FortisAlberta v AUC Court of Appeal Ruling Concerning PBR

On July 30, 2026, the Alberta Court of Appeal released its FortisAlberta Inc v Alberta Utilities Commission, 2026 ABCA 258 ruling concerning the third term of the performance-based regulation (PBR) framework for Alberta distribution utilities. This decision (Docket 2301-0264AC) was heard alongside two other related appeals (0265AC and 0268AC) involving FortisAlberta, ENMAX Power, and ATCO Electric in relation to the October 2023 Decision 27388 which established the third term of PBR.1

While the Court largely upheld the AUC’s decision, it found the Commission made an error in dismissing Fortis’ complaint involving the stretch factor adjustment present within PBR without sufficient explanation. Additionally, the Court made a number of recommendations to the Commission in regards to improving regulatory efficiency, including making Decisions more legible to lay persons, specifically by reducing the use of acronyms.



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PILON Dispute Ruling Between FortisAlberta and Tenaris

On June 30th, 2026, the Alberta Utilities Commission (AUC) announced its decision regarding the ongoing payment dispute between FortisAlberta and Tenaris (known as 2543500 Alberta Ltd). The dispute concerned a proposed $586,918.80 Payment in Lieu of Notice (or PILON) charged to Tenaris over its plans to reduce the minimum and expected peak demand in its electric service agreement contract.



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Town of Hinton Rate Reassessment – Preliminary Update

On May 28th, 2026, the Town of Hinton (the Town) filed a compliance application with the Alberta Utilities Commission (AUC or Commission) in proceeding 30867 regarding a reassessment of appropriate water rates concerning Mondi Hinton Inc. (Mondi). This proceeding is a continuation of an earlier AUC decision, in which the Commission found that the Town had improperly imposed rates to its customers.



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REA Site Transfer Compensation – Argument of Fortis

On June 19th, Fortis Alberta Inc. (Fortis) filed with the Alberta Utilities Commission (AUC) its arguments regarding the appropriate compensation  for the transfer of service-area sites and distribution assets from the Battle River Power Coop (BRPC). After the Alberta Court of appeal rejected an earlier Commission ruling, Decision 28358-D01-2024, the AUC initiated proceeding 30555 to redetermine how much Fortis should compensate BRPC under an alternative section of the relevant Hydro and Electric Energy Act (HEEA).



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ATCO Micro-Gen Proceeding – Update

In proceeding 30895, ATCO Electric Ltd. (ATCO) filed a notice of dispute (Form B) with the Alberta Utilities Commission (AUC) on June 11th, contesting the micro-generation application of a customer in Sherwood Park, Alberta. The dispute involves whether the customer’s proposed 10kWh combined heat and power (CHP) unit qualifies as micro-gen under the existing Micro-Generation Regulations (MGR).



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Restructured Energy Market (REM) Update – Internal Demand Rates (IDR)

On March 31, 2026, the Alberta Electric System Operator (AESO) held a workshop concerning the Internal Demand Rate (IDR) revamp. Previously called the ISO tariff, the new name reflects the fact that the current tariff application changes are part of the broader Restructured energy market (REM). The goal of this workshop was to engage stakeholders and solicit feedback on potential transmission rate design features.

For context, the AESO had last asked for approval for a tariff redesign in 2021, but was rejected by the Alberta Utilities Commission (AUC). While not set in stone, many of the features discussed in the recent workshop were heavily based on earlier AUC feedback.



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Restructured Energy Market (REM) Update – Optimal Transmission Planning (OTP)

On January 30, 2026, the Alberta System Electric Operator (AESO) released its Optimal Transmission Planning (OTP) Framework, outlining significant changes to the transmission planning process as part of the broader restructured energy market (REM).

The new framework was released following significant stakeholder feedback earlier in Fall 2025. This included submissions from ENMAX, ATCO Electric, TransAlta, and 17 other major market participants on the proposed changes to transmission planning. The AESO has stressed that optimal transmission planning works hand-in-glove with the implementation of Locational Marginal Pricing (LMP), which we’ve covered earlier.



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