Rates – Compliance Filing
This decision set out the AUC’s findings on AltaLink Management Ltd.’s (“AML”) ‘s 2019 projects deferral account reconciliation (“DACDA”) compliance application related to Decision 25913-D01-2021 and Decision 26278-D01-2021. The AUC also approved AML’s proposal to dispose of its final settlement balances for 2019 of $2.6 million through a one-time billing of the Alberta Electric System Operator (“AESO”) as filed.
Introduction
In Decision 25913-D01-2021, AML was directed to identify any findings related to the Proceeding 26278 decision, AML’s 2016-2018 DACDA, that apply to its 2019 DACDA and to true-up any impact as part of either a separate compliance application or as part of its next general tariff application (“GTA”). Shortly after the AUC issued Decision 26278-D01-2021, AML filed an update to its current application.
Findings
The AUC was satisfied that AML’s compliance filing adequately addressed and responded to directions issued in Decision 25913-D01-2021.
In Decision 25913-D01-2021, the AUC found that not all of the expenditures related to the ATCO Jasper Project were prudently incurred. Accordingly, in Direction 3, AML was required to reduce its total requested capital additions to December 31, 2019, by $465,035. The AUC determined that AML had complied with this direction by removing $465,035 from the ATCO Jasper actual additions.
Direction 4 required AML to file an application complying with the directions and disallowances made in Decision 25913 either as part of a separate compliance application or as part of its next GTA. The AUC found that the requested true-up amount provided in AML’s revised reconciliation and its explanation that it is not seeking approval of the payment of interest pursuant to Rule 023: Rules Respecting Payment of Interest complied with Direction 4 of Decision 25913-D01-2021.
Decision 25913-D01-2021 was issued while Proceeding 26278 was still ongoing. As Proceeding 26278 was predicted to impact Decision 25913-D01-2021, Direction 5 required AML to identify any findings related to the Proceeding 26278 decision applicable to its 2019 DACDA and to true-up any impact as part of either a separate compliance application or as part of its next GTA. The AUC found that AML properly identified the implications of Decision 26278-D01-2021 on the 2019 DACDA.
The AUC found that AML had properly applied a reduction to 2019 trailing costs of three projects in compliance with Direction 1 of Decision 26278-D01-2021 regarding the disallowance of a portion of DACDA support costs. The AUC also found AML’s explanation that adjustments to the rate base for disallowances will be reflected in its upcoming 2022-2023 GTA was reasonable.
Concerning Direction 2 from Decision 26278-D01-2021, the AUC accepted AML’s explanation that the costs incurred in 2019 for the 2016-2018 DACDA were charged to the relevant 2016-2018 projects and are included in trailing costs in the 2019 DACDA.
Based on the above, the AUC approved AML’s proposal to dispose of its final settlement balances for 2019 of $2.6 million through a one-time billing to the AESO.
