Compliance Filing – Rates
In its confidential Decision 27562-D01-2022, the AUC did not approve the 2023-2025 Energy Price Setting Plan (“EPSP”) as applied for by Direct Energy Regulated Services (“DERS”). In that decision, the AUC directed DERS to make changes to the EPSP, to the accompanying illustrative energy charge workbook and to the calculation of the initial return margin, and submit a compliance filing to reflect the AUC’s findings and directions. In this proceeding, DERS submitted its 2023-2025 EPSP compliance filing.
The AUC determined that DERS complied with the directions issued in Decision 27562-D01-2022.
Electric Utilities Act, SA 2003, c E-5.1.
Regulated Rate Option Regulation, AR 62/2005.
AUC Rule 005: Annual Reporting Requirements of Financial and Operational Results.
Changes directed to be made to the 2023-2025 EPSP
The AUC was satisfied, with one exception, that DERS had adequately incorporated the EPSP changes, as directed in Decision 27562-D01-2022. DERS did not adjust its EPSP to reflect the AUC’s directive regarding the energy return margin calculation description. The AUC, therefore, amended the wording of the approved 2023-2025 EPSP to indicate that the net commodity risk compensation (“Net CRC”) has to be excluded from the revenues used in calculating the energy return margin.
Changes directed to be made to the illustrative energy charge workbook
The illustrative energy charge workbook filed by DERS incorporated the updated formula for calculating the energy return margin. The AUC approved the illustrative energy charge workbook as filed in Exhibit 27950-X0004 and found that DERS has complied with the direction from paragraph 46 of Decision 27562-D01-2022.
Changes directed to be made to the initial energy return margin
In Decision 27562-D01-2022, the AUC directed DERS to recalculate and submit the initial return margin to be used in the 2023-2025 EPSP, excluding the Net CRC for 2021 and including details of the recalculation. In considering the compliance filing, the AUC determined that the energy return margin for July 2023 to June 2024 will be calculated using DERS’ 2022 financial results, which will be submitted in its Rule 005 report that is to be filed by May 2023.
Given the timing, energy charges under the approved 2023-2025 EPSP will not use the initial energy return margin submitted as part of this compliance filing. Procurement will begin in March 2023, the month following the month this decision was issued. As a result, the first month that energy charges under the 2023-2025 EPSP will be used is July 2023. The AUC determined it did not have to review or approve the initial return margin and granted DERS relief from complying with that specific direction.