In Proceedings 27671 and 27672, the Alberta Utilities Commission (the Commission) issues its decision regarding the 2023 revenue requirements and proposed rates of ATCO Electric Ltd. (ATCO) and FortisAlberta Inc. (FortisAlberta). For ATCO and FortisAlberta, this concludes the rebasing cost-of-service review in preparation for the third term of performance-based regulation (PBR).
In Proceeding 27658, the Alberta Utilities Commission (the Commission) sets the maximum investment levels (MILs) for 2023 that a distribution facility owner (DFO) can contribute to the cost of connecting a new customer to its system. Therefore, the 2023 MILs for each DFO will be set by escalating the 2022 MILs by a 2.68 percent inflation factor.[1]
Individual developers are responsible for constructing electric utility infrastructure inside new residential developments within FortisAlberta Inc., ATCO Electric Ltd., and EPCOR Distribution & Transmission Inc. (the DFOs) service areas. After completing construction, the developer passes infrastructure ownership back to the DFO and receives compensation from the DFO according to the approved MILs. Any costs beyond the MILs fall to the developer.[2]
In Proceeding 27864, the Alberta Electric System Operator (AESO) applies for approval from the Alberta Utilities Commission (the Commission) to revise the Independent System Operator (ISO) tariff. These revisions intend to align the ISO tariff with the AESO’s existing practices. The application also responds to two Commission-issued directions.[1]
In Proceedings 27651, 27653, 27684, and 27685, Apex Utilities Inc. (Apex), ATCO Gas (ATCO), ENMAX Power Corporation (ENMAX), and EPCOR Distribution & Transmission Inc. (EPCOR) submit their revenue requirement and distribution rates compliance filings to the Alberta Utilities Commission (the Commission) for approval going into the third term of performance-based regulation (PBR3). The approval of these compliance filings concludes each applicant’s PBR rebasing.[1]
In Proceeding 27062, ATCO Electric Ltd. (ATCO) asks the Commission to approve their revenue requirement of $677.1 million in 2023, $687.8 million in 2024 and $698.6 million in 2025. ATCO notes that the 2023 requirement is lower than their 2022 forecast because they are proposing to stop collecting Future Income Tax (FIT) expenses, their property taxes are lower, and there are fewer head office costs. After completing a round of information requests, intervenors submitted evidence detailing their concerns regarding the application.[1]
ENMAX Energy Corporation (ENMAX Energy) provides regulated rate option (RRO) services in ENMAX Power Corporation’s service territory; however, the Commission must approve the RRO tariff through an energy price setting plan (EPSP). In Proceeding 27495, ENMAX Energy’s application proposes to continue its previous EPSP with several refinements. After examining the application and submitting information requests, the Utilities Consumer Advocate (UCA) argues against certain aspects of ENMAX Energy’s proposal.[1]
In Proceeding 27666, the Alberta Utility Commission (the Commission) issues its decision regarding the review and variance application of the Consumers’ Coalition of Alberta (CCA), arguing that their 40 percent cost claim disallowance was inconsistent, punitive, and punishing. However, the CCA did not persuade the Commission that there were errors in the initial decision. Therefore, the disallowance stands.[1]
In Proceeding 27777, the Alberta Electric System Operator (AESO) submits to the Alberta Utilities Commission (the Commission) its 2023 Independent System Operator (ISO) Tariff Application. In its application, the AESO explains the increases to its revenue requirement forecast, proposes an overall increase to the ISO tariff and the maximum investment levels, and provides new Generating Unit Owner’s Contribution (GUOC) rates.
The 2023 Business Plan and Budget Proposal of the Alberta Electric System Operator (“AESO”) outlines the organization’s priorities and expenditures for the upcoming year. In developing this proposal, the AESO explained that stakeholders met one-on-one with a subset of AESO board and executive members to share their perspectives on what they believed the AESO should be focusing on in the near term. The AESO used these insights to inform its 2023 priorities.[1]
In Proceeding 26911, the Alberta Utilities Commission (the “Commission”) issues its decision regarding the proposed regional and bulk transmission rate design of the Alberta Electric System Operator (“AESO”). Alberta’s current regional and bulk transmission rate design recovers transmission costs through energy and coincident peak (“CP”) demand billing determinants. However, most intervenors agree that the associated CP charge overstates the cost of using the grid at peak times, allowing some customers to lower their bills by strategically reducing consumption. The AESO proposed a new rate design that lowers the influence of the CP charge and raises the energy charge to alleviate this issue.