Utilities Consumer Advocate

ATCO Electric Transmission 2023-2025 Tariff Application Arguments

In Proceeding 27062, ATCO Electric Transmission (ATCO) submit its 2023-2025 general tariff application to the Alberta Utilities Commission (the Commission) for approval. In December 2022, all parties agreed to a negotiated settlement, which the Commission approved in January 2023. However, the settlement excluded the three following matters:

  • A depreciation adjustment related to the Jasper Palisades Isolated Generation Plant.
  • Modification to the variable pay program.
  • Vegetation management reserve removal.

The intervening parties submit their oral arguments that address these three remaining issues.



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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.


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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.



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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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Information Requests and Responses in ENMAX’s 2023-2025 Transmission General Tariff Application

In proceeding 27581, the Alberta Utilities Commission (the Commission), the Consumers’ Coalition of Alberta (CCA), and the Utilities Consumer Advocate (UCA) each submit their information requests (IRs) to ENMAX Energy Corporation (ENMAX) regarding ENMAX’s 2023-2025 Transmission General Tariff Application. ENMAX recently responded to these IRs that covered operations and maintenance costs, depreciation practices, and specific projects and programs.



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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.



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Commission Decision on Direct Energy’s Energy Price Setting Plan Application

In Proceeding 27562, the Alberta Utilities Commission (the Commission) issues its decision regarding the 2023-2025 Energy Price Setting Plan (EPSP) Application of Direct Energy Regulated Services (Direct Energy). Direct Energy is a regulated rate option (RRO) provider in ATCO Electric Ltd.’s service territory. The EPSP establishes electricity pricing for these RRO customers. Direct Energy proposed EPSP includes nine total changes: six to the confidential procurement protocol and three to other non-confidential provisions of the EPSP. However, after hearing intervenor arguments, Direct Energy’s EPSP is not approved by the Commission, and Direct Energy is to refile the plan after making the necessary changes.[1]



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Evidence regarding ATCO Electric’s Transmission 2023-2025 General Tariff Application

In Proceeding 27062, ATCO Electric Ltd. (ATCO) asks the Commission to approve their revenue requirement of $677.1 million in 2023, $687.8 million in 2024 and $698.6 million in 2025. ATCO notes that the 2023 requirement is lower than their 2022 forecast because they are proposing to stop collecting Future Income Tax (FIT) expenses, their property taxes are lower, and there are fewer head office costs. After completing a round of information requests, intervenors submitted evidence detailing their concerns regarding the application.[1]



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ENMAX Energy’s 2023-2024 Energy Price Setting Plan: Intervenor Arguments

ENMAX Energy Corporation (ENMAX Energy) provides regulated rate option (RRO) services in ENMAX Power Corporation’s service territory; however, the Commission must approve the RRO tariff through an energy price setting plan (EPSP). In Proceeding 27495, ENMAX Energy’s application proposes to continue its previous EPSP with several refinements. After examining the application and submitting information requests, the Utilities Consumer Advocate (UCA) argues against certain aspects of ENMAX Energy’s proposal.[1]



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