AltaLink Managament Ltd.

AltaLink Application Regarding Destroyed Assets

In proceeding 28750, AltaLink Management Ltd. (AltaLink) applies to recover its expenditures incurred to repair, replace, and salvage its transmission facilities that were damaged or destroyed in the 2023 Spring wildfire and snow events. AltaLink calculates that the total expenditure is $24.7 million, which it requests to be included in its 2024 opening rate base and net salvage reserve where applicable. AltaLink is filing this application now because it only recently finished determining the total scope of repair and expenditures and the 2023 Spring wildfire and snow events occurred after AltaLink filed its 2024-2025 GTA which is currently being considered in proceeding 28174.[1]



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AltaLink 2024-2025 NSA Application

In proceeding 28174, AltaLink Management Inc. (AltaLink) applies to the Alberta Utilities Commission (the Commission) for the approval of a negotiated settlement agreement (NSA). The NSA was made between AltaLink, the Alberta Direct Connect Customers, the Consumers’ Coalition of Alberta (CCA), the Alberta Federation of REA’s Ltd. (AFREA), the Industrial Power Consumers Association of Alberta (IPCAA), and the Utilities Consumer Advocate (UCA).

The Commission permitted a negotiated settlement process on all but the following two matters:[1]

  • AltaLink’s proposed wildfire deferral account.
  • AltaLink’s request to recover $11 million in returns incurred over the 2022-2023 period that apply to 2019-2021 actual salvage expenditures.

Additionally, parties involved in the negotiated settlement agreed to exclude three additional matters that are closley related to the two excluded by the Commission:[2]

  • AltaLink’s 2024-2025 forecast salvage expenditures.
  • AltaLink’s 2019-2023 actual salvage expenditures.
  • AltaLink’s Wildfire Mitigation Plan business cases.

The NSA also did not result in any changes to AltaLink’s terms and conditions.[3]



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Contributions in Aid of Construction Appeal

The Court of Appeal of Alberta (the Court) has issued its decision regarding the appeal of Alberta Utilities Commission (AUC) Decision 26061-D01-2021. The appeal was filed by AltaLink Management Ltd. (AltaLink), ATCO Electric Ltd., ENMAX Power Corporation, and EPCOR Distribution & Transmission Inc.  The crux of this appeal is the Commission’s treatment of contributions in aid of construction. In Decision 26061-D01-2021, the Commission disallowed transmission and distribution facility owners (TFOs and DFOs) from earning a return on contributions in aid of construction, despite affirming that the current practice was in line with the legislative framework. The utilities could then only treat the contributions as expenses in the year of disbursement because of the decision. The four DFOs filed an appeal with the Alberta court.[1]



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The AESO’s Revised AMP Implementation Plan Application

In Proceeding 28441, the Alberta Electric System Operator (AESO) applies to the Alberta Utilities Commission (the Commission) for approval of its revised adjusted metering practice (AMP) implementation plan. In Decision 27047-D01-2022, the Commission denied approving the AESO’s previous AMP implementation plan and directed that if the AESO wanted to file another application, it would need to include:

  • AACE Class 3 estimates and forecast completion date for all scopes of work proposed in the implementation plan,
  • AACE Class 5 estimates for the total theoretical maximum cost of implementation across all phases; and
  • Quantification of the benefits of AMP implementation, including a cost-benefit analysis.

With these requirements in mind, the AESO submitted its revised application.



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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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