Enforcement Staff

ATCO Electric Cost Errors Enforcement Proceeding – Settlement Agreement

In proceeding 29109, ATCO Electric and the Alberta Utilities Commission Enforcement Staff (Enforcement Staff) submit a settlement agreement to the Alberta Utilities Commission (the Commission) regarding two issues of misrepresented financials that ATCO Electric self-reported to Enforcement Staff; an additional error was also discovered in ATCO Electric’s revenue requirement during the subsequent investigation of the issues. The party’s have requested that the Commission accept the settlement of an administrative penalty of $3 million, a refund of $4 million to customers, and payment of Enforcement Staff’s external legal counsel related to this proceeding.[1]



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ATCO’s 2018-2023 Transmission Deferral Accounts Decision

In Proceeding 26573, the Alberta Utilities Commission (the Commission) issued its decision regarding the 2018-2023 Transmission Deferral Accounts disposal of ATCO Electric Ltd. (ATCO). Central to this proceeding was ATCO’s Jasper Interconnection Project (the Jasper Project), in which it was found that ATCO sole-sourced one of its contracts at above-market rates. In making its decision to disallow over $7.6 million in cost recovery, the Commission considered the way ATCO prepared for and managed the Jasper Project and ATCO’s treatment of cancelled customer project costs. The Commission also directs a reduction associated with the sole-sourced contract, but the exact amount depends on ATCO calculating the value of the contract in its compliance filing.



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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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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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