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ATCO Pipelines 2020 Interim Revenue Requirement Application (AUC Decision 25061-D01-2019)

Link to Decision Summarized

Interim Revenue Requirement


In this decision, the AUC approved a 2020 interim revenue requirement in the amount of $289,503,750 (after the removal of forecast franchise taxes) to be collected by ATCO Pipelines by way of a monthly rate of $24,125,313 from NOVA Gas Transmission Ltd., effective January 1, 2020. 

Background

On August 15, 2019, ATCO Pipelines filed with the AUC its 2019-2020 general rate application (“GRA”) compliance filing, seeking approval of its 2019-2020 final revenue requirements in the amount of $274,751,000 and $304,698,000, respectively. ATCO Pipelines noted that its 2020 interim revenue requirement was based on 100 per cent of its applied-for 2020 revenue requirement per its 2019-2020 GRA compliance filing, and a decision on this compliance filing proceeding was not expected to be issued by the AUC before January 1, 2020.

AUC findings

The AUC approved a 2020 interim revenue requirement increase of $11,837,750, which represented 75 per cent of the original applied-for increase, less the potential excess collection of $6,070,000 in ATCO Pipelines’ 2019 interim revenue requirement approval.

The AUC found that ATCO Pipelines’ request to collect 100 per cent of its applied-for 2020 revenue requirement per its 2019-2020 GRA compliance filing was not reasonable, because in addition to the 2019 excess interim revenue requirement collection, there was uncertainty related to certain costs within ATCO Pipelines’ 2019-2020 GRA compliance filing.

The AUC was persuaded that the quantum need and public interest considerations weighed in favour of approving a reduced interim revenue requirement adjustment. The AUC determined that a reasonable interim 2020 revenue requirement for ATCO Pipelines is $289,503,750 or $292,658,750 before the removal of forecast franchise taxes. This represents a total increase of $11,837,750 over ATCO Pipelines’ approved 2019 revenue requirement.

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