LED Conversion Multiplier
In this decision, the AUC considered an application from ATCO Electric Ltd. (“ATCO Electric”) for a light-emitting diode (“LED”) lighting conversion maintenance multiplier (“LED conversion multiplier”) of 1.073 for the Village of Delia, the Village of Dewberry, the Village of Elnora, the Village of Heisler, the Village of Hines Creek and the Village of Innisfree (collectively, the “municipalities”). The AUC approved the LED conversion multiplier of 1.073.
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, 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.
AUC Findings
The AUC found that ATCO Electric complied, or confirmed its future intent to comply, with each of the directions issued in past LED maintenance multiplier decisions. Specifically:
(a) ATCO Electric provided an analysis and LED conversion multiplier calculations that examine the specific and direct costs of providing the LED conversion service to the specific customers requesting the service. The analysis and calculations of the LED conversion multiplier showed that other customers would not be subsidizing those making the LED conversion multiplier request, nor would any customer making the special service request be double charged for the standard level of service to which they are entitled under existing rates.
(b) ATCO Electric provided information demonstrating that the higher cost of service, the LED conversion multiplier, and its effects were brought to, acknowledged and accepted by officials of all of the affected municipalities, and that information was filed with the Commission as part of the LED conversion multiplier filing for those customers.
(c) ATCO Electric has reported on the level of administrative burden and on the effectiveness of the maintenance multiplier process within its Phase II application.
(d) ATCO Electric confirmed that it will file any changes to the LED conversion multiplier with the Commission.
(e) ATCO Electric forwarded the notice of application to customers affected by the current application and will forward the notice of application to affected customers in future applications.
(f) ATCO Electric used the most recently approved return on equity and capital structure values. ATCO Electric also used its most recent cost of debt and preferred shares reported in its Rule 005: Annual Reporting Requirements of Financial and Operational Results. filing.
(g) ATCO Electric provided fixture counts for each of the municipalities in this application.
The AUC acknowledged and accepted ATCO Electric’s LED conversion multiplier of 1.073 under its distribution tariff.
The AUC noted that Decision 24747-D01-2020, regarding ATCO Electric’s 2019 Distribution Tariff Application – Phase II, was issued on April 30, 2020. The AER stated that ATCO Electric must follow the directions set out therein in its future maintenance multiplier applications.
