Compliance Filing – TFO Tariff
Pursuant to AUC Decision 2014-269, EPCOR Distribution & Transmission Inc. (“EDTI”) filed its 2013-2014 Transmission Facility Owner (“TFO”) Tariff compliance filing, requesting approval of its:
(a) Transmission facility revenue requirement for 2013 and 2014;
(b) Transmission rates for 2013 and 2014; and
(c) TFO terms and conditions.
EDTI requested adjusted revenue requirements for 2013 of $75,347,943 and 2014 of $90,105,635. The adjustments represent reductions in revenue requirement of $1.24 million for 2013 and $1.69 million for 2014.
Direction 21 of Decision 2014-269, directed EDTI to identify any changes in its physical security requirements from 2012 to 2013 at its Genesee facility, among other filing requirements. Despite the Office of the Utilities Consumer Advocate’s (“UCA”) objections to EDTI’s response to this direction the AUC held that the costs of security for the facility were reasonable, given that such security monitoring is necessary. The AUC also noted that EDTI provided the information requested, and that EDTI explained the basis for such costs sufficiently.
In Decision 2014-269, the AUC also directed EDTI to use a three-year average of 2010 to 2012 actual revenue from transmission work for others in its 2013 and 2014 forecasts. The UCA argued that EDTI had not complied with this direction, choosing instead to generate costs based on a combination of historical trends and discussion with parties, and not a strict three-year historical average.
The AUC held that although EDTI did not employ a strict three-year average of 2010 to 2012 actual revenue from transmission work for others, the AUC found that EDTI’s methodology reflects the link between costs and revenue from transmission work for others and was therefore a reasonable approach. The AUC approved the forecast revenues of $0.24 million in 2013 and $0.25 million in 2014 for transmission work for others.
The AUC approved the revenue requirements for 2013 and 2014 as filed, the transmission rates requested, and the proposed TFO terms and conditions as filed.
