Gas – Rates
Application
In Decision 2014-268, the AUC approved ATCO Gas, a division of ATCO Gas and Pipelines Ltd.’s load balancing methodology for a single province-wide load balancing deferral account (“LBDA”). Load balancing is part of the physical operation of a gas pipeline system, whereby gas supplies are adjusted to maintain optimum operating pressure in the system. The LBDA balance reflects the throughput of the adjusted gas supply. Rider L recovers the LBDA, whenever the balance of the LBDA exceeds the threshold of $10 millon in any single month. This application is the first triggering of Rider L. ATCO Gas requested approval of a Rider L to recover the LBDA balance as of April 30, 2022. ATCO Gas proposed recovery of Rider L throughout September 1, 2022, to April 30, 2023, from the Low-, Mid-, High-, Ultra-High Use, Alternative Technology, and Appliance and Irrigation customers.
Decision
The AUC approved the application and found that ATCO Gas’s calculation of its Rider L was consistent with the methodology approved in Decision 2014-268.
Applicable Legislation
AUC Rule 001: Rules of Practice
AUC Rule 023: Rules Respecting Payment of Interest
Pertinent Issues
The AUC found that the impact of Rider L on rates, from September 2022 to April 2023, is 0.5 percent or less for all north and south rate groups. The AUC, therefore, found that the Rider L balance will not result in rate shock for customers.
While the AUC approved Rate Rider L for ATCO Gas North and South, the AUC considered that the amendments to Rule 023 apply to the LBDA as of March 1, 2022, which was the effective date of the rule amendments. Accordingly, the AUC directed ATCO Gas to recalculate the LBDA balance to be recovered through Rider L to reflect the application of the rate prescribed in the rule, as opposed to a weighted average cost of capital, in calculating the carrying costs. ATCO Gas was also directed to file amended calculations and schedules reflecting the rate application prescribed in Rule 023 as a post-disposition filing to this decision. The AUC permitted ATCO Gas to recover the revised amount from September 1, 2022, to April 30, 2023. In the event of any discrepancies, the AUC will reconcile the revised calculations as part of ATCO Gas’s next LBDA application.
