Alberta Utilities Commission

Alberta’s Renewable Generation Moratorium

The Government of Alberta issued a moratorium on the approval of renewable energy generation across the province until February 29, 2024. Additionally, the government also requires the Alberta Utilities Commission to commence an inquiry regarding the development and impact of renewable generation in Alberta. In the meantime, the Commission decided to continue processing renewable generation applications to the point where they require final approval. These decisions are likely to have some immediate effects on renewable generation planning, but the long-term outlook remains unknown until more details about the inquiry are made available.



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Micro-Generation Proposal Dispute

In Proceeding 28139, ATCO Electric Ltd. (ATCO) issued a notice of dispute over whether a micro-generation unit proposed by EvolvSolar meets the generator qualifications outlined in the Micro-Generation Regulation.

EvolvSolar and its client applied to ATCO to construct a solar system that would produce 296,667 kWh per year to power a farm grain drying process. ATCO did not approve the application because the site usage averaged only 204,600 kWh over the past two years (2021 and 2022). The Micro-Generation Regulation defines a micro-generation unit as one intended to meet all or a portion of the site’s annual energy consumption. ATCO, as the wires owner, believes the proposed project does not qualify as a micro-generation unit since it might produce more energy than what is consumed on site.[1]



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2024 GCOC Arguments

In proceeding 27084, interveners submit their arguments over the matters put forward by the Alberta Utilities Commission (the Commission) regarding the generic cost of capital (GCOC). The Commission had already decided to proceed with a formulaic approach that was previously approved in 2009 and had asked interveners to provide recommendations for the formula’s variables. Interveners previously submited evidence detailing their variable recommendations and have since provided arguments supporting their evidence. However, some interveners continue to argue against the formulaic approach, and most proposed a specific return on equity (ROE) ratios for the 2024 GCOC.  A significant portion of argument focused on debating whether business risk has increased or decreased in the province and why the level of risk justifies each intervener’s proposal.



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TransAlta’s 2022-2023 GTA Decision

In proceeding 27964, the Alberta Utilities Commission (the Commission) issues its decision on the 2022-2023 general tariff application of TransAlta Corporation (TransAlta). TransAlta requested a $9.0 million revenue requirement for 2022 and $9.4 million for 2023. The three main contentions in this proceeding centered around TransAlta’s non-union salary escalation rates, its operations and maintenance (O&M) agreement with AltaLink Management Ltd. (AltaLink), and its First Nations Advisory Committee costs.[1]



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Review and Variance Application of ATCO Gas PBR3 Base Revenue

In Proceeding 28244, The City of Calgary (Calgary) submits to the Alberta Utilities Commission (the Commission) a review and variance application of Decision 26616-D01-2023 which establishes the 2023 revenue requirement of ATCO Gas Distribution (ATCO). Calgary argues that ATCO’s 2022 14 percent return on equity triggers a re-calculation of ATCO’s rate base going into the third term of performance-based regulation (PBR3) which had excluded data from years 2021 and 2022.[1]



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2022 ISO Tariff Modernization Application Decision

In Proceeding 27864, the Alberta Utilities Commission (the Commission) issues its decision regarding the 2022 ISO Tariff Modernization Application applied for by the Alberta Electric System Operator (AESO). Intervenors opposed the AESO’s revisions to System Access Service Requests (SASRs) and Generating Unit Owner’s Contribution (GUOC) policies. The Commission accepts the AESO’s application as filed with only one change required to its GUOC proposal that allows an adjustment to the associated energization date under certain circumstances.[1]



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AltaLink’s 2024-2025 General Tariff Application

In Proceeding 28174, AltaLink Management Ltd. (AltaLink) submits to the Alberta Utilities Commission (the Commission) its 2024-2025 general tariff application along with the applications of KainaiLink, L.P. (KainaiLink) and PiikaniLink, L.P. (PiikaniLink) for review. Overall, AltaLink seeks to maintain its transmission tariffs at its 2018 levels and to correct accounting errors discovered since its previous application.[1]



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Decision on EPCOR’s 2023 System Access Service Rates Update

In Proceeding 28133, the Alberta Utilities Commission (the Commission) issues its decision on the 2023 System Access Service (SAS) Rate Update application of EPCOR Distribution & Transmission Inc. (EPCOR). EPCOR had filed an application with the Commission requesting approval to update its 2023 SAS rates effective July 1, 2023. The Commission already approved EPCOR’s 2023 SAS rates in December 2022. However, a week after issuing its decision, the Commission approved the 2023 Independent System Operator (ISO) tariff of the Alberta Electric System Operator (AESO), which included changes to the AESO’s demand transmission service (DTS) rate components. Therefore, EPCOR requested approval to align its SAS rates in accordance with the AESO’s DTS rate components. No additional interveners participated in this proceeding.[1]



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ATCO Electric’s 2023-2025 General Tariff Application Decision

In Proceeding 27062, the Alberta Utilities Commission (the Commission) decides on the 2023-2025 General Tariff Application of ATCO Electric Ltd. (ATCO). The Commission allowed ATCO and interveners to enter a negotiated settlement process on all matters except for the Vegetation Management reserve removal and modifications to ATCO’s Variable Pay Program reserve. Parties were also unable to agree on the treatment of the $7.5 million undepreciated balance for ATCO’s Jasper Palisades isolated generation plant. Therefore, the Commission dealt with these three issues separately from the negotiated settlement.[1]



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ENMAX Energy’s 2023-2024 Energy Price Setting Plan Decision

ENMAX Energy Corporation (ENMAX Energy) provides regulated rate option (RRO) services in ENMAX Power Corporation’s service territory. The Alberta Utilities Commission (the Commission) approves the RRO tariff through an energy price setting plan (EPSP) which sets the monthly RRO rate parameters. In Proceeding 27495, the Commission issues its decision regarding ENMAX Energy’s 2023-2024 EPSP. Key issues in this proceeding include ENMAX Energy’s proposals to amend its Letter of Credit (LOC) rates and how it calculates its Natural Gas Exchange (NGX) Collateral Costs, as well as the recommendations of the Utilities Consumers Advocate (UCA) to exclude the net commodity risk compensation (CRC) from ENMAX Energy’s energy return margin calculations and to limit ENMAX Energy’s monthly monitoring costs.[1]



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