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ATCO Electric Ltd. Light-Emitting Diode (LED) Lighting Conversion – Maintenance Multiplier Filing for Five Municipalities, AUC Decision 25251-D01-2020

Link to Decision Summarized

Rates – Light-Emitting Diode


In this decision, the AUC approved ATCO Electric Ltd.’s (“ATCO Electric”) light-emitting diode (“LED”) lighting conversion maintenance multiplier (“LED conversion multiplier”) of 1.067 in 2019 and increasing to 1.073 in 2020 for the Town of Three Hills, the City of Lloydminster, the Village of Forestburg, the Town of Trochu and the Village of Kitscoty (collectively, the “Municipalities”).

Background

In Decision 22667-D01-2017, the AUC accepted ATCO Electric’s proposal to use a maintenance multiplier for a special request from its exterior lighting customers, such as a request for a level of service (maintenance or operations) that is higher than the standard service level, or a request for lighting fixtures that results in higher than average lighting costs. The AUC directed ATCO Electric to do the following in relation to reaching an agreement with a customer requesting a special service:

18. … upon preliminary agreement with a customer requesting any special service, to prepare an analysis and multiplier calculation that considers the specific and direct costs of providing that service. The analysis should demonstrate that (i) other customers will not subsidize the customer with the special request, and (ii) the customer with the special service request will not be double charged by way of the multiplier as they are already entitled to the standard level of service through their current rates.

19. … confer with a customer requesting any special service upon completion of the above-directed analysis and multiplier calculation, and to provide this analysis to that customer along with the estimated bill impact and information regarding the cost of the special service, and confirm customer acceptance. If the customer agrees with the multiplier proposal, the information (the multiplier calculation and analysis and the estimated bill impact and confirmation of customer acceptance) should be filed with the Commission as part of the maintenance multiplier application for that customer.

Issues

ATCO Electric requested the use of an LED conversion multiplier of 1.067 in 2019 and increasing to 1.073 in 2020 for the Municipalities. ATCO Electric included in its application signed customer acknowledgment letters that outlined the higher cost of service to be charged by way of an LED conversion multiplier and advised that the LED conversion multiplier calculation and associated charges to the customers requesting the higher service level may change over time.

The LED conversion multiplier was calculated based on the assumption that all eligible high-pressure sodium streetlight fixtures in ATCO Electric’s service territory would be converted to LEDs, and the project would continue for the next three to five years.

AUC Findings

The AUC found that ATCO Electric complied, or had confirmed its future intent to comply, with each of the directions issued in the past LED maintenance multiplier decisions.

The AUC acknowledged and accepted ATCO Electric’s LED conversion multiplier of 1.067 for 2019 and increasing to 1.073 in 2020 under its distribution tariff, to be applied to the Municipalities, and directed ATCO Electric to file any future changes to the LED conversion multiplier with the AUC.

The AUC also directed ATCO Electric to continue to provide fixture counts for each of its customers in its future applications.

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