Reconsideration of ATCO Electric Z Factor for the Wood Buffalo Fire

In proceeding 28320, the Alberta Utilities Commission (the Commission) reconsiders the Z factor adjustment of ATCO Electric (ATCO) for the 2016 Wood Buffalo fire. On April 14, 2023, the Alberta Court of Appeal issued its decision regarding ATCO Electric Ltd. v Alberta Utilities Commission, 2023 ABCA 129 (the Appeal decision) where ATCO sought to appeal the Commission’s denial of ATCO’s loss recovery associated with the 2016 fires. The Commission’s original decision relied on ATCO Gas & Pipelines Ltd. v Alberta (Energy & Utilities Board), 2006 SCC 4 (the Stores Block decision) in which the Commission understood that ‘extraordinary retirements’ of assets are attributable to shareholders rather than customers. However, the Alberta Court of Appeal overturned the Commission’s decision (which depended on an interpretation and application of the Stores Block decision) and referred the matter back to the Commission.

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