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EPCOR Distribution & Transmission Inc 2023 System Access Service Rate Update, AUC Decision 28133-D01-2023

Link to Decision Summarized

Electricity – Rates

Application

In this application, EPCOR Distribution & Transmission’s (“EDTI”) requested approval to update its 2023 System Access Service (“SAS”) rates effective July 1, 2023, to align its SAS cost-of-service model with the changes to the Alberta Electric System Operator (“AESO”) demand transmission service (“DTS”) rate components. EDTI forecast its total SAS revenue requirement for the period July 1, 2023, to December 31, 2023, to be $144.34 million, excluding direct connect (“DC”) customers, which customers continue to have the AESO transmission charges directly flowed through to each site.

Decision

The AUC approved EDTI’s application for an update to its 2023 SAS rates, effective July 1, 2023, finding that the calculations were reflective of the approved AESO tariff and consistent with corresponding AUC approvals.

Applicable Legislation

Regulated Rate Option Regulation, Alta Reg 262/2005.

Pertinent Issues

EDTI’s SAS rates are designed to recover charges paid by EPCOR to the AESO for access to the transmission system. In addition to recovering AESO charges through SAS rates, EDTI reconciles variances between the forecast SAS revenues and forecast AESO costs every quarter through its AESO demand transmission service (“DTS”) deferral account Rider K. Any residual variances between SAS revenues and DTS costs are reconciled in the annual transmission access charge deferral account true-up process to ensure that the revenues collected through its transmission access charges in a year recover the AESO tariff charges that EDTI pays to the AESO in that year. The AESO charges are flowed through dollar-for-dollar to EPCOR’s customers, which means that the utility does not assume any volume or price risk but also does not earn any return.

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