Electricity – Rates
In this decision, the AUC approved the application from Direct Energy Regulated Services (“DERS”) for changes in DERS’ forecast load methodology included in its 2020-2022 energy price setting plan (“EPSP”).
Background
As a regulated rate option (“RRO”) provider, DERS is required to file monthly electric energy rates with the AUC. These rates are determined pursuant to the Electric Utilities Act, in accordance with the Regulated Rate Option Regulation and the AUC-approved EPSP. DERS’ approved EPSP establishes the pricing of electricity for RRO customers in the distribution service territory of ATCO Electric Ltd. (“AE”).
In the application, DERS submitted that as approved, the 2020-2022 EPSP permits forecast methodology improvements to be implemented through acknowledgment filings. DERS provided the Consumers’ Coalition of Alberta (“CCA”) and the Office of the Utilities Consumer Advocate (“UCA”) with a courtesy copy of the application.
Changes in DERS’ Forecast Load Methodology in the 2020-2022 EPSP
DERS indicated that the change to the forecast load methodology involves amending the determination of the line loss factors (“LLFs”) for every customer rate class, which are a component of the distribution line loss (“DLL”) percentages for every rate class.
DERS indicated that it discovered that AE’s average secondary distribution system line losses have increased from approximately five per cent to six per cent. DERS described this increase as an unforeseen consequence of an approved change to AE’s price schedules in Decision 24747-D01-2021. The changes to the forecast load methodology were required to repair a persistent forecasting error to the monthly RRO load forecast, resulting from the increase in LLFs.
DERS proposed changes to Section 1 of Schedule 1 and Section A(4)(b) of Schedule C of the 2020-2022 EPSP to accommodate the increase in secondary distribution system line losses.
The AUC agreed that the proposed amendments are an improvement that would result in more accurate monthly electric energy rates than would be the case if DERS continued to use the currently approved forecast load methodology. The AUC accepted the filing for acknowledgment with respect to the 2020-2022 EPSP and approved the revisions to the 2020-2022 EPSP.
Other Matters
The inputs and calculations required to determine the monthly electric energy rates that result from the 2020-2022 EPSP are outlined in the illustrative rate book, which is provided in the Negotiated Settlement Agreement approved in Decision 25818-D01-2021. As a result of this decision, DERS was directed to revise the illustrative rate book to incorporate the amendments to the 2020-2022 EPSP approved by the AUC in this proceeding and file it as a post-disposition document to this proceeding.
