EPCOR’s 2023 System Access Services Rates Update Application

In proceeding 28133, EPCOR Distribution & Transmission Inc. (EPCOR) submits its 2023 System Access Service (SAS) rates application to the Alberta Utilities Commission (the Commission) in response to the 2023 independent system operator (ISO) tariff of the Alberta Electric System Operator (AESO). EPCOR states it is only updating its SAS rates to reflect the 2023 AESO demand transmission service (DTS) charges and that all other inputs are those originally approved in Decision 27653-D01-2022.[1]



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EPCOR’s 2023-2025 General Tariff Application Decision

In proceeding 27675, the Alberta Utilities Commission (the Commission) issues its decision regarding the 2023-2025 general tariff application (GTA) of EPCOR Transmission & Distribution Inc. (EPCOR). Rather than proceed through an argument process, EPCOR negotiated a settlement with the Consumer’s Coalition of Alberta (CCA) and the Utilities Consumer Advocate (UCA). After review, the Commission approves EPCOR’s 2023-2025 GTA, which includes the negotiated settlement reduction of $10.81 million, the withdrawal of EPCOR’s request for a cloud-based software as a service (SaaS) cost deferral account, and compliance with Commission decisions.



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2022 ISO Tariff Modernization Application Arguments

In Proceeding 27864, the Alberta Electric System Operator (AESO) and interveners submit their arguments before the Commission for and against the AESO’s 2022 Independent System Operator (ISO) Tariff Modernization Application. In general, intervenors oppose the AESO’s proposed revisions to System Access Service Requests (SASRs) and Generating Unit Owner’s Contribution (GUOC) policies. However, intervenors do not oppose the AESO’s revisions to Transmission Must Run (TMR), cost allocation for transmission line relocations, or Payment in Lieu of Notice (PILON), which we summarize in our previous article. Therefore, this article only discusses the SASR and GUOC arguments.



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Directions for Fortis’s Streetlight Investment

In Proceeding 27682, the Alberta Utilities Commission (the Commission) issues its decision regarding the terms and conditions (T&Cs) of FortisAlberta Inc. (Fortis) that pertain to its streetlight investment. In December 2021, Fortis sought the Commission’s input to determine whether Fortis should pay its streetlight investment to the developer or the municipality if the parties cannot agree on who is entitled to the payment. In Decision 27067-D01-2022, the Commission directed that the streetlight investment be paid to the municipality if the developer and municipality are in dispute. The Commission further directed Fortis to clarify the streetlight investment entitlement in its T&Cs.[1]

Fortis made its compliance filing. However, the Commission found that Fortis only complied with one of the three directions. Nevertheless, the Commission does not require Fortis to submit another compliance filing because the Commission will hear issues concerning streetlight investment in Proceeding 27658.[2]



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ATCO Electric Transmission 2023-2025 Tariff Application Arguments

In Proceeding 27062, ATCO Electric Transmission (ATCO) submit its 2023-2025 general tariff application to the Alberta Utilities Commission (the Commission) for approval. In December 2022, all parties agreed to a negotiated settlement, which the Commission approved in January 2023. However, the settlement excluded the three following matters:

  • A depreciation adjustment related to the Jasper Palisades Isolated Generation Plant.
  • Modification to the variable pay program.
  • Vegetation management reserve removal.

The intervening parties submit their oral arguments that address these three remaining issues.



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Residential Standards of Service and Maximum Investment Levels (MILs) Proceeding Issues List

In Proceeding 27658, the Alberta Utilities Commission (the Commission) finalizes the issues list for addressing standards of service and maximum investment levels for residential services. In September, the Commission put forward a preliminary list of issues for consideration. The Commission received comments on the preliminary issues from ATCO Electric Ltd. (ATCO), EPCOR Distribution & Transmission Inc., ENMAX Power Corporation, FortisAlberta Inc., the Alberta Federation of Rural Electrification Associations, the Office of the Utilities Consumer Advocate, and Melcor Developments Ltd. The Commission developed the following list based on these submissions.[1]

Issues List Summary[2]

  • The goal of setting MILs.
  • Whether MILs should be eliminated.
  • If MILs are not eliminated, determining the types of costs that should be eligible for MILs.
  • Deciding whether the prior MILs principles referenced in Decision 2010-309 are relevant and result in reasonable rates.
  • The scope of work that developers expect completed in exchange for MILs.
  • The electrical infrastructure the developer or homeowner is responsible for installing.
  • The average cost of providing electrical service to new greenfield residential developments.
  • The proportion of new connection costs to be recovered through MILs.
  • The developer and distribution facility owner (DFO) costs for consideration in MILs.
  • The timing of a utility investing in new residential services (i.e., once the infrastructure is in place, or when an end-use customer has bought a home and has enrolled with a utility service?).
  • The effect of performance-based regulation (PBR) on MILs.
  • Whether the developer or the municipality is responsible for street lighting.


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Evidence on PBR3 Parameters

In proceeding 27388, intervenors submit evidence to the Alberta Utilities Commission (the Commission) in setting formula parameters for the third term of performance-based regulation (PBR3). The Commission asked intervenors to address seven specific issues:

  • Rate adjustment timing.
  • The type of PBR plan used to regulate electric and gas distribution facility owners (DFO).
  • The I Factor.
  • The X Factor.
  • Capital funding provisions.
  • Earnings sharing and efficiency carry-over mechanisms.
  • Efficiency tracking.

Intervenors each provided evidence that address at least one of these issues.



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TransAlta’s 2022-2023 General Tariff Transmission Application

In proceeding 27964, TransAlta Corporation requests approval of a $9.0 million revenue requirement for 2022 and $9.4 million for 2023, along with a one-time payment from the Alberta Electric System Operator (AESO) of $846,000 to reconcile approved interim rates. This revenue requirement includes TransAlta’s transmission facility owner rates applicable to the AESO’s use of TransAlta’s transmission facilities over the test period and TransAlta’s costs associated with the Operations and Maintenance Agreement between AltaLink Management Ltd. (AltaLink) and TransAlta.[1]



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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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