Regulatory proceedings are hearings before the Alberta Utilities Commission (AUC) in which a utility or default retailer applies to have the rate it charges consumers approved by the AUC. These proceedings are finalized when the AUC issues a decision that considers all the information submitted in the hearing process by the applicant and other participating parties (such as the UCA). That decision will either approve the application in full, in part or with conditions, or deny the application altogether.
The following decision summaries are intended to provide a general overview of more significant proceedings. The AUC publishes the full reports and official decisions for all proceedings on its website.
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Alberta Utilities Commission (AUC) Alberta Electric Systems Operator (AESO) ATCO Electric Distribution (AED) ATCO Gas Distribution (AGD) ATCO Pipelines (AP) Cost of Service (COS) Direct Energy Regulated Services (DERS) Distributed Connected Generation (DCG) EPCOR Energy Alberta GP Inc. (EEA) Enmax Power Corporation (EPC) General Rate Application (GRA) Negotiated Settlement Agreement (NSA) Negotiated Settlement Process (NSP) Performance Based Regulation (PBR) Rate of Last Resort (RoLR) Return on Equity (ROE) Transmission Access Charge Deferral Account (TACDA) Utilities Consumer Advocate (UCA) |
AUC decision |
Date |
Summary |
|---|---|---|
29204-D01-2024 and 29204-D02-2025 |
November 29, 2024 and February 12, 2025 |
The Alberta Utilities Commission (AUC) approved the negotiated settlement between the Rate of Last Resort (RoLR) providers and the UCA regarding the 2025-2026 RoLR rates. The RoLR took effect on January 1, 2025. |
28939-D01-2024 |
September 17, 2024 |
Direct Energy Regulated Services (DERS) submitted an application requesting approval for its natural gas default rate and electricity regulated rate tariff functions for the period from January 1, 2024, to December 31, 2026, within the service territories of ATCO Gas and Pipelines and ATCO Electric Ltd. On September 17, 2024, the Alberta Utilities Commission (AUC) approved the Negotiated Settlement Agreement (NSA), which included in revised revenue requirements and lower rates for DERS’ customers compared to the initial application, between DERS and the interveners. The AUC determined that the negotiated rates and terms are just and reasonable for ratepayers. |
28300-D01-2024 |
May 22, 2024 |
The Alberta Utilities Commission (AUC) considered whether ATCO Electric Distribution (AED) and ATCO Gas Distribution (AGD) charged distribution utility rates that were not just and reasonable during the second generation of Performance Based Regulation (known as PBR2) from 2018 to 2022. The AUC found that AED and AGD charged rates that were not just and reasonable in PBR2. The UCA actively participated and successfully provided evidence and testimony that the AUC considered in rendering its decision. The AUC determined that a flaw existed with the PBR2 plan and that the proceeding would need to proceed to a stage two to determine the appropriate remedy. The AUC determined that the remedy should only apply to 2021 and 2022 rates, as those were the years in which the review thresholds were exceeded. The UCA has registered to participate in Proceeding 29064, the stage two review for this proceeding. AED and AGD have also filed an application for a review-and-variance of this decision. |
28369-D01-2024 |
March 27, 2024 |
ATCO Pipelines (AP) filed its General Rate Application (GRA) for its 2024-2026 natural gas transmission rates. AP originally applied for revenue requirements of $358.6 million in 2024, $371.4 million in 2025, and $388.1 million in 2026. AP also applied to capitalize and collect return for construction work in progress for their Yellowhead Mainline Project (Yellowhead Project) and to establish an Identified Growth Account to collect for an increase in capital expenditures related to the Yellowhead Project. Interveners, including the UCA, entered into a Negotiated Settlement Process (NSP) with AP. From this process, the interveners and AP agreed to a total reduction of $18.5 million to be recovered from consumers from 2024-2026. The NSP did not result in an agreement on the two issues relating to the Yellowhead Project. These issues were brought to the Alberta Utilities Commission (AUC) for testing and a decision. After an open and public process on the Yellowhead Project issues, the AUC denied AP the ability to capitalize and collect return for construction work in process, and denied the creation of the Identified Growth Account. The UCA successfully provided evidence and testimony that the UCA considered in its decision. As part of the agreement reached during negotiations, the period for this GRA will be reduced to 2024 and 2025 only. |
28831-D01-2024 |
June 25, 2024 |
On February 7, 2024, Apex Utilities Inc. (APEX) purchased the gas distribution assets owned by the Village of Boyle. APEX then filed an application requesting approval of the acquisition, a new franchise agreement and the corresponding franchise rate rider schedule that would be applicable to the Village of Boyle consumers. The Alberta Utilities Commission (AUC) approved APEX’s application, including approval of the franchise agreement and the franchise rate rider schedule. The franchise agreement and the franchise rate rider schedule will apply to gas distribution services provided by APEX within the municipal boundaries of Boyle. However, because of the material rate increase that Boyle consumers will experience because of the transaction, the AUC directed APEX to implement rate mitigation measures for Boyle consumers. APEX was allowed to increase customer’s bills to a maximum of 10% on January 1, 2025, and again on July 1, 2025 to prevent rate shock. |
28457-D01-2024 and 28457-D02-2024 |
March 14, 2024 and June 26, 2024 |
EPCOR Energy Alberta GP Inc. (EEA), filed an application requesting approval of its non-energy charges, price schedules, miscellaneous fees, a deferral account and regulated rate tariff terms and conditions of service for the 2023-2025 period. EEA had initially requested revenue requirements of $31.72 million in 2023 and $28.56 million in 2024. Interveners and EEA entered into a Negotiated Settlement Process (NSP) to negotiate the application. EEA had applied to recover $0.29 million for 2023 and $0.28 million for 2024 in non-energy credit costs associated with providing financial security to the distribution system operators, which was to be decided upon outside of the NSP. The Alberta Utilities Commission (AUC) approved the Negotiated Settlement Agreement (NSA) for 2023-2024 and denied EEA’s application for the non-energy credit costs. As a result of the negotiations with interveners the reduction to revenue requirements is approximately $1.31 million (4.1%) in 2023 and $1.24 million (3.9%) in 2024. |
28174-D01-2024, and 28174-D02-2024 |
February 12, 2024 and June 19, 2024 |
AltaLink Management Ltd. (AltaLink), filed its general tariff application for AltaLink, PiikaniLink and KainaiLink for the 2024-2025 period, requesting approval of revenue requirements of $887.5 million in 2024 and $904.2 million in 2025. As part of the application, AltaLink requested permission to seek a Negotiated Settlement Agreement (NSA) via a Negotiated Settlement Process (NSP) with interveners. On February 12, 2024, the Alberta Utilities Commission (AUC) approved the NSA between interveners and AltaLink in Decision 28174-D01-2024, which resulted in a $12 million reduction in revenue requirements (including a $38.5 million reduction in capital expenditures) over the 2024-2025 term, and a cost savings mechanism which will allow consumers and AltaLink to share the savings on a 50:50 basis. Excluded matters to be settled by the AUC outside of the NSP included issues related to salvage and wildfires including a request for a wildfire damages deferral account and other issues. The AUC denied AltaLink’s request to increase its wildfire mitigation plan expenditures by $49.52 million because it did not fully substantiate the need for the expenditures and the likelihood that AltaLink’s asset deficiencies would cause ignition events triggering wildfires, and denied AltaLink’s application for a deferral account and the $11 million in expenses associated with the salvage allocation study for 2022 and 2023. |
27084-D02-2023 |
October 9, 2023 |
The Alberta Utilities Commission (AUC) initiated a proceeding for the 2024 Generic Cost of Capital to consider utilizing a formula-based approach cost of capital on a go-forward basis. The formula-based approach is an Return on Equity (ROE) formula tied to changes in government bond yields and utility credit spreads. This formula-based approach is similar to the approach utilized by the Ontario Energy Board. The UCA actively participated in this proceeding and successfully provided information and testimony that the AUC considered in rendering key aspects of the decision. The AUC set the deemed equity ratio at 37% and a notional ROE of 9.00%, which is subject to formulaic adjustments using 30-year Government of Canada bond yields and Canadian utility spreads. The formulaic ROE for 2024 is 9.28%. The AUC will allow for reconsideration of the parameters, either at its own initiative or upon application by interested parties, if there are reasons to believe that the ROE resulting from the formula is no longer just and reasonable. The formula will be in place for the next five years, with the first review in 2028 for parameters in 2029 and beyond. |
27388-D01-2023 |
October 4, 2023 |
The Alberta Utilities Commission (AUC) set the Performance Based Regulation (PBR) plans for Alberta electricity and natural gas distribution utilities for the term of 2024 to 2028. This is the third generation of PBR (referred to as PBR3). Under PBR, distribution utilities adjust their rates annually, using a mechanistic formula, typically over a five-year term. The UCA actively participated in this proceeding and successfully provided information and testimony that the AUC considered in rendering key aspects of the decision. The AUC set the annual adjustment to an Alberta inflation factor less an industry productivity factor of 0.1 percent. An additional 0.3% is also deducted from the inflation factor, in order to further drive efficiencies, with the goal of increasing rates by less than the rate of inflation. The AUC also added an Earnings Sharing Mechanism that will direct utilities to share earnings, above certain specific thresholds, with consumers. |
26509-D01-2022 |
January 19, 2022 |
AltaLink filed General Tariff Applications (GTA) for AltaLink, PiikaniLink Limited Partnership, and KainaiLink Limited Partnership. AltaLink's GTA had initially proposed a revenue requirement of $882.7 million in 2022 and $899.2 million in 2023, which was later updated and revised down to $877.9 million and $895.5 million, respectively. AltaLink had also proposed a refund through transmission rates to customers of $120 million over 2022 and 2023 due to a surplus in depreciation amounts collected previously. The Alberta Utilities Commission (AUC) made a number of reductions to the proposed revenue requirement for operations and maintenance but denied AltaLinks proposed $120 million refund to customers. While this refund was strongly supported by all interveners, the AUC did not approve the refund on the grounds that refunds of this nature should only be used in exceptional circumstances. The AUC also denied AltaLink's request to recover $97 million in proposed net salvage costs stating that there was insufficient detail for these costs provided in its application. |
26844-D01-2021 |
December 3, 2021 |
ENMAX Power Corporation (EPC) filed its 2022 Performance Based Regulation (PBR) Rates Adjustment Application with the Alberta Utilities Commission (AUC). In its application, EPC identified a calculation error in its previous Transmission Access Charge Deferral Account (TACDA) for the years 2015-2019. EPC proposed to correct its error by collecting a net amount of $10.27 million in 2022 from its customers through a rate rider. The AUC denied the use of the deferral account to correct historical and previously approved amounts. As a result, $10.27 million will not be recovered from EPC’s customers. |
26589-D01-2021 |
November 24, 2021 |
ENMAX Power Corporation (EPC) filed its Type 1 Capital Tracker Treatment Application to recover costs associated with infrastructure relocation and connection costs incurred due to the City of Calgary’s (Calgary) Green Line expansion of their light rail transit (LRT) service. In step with Decision 20414-D01-2016, the Alberta Utilities Commission (AUC) granted a placeholder funding mechanism for EPC to alleviate cash flow concerns with the understanding that EPC risks a cost disallowance should the expenditure later be deemed not eligible for this additional capital funding. The AUC denied EPC’s application, stating it did not meet the criteria for a Type 1 capital expenditure and did not agree with EPC that the Green Line expansion was an out of the ordinary cost with respect to its usual operations. In addition, the AUC did not find enough institutional separation between Calgary and EPC to be considered a third-party request. The AUC ordered EPC to refund the amounts collected through the placeholder-funding mechanism back to consumers. The refund to consumers is $5.37 million in addition to the disallowance of $25.18 million in rate base additions. |
26356-D01-2021 |
June 30, 2021 |
The Alberta Utilities Commission (AUC) initiated the proceeding with the purpose of evaluating previous Performance Based Regulation (PBR) plans for Alberta’s electric and gas distribution utilities. The AUC determined that there will be a third term of PBR in Alberta after a cost of service (COS) year in 2023 to set going-in rates. The AUC made this determination after evaluating the previous two PBR terms against its five key principles: utility operational efficiency, the utilities’ ability to receive a fair return, the level of clarity of the PBR plan in its direction and application, the PBR plan’s ability to recognize the uniqueness of each utility, and the equity of the plan in sharing its benefits between utilities and consumers. The AUC found that on most of these principles PBR was successful. |
26090-D01-2021 |
June 7, 2021 |
The Alberta Utilities Commission (AUC) initiated the proceeding to discuss the future of Distributed Connected Generation (DCG) credits and their impact on utility distribution tariffs. The role of DCG credits was examined in light of rising transmission tariffs over the past decade. The AUC did not agree with the arguments put forth by DCG operators that DCG credits provide value or quantifiable benefits to ratepayers. The AUC ordered that effective January 1, 2022, DCG credits would begin to phase out through 20% reductions in annual DCG credits and complete removal of all credits by January 1, 2026. |
The AUC offers a full history of regulatory decisions.
