Electricity – Rates
FortisAlberta Inc. (“FortisAB”) applied for approval its third-generation performance-based regulation (“PBR3”) plan compliance filing and 2024 PBR annual rate adjustment application, as directed by the AUC in Decision 27388-D01-2023.
The AUC approved FortisAB’s 2024 distribution rates, the 2024 schedule of non-discretionary charges, and updated terms and conditions for electric distribution service on an interim basis, effective January 1, 2024. The interim rates will be in effect until the AUC makes a final decision on these rates.
In Decision 27388-D01-2023, the AUC established the parameters of the PBR3 plan for the four electric and two natural gas distribution utilities, including ForitsAB. In that decision, FortisAB 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 FortisAB 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. Fortis’ rates will be trued up to reflect the final 2024 PBR rates once they are approved by the AUC.