Electricity – Rates
Application
ATCO Electric Ltd. (“AE”) applied to the AUC for approval of a 2023 transmission facility owner tariff (“TFO”) on an interim refundable basis.
Decision
The AUC approved the request from AE for a 2023 interim monthly TFO tariff of $55,545,333, effective January 1, 2023.
Applicable Legislation
Electric Utilities Act, SA 2003, c E-5.1 – ss 37, 119 and 124(2).
Pertinent Issues
The AUC applied its two-part test to evaluate the interim rate application by considering quantum and need factors in the first step and the public interest in the second.
The applied-for interim TFO tariff is five percent or $34.2 million lower than the 2022 final TFO tariff, primarily due to the proposed discontinuation of the future income tax collection. At the time of this application, final rates for 2023 were not determined. The AUC found it reasonable to establish interim rates until AE’s 2023-2025 general tariff application was considered and 2023 rates approved.
The AUC was satisfied that the approval of AE’s applied-for 2023 interim TFO tariff would assist AE in continuing to meet its financial obligations and ensure safe utility operations while also providing customers rate stability and intergenerational equity. The interim TFO tariff was approved, subject to a true-up after the AUC approves AE’s final 2023-2025 revenue requirement in Proceeding 27062.
