Link to Decisions Summarized:
Rates – Utility Payment Deferral Program – Second Deferral Period
Background
On March 18, 2020, the Government of Alberta announced that “Albertans who are experiencing financial hardship directly related to the COVID-19 pandemic could work with their utility company to defer electricity and natural gas bills until June 19, 2020, without any late fees or added interest payments.” This payment deferral option applies to residential, farm, and small commercial electricity consumers with sites that consume less than 250,000 kilowatt-hours of electricity per year (eligible electricity customer) and to residential, farm and small commercial natural gas consumers with sites that consume less than 2,500 gigajoules per year (eligible gas customer). The program is known as the “Utility Payment Deferral Program”.
On May 12, 2020, the Utility Payment Deferral Program Act (“UPDP Act”) was enacted to enable electricity service providers, gas service providers, and gas transmission providers to fulfill their obligations pursuant to the Utility Payment Deferral Program.
The AUC established two deferral periods for electricity service providers, and gas service providers to submit their applications for approval for funding for bill payment amounts deferred by their eligible electricity or gas customers. The first application deadline was May 22, 2020, and covered deferred billing amounts for the period March 18, 2020, to May 8, 2020 (“first deferral period”). The second application deadline was July 10, 2020, and covered deferred billing amounts for the period May 9, 2020, to June 18, 2020 (“second deferral period”).
On May 28, 2020, the AUC issued decisions approving funding for the first deferral period for certain electricity and gas service providers. The following electricity and gas service providers requested approval for funding for the second deferral period by the July 10, 2020 deadline:
(a) 1772387 Alberta Limited Partnership (Encor);
(b) Access Gas Services Inc.;
(c) Alberta Co-operative Energy;
(d) Campus Energy Partners LP;
(e) Direct Energy Marketing Limited;
(f) ENMAX Energy Corporation;
(g) Gas Alberta Energy;
(h) Just Energy Alberta L.P. and Hudson Energy Canada Corp.;
(i) Link Energy Supply Inc.; and
(j) Utility Network & Partners Inc.
AltaGas Utilities Inc. and ATCO Gas Ltd. filed applications for deferral accounts but did not apply for funding for either the first or second deferral period. ATCO Energy Ltd. and EPCOR Energy Alberta GP Inc applied for deferral accounts and funding for the first deferral period but advised the AUC they did not require funding for the second deferral period.
The following electricity service providers filed a single application for funding for both the first deferral period and the second deferral period, and approval to establish deferral accounts for the administration of the deferred bill payments:
(a) Battle River Cooperative REA Ltd.; and
(b) Blue Mountain Power Co-op.
AUC Findings
Applications for Funding
Pursuant to Section 4 of the UPDP Act, an eligible electricity customer may enroll in a bill payment deferral program with their electricity service provider. The AUC found that the entities applying were electricity service providers with eligible electricity customers enrolled in the Utility Payment Deferral Program.
Pursuant to subsection 8(1) of the UPDP Act, an electricity service provider with enrolled electricity customers may apply to the AUC for funding from the Balancing Pool for the deferred bill payment amounts, other than for the portion of the electricity bill payment amounts that relate to transmission charges. The AUC approved the funding application and requested funding amounts for the electricity service providers.
Pursuant to Section 14 of the UPDP Act, an eligible gas customer may enroll in a bill payment deferral program with their gas service provider. The AUC found that the entities applying were gas service providers with eligible gas customers enrolled in the Utility Payment Deferral Program.
Pursuant to Section 18 of the UPDP Act, a gas service provider with eligible enrolled gas customers may apply to the AUC for a loan from the Minister for the gas bill payment amounts deferred by enrolled eligible gas customers, other than the portion of the gas bill payment amounts that relate to transmission charges. The AUC approved the loan applications from the gas service providers.
Deferral Accounts of Battle River Cooperative REA Ltd. and Blue Mountain Power Co-op
In section 7 of the UPDP Act, the AUC may approve deferral accounts for the purposes of the administration of payments for the Utility Payment Deferral Program for regulated rate providers.
Exercising its discretion, the AUC found that it was not reasonable for it to approve Battle River Cooperative Ltd. or Blue Mountain Power Co-op’s request for a deferral account for the administration of payments under the UPDP Act. The AUC stated that this finding was consistent with the preamble and definition of electricity service provider enumerated in section 2(1)(c) of the UPDP Act, which distinguishes between an RRO provider and a rural electrification association. The AUC explained that it does not oversee Battle River Cooperative Ltd. or Blue Mountain Power Co-op’s tariffs for its regulated rates or its contracted rates because the governing regulatory authority is prescribed in the Rural Utilities Act.
The AUC also found that neither Battle River Cooperative Ltd nor Blue Mountain Power Co-op had provided reasons in their applications regarding why a deferral account was required for the administration of the deferred payments under the Utility Payment Deferral Program, or why the AUC should consider its request for a deferral account under section 7 of the UPDP Act.
