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ENMAX Power Corporation 2019 Distribution Tariff Phase II Compliance Filing, AUC Decision 25861-D01-2021

Link to Decision Summarized

Clarity – Customers

In this decision, the AUC determined that ENMAX Power Corporation (“EPC”) had complied with the AUC’s directions from Decision 24820-D01-2020. The AUC provided specific recommendations to further enhance EPC’s commitment of incorporating more detailed information in its project cost estimate letters. Further, EPC’s 2019 distribution tariff Phase II cost-of-service study and rate design and the accompanying customer and retailer terms and conditions (“T&Cs”) were approved.

Compliance with AUC Directions

Project Cost Estimate Letter

In response to AUC Direction 14, EPC had provided a sample project cost estimate letter showing calculation of EPC’s investment level as well as project costs segregated by components. The letter showed the calculations separated into construction (including labour, equipment and services); materials; as well as engineering, project management and administration.

The AUC was generally satisfied by the cost estimate letter. However, it found that further enhancements were necessary to accomplish greater transparency between EPC and a customer. It determined that it was important to specify the circumstances under which EPC would be obligated to provide a new cost estimate to the customer and seek a customer’s acceptance of the revised project cost before proceeding with the work. It further found it necessary to include the provision that a customer may cancel its request for service connection and pay only the costs to EPC incurred to a specific point in time. While this had been stated in EPC’s T&Cs, the AUC required EPC to further include the respective provision in the cost estimate letter.

To facilitate further clarity of construction costs, EPC was also directed to incorporate a division of construction costs into its project cost estimate letter so that individual estimated costs of labour, equipment and services are provided for customers.

Supplier and Contractor Selection Process Guide

In Direction 18 of Decision 24820-D01-2020, EPC had been directed to propose an approach to provide information to customers related to the contractor selection process. In response to this direction, EPC proposed to publish on its website a process guide that provided further information on the selection of contractors.

The AUC accepted EPC’s proposal and considered that such informative details were required to equally be communicated in its initial correspondence with customers through a project cost estimate letter. Accordingly, the AUC directed that EPC publish the guide on its website and include in its project cost estimate letter a web page link to where the supplier and contractor selection process guide, as applicable, can be found.

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