Alberta Utilities Commission

ATCO Electric Transmission’s Negotiated Settlement Agreement for its 2023-2025 General Tariff Application

In proceeding 27062, ATCO Electric Transmission (ATCO) submit its 2023-2025 general tariff application to the Alberta Utilities Commission (the Commission) for approval. In August 2022, the Commission approved ATCO and the Interveners to enter a negotiated settlement process, and the parties engaged in settlement negotiations starting December 12. By December 20, all parties agreed in principle to a negotiated settlement. ATCO now requests that the Commission approve the settlement agreement and the resulting adjustments.[1]



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Enforcement Staff and City of Grande Prairie Settlement Agreement

The City of Grande Prairie constructed and began operating a 666-kilowatt power plant within the city between January and April 2021. Grande Prairie offered as a reason, and the Alberta Utilities Commission accepted, that Grande Prairie did not realize that the Hydro and Electric Energy Regulation and Rule 007 impose requirements on small power plants. Therefore, Grande Prairie did not file an application with the Commission for approval to construct and operate the power plant. The Commission Enforcement staff (Enforcement staff) began an investigation into the power plant after receiving two noise complaints. Grande Prairie and Enforcement staff subsequently engaged in discussions that produced a settlement agreement, which was then submitted to the Commission. In this decision, the Commission approves the settlement agreement.[1]

Background

Prompted by two noise complaints in December 2021, Enforcement staff started investigating the power plant to determine whether Grande Prairie complied with Rule 012: Noise Control. Enforcement staff determined that the power plant was operating without approval and in contravention of Rule 012. In January 2023, the Commission granted Grande Prairie approval to operate the power plant, subject to Grande Prairie: [2]



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Comparing the AUC and BCUC Hydrogen Inquiries

The British Columbia Utilities Commission (BCUC) recently initiated a hydrogen inquiry to examine the feasibility and potential market for producing and distributing hydrogen natural gas into its current natural gas framework. This inquiry parallels the inquiry conducted by the Alberta Utilities Commission (AUC) in 2022. Comparing the two inquiry frameworks reveals the similarities and differences between the two provinces’ approaches to hydrogen.

The AUC’s Hydrogen Inquiry

In March of 2022, the government of Alberta directed the AUC to inquire into and report to the Minister of Energy on the potential hydrogen blending into the province’s natural gas distribution systems.[1] The AUC then opened a public inquiry on the matter, the scope of which included the following:



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Information Requests and Responses in ENMAX’s 2023-2025 Transmission General Tariff Application

In proceeding 27581, the Alberta Utilities Commission (the Commission), the Consumers’ Coalition of Alberta (CCA), and the Utilities Consumer Advocate (UCA) each submit their information requests (IRs) to ENMAX Energy Corporation (ENMAX) regarding ENMAX’s 2023-2025 Transmission General Tariff Application. ENMAX recently responded to these IRs that covered operations and maintenance costs, depreciation practices, and specific projects and programs.



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EPCOR 2023-2025 TFO Tariff Application Evidence

In proceeding 27675, four intervenors on behalf of the Consumers’ Coalition of Alberta (CCA) and the Utilities Consumer Advocate (UCA) submit evidence addressing the 2023-2025 Transmission Facility Owner (TFO) application of EPCOR Distribution & Transmission Inc. (EPCOR). The evidence focuses on several issues including operating and maintenance costs, deferral accounts, full-time equivalents (FTEs), and depreciation.



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ATCO and Enforcement Staff Settlement Agreement on Customer Rate Class Switching Requests [Update]

In proceeding 27948, the Enforcement staff of the Alberta Utilities Commission (the Commission) request an enforcement proceeding and approval of a settlement agreement between the Enforcement staff and ATCO Gas and Pipelines Ltd. (ATCO). The investigation behind the agreement was in response to a complaint from TCB Welding & Construction Ltd. (TCB) concerning high-use delivery service charges. TCB alleged that ATCO delayed switching it from the mid-use to the high-use delivery service rate and TCB was overcharged from December 2020 to November 2021.[1]

The Contraventions

After their investigation, Enforcement staff found that ATCO failed:

  • To make TCB aware of ATCOs rate schedules for different customer rate classes.
  • To apply the most favourable rate schedule to TCB in a timely fashion.
  • To refund the difference in rates charged to TCB between when it requested an alternative rate and when ATCO updated TCB’s rate class.[2]


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Commission Decision on Direct Energy’s Energy Price Setting Plan Application

In Proceeding 27562, the Alberta Utilities Commission (the Commission) issues its decision regarding the 2023-2025 Energy Price Setting Plan (EPSP) Application of Direct Energy Regulated Services (Direct Energy). Direct Energy is a regulated rate option (RRO) provider in ATCO Electric Ltd.’s service territory. The EPSP establishes electricity pricing for these RRO customers. Direct Energy proposed EPSP includes nine total changes: six to the confidential procurement protocol and three to other non-confidential provisions of the EPSP. However, after hearing intervenor arguments, Direct Energy’s EPSP is not approved by the Commission, and Direct Energy is to refile the plan after making the necessary changes.[1]



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Decisions on ATCO and FortisAlberta’s 2023 Revenue Requirements and Rates

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).



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2023 Maximum Investment Levels Decision

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]

2023 Maximum Investment Levels (MILs)

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]



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Commission Decisions on Apex’s, ATCO’s, ENMAX’s, and EPCOR’s Cost-of-Service and Distribution Rate Compliance Filings going into PBR3

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]



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