ATCO

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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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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Evidence regarding ATCO Electric’s Transmission 2023-2025 General Tariff Application

In Proceeding 27062, ATCO Electric Ltd. (ATCO) asks the Commission to approve their revenue requirement of $677.1 million in 2023, $687.8 million in 2024 and $698.6 million in 2025. ATCO notes that the 2023 requirement is lower than their 2022 forecast because they are proposing to stop collecting Future Income Tax (FIT) expenses, their property taxes are lower, and there are fewer head office costs. After completing a round of information requests, intervenors submitted evidence detailing their concerns regarding the application.[1]



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The Commission’s Decision on ATCO Electric’s Jasper Project Contraventions

In Proceeding 27013, the Alberta Utilities Commission (the “Commission) issues its decision regarding the allegations that Enforcement Staff of the Commission brought against ATCO Electric Ltd. (“ATCO Electric”) regarding ATCO Electric’s sole-sourcing a major contract at above fair market value and seeking cost recovery of the project.

Background

In 2016, ATCO Electric’s non-regulated affiliate, ATCO Structures & Logistics Ltd. (“ATCO S&L”), entered an agreement with Simpcw Resources LLP. to provide Simpcw with electrical transmission and distribution project opportunities. The agreement included Simpcw’s provision of a Kinder Morgan Trans Mountain Pipeline Expansion Project contract to ATCO S&L. Simpcw later expressed that they expected to be directly awarded ATCO Electric’s contract for matting, brushing, and hydrovac services for the Jasper Project.



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The Commission’s Decision on ATCO and Apex’s 2023 Cost-of-Service Review

In proceeding 26616, the Alberta Utilities Commission (the “Commission) issues its decision regarding the cost-of-service review for both ATCO Gas (“ATCO”) and Apex Utilities Inc. (“Apex”) in preparation for the third term of performance-based regulation (“PBR3”).

Background

Readers may remember our previous article summarizing ATCO and Apex’s cost-of-service rebasing application whereby both utilities realign their distribution facility owner costs and revenues in preparation for PBR3. The intervenors argued that the applicants had not demonstrated how they would share efficiencies with ratepayers, that efficiencies should be quantified, that the applicants’ cost escalators overstate actual costs, and that certain capital projects should be excluded from each applicant’s rate base. The applicants responded by stating their efficiencies would be shared through lower rates, that their escalators are based on reasonable factors, and that the capital projects under question are prudent and necessary.



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Direct Energy’s 2023-2025 Energy Price Setting Plan Application

In Proceeding 27562, Direct Energy Regulated Services (“Direct Energy”) submits is energy price setting plan (“EPSP”) to establish regulated rates to the Alberta Utilities Commission (the “Commission”).



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