Pipeline Acquisition – Placeholder Treatment
In this decision, the AUC approved the application from ATCO Pipelines, a division of ATCO Gas and Pipelines (“AGP”), to revise the zero-dollar placeholder approved in Decision 25663-D01-2021 regarding ATCO Pipelines’ 2021-2023 general rate application (“GRA”), and Decision 25937-D01-2021 regarding the acquisition of the pipeline and the inclusion of acquisition costs in the revenue requirement. The AUC approved a revision of the placeholder to $9.99 million for 2021, $16.46 million for 2022 and $15.12 million for 2023, which increases the total revenue requirement for ATCO Pipelines to $319,984,000 in 2021, $341,814,000 in 2022, and $350,506,000 in 2023.
The acquisition of the Pioneer Pipeline was completed on June 30, 2021, and in December, ATCO Pipelines filed the request to update the zero-dollar placeholder for the purchase of the pipeline. On January 4, 2022, ATCO Pipelines notified the AUC that the CER approved the applications from NOVA Gas Transmission Ltd. (“NGTL”) to purchase and operate the portion of the Pioneer Pipeline that falls within NGTL’s Pipeline Facilities Footprint from ATCO Pipelines.
Should the AUC Approve ATCO Pipelines’ Application to Update the Pioneer Pipeline Placeholder?
ATCO Pipelines will own and operate the NGTL Footprint Pipeline Facilities and the Pioneer Pipeline and related facilities providing utility service to customers as part of the integrated system until the transaction between ATCO Pipelines and NGTL closes in 2022. The AUC therefore found that it is reasonable to include the the asset held for sale by NGTL, as well as its necessary working capital and operating costs in ATCO Pipelines’ revenue requirement.
The AUC approved continued placeholder treatment of the costs of the Pioneer Pipeline until the transfer of the NGTL Footprint Pipeline Facilities to NGTL has been completed. The AUC directed ATCO Pipelines to true-up and finalize the placeholder amounts for 2021-2023 in the next rate application.
The AUC approved the application from ATCO Pipelines, subject to the directions listed in the decision.
18 of the Hydro and Electric Energy Act.
