Performance-Based Regulation – K Factor
In this decision, the AUC considered a request by ENMAX Power Corporation (distribution) (“ENMAX”) for approval of a negotiated settlement agreement (“NSA”) with respect to its 2017 capital tracker true-up application.
The AUC approved the NSA as filed. Accordingly, the resultant 2017 K factors (including placeholder amounts for two projects excluded from the NSA) were approved for inclusion in ENMAX’s performance-based regulation (“PBR”) rates for the 2018-2022 PBR plan period.
The AUC found that the settlement was fair and reasonable and that it formed the basis for developing K factor amounts for 2017, which were fair and reasonable and in the public interest.
The AUC found that the negotiated settlement process was fair and found that the NSA, taken as a whole, was in the public interest. None of the provisions, individually or collectively, were contrary to accepted regulatory practices or could result in unintended rate or service effects to customers.
