Decision (27388-D01-2023) on Enmax R&V Application of the PBR3 K-bar Mechanism

In proceeding 28574, the Alberta Utilities Commission (the Commission) denies the application by ENMAX Power Corporation (ENMAX) to review and vary AUC decision 27388-D01-2023. The Commission deduced that ENMAX did not prove on a balance of probabilities that the decision contained an error of fact, or mixed fact and law.[1]



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The PBR3 Parameters

In Proceeding 27388, the Alberta Utilities Commission (the Commission) sets the parameters of the third term of performance-based regulation (PBR3) in Alberta, which w ill be applied to the four following electric distribution utilities: ATCO Electric Ltd., FortisAlberta Inc. (Fortis), ENMAX Power Corporation, and EPCOR Distribution & Transmission Inc. (EPCOR); and the following two natural gas distribution utilities, ATCO Gas and Pipelines Ltd. and Apex Utilities Inc. In sum, PBR3 builds upon PBR2 but makes some key changes in how benefits and efficiencies are respectively provided and quantified going forward with the addition of an efficiency sharing mechanism and the removal of the efficiency carryover mechanism.



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Decision on the Review and Variance Application of ATCO Gas’s PBR3 Base Revenue

In Proceeding 28244, the Alberta Utilities Commission (the Commission), the City of Calgary applied for the review and variance of Decision 26616-D01-2022 in which the Commission determined the 2023 cost-of-service applications of ATCO Gas (ATCO), and Apex Utilities Inc. Calgary had asserted that ATCO’s 2022 14 percent return on equity required a re-calculation of ATCO’s rate base going into the third term of performance-based regulation (PBR3) which had excluded data from years 2021 and 2022.



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Review and Variance Application of ATCO Gas PBR3 Base Revenue

In Proceeding 28244, The City of Calgary (Calgary) submits to the Alberta Utilities Commission (the Commission) a review and variance application of Decision 26616-D01-2023 which establishes the 2023 revenue requirement of ATCO Gas Distribution (ATCO). Calgary argues that ATCO’s 2022 14 percent return on equity triggers a re-calculation of ATCO’s rate base going into the third term of performance-based regulation (PBR3) which had excluded data from years 2021 and 2022.[1]



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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.



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