Recall from previous Industry Updates that the AUC, on complaint from Milner Power and ATCO Power, determined that the 2005 line loss rule is discriminatory and that Milner Power may be entitled to some relief and remedy (Decision 2014-110). With this Decision, the Commission moved on to phase 2 of the proceeding, which it has split into three main issues or modules.
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In 2010 and 2011, the AESO implemented changes to the operating reserve market. Recently, the AESO released a post-implementation report assessing the redesigned operating reserve market against the redesign goals.
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Enmax Power Corporation (EPC) applied for a re-opener of its Formula-Based Ratemaking (FBR) on the basis that actual returns on equity (ROEs) were more than 300 basis points below the target ROE for two consecutive years.
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Yesterday (December 19, 2014), the Department of Energy made available to the public a report by the MLA Retail Market Review Committee (RMRC) Implementation Team on enhancing the retail market for electricity in Alberta. The report was actually completed in June of 2014, but was withheld from the public until the government was able to review the recommendations and outline the implementation plan.
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In December, the Commission issued Decision 2014-347 on ENMAX Power’s 2014 Phase I Distribution Tariff Application and 2014-2015 Transmission General Tariff Application.
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Bill 201, the Electric Utilities (Transparency in Billing) Amendment Act, 2014 which was sponsored by independent MLA Joe Anglin, has passed third reading in the Alberta Legislature.
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The AltaLink 2015-16 General Rate Application was submitted on November 18, 2014. In this application, AltaLink is requesting approval of 2015 and 2016 revenue requirements of $810.5M and $1,001.6M respectively. Additionally, AltaLink is seeking approval for the settlement of $4.9M of Self-insurance Reserve Costs related to repairs on assets damaged during the flood and from grassfires.
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Argument and reply arguments have been submitted in the Commission initiated regulated rate tariff (RRT) generic proceeding.
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ATCO Utilities that they routinely submit cost claims that are in excess of the AUC’s scale of costs set out in Rule 002, most frequently in regards to legal fees. In response, the Commission (with equal frequency) limits or disallows partial costs to effectively bring legal fees in line with the price cap.
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On November 27, 2014 the MSA released the 2014 State of the Market Report with a specific focus on the retail market. The MSA’s overall assessment is that that the Alberta retail market is competitive, but that this is inconsistent across the province, with some regions lacking retail competition.
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