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Apex Utilities Inc. 2024 Interim Performance-Based Regulation Rate Adjustment, AUC Decision 28583-D01-2023

Link to Decision Summarized

Gas – Rates

Application

Apex Utilities Inc. (“AUI”) applied for approval of, inter alia, its 2024 interim performance-based regulation (“PBR”) rate adjustment in accordance with the parameters of the third generation PBR established by the AUC in Decision 27388-D01-2023.

Decision

The AUC approved AUI’s 2024 distribution rate schedules and rate riders, and the terms and conditions of service, including the Special Charges Schedule, on an interim basis, effective January 1, 2024. AUI’s rates will be trued up to reflect the final 2024 PBR rates once they are approved by the AUC.

Pertinent Issues

In Decision 27388-D01-2023, the AUC established the parameters of the third-generation performance-based regulation (“PBR3”) plan for the four electric distribution and two natural gas utilities, including AUI. In that decision, AUI was directed to file a compliance filing to set PBR rates for 2024 in accordance with the parameters of the PBR3 plan.

Normally, a PBR rate adjustment application is filed by September 10 of each year to allow for a sufficient review process to set rates effective January 1 of the following year. However, given the need to set out PBR3 parameters in 2023 and the timing of the issuance of Decision 27388-D01-2023, the application from Apex was received well past the usual date for annual rate filings. The AUC decided to approve interim rates because final PBR rates will not be in place before January 1, 2024, and interim rates promote short-term rate stability. Apex’s rates will be trued up to reflect the final 2024 PBR rates once they are approved by the AUC.

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