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ATCO Salt Cavern Working Gas Deferral Account Disposition, Finalization of 2021-2023 Revenue Requirement for Acquisition of the Pioneer Pipeline in Decision 27053-D01-2022, AUC Decision 27450-D01-2022

Link to Decision Summarized

Gas Facilities- Deferral Account Disposition


This decision considers two applications by ATCO Pipelines (“AP”), a division of ATCO Gas and Pipelines Ltd.

In the first application, AP proposed to settle its Salt Cavern working gas deferral account balance of $2,557,000 as a one-time adjustment to AP’s monthly revenue requirement to NOVA Gas Transmission Ltd.

In the second application, AP proposed to true up and finalize the AUC-approved placeholders for the acquisition of the Pioneer Pipeline. The applied-for finalized revenue requirements for the Pioneer Pipeline acquisition were $9,992,000 for 2021, $16,047,000 for 2022 and $15,121,000 for 2023.


First Application: Salt Cavern Working Gas Deferral Account Balance Decision

The AUC was satisfied with AP’s calculations supporting the gains on the sale of gas for the relevant period and explanations related to inventory management and differences between traded versus actual injection and withdrawal volumes. The AUC was also satisfied with AP’s explanation for injections during winter when inventory drops below a critical level to meet peak demand. This explanation was consistent with the explanations AP provided in the past. The AUC found AP’s proposal to settle the deferral account reasonable and consistent with past treatment for deferral accounts dispositions. The AUC approved the one-time adjustment requested by AP.

Second Application: AP’s True-up and Finalized 2021-2023 Pioneer Pipeline Revenue Requirement

The AUC considered the application as routine because the AUC had previously approved the Pioneer Pipeline placeholder amounts. The AUC found that AP complied with Direction 1 from Decision 27053-D01-2022 by correctly truing up the Pioneer Pipeline 2021-2023 revenue requirement placeholder amounts. Accordingly, AP’s requested one-time adjustment of $410,000 (refund) was approved.

Applicable Legislation

AUC Rule 023: Rules Respecting Payment of Interest

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