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Inuvialuit Energy Security Project Ltd. Application for a Well Approval in Relation to the TUK M-18 Well Pursuant to Subsection 10(1) of the Northwest Territories’ Oil and Gas Drilling and Productions Regulations, CER Letter Decision A8W4J5 (C28481-1)

Link to Decision Summarized

Oil and Gas – Facilities

Application

ATCO Pipelines (“AP”) requested approval of the 2024 revenue requirement of $362,852,000 on an interim and refundable basis.

Decision

The AUC approved AP’s 2024 interim revenue requirement of $362,852,000 (before the removal of forecast franchise fees) as filed, effective January 1, 2024.

Pertinent Issues

The AUC approved the 2024 interim revenue requirement and the recovery from NOVA Gas Transmission Ltd. (“NGTL”) through a monthly rate of $29,949,583 after the removal of the forecast franchise fee recovered through Rider A. The interim revenue requirement represented an increase of approximately $12.3 million over AP’s 2023 revenue requirement. The 2024 interim revenue requirement reflected 100 percent of the amount agreed to by parties in the negotiated settlement agreement (“NSA”) in relation to AP’s 2024-2026 general rate application in AUC Proceeding 28369.

The AUC determined that the applied-for interim revenue requirement is reasonable because: the amounts were not contentious for parties as they were reached through the NSA;  the final revenue requirement will be determined in Proceeding 28369; the majority of AP’s proposed interim increase ($9,479,000) was made in response to the AUC’s approval of a 9.28 percent return on equity for 2024; and the requested interim revenue requirement will assist AP in meeting its financial obligations, ensuring safe utility operations.

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