Utilities Consumer Advocate

Decision on ENMAX’s 2023-2025 Transmission General Tariff Application

In proceeding 27581, the Alberta Utilities Commission (the Commission) issues its decision regarding the 2023-2025 Transmission General Tariff Application of ENMAX Energy Corporation (ENAMX) in which ENMAX entered a negotiated settlement with interveners. The Commission notes that this decision was originally supposed to have been released in July of 2023, but was delayed after it was learned that ENMAX was being investigated by Commission Enforcement staff regarding the year-end capitalization of certain distribution and transmission projects. The investigation is ongoing, but the Commission understands that the investigation results are unlikely to have a material impact on this decision.[1]



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Reconsideration of ATCO Electric Z Factor for the Wood Buffalo Fire

In proceeding 28320, the Alberta Utilities Commission (the Commission) reconsiders the Z factor adjustment of ATCO Electric (ATCO) for the 2016 Wood Buffalo fire. On April 14, 2023, the Alberta Court of Appeal issued its decision regarding ATCO Electric Ltd. v Alberta Utilities Commission, 2023 ABCA 129 (the Appeal decision) where ATCO sought to appeal the Commission’s denial of ATCO’s loss recovery associated with the 2016 fires. The Commission’s original decision relied on ATCO Gas & Pipelines Ltd. v Alberta (Energy & Utilities Board), 2006 SCC 4 (the Stores Block decision) in which the Commission understood that ‘extraordinary retirements’ of assets are attributable to shareholders rather than customers. However, the Alberta Court of Appeal overturned the Commission’s decision (which depended on an interpretation and application of the Stores Block decision) and referred the matter back to the Commission.



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2024 GCOC Arguments

In proceeding 27084, interveners submit their arguments over the matters put forward by the Alberta Utilities Commission (the Commission) regarding the generic cost of capital (GCOC). The Commission had already decided to proceed with a formulaic approach that was previously approved in 2009 and had asked interveners to provide recommendations for the formula’s variables. Interveners previously submited evidence detailing their variable recommendations and have since provided arguments supporting their evidence. However, some interveners continue to argue against the formulaic approach, and most proposed a specific return on equity (ROE) ratios for the 2024 GCOC.  A significant portion of argument focused on debating whether business risk has increased or decreased in the province and why the level of risk justifies each intervener’s proposal.



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ATCO Electric’s 2023-2025 General Tariff Application Decision

In Proceeding 27062, the Alberta Utilities Commission (the Commission) decides on the 2023-2025 General Tariff Application of ATCO Electric Ltd. (ATCO). The Commission allowed ATCO and interveners to enter a negotiated settlement process on all matters except for the Vegetation Management reserve removal and modifications to ATCO’s Variable Pay Program reserve. Parties were also unable to agree on the treatment of the $7.5 million undepreciated balance for ATCO’s Jasper Palisades isolated generation plant. Therefore, the Commission dealt with these three issues separately from the negotiated settlement.[1]



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ENMAX Energy’s 2023-2024 Energy Price Setting Plan Decision

ENMAX Energy Corporation (ENMAX Energy) provides regulated rate option (RRO) services in ENMAX Power Corporation’s service territory. The Alberta Utilities Commission (the Commission) approves the RRO tariff through an energy price setting plan (EPSP) which sets the monthly RRO rate parameters. In Proceeding 27495, the Commission issues its decision regarding ENMAX Energy’s 2023-2024 EPSP. Key issues in this proceeding include ENMAX Energy’s proposals to amend its Letter of Credit (LOC) rates and how it calculates its Natural Gas Exchange (NGX) Collateral Costs, as well as the recommendations of the Utilities Consumers Advocate (UCA) to exclude the net commodity risk compensation (CRC) from ENMAX Energy’s energy return margin calculations and to limit ENMAX Energy’s monthly monitoring costs.[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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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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TransAlta 2022-2023 GTA Arguments

In proceeding 27964, TransAlta Corporation (TransAlta) and the Utilities Consumer Advocate (UCA) submit their arguments before the Alberta Utilities Commission (the Commission) in support and opposition to certain parts of TransAlta’s 2022-2023 general tariff application. TransAlta requested a $9.0 million revenue requirement for 2022 and $9.4 million for 2023, along with a one-time payment from the Alberta Electric System Operator (AESO) of $846,000 to reconcile approved interim rates. The three main issues on which the arguments focus are non-union salary escalation rates, TransAlta’s operations and maintenance (O&M) agreement with AltaLink Management Ltd. (AltaLink), and TransAlta’s First Nations Advisory Committee costs.



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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.



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Arguments on ATCO’s Disposal of its 2018-2021 Transmission Deferral Accounts

In Proceeding 26573, ATCO Electric Ltd. (ATCO) proposed to remove $10.8 million of what it deemed as “above fair market value” costs related to matting, brushing, and hydrovac services for the Jasper Interconnection Project (Jasper Project). The proposed adjustment would reduce the project cost from $35.9 million to approximately $25.1 million. However, the original cost estimate for the project was $9.2 million.[1]

The Alberta Utilities Commission (the Commission) reopened this deferral account application after completing an investigative process that revealed ATCO sole-sourced its matting, brushing, and hydrovac contract to Backwoods Contracting Ltd. (Backwoods) at above-market rates. The $10.8 million is what ATCO estimates are the above-market amount spent on the project. In this proceeding, the CCA and the UCA present their arguments before the Commission on whether ATCO’s proposed $10.8 million reduction is reasonable. 



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