Electricity – Rates
In this decision, the AUC approved a customer specific (“CS”) distribution access service (“DAS”) rate for a new customer (“CS48”) of $73.01 per day, charged by EPCOR Distribution & Transmission Inc. (“EPCOR”).
Introduction and Background
EPCOR requested the rate in response to the new connection of a customer with an energy demand of 5,000 kilowatts (“kW”) or greater. EPCOR calculated the rate of $73.01 using the methodology approved in past applications to calculate or update CS rates, most recently in Decision 26619-D01-2021.
As directed by the AUC in Decision 21700-D01-2016, in this CS rate application, EPCOR included the CS rate calculation, details of the calculation, supporting schedules, and information on whether any assets were required to provide standby service to the customer under the CS rate.
Calculation of the 2022 CS48 Rate
EPCOR determined the CS rate using the cost-of-service calculation. The calculation considers three components: (i) incremental equipment and installation activities; (ii) cost of existing assets to provide service; and (iii) allocated operating maintenance and general (“OM&G”) costs.
AUC Findings and Decision
The AUC reviewed the calculations and applied methods and determined that EPCOR’s calculations are consistent with those previously approved by the AUC. The AUC approved the proposed CS48 rate of $73.01 per day as it found the proposed rate to be reasonable. The CS48 will be trued up to reflect the 2022 actual cost of debt when it becomes available. The rate will come into effect on June 1, 2022.
The AUC noted that approval of this application does not authorize EPCOR to recover any amount payable by the customer in the event of default or bankruptcy. EPCOR was further directed to true up any differences if the effective date for the CS48 rate differs from June 1, 2022.