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These articles by our expert team cover the details of various decisions made by the Alberta Energy Regulator (AER), Alberta Utilities Commision (AUC), and Canada Energy Regulator (CER). Browse our searchable archive below to learn more about the results we’ve achieved for our clients.

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TransCanada PipeLines Limited Application for Approval of 2018 to 2020 Mainline Tolls (NEB Decision RH-001-2018)

In this decision, the NEB considered TransCanada PipeLines Limited (“TransCanada”)’s application for approval of tolls for January 1, 2018 to December 31, 2020 and associated approvals (the “Application”). The Application was made pursuant to Parts I and IV of the National Energy Board Act (“NEB Act”) and certain directives in the NEB Decision RH-001-2014 and Order TG-010-2014. The NEB approved the Application as applied for, with the exception of directing TransCanada to return 100 percent of the Long-Term Adjustment Account (“LTAA”) balance to shippers in the 2018-2020 period using the over-collection method.

EPCOR Distribution & Transmission Inc. 2018-2019 Transmission Facility Owner Tariff Application (AUC Decision 23165-D01-2018)

In this decision, the AUC considered an application by EPCOR Distribution and Transmission Inc. (“EPCOR”) requesting approval of its transmission facility owner (“TFO”) tariff for the 2018-2019 test years.

The AUC did not approve the requested revenue requirement of EPCOR for the years 2018-2019. The AUC ordered EPCOR to refile its application by November 15, 2018.

EPCOR Distribution & Transmission Inc. 2018-2019 Transmission Facility Owner Tariff Application (AUC Decision 23165-D01-2018)

In this decision, the AUC considered an application by EPCOR Distribution and Transmission Inc. (“EPCOR”) requesting approval of its transmission facility owner (“TFO”) tariff for the 2018-2019 test years.

The AUC did not approve the requested revenue requirement of EPCOR for the years 2018-2019. The AUC ordered EPCOR to refile its application by November 15, 2018.

Rebasing for the 2018-2022 Performance-Based Regulation Plans for Alberta Electric and Gas Distribution Utilities Second Compliance Proceeding (AUC Decision 23355-D02-2018)

In this decision, the AUC considered the second compliance filing for the interim notional 2017 revenue requirement and 2018 base K-bar for the 2018-2022 performance-based regulation (“PBR”) plans for the following Alberta electric and gas distribution utilities:

·            AltaGas Utilities Inc.,

·            ATCO Electric Ltd. (distribution),

·            ATCO Gas and Pipelines Ltd. (distribution),

·            ENMAX Power Corporation (distribution) (“ENMAX”),

·            EPCOR Distribution & Transmission Inc. (distribution) (“EPCOR”), and

·            FortisAlberta Inc. (“Fortis”)

(collectively, the “Distribution Utilities”).

While the AUC accepted the general principles and methodologies utilized by each of the Distribution Utilities for calculating their respective 2018 PBR rates, the AUC did not approve any specific rates in this decision since the directions throughout this and other decisions would result in changes to 2018 rates.

EPCOR Energy Alberta GP Inc. 2018-2020 Non-Energy Regulated Rate Tariff Application (AUC Decision 22853-D01-2018)

In this decision, the AUC considered EPCOR Energy Alberta GP Inc.’s (“EPCOR”) 2018-2020 non-energy regulated rate tariff (“RRT”) for service in the EPCOR Distribution & Transmission Inc. (“EDTI”) and FortisAlberta Inc. (“Fortis”) service territories.

The AUC approved EPCOR’s forecast customer site counts, operating costs, corporate services costs, property taxes, hearing cost deferral account, and depreciation expense subject to certain directions which EPCOR was directed to address in a compliance filing.

The AUC approved EPCOR’s terms and conditions effective October 4, 2018.

Direct Energy Regulated Services 2017-2018 Default Rate Tariff and Regulated Rate Tariff Compliance Filing to Decision 22004-D01-2018 (AUC Decision 23748-D01-2018)

In this decision, the AUC considered Direct Energy Regulated Services’ (“DERS”) compliance filing application, pursuant to the AUC’s order in Decision 22004-D01-2018 (the “Original Decision”).

The AUC found that DERS complied with the applicable directions from the Original Decision. The AUC approved the default rate tariff (“DRT”) and the regulated rate tariff (“RRT”) revenue requirements for 2017 and 2018, as filed.

The AUC did not approve any of the DRT or RRT interim rate true-up amounts also requested by DERS as part of its compliance filing. The AUC directed DERS to file a separate application to finalize its DRT and RRT interim rate true-up amounts after it completed billing on interim rates up to September 30, 2018.

Town of Coaldale Appeal Pursuant to Section 43 of the Municipal Government Act (AUC Decision 23159-D01-2018)

In this decision, the AUC considered an appeal by Ms. Eleanor Britz, Ms. Nadine Britz, and Mr. Doug Shields (the “Complainants”) pursuant to sections 43(2)(a), (b), and (c) of the Municipal Government Act (“MGA”) regarding certain water, drainage, sewer, and waste management service charges imposed by the Town of Coaldale (“Coaldale”).

For the reasons summarized below, the AUC found that the water, drainage and sewer service charges disputed in this appeal did not conform to the public utility rate structure established by Coaldale.

The AUC found that the grounds of appeal in relation to waste management service charges were not established and dismissed this part of the appeal.

FortisAlberta Inc. – Application for Orders Confirming Boundaries of FortisAlberta Inc. Exclusive Municipal Franchise Areas (AUC Decision 22164-D01-2018)

In this decision, the AUC granted FortisAlberta’s requested alterations to rural electrification associations (“REAs”) service areas that overlapped with the municipal franchise areas granted to FortisAlberta. However, the AUC decided not to order an immediate transfer of existing REA facilities and customers in the annexed (formerly overlapping) areas in the absence of a municipal bylaw requiring those customers to connect to FortisAlberta. In the AUC’s view, in the absence of such a bylaw, existing REA facilities in the formerly overlapping areas would eventually transition to FortisAlberta because of the altered service areas.

FortisAlberta Inc. – Compliance Filing to Decision 22741-D01-2018 (AUC Decision 23372 – D01-2018)

In this decision, the AUC considered FortisAlberta Inc.’s (“FortisAlberta”) compliance filing to Decision 22741-D01-2018 (the “Original Decision”). In the Original Decision, the AUC considered FortisAlberta’s application for approval of its 2016 performance-based regulation (“PBR”) capital tracker true-up and directed FortisAlberta to provide additional information and calculations in a compliance filing.

NOVA Gas Transmission Ltd. Application for Approval of 2018-2019 Revenue Requirement Settlement and Final 2018 Rates, Tolls, Charges and Abandonment (NEB Letter Decision and Order TG-004-2018)

On 23 March 2018 NOVA Gas Transmission Ltd. (“NGTL”) filed an application for approval of the 2018-2019 Revenue Requirement Settlement (the “Settlement”) and Final 2018 Rates, Tolls, Charges and Abandonment Surcharges for the NGTL System (the “Application”).

The NEB approved the 2018-2019 Settlement, as filed as a package, and the applied-for final 2018 tolls and 2018 abandonment surcharges.

Direct Energy Regulated Services – 2017-2018 Default Rate Tariff and Regulated Rate Tariff (AUC Decision 22004-D01-2018)

Direct Energy Regulated Services (“DERS”) is a business unit of Direct Energy Marketing Limited (“DEML”) and performs the natural gas default rate tariff (“DRT”) and electricity regulated rate tariff (“RRT”) functions in the service territories of ATCO Gas and Pipelines Ltd. (“ATCO Gas”) and ATCO Electric Ltd. (“ATCO Electric”), respectively.

In this decision, the AUC considered, DERS’ application requesting approval of its 2017-2018 DRT and RRT tariff for the January 1, 2017, to December 31, 2018 period (“Test Period”).

ATCO Gas, a Division of ATCO Gas and Pipelines Ltd. – Z Factor Application for Recovery of 2016 Regional Municipality of Wood Buffalo Wildfire Costs (AUC Decision 21608-D01-2018)

In this decision, the AUC considered ATCO Gas, a division of ATCO Gas and Pipelines Ltd.’s (“ATCO”) application to recover $11.199 million through a Z factor rate adjustment for the costs it incurred as a result of the 2016 Regional Municipality of Wood Buffalo wildfire (the “Wildfire”).

The AUC determined that:

(a)     for 2016, all five of the criteria to qualify for a Z factor rate adjustment had been met;

(b)     the Wildfire was of a similar nature and magnitude to other nature-related events identified in ATCO Gas’ 2009 depreciation study; and

(c)     the Wildfire did not give rise to an extraordinary retirement of the destroyed assets.

Therefore, the depreciation expense associated with the assets that were replaced would continue to be recovered from ratepayers.

NOVA Gas Transmission Ltd. – North Montney Mainline Variance Application and Sunset Clause Extension Request (NEB Decision MH-031-2017)

The NEB found that there was a need for the facilities described in the Variance Application (the “NMML Facilities”) and that the NMML Facilities were economically feasible.

The Board found that approving NGTL’s existing tolling methodology for the NMML Facilities over the long-term would not result in just and reasonable tolls, due to the lack of adherence to the cost causation principle and goal of economic efficiency.

EPCOR Energy Alberta GP Inc. – 2018-2021 Energy Price Setting Plan (AUC Decision 22357-D01-2018)

Energy Alberta GP Inc. (“EEA”) is required to file monthly energy rates with the AUC. These monthly energy rates are determined under the Electric Utilities Act (“EUA”), in accordance with the Regulated Rate Option Regulation (the “RRO Regulation”), and the applicable AUC approved energy price setting plan (“EPSP”).

In this decision, the AUC considered EEA’s application requesting approval of a proposed EPSP for the term of May 1, 2018, to April 30, 2021.