Isolated Generating Units – Net Book Value
In this decision, the AUC approved the application from ATCO Electric Ltd. (“AE”) to pay a total amount of $1,674,560.60 to the Balancing Pool under Section 22(1) of the Isolated Generating Units and Customer Choice Regulation, following its sale of its isolated generating units at its Garden River Power Plant.
Introduction
AE, as a transmission facility owner, provides transmission service to isolated communities in Alberta using isolated generating units. When an isolated generating unit is no longer needed, AE may sell the isolated generating unit and must follow the process set out in Part 2 of the Isolated Generating Units and Customer Choice Regulation.
AE requested that the AUC approve payment in the amount of $2,409.40 to AE from the Balancing Pool in respect of selling costs; $15,000.00 from AE to the Balancing Pool for sale proceeds; and payment of $1,661,970.00 from AE to the Balancing Pool for the remaining net book value of the isolated generating units.
Analysis
The Balancing Pool raised a concern with what it asserted was AEs inclusion of $250,176.05 for dismantling costs in AE’s net book value calculation. The Balancing Pool questioned if dismantling costs should be claimable in the current application as part of the isolated generating units’ net book value.
The AUC found that the dismantling costs noted by the Balancing Pool do not affect the net book value calculation as these costs are offset entirely with what was previously collected by AE through its previous collections of net salvage, and therefore results in a net book value of zero. The AUC further found that AE’s selling costs and sale proceeds were reasonable.
The AUC approved the total amount of $1,674,560.60 to be paid by AE to the Balancing Pool under Section 22(1) of the Isolated Generating Units and Customer Choice Regulation.
