EPCOR Distribution & Transmission Inc.

Decision on EPCOR’s 2023 System Access Service Rates Update

In Proceeding 28133, the Alberta Utilities Commission (the Commission) issues its decision on the 2023 System Access Service (SAS) Rate Update application of EPCOR Distribution & Transmission Inc. (EPCOR). EPCOR had filed an application with the Commission requesting approval to update its 2023 SAS rates effective July 1, 2023. The Commission already approved EPCOR’s 2023 SAS rates in December 2022. However, a week after issuing its decision, the Commission approved the 2023 Independent System Operator (ISO) tariff of the Alberta Electric System Operator (AESO), which included changes to the AESO’s demand transmission service (DTS) rate components. Therefore, EPCOR requested approval to align its SAS rates in accordance with the AESO’s DTS rate components. No additional interveners participated in this proceeding.[1]



To view more of this post, please

Login Here

or contact us.

Information Requests in the Residential Standards and Maximum Investment Levels (MILs) Proceeding

In Proceeding 27658, intervenors submit their information requests that address several topics in the standards of service and maximum investment levels (MILs) for residential services proceeding. These information requests fall in line with one or several topics included in the February 2023 issues list. Parties addressed information requests to the following intervenors: the distribution facility owners (DFOs) (ATCO Electric Ltd., ENMAX Power Corporation, EPCOR Distribution & Transmission Inc., FortisAlberta Inc.), the Developers (Anthem Properties, BILD Alberta, Melcor Developments Ltd.), the Municipalities (Alberta Municipalities, City of Airdrie), the Alberta Federation of Rural Electrification Associations (AFREA), and the Utilities Consumer Advocate (UCA).



To view more of this post, please

Login Here

or contact us.

EPCOR’s 2023 System Access Services Rates Update Application

In proceeding 28133, EPCOR Distribution & Transmission Inc. (EPCOR) submits its 2023 System Access Service (SAS) rates application to the Alberta Utilities Commission (the Commission) in response to the 2023 independent system operator (ISO) tariff of the Alberta Electric System Operator (AESO). EPCOR states it is only updating its SAS rates to reflect the 2023 AESO demand transmission service (DTS) charges and that all other inputs are those originally approved in Decision 27653-D01-2022.[1]



To view more of this post, please

Login Here

or contact us.

EPCOR’s 2023-2025 General Tariff Application Decision

In proceeding 27675, the Alberta Utilities Commission (the Commission) issues its decision regarding the 2023-2025 general tariff application (GTA) of EPCOR Transmission & Distribution Inc. (EPCOR). Rather than proceed through an argument process, EPCOR negotiated a settlement with the Consumer’s Coalition of Alberta (CCA) and the Utilities Consumer Advocate (UCA). After review, the Commission approves EPCOR’s 2023-2025 GTA, which includes the negotiated settlement reduction of $10.81 million, the withdrawal of EPCOR’s request for a cloud-based software as a service (SaaS) cost deferral account, and compliance with Commission decisions.



To view more of this post, please

Login Here

or contact us.

Residential Standards of Service and Maximum Investment Levels (MILs) Proceeding Issues List

In Proceeding 27658, the Alberta Utilities Commission (the Commission) finalizes the issues list for addressing standards of service and maximum investment levels for residential services. In September, the Commission put forward a preliminary list of issues for consideration. The Commission received comments on the preliminary issues from ATCO Electric Ltd. (ATCO), EPCOR Distribution & Transmission Inc., ENMAX Power Corporation, FortisAlberta Inc., the Alberta Federation of Rural Electrification Associations, the Office of the Utilities Consumer Advocate, and Melcor Developments Ltd. The Commission developed the following list based on these submissions.[1]

Issues List Summary[2]

  • The goal of setting MILs.
  • Whether MILs should be eliminated.
  • If MILs are not eliminated, determining the types of costs that should be eligible for MILs.
  • Deciding whether the prior MILs principles referenced in Decision 2010-309 are relevant and result in reasonable rates.
  • The scope of work that developers expect completed in exchange for MILs.
  • The electrical infrastructure the developer or homeowner is responsible for installing.
  • The average cost of providing electrical service to new greenfield residential developments.
  • The proportion of new connection costs to be recovered through MILs.
  • The developer and distribution facility owner (DFO) costs for consideration in MILs.
  • The timing of a utility investing in new residential services (i.e., once the infrastructure is in place, or when an end-use customer has bought a home and has enrolled with a utility service?).
  • The effect of performance-based regulation (PBR) on MILs.
  • Whether the developer or the municipality is responsible for street lighting.


To view more of this post, please

Login Here

or contact us.

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.



To view more of this post, please

Login Here

or contact us.

Evidence on PBR3 Parameters

In proceeding 27388, intervenors submit evidence to the Alberta Utilities Commission (the Commission) in setting formula parameters for the third term of performance-based regulation (PBR3). The Commission asked intervenors to address seven specific issues:

  • Rate adjustment timing.
  • The type of PBR plan used to regulate electric and gas distribution facility owners (DFO).
  • The I Factor.
  • The X Factor.
  • Capital funding provisions.
  • Earnings sharing and efficiency carry-over mechanisms.
  • Efficiency tracking.

Intervenors each provided evidence that address at least one of these issues.



To view more of this post, please

Login Here

or contact us.

EPCOR 2023-2025 TFO Tariff Application Evidence

In proceeding 27675, four intervenors on behalf of the Consumers’ Coalition of Alberta (CCA) and the Utilities Consumer Advocate (UCA) submit evidence addressing the 2023-2025 Transmission Facility Owner (TFO) application of EPCOR Distribution & Transmission Inc. (EPCOR). The evidence focuses on several issues including operating and maintenance costs, deferral accounts, full-time equivalents (FTEs), and depreciation.



To view more of this post, please

Login Here

or contact us.

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]



To view more of this post, please

Login Here

or contact us.

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]



To view more of this post, please

Login Here

or contact us.