Under the performance-based regulation (PBR) mechanism, distribution utilities can apply for supplemental funding for certain capital-related costs. The revenue requirement associated with the approved capital-related costs is collected from rate- payers by way of a ‘K factor’ adjustment to the annual PBR rate-setting formula.
To view more of this post, please
The Alberta Distribution Utilities (AltaGas, ATCO Gas, ATCO Electric, EPCOR Distribution and Transmission (EDTI), and Fortis) regulated by the AUC have completed the annual Performance Based Regulation (PBR) rate adjustment process.
To view more of this post, please
On January 20, 2015 the Market Surveillance Administrator (MSA) submitted argument in the ongoing enforcement proceeding against TransAlta.
To view more of this post, please
In addition to individual capital tacker decision, the Commission initiated a generic proceeding on the methodology and assumptions used in the accounting test requirement for capital tracker forecast and true-up applications. The Commission was interested in achieving consistency, where possibly, among the assumptions used for companies’ respective weighted average cost of capital (WACC) rate – specifically, debt rates, return on equity (ROE) rates and capital structure.
To view more of this post, please
On January 26, 2015, the AUC approved AltaLink interim TFO tariff application effective January 1, 2015 (3504-D01-2015).
To view more of this post, please
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.
To view more of this post, please
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.
To view more of this post, please
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.
To view more of this post, please
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.
To view more of this post, please
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.
To view more of this post, please