Decision on ATCO’s Review and Variance Application on Reopening is 2018-2022 PBR Plan

In proceeding 29106, the Alberta Utilities Commission (the Commission) denies an application by ATCO Electric and ATCO Gas (ATCO) for a review and variance of Decision 28300-D01-2024. In the original decision, the Commission decided to reopen ATCO’s 2018-2022 performance-based regulation (PBR) plan to examine the reasonability of ATCO’s 2021 and 2022 rate of return.



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ATCO’s Review and Variance Application on the Decision to Reopen Its PBR Plan

In proceeding 29106, ATCO Electric and ATCO Gas (ATCO) apply for a review and variance on Decision 28300-D01-2024, in which the Alberta Utilities Commission (the Commission) decided to reopen ATCO’s 2018-2022 performance-based regulation (PBR) to examine the reasonability of ATCO’s 2021 and 2022 rates of return.



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Decision on review of 2018-2022 Performance-Based Regulation (PBR) for ATCO Gas and ATCO Electric

In proceeding 28300, the Alberta Utilities Commission (the Commission) determined that it will reopen the 2018-2022 PBR term (PBR2) of ATCO Gas and ATCO electric (collectively referred to as ATCO). The Commission found specifically within the years of 2021 and 2022 the PBR plan did not operate as intended. This created rates that were not just and reasonable within those years for consumers along with rates of return achieved by ATCO that exceeded the approved amount. The Commission will therefore reopen PBR2 but will only focus on 2021 and 2022. [1]



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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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ATCO PBR2 Plan Review – Evidence and Arguments

In proceeding 28300, the Alberta Utilities Commission (the Commission) hears arguments for and against whether the plan for the second term of performance-based regulation (PBR2) of ATCO Gas and ATCO Electric (ATCO) was flawed; and if so, whether it is reasonable to re-open the plan. In proceeding 20414, the Commission set out a reopener provision allowing for the review of PBR plans if a utility’s return on equity (ROE) is 300 basis points above or below the approved ROE for two consecutive years, or if it is above or below 500 points in a single year. ATCO exceeded the 300-basis point threshold for 2021 and the 500-basis point threshold for 2022, triggering this current proceeding.[1]



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ENMAX’s R&V Application of the PBR3 K-bar Mechanism

In proceeding 28574, ENMAX Power Corporation (ENMAX) applies for a review and variance of the K-bar mechanism approved by the Alberta Utilities Commission (the Commission) for the third generation of performance-based regulation (PBR3). ENAMX asserts that the Commission erred in believing that the K-bar would provide ENMAX with sufficient funding and seeks the Commission to grant a review of the PBR3 K-bar. ENMAX’s case is grounded in its concern that the approved K-bar does not meet ENMAX’s needs to fund the replacement of its aging assets or to respond to the growing need to modernize the grid. Furthermore, ENMAX states that the current K-bar will force the utility to choose which benefits its customers will forgo and that it may have to put off investment into reliability drivers, externally driven projects, and grid modernization to prioritize safety on its network.[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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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).



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