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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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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2024 GCOC Evidence

In proceeding 27084, intervenors submit their evidence regarding the issues list and other matters put forward by the Alberta Utilities Commission (the Commission) concerning the 2024 Generic Cost of Capital (GCOC). The Commission decided that the equity risk premium (ERP) approach for determining return on equity (ROE) is appropriate. The ERP approach is the basis for the one-factor formula previously approved by the Commission in 2009 and the two-factor formula adopted by the Ontario Energy Board (OEB). The Commission produced an issues list based on the two-factor approach, which the following formula expresses:

  • ROE (test year) = Notional ROE (VAR1 + VAR3) + Factor One + Factor Two
  • Factor One = VAR4 x (Forecast Long Canada Bond Yield (test year) (VAR2) – Base Forecast Long Canada Bond Yield (VAR1))
  • Factor Two = VAR7 x (Utility Bond Spread (test year) (VAR6) – Base Utility Bond Spread (VAR5))

The Commission’s questions in the issues list mainly ask intervenors to calculate and justify appropriate variables (VAR) for the above equation.



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Bulk and Regional Rate Design and Modernized DOS Arguments

In Proceeding 26911, the Alberta Electric System Operator (“AESO”) and the intervenors submit their arguments to the Alberta Utilities Commission (the “Commission”) for and against the AESO’s proposed bulk and regional rate design and modernized demand opportunity service (“DOS”).



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AESO’s Bulk and Regional Rate Design and Modernized DOS Proposal, Oral Hearing

In Proceeding 26911 the Alberta Electric System Operator (“AESO”) and several intervenors cross-examine each other’s evidence for and against the various bulk and regional rate design proposals before the Alberta Utilities Commission (the “Commission”).

Background

Readers may remember our previous article describing the AESO’s rebuttal evidence for their bulk and regional rate design and modernized demand opportunity service application. The current rate design collects transmission costs through a mix of energy and peak demand billing determinants where a monthly coincident peak charge (“12-CP”) recovers two thirds of demand costs.



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Decision on AltaLink’s Pipeline Electrical Interference Mitigation Program Review and Variance Request

In Proceeding 27238, AltaLink Management Ltd. (“AltaLink”) requested a review and variance of the decision the Alberta Utilities Commission (the “Commission”) made regarding AltaLink’s forecast capital expenditures for its Pipeline Electrical Interference Mitigation Program.



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Evidence Summary for the AESO’s Bulk and Regional Rate Design and Modernized DOS Proposal

In Alberta Utilities Commission (“the Commission”) proceeding 26911, the Alberta Electric System Operator (“AESO”) submit its application to redesign its Bulk and Regional Rate Design and Modernized Demand Opportunity Service (“DOS”). At this stage in the proceeding, intervenors have filed their evidence either in support of or against all or some of the AESO’s proposal.



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Feedback and Responses to the Commission’s Efficiency Initiatives

The Alberta Utilities Commission (the Commission) is in the process of conducting its 2022 roundtable discussion with stakeholders in which the Commission seeks feedback on three efficiency initiatives that relate to its rate regulation mandate. The broad topics under discussion are, assertive case management, mediated and negotiated settlements, and the Commission’s performance metrics.[1] Twelve stakeholders provided written feedback in preparation for the live roundtable discussion that was held on March 10, 2022. This article summarizes the general responses of the stakeholders’ feedback.



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The Commission’s Decision on Capital Power’s Complaint against Fortis’s Interconnection Charges

In proceeding 26510, the Alberta Utilities Commission (the Commission) issues its decision regarding Capital Power Corporation’s (Capital Power’s) complaint against FortisAlberta Inc.’s (Fortis’s) additional charges to Capital Power for the interconnected of the Strathmore Solar project (the Strathmore Project).



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