Rates – Compliance Filing
In this decision, the AUC considered an application filed by EPCOR Distribution & Transmission Inc. (“EDTI”) requesting approval of its compliance filing to Decision 24798-D01-2020, EDTI’s 2020-2022 transmission facility owner (“TFO”) general tariff application (“GTA”). The AUC approved EDTI’s application.
Compliance with the AUC’s Directions from Decision 24798-D01-2020
In compliance with the directions in Decision 24798-D01-2020, EDTI revised its 2020-2022 forecast revenue requirement to the following amounts:
The AUC was satisfied that EDTI’s compliance filing adequately addressed and responded to directions 1, 2, 3, 5, 6, 7, 10, 11, 12, 15, 16 and the determination found in paragraph 61 from Decision 24798-D01-2020, which were set out in Appendix 2 to this decision. As listed in Appendix 3 to the decision, the remaining outstanding directions 4, 8, 9, 13, and 14 and the determination found in paragraph 260 were intended for the next or all future GTAs.
The AUC considered EDTI’s responses to directions 2 and 10 in more detail as follows.
Direction 2 of Decision 24798-D01-2020
Direction 2 of Decision 24798-D01-2020 stated:
The Commission has reviewed EDTI’s required adjustments and supporting explanations as outlined in its IR responses and finds them to be reasonable. For this reason, the Commission accepts EDTI’s proposal to record any damper-related costs on a placeholder basis subject to the outcome of any future litigation related to the dampers. For clarity, the Commission is not making a finding as to the prudency of these costs at this time and further notes that these costs are likely to remain as placeholders until the conclusion of Proceeding 24681, or [upon] the completion of any future litigation. The Commission also accepts EDTI’s proposal to correct the $0.93 million AFUDC [allowance for funds used during construction]-related error in its compliance filing to this decision. EDTI is directed to record the required entry in its compliance filing to this decision.
The AUC was satisfied that EDTI complied with Direction 2 by correcting the AFUDC-related error through a $0.93 million addition to rate base in 2019. Further, the AUC found that EDTI adequately supported its adjustments of $6.50 million and negative $1.93 million in capital additions related to land in 2017 and 2018 and approved these capital addition costs in rate base.
Direction 10 of Decision 24798-D01-2020
Direction 10 of Decision 24798-D01-2020 stated:
In the current proceeding, the Commission has reviewed the Stage 5 CCD [customer contribution decision] #1, as was provided in response to EDTI-AUC-2019SEP25-038(b). As discussed above, the Stage 5 CCD #1 was issued on June 14, 2016, when EDTI expected the AESO [Alberta Electric System Operator] to issue an updated CCD in late 2019. If updated, EDTI would have advised the Commission of any changes to its TFO local investment amount in this proceeding. As of the close of record, no updates have been provided to the Commission. Given that no updates have been provided by EDTI and in light of the delay in proposed in-service dates, the Commission will not approve a rate base addition for the Genesee G4/G5 Switchyard Expansion Project during the test years. EDTI is directed to remove its forecast capital addition for the Genesee G4/G5 Switchyard Expansion Project in its compliance filing to this decision.
The AUC acknowledged the cancellation of the Genesee G4/G5 Switchyard Expansion Project and EDTI’s removal of the Project from its forecast revenue requirement.
Discussion of True-Up Mechanism for EDTI’s 2020 Transmission Tariff
The AUC noted that EDTI is currently providing transmission service to the AESO under its 2020 interim tariff approved by the AUC in Decision 24931-D01-2019. In that decision, the AUC approved an interim monthly tariff of $8,554,316 per month, effective January 1, 2020. The AUC explained that this 2020 interim tariff would continue to apply until the AUC approved a final 2020 transmission tariff.
EDTI calculated the required January 2020 through July 2020 true-up amount and the new monthly tariff effective August 2020, as shown in the table below:
EDTI provided its proposed monthly tariff to be charged to the AESO for the use of EDTI’s transmission facilities for 2020-2022 based on EDTI’s revenue requirement shown in Table 1 above.
The AUC found that the annual tariff and monthly rates for the 2020-2022 test years corresponded to the respective revenue requirements and approved them on a final basis. The AUC also approved a one-time charge of $3,376,455 to be collected from the AESO for the revenue shortfall resulting from the difference between EDTI’s interim and approved monthly tariffs between January 1, 2020, and July 31, 2020.
Regarding the timing of EDTI’s decision to dispose of the South Training Centre (“STC”) property, EDTI had vacated the building in 2017 and transferred the functions served by the STC property to other properties owned by EDTI. However, EDTI stated that EDTI management had not determined until earlier this year that the STC property will not continue to be needed by EDTI for utility service in the future.