Link to Decision Summarized

Gas – Rates

Application

ATCO Gas, a division of ATCO Gas and Pipelines Ltd. (“ATCO Gas”), filed an application with the AUC requesting approval of an update of its 2023 transmission service charge rider (“Rider T”) rates for 2023, effective January 1, 2023. The AUC approved the current ATCO Gas Rider T rates in Decision 26592-D01-2021. The current application accounts for changes to NOVA Gas Transmission Ltd. (“NGTL”)’s rates.

Decision

The AUC approved ATCO Gas’ 2023 Rider T rates, effective January 1, 2023.

Applicable Legislation

Bulletin 2015-09: Performance standards for processing rate-related applications.

AUC Rule 002: Service Quality and Reliability Performance Monitoring and Reporting for Owners of Electric Distribution Systems and for Gas Distributors.

Gas Utilities Act, RSA 2000, c. G-5.

Pertinent Issues

ATCO Gas flows the rates charged by the transmission service provider, NGTL, to its customers through Rider T. Rider T is used to collect forecast transmission costs and to refund or collect any differences between the prior year’s forecast and actual costs.

The AUC found that the implementation of the updated 2023 Rider T, in isolation, results in small rate increases for all rate groups for both ATCO Gas North and ATCO Gas South. When considered together with rate changes applied for in Proceeding 27684, where ATCO Gas’s 2023 distribution rates are considered, the proposed Rider T rates’ effect is a limited offset of otherwise decreasing charges. Given the flow-through nature of Rider T charges and the fact that these rate changes are relatively small and do not result in rate shock, the AUC found that the estimated rate impact of January 1, 2023, Rider T was reasonable for all rate classes.