Author: Jordyn Smith

AESO Symposium on Market Pathways

In the last week of November, the Alberta Electric System Operator (AESO) held its 2023 Symposium where it provided stakeholders with updates regarding the transmission system, reliability, and market pathways. One prevailing issue the AESO is working to resolve is the lack of firm energy capacity available on Alberta’s electric grid. While Alberta’s electric energy supply has been reasonably maintained through the energy-only and ancillary markets, it is anticipated that a greater baseline capacity is needed for Alberta’s future energy needs.



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Commission’s Reconsideration Decision of ATCO’s Wood Buffalo Fire Z Factor Adjustment

In proceeding 28320, the Alberta Utilities Commission issues its decision regarding the reconsideration of the Z factor adjustment for the assets of ATCO Electric Ltd. (ATCO) which were destroyed in the 2016 Wood Buffalo fire. In Decision 21609-D01-2019, the Commission originally denied ATCO recovery of the net book value of the destroyed assets and ATCO was directed to remove the assets from its rate base. ATCO appealed the decision in ATCO Electric Ltd v Alberta Utilities Commission. The Alberta Court of Appeal (the Court) upheld ATCO’s appeal and then turned the initial decision back over to the Commission for reconsideration.



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The 2024 Return on Equity Calculation

In proceeding 28585, the Alberta Utilities Commission (the Commission) publishes its calculation of the 2024 return on equity (ROE) after having approved the parameter values required to implement the new ROE formula. The Commission’s proposed 2024 ROE, based on the formula, is 9.28 percent.



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Contributions in Aid of Construction Appeal

The Court of Appeal of Alberta (the Court) has issued its decision regarding the appeal of Alberta Utilities Commission (AUC) Decision 26061-D01-2021. The appeal was filed by AltaLink Management Ltd. (AltaLink), ATCO Electric Ltd., ENMAX Power Corporation, and EPCOR Distribution & Transmission Inc.  The crux of this appeal is the Commission’s treatment of contributions in aid of construction. In Decision 26061-D01-2021, the Commission disallowed transmission and distribution facility owners (TFOs and DFOs) from earning a return on contributions in aid of construction, despite affirming that the current practice was in line with the legislative framework. The utilities could then only treat the contributions as expenses in the year of disbursement because of the decision. The four DFOs filed an appeal with the Alberta court.[1]



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The Commission’s Renewable Generation Inquiry – Module A

In Proceeding 28501, the Alberta Utilities Commission (the Commission) conducts its inquiry regarding renewable energy generation in Alberta.

In August of 2023, the Government of Alberta issued an Order in Council requiring the Commission to initiate an inquiry into the economic, orderly, and efficient development and operation of electricity generation in Alberta as it pertains to renewable generation and its impact on agriculture, land, viewscapes, and system reliability. Over 140 interveners registered in this proceeding and were given opportunities to provide written comments and make submissions regarding the subject matter. In-house sessions were also held in November wherein the Commission shared information about the inquiry and provided guidance regarding participation.



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Micro-Gen Dispute Decision

In proceeding 28319, the Alberta Utilities Commission (the Commission) issues its decision regarding the micro-generation dispute between ATCO Electric Ltd. (ATCO) and a farm. In June of 2023, the farm submitted a micro-generation application to ATCO and ATCO rejected the application on the basis that the generating capacity was too large relative to load. The crux of the disagreement was whether one year of history (ATCO’s position) or five years of history (the farm’s position) was sufficient to predict future load.



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The PBR3 Parameters

In Proceeding 27388, the Alberta Utilities Commission (the Commission) sets the parameters of the third term of performance-based regulation (PBR3) in Alberta, which w ill be applied to the four following electric distribution utilities: ATCO Electric Ltd., FortisAlberta Inc. (Fortis), ENMAX Power Corporation, and EPCOR Distribution & Transmission Inc. (EPCOR); and the following two natural gas distribution utilities, ATCO Gas and Pipelines Ltd. and Apex Utilities Inc. In sum, PBR3 builds upon PBR2 but makes some key changes in how benefits and efficiencies are respectively provided and quantified going forward with the addition of an efficiency sharing mechanism and the removal of the efficiency carryover mechanism.



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Principles of Maximum Investment Levels (MILs) Decision

In proceeding 27658, the Alberta Utilities Commission (the Commission) issues its decision on whether it remains reasonable for electric distribution utilities to invest in new residential customer connections up to a prescribed maximum investment level (MIL). Additionally, the Commission issues its decision on whether MILs related to street lighting installed in developments should be paid to the municipality within which the development was constructed or to the developer. Ultimately the Commission concludes the continuation of MILs, albeit under four new governing principles, and it decides that MILs should be paid to the municipalities in which a new development is constructed.[1]



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Decision on the Review and Variance Application of ATCO Gas’s PBR3 Base Revenue

In Proceeding 28244, the Alberta Utilities Commission (the Commission), the City of Calgary applied for the review and variance of Decision 26616-D01-2022 in which the Commission determined the 2023 cost-of-service applications of ATCO Gas (ATCO), and Apex Utilities Inc. Calgary had asserted that ATCO’s 2022 14 percent return on equity required a re-calculation of ATCO’s rate base going into the third term of performance-based regulation (PBR3) which had excluded data from years 2021 and 2022.



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The AESO’s Revised AMP Implementation Plan Application

In Proceeding 28441, the Alberta Electric System Operator (AESO) applies to the Alberta Utilities Commission (the Commission) for approval of its revised adjusted metering practice (AMP) implementation plan. In Decision 27047-D01-2022, the Commission denied approving the AESO’s previous AMP implementation plan and directed that if the AESO wanted to file another application, it would need to include:

  • AACE Class 3 estimates and forecast completion date for all scopes of work proposed in the implementation plan,
  • AACE Class 5 estimates for the total theoretical maximum cost of implementation across all phases; and
  • Quantification of the benefits of AMP implementation, including a cost-benefit analysis.

With these requirements in mind, the AESO submitted its revised application.



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