Revised Regulatory Accounting Treatment for AESO Customer Contributions

On October 6, 2021, the Alberta Utilities Commission (the Commission) issued Decision 26521-D01-2021, in which it evaluated potential accounting treatments for transmission contributions paid by distribution utilities. Among the issues addressed in this proceeding is when to expense and when to finance transmission contributions, including the potential risks of either option.



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Distribution Contributions to AESO

On April 23, the Alberta Utilities Commission (AUC) released Decision 26061-D01-2021 on the “Commission-Directed Examination of Distribution Facility Owner Payments under the Independent System Operator Tariff Customer Contribution Policy.” Initiated in January, this generic, policy-oriented decision considers transmission contributions paid to the Alberta Electric System Operator (AESO) by a distribution utility. The decision examines:

  • Whether it is permissible in the legislation for a distribution utility to pay a contribution for transmission capital,
  • If it is legally permissible, whether it should be done, and
  • If it should be done, what should be the regulatory and accounting treatment once the distribution utility pays the contribution?


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Examination of the Current ISO Tariff Customer Contribution Policy

The Commission has initiated a generic proceeding on the current AESO contribution policy to determine whether a contribution should be included in the distribution facility owner’s (DFO) or transmission facility owner’s (TFO) rate base.



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