directions contained within this decision.

4.1 Inter-affiliate code of conduct

4.1.1 Definition of affiliate

14. In Decision 21218-D01-2016, the Commission approved the following definition of

affiliate in DERS’ inter-affiliate code of conduct:

b) “Affiliate” means with respect to any Utility:

i. an “affiliate” as defined in the ABCA;

ii. a unit or division within the Utility or any Body Corporate referred to in clause

(b)(i) above;

iii. a partnership, joint venture, or Person in which the Utility or any Body

Corporate referred to in clause (b)(i) above has a controlling interest or that is

otherwise subject to the control of the Utility or such Body Corporate;

iv. any partnership, joint venture, or Person deemed by the AUC to be an affiliate

of the Utility for the purposes of this Code; and

v. an agent or other Person acting on behalf of any Body Corporate, operating

division, partnership, joint venture or Person referred to in clauses (b)(i) to (iv)

above.

15. In this application, DEML proposed to change the definition of affiliate to “‘Affiliate’

means DELP”.10

16. DEML provided the following explanation, in part, for the change:

The specific organizational structure of DERS and the direction made by the AUC in

Decision 2957-D01-2015 set out above reflect the Commission’s view regarding the

purpose of the IACC to govern the relationship with DELP, DEML, and DERS, and the

fact that DEML business units provide both regulated and unregulated services. DELP

was stated to be an affiliate of DEML in its Application as recognized in Decision 2957-

D01-2015

…

In addition, the affiliate being defined as “DELP” is appropriate for this IACC & CP

because the IACC & CP only exists for the provision of services under the inter-affiliate

agreement between DEML and DELP, and DELP is the only affiliate that DERS interacts

with as outlined in Section 2.3 of the IACC & CP. The relationship between DERS and

9 Exhibit 21776-X0014, Attachment DEML-AUC-2016AUG17-004 DERS Revised IACC & CP. 10 Exhibit 21776-X0003, DERS IACC and Compliance Plan, PDF page 8.



DEP has been governed adequately under the Code of Conduct for the last thirteen

years.11

17. The definition of affiliate was specifically developed and approved by the EUB in

Decision 2003-040.12 Further, the Commission recently reaffirmed the appropriateness of this

definition in Decision 21218-D01-2016 issued on March 14, 2016. While DELP may be the only

affiliate captured by the definition at this time, this may not always be the case. If the

Commission were to approve the requested change to “‘Affiliate’ means DELP”, there would be

no framework in which to assess whether a potential affiliate is subject to DERS’ inter-affiliate

code of conduct.

18. Accordingly, the Commission is not persuaded that it should approve a change to the

definition of affiliate and directs DEML to use the definition of affiliate approved by the

Commission in Decision 21218-D01-2016, in its compliance filing to this decision.

19. Further, given the definition of affiliate approved in Decision 21218-D01-2016, the

Commission agrees that DERS’ compliance plan does not need to address the relationship

between DERS and Direct Energy Partnership (DEP). DERS and DEP are business units of

DEML and are not separate corporate affiliates. DEML indicated that it has applied for

Commission approval of a joint DERS and DEP compliance plan pursuant to the

Code of Conduct Regulation, which is currently being considered in Proceeding 21655.13

4.1.2 Definition of DERS Affiliates and Section 2.3

20. DEML also proposed changes to the definition of “DERS Affiliates” and Section 2.3 of

the inter-affiliate code of conduct. In Decision 21218-D01-2016, the Commission approved the

definition of “DERS Affiliates” as “mean[ing] any entity to which the Code applies pursuant to

section 2.3 thereof” and the following wording for Section 2.3:

2.3. To Whom This Code Applies

DERS is obligated to comply with this Code and all Affiliates of DERS are obligated to

comply with the Code to the extent they interact with the Utility.14

21. DEML clarified in an information request response that references to “Utility” in the

inter-affiliate code of conduct and compliance plan are references to “DERS, a business unit of

DEML”.15

22. DEML proposed to change the definition of “DERS Affiliates” to “DERS Affiliates

means DELP”. It also proposed that Section 2.3 be revised as follows:

2.3. To Whom This Code Applies

DERS is obligated to comply with this Code and DELP is obligated to comply with the

Code to the extent they interact with the Utility.16

11 Exhibit 21218-X0013, DERS Responses to AUC IACC & CP, DEML-AUC-2016AUG17-004(f), pages 8-10. 12 EUB Decision 2003-040: ATCO Group Affiliate Transactions and Code of Conduct Proceeding Part B; Code of

Conduct, May 22, 2003, pages 42-47. 13 Exhibit 21776-X0001, DERS Cover Letter IACC & Compliance Plan. 14 Decision 21218-D01-2016: Direct Energy Marketing Limited Direct Energy Regulated Services Inter-Affiliate

Code of Conduct, March 14, 2016, PDF page 16. 15 Exhibit 21776-X0013, DEML-AUC-2016AUG17-004(c).



23. The Commission is not persuaded that the definition of DERS Affiliates or that the

wording of Section 2.3 should be changed, for similar reasons that the Commission declined to

change the definition of affiliate. In Decision 2003-040, with respect to the definition of

“ATCO Affiliates”, the EUB approved the following wording:

e) “ATCO Affiliates” means any entity to which this Code applies pursuant to section 2.3

hereof.17

24. In the same decision, with respect to Section 2.3, the EUB approved the following

wording:

2.3 To Whom this Code Applies

All Utilities directly or indirectly owned, controlled or operated by ATCO are obligated

to comply with this Code and all Affiliates of these Utilities are obligated to comply with

the Code to the extent they interact with the Utilities.18

25. If the Commission were to approve the requested changes to the definition of

DERS Affiliates and Section 2.3, and an affiliate other than DELP became subject to the

inter-affiliate code of conduct for DERS, Section 2.3 would not apply to the new affiliate.

Further, there would be no framework in which to assess whether Section 2.3 should apply to the

new affiliate. This is inconsistent with the EUB’s finding in Decision 2003-040. Accordingly, the

Commission declines to approve the requested changes to the definition of DERS Affiliates and

Section 2.3 and directs DEML to use the definition of DERS Affiliates and the wording of

Section 2.3 approved by the Commission in Decision 21218-D01-2016, in its compliance filing

to this decision.

4.2 Compliance plan

4.2.1 Sharing of employee, physical facilities and information systems

26. Section 3.3 of DERS’ inter-affiliate code of conduct pertains to resource sharing. In the

application, DEML explained that:

…certain DELP employees that reside in the US are dedicated to providing service to

DERS. They are formally DELP employees due only to geographical location. While

these employees are paid by DELP their pro rata costs are allocated to DERS and such

costs are fully vetted by the Commission in DERS’ Non-Energy Default Rate Tariff and

Regulated Rate Tariff Applications. As confirmed with the Commission, these shared

DERS-DELP employees will be exempt from Sections 3.1.3 (Separate Management),

3.2.2 (Physical Separation) and 6.1(Utility Information) of the IACC.19

27. When asked to provide specific references to Commission decisions approving

exemptions for shared DERS-DELP employees from specific sections of the inter-affiliate code

of conduct, DEML cited prior Commission approvals of DERS’ non-energy rates and DERS’

compliance plan under the Code of Conduct Regulation, Alta Reg 183/2003.20

16 Exhibit 21776-X0003, DERS IACC and Compliance Plan, PDF page 3. 17 EUB Decision 2003-040, Appendix 5, page 3. 18 EUB Decision 2003-040, Appendix 5, page 5. 19 Exhibit 21776-X0003, DERS IACC and Compliance Plan, page 5. 20 Exhibit 21776-X0013, DERS Responses to the AUC IACC & CP, DEML-AUC-2016AUG17-002 pages 3-5.



28. The Commission disagrees with DEML that previous Commission approvals relating to

non-energy rate or Code of Conduct Regulation21 matters exempt DEML from having to comply

with specific requirements of the inter-affiliate code of conduct. Nevertheless, in the

Commission’s view, the compliance measures documented in DERS’ compliance plan, in

conjunction with the financial scrutiny applied to DERS’ non-energy rate applications, provide

adequate controls to ensure compliance with the inter-affiliate code of conduct.

29. In addition, the Commission recognizes that sharing of employees is an outstanding issue

for all AUC-regulated utilities with inter-affiliate codes of conduct. In Proceeding 1216, a

Commission-initiated review of inter-affiliate codes of conduct22 that is currently suspended, the

Commission issued the following direction:

As the issue of shared employees still remains unresolved, utilities should continue to

monitor for situations of non-compliance with Section 3.3.1 of the utility’s existing code

of conduct and provide a summary of the non-compliances in their annual reports as

previously instructed.23

30. In Section 3.3.1 of the compliance plan, DEML provided the following compliance

measure:

Beyond the approved DERS-DELP employees, permission must be obtained from the

Compliance Officer to share DERS employees. The Compliance Officer will maintain an

annual report detailing all instances of sharing DERS employees with DELP which have

occurred, or continued during the reporting period, (the “Shared Employees Report”).24

31. In response to DEML-AUC-2016AUG17-010(d),25 DEML confirmed that the Shared

Employees Report would include a description of the employee’s role and the justification for

the employee to be shared. DEML’s submissions “…that Compliance Training is mandatory for

all DELP employees that are Shared Employees”26 also provides assurance to the Commission

that information will not be shared in violation of the inter-affiliate code of conduct.

4.2.2 Value of transactions requiring a business case and agreement

32. Section 4.1 (For Profit Affiliate Services) of the inter-affiliate code of conduct states the

following:

Where the Utility determines it is prudent in operating its Utility business to do so, it may

obtain For Profit Affiliate Services from an Affiliate or provide For Profit Affiliate

Services to an Affiliate.

If the Utility intends to outsource to an Affiliate a service it presently provides for itself,

the Utility shall, in addition to any other analysis it may require to demonstrate the

prudence of a For Profit Affiliate Services arrangement, undertake a net present value

analysis appropriate to the life cycle or operating cycle of the services involved.

21 Code of Conduct Regulation, Alta Reg 183/2003. 22 Proceeding 1216, Inter-Affiliate Code of Conduct Consultation. 23 Proceeding 1216, Inter-Affiliate Code of Conduct Consultation; Exhibit 051.01.AUC-1216 AUC letter- Further

suspension of consultation - November 6, 2012. 24 Exhibit 21776-X0003, DERS IACC and Compliance Plan. 25 Exhibit 21776-X0013, DERS Responses to the AUC IACC & CP. 26 Exhibit 21776-X0013, DERS Responses to the AUC IACC & CP; DEML-AUC-2016AUG17-017(b).



The Utility shall periodically review the prudence of continuing For Profit Affiliate

Services arrangements.27

33. Compliance Measure 2 of DERS’ compliance plan states as follows:

2. Prior to implementing a new or revised For Profit Affiliate Service to receive services

from DELP will be reviewed and approved by the IACC CPC. A business case

identifying that it is prudent to obtain the For Profit Affiliate Service will be prepared

if the annual value of the For Profit Affiliate Service is estimated to be greater than

$500,000. The business case must contain adequate evidence (on a net present value

basis appropriate to the life cycle or operating cycle of the services involved) to

conclude that the decision to out-source is the lowest cost option for customers, and

that the For Profit Affiliate Services have been acquired at a price which is no more

than Fair Market Value. Fair Market Value will be determined in a manner consistent

with Section 4.5 of the Code. The business case will be presented to the IACC CPC

for review and approval.28

34. In information request DEML-AUC-2016AUG17-014,29 the Commission referred to a

similar provision that the Commission approved for ATCO Electric Ltd. in Decision 2010-48130

set at $50,000, and asked DEML if it would be willing to change the value identified in

compliance Measure 2 to a lower value such as $50,000. DEML responded that:

The threshold of $50k seems out of date to DERS, especially given the size of DERS’

business. DERS could operate with a lower value, but suggests $500k, since there are

legal costs involved in setting up agreements and costs to create business cases. DERS

does not anticipate any for profit affiliate services, so considers this section to be in the

IACC & CP for contingency purposes only.31

35. The Commission is not persuaded that the explanation provided by DEML provides

sufficient justification for a tenfold increase in the limit for which scrutiny by the compliance

plan committee is required. Consequently, the Commission directs DEML to change the value

stated in Section 4.1, compliance Measure 2 to $50,000 from $500,000 in its compliance filing to

this decision.

4.2.3 Minor changes

36. DEML indicated in information request responses that it agreed to a number of changes;

however, the agreed-to changes were not reflected in the revised inter-affiliate code of conduct

and compliance plan. Additionally, further changes are required as a result of the directions in

this decision. Rather than discuss each change in detail, the following table provides references

to the information request responses, revised wording, and an explanation of the deficiency. The

Commission directs DEML to reflect these changes in its compliance filing to this decision. The

directed changes are noted with underline, bold, and strike through.

27 Exhibit 21776-X0003, DERS IACC and Compliance Plan, PDF pages 19-20. 28 Exhibit 21776-X0003, DERS IACC and Compliance Plan, PDF page 20. 29 Exhibit 21776-X0013, DERS Responses to the AUC IACC & CP. 30 Decision 2010-481: ATCO Gas and Pipelines Ltd., ATCO Electric Ltd., CU Water Ltd. – Inter-Affiliate Code of

Conduct Compliance Plan Amendments, Proceeding 594, Applications 1605739, 1605741, 1605744, 1605753,

1605754, 1605755, 1605767, 1605768, October 4, 2010. 31 Exhibit 21776-X0013, DERS Responses to the AUC IACC & CP.



Inter-affiliate code of conduct and

compliance plan reference32

Information request response reference33

Revised wording Explanation

2.1 Definitions (ss) “Subsidiary”

DEML-AUC-2016AUG17-004(g)(b)

“Subsidiary” shall have the meaning ascribed thereto in section 2(4) of the ABCA Business Corporations Act, RSA 2000, c B-9.

In response to the Commission’s information request the definition of ABCA was removed. However, DEML failed to revise the definition of “Subsidiary” so that “ABCA” was replaced by “Business Corporations Act, RSA 2000, c B-9”.

Given the removal of the definition “ABCA”, please also change “ABCA” in the definition of “Affiliate” to “Business Corporations Act, RSA 2000, c B-9.

The Commission also notes that the subsection lettering for the Definitions section should start at ‘a’ rather than ‘e’.

3.1.5 Guiding Principle

Compliance Measure 2.

DEML-AUC-2016AUG17-006(e)

…If the IACC & CP is amended, the amended provisions will be provided to Officers, Employees, and Agent or Contractor Staff to whom the amendment applies within 90 60 days of the date of the amendment coming into force….

In the information request response, DEML agreed to the revised wording that “… it is possible to shorten this time frame to 60 days, but 30 days is considered unmanageable.” However, DEML did not make the change.

3.2.2 Physical Separation

Compliance Measure 3

DEML-AUC-2016AUG17-008(b)

DERS receives corporate services such as Collections, Customer Escalation, Operations, Load Forecasting, and Legal from these shared DERS-DELP employees, the allocation of which is vetted through DERS’ DRT and RRT Non-Energy Applications to the Commission.

In response to the Commission’s information request as to how the mechanism is relevant to “physical separation”, DEML replied that “DERS proposes to strike compliance measure 3.” However, DEML did not make the change.

3.2.3 Separation of Information Services

Policy:

DEML-AUC-2016AUG17-009(b)

…through a review that complies with the provisions of the Canadian Institute of Chartered Accountants CPA Canada Handbook and

The information request response indicated that the term had been amended. However, DEML did not make the change.

32 Exhibit 21776-X0014, Attachment DEML-AUC-2016AUG17-004 DERS Revised IACC & CP. 33 Exhibit 21776-X0013, DERS Responses to the AUC IACC & CP.



updates thereto.

4.1 For Profit Affiliate Services

Compliance Measure 2.

DEML-AUC-2016AUG17-014(a)

Prior to implementing a new or revised For Profit Affiliate Service to receive services from DELP, the for Profit Affiliate Service agreement will be reviewed and approved by the IACC CPC.

The information request response (a) though (c) did not directly respond to part (a). The first sentence requires clarification.

7.2 Communication of the IACC and CP

Compliance Measures 2 and 3.

DEML-AUC-2016AUG17-019(f)

2. … The acknowledgement will be maintained by the Compliance Officer for six years.

3. …written acknowledgement from the consultant, contractor, or agent that they have received a copy of this IACC & CP, are familiar with its contents and will abide by its requirements. The acknowledgement will be maintained by the Compliance Officer for six years.

DEML responded that the compliance officer will maintain a record for six years. However, DEML did not update the wording.



5 Order

37. It is hereby ordered that:

(1) Direct Energy Marketing Limited shall file a compliance filing application for

DERS’ inter-affiliate code of conduct and compliance plan in accordance with the

directions contained within this decision on or before January 30, 2017.

Dated on November 25, 2016.


(original signed by)

Anne Michaud

Commission Member

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