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ATCO Electric Ltd. 2023 Cost-of-Service Compliance Filing and 2023 Rates, AUC Decision 27672-D01-2022 and 27672-D02-2022

Links to Decisions Summarized: 27672-D01-2022 and 27672-D02-2022

Electricity – Rates


In Decision 27672-D01-2022 (“Decision 1”), the AUC directed ATCO Electric Ltd. (“AE”) to make certain adjustments to its 2023 revenue requirement, 2023 rates, options, riders and rate schedules and to provide updated schedules, including rate calculations. In Decision 27672-D02-2022 the AUC, having reviewed AE’s filing made pursuant to Decision 1, provided its reasons for the determinations made in Decision 1.


The AUC approved AE’s application with conditions.

Applicable Legislation

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

AUC Rule 005: Annual Reporting Requirements of Financial and Operational Results.

AUC Rule 023: Rules Respecting Payment of Interest.

Pertinent Issues

The AUC required adjustments to the applied-for revenue requirement, rates, options, riders and rate schedules. The AUC directed AE to update only the mechanistic portion of its forecasts. The AUC denied adjustments for any portion of the forecast above the three-year average.

CIS Replacement Program

AE updated the in-service date of its Customer Information System (“CIS”) Replacement Program because of delays resulting from several factors, including the requirement for rigorous testing across all levels. The City of Calgary (“CG”) raised issues with the change of the in-service date of the CIS Replacement Program. CG stated that if $55.5 million of the forecast project costs ($70.1 million) have already been booked as of September 2022, then only $14.6 million of costs remain to be incurred in 2023. AE responded that the total forecast spend was $68.3 million, not $70.1 million.

The AUC found AE’s updated 2023 forecast revenue requirement, reflecting the shift of capital additions for the CIS replacement program to 2023, to be reasonable.

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