The Alberta Utilities Commission (AUC) issues a decision at the end of each regulatory proceeding. A decision takes into consideration all information from the application and hearing process. The result is approval or denial of the application in full, in part, or with conditions.
The following decision summaries are provided by the Office of the Utilities Consumer Advocate (UCA) and are intended to provide a general overview of more significant proceedings. The Alberta Utilities Commission (AUC) publishes the full reports and official decisions for all proceedings on its website.
AUC Decision 26509-D01-2022, January 19, 2022
On April 30th, 2021, AltaLink Management Ltd. (AML) filed General Tariff Applications (GTA) for AML, PiikaniLink Limited Partnership, and KainaiLink Limited Partnership. AML’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. Revenue requirements are recovered from customers through transmission rates. AML 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.
Outcome
The Commission issued its decision on January 19, 2022, after an open and public process. The Commission made a number of reductions to the proposed revenue requirement for operations and maintenance but denied AML’s proposed $120 million refund to customers. While this refund was strongly supported by all interveners, the Commission did not approve the refund on the grounds that refunds of this nature should only be used in exceptional circumstances. The Commission also denied AML’s request to recover $97 million in proposed net salvage costs stating that there was insufficient detail for these costs provided in its Application.
AUC Decision 26844-D01-2021, December 3, 2021
On September 10, 2021, ENMAX Power Corporation (EPC) filed its 2022 Performance-based Regulation (PBR) Rates Adjustment Application with the Alberta Utilities Commission (Commission). 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.
Outcome
On December 3, 2021, after an open and public process, the Commission 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.
AUC Decision 26589-D01-2021, November 24, 2021
On June 17, 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. Type 1 capital costs are defined by the Alberta Utility Commissions (Commission) as extraordinary and required by a third party. In step with Decision 20414-D01-2016, the Commission 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.
Outcome
On November 24, 2021, after an open and public process, the Commission 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 Commission did not find enough institutional separation between the City of Calgary and EPC to be considered a third-party request. The Commission 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.
AUC Decision 26356-D01-2021, June 30, 2021
On March 1, 2021, the Alberta Utilities Commission (Commission) initiated Proceeding 26356 with the purpose of evaluating previous performance-based regulation (PBR) plans for Alberta’s electric and gas distribution utilities.
Outcome
On June 30, 2021, after an open and public process, the Commission 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 Commission 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 Commission found that on most of these principles PBR was successful.
AUC Decision 26090-D01-2021, June 7, 2021
On November 17, 2020, the Alberta Utilities Commission (Commission) initiated Proceeding 26090 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. DCG Credits are paid by utilities to generators connected to distribution systems, who either self supply electricity to meet their own needs or export electricity. The amount provided in DCG credits is recovered from all customers of the distribution utility that provides the credits.
Outcome
On June 7, 2021, after an open and public process, the Commission did not agree with the arguments put forth by DCG operators that DCG credits provide value or quantifiable benefits to ratepayers. The Commission 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.
