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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 Dawn Long Term Fixed Price Service (NEB Decision RH-003-2017)

On 26 April 2017, TransCanada PipeLines Limited (“TransCanada”) filed an application under Parts I and IV of the National Energy Board Act (“NEB Act”) (the “Application”), requesting the NEB approve:

(a)     the Dawn Long Term Fixed Price (“LTFP”) service (the “Dawn LTFP Service” or “Service”);

(b)     the tolling methodology and tolls for the Service; and

(c)     consequential amendments to the Canadian Mainline Gas Transportation Tariff.

The NEB approved the Application as filed.

The NEB directed TransCanada to separately track and report annually the actual costs and revenues related to Dawn LTFP service and to provide, in all future toll proceedings, disaggregated information to support the prudence of Dawn LTFP service-related TBO costs.

AltaGas Utilities Inc. – 2016 Capital Tracker True-Up Application (AUC Decision 22710-D01-2017)

In this decision, the AUC considered AltaGas Utilities Inc.’s (“AltaGas”) 2016 capital tracker true-up application (the “Application”).

In this decision, the Commission made the following determinations:

  • because three projects, Drumheller Phase 6 (town), Settler Area 1 (town), and Erskine (rural) were not previously determined by the AUC to be needed, the AUC assessed these projects and found all three to be needed.

  • the actual scope, level, timing and actual costs of each of the projects or programs included in the 2016 true-up were prudently incurred and satisfied the project assessment requirement of Criterion 1.

  • the capital tracker projects or programs included in the 2016 true-up continued to meet the requirements of the accounting test under Criterion 1.

  • there was no need to reassess the project or program requirements against Criterion 2, unless the driver for the project or program had changed.

  • the projects or programs included in the 2016 true-up satisfied the materiality requirement under Criterion 3.

  • with one exception (discussed below), the AUC found that AltaGas complied with previous Commission directions.

TransAlta Corporation – 2015-2016 Transmission General Tariff Application (AUC Decision 22651-D01-2017)

On May 12, 2017, TransAlta Corporation, as Manager of the TransAlta Generation Partnership (“TransAlta”), filed an application with the Commission requesting approval of its 2015-2016 General Tariff Application (“GTA”) (the “2015-2016 GTA” or “Application”).

In the Application, TransAlta requested the AUC approve:

(a)     a revenue requirement of $4.79 million for 2015;

(b)     revenue requirement of $6.14 million for 2016

(c)     transmission facility owner (TFO) terms and conditions of service (T&Cs) for 2015 and 2016; and

(d)     reconciliation of certain deferral accounts proposed by TransAlta.

In this decision, the AUC approved the Application, subject to certain adjustments and directions summarized below.

Horse Creek Water Services Inc. – General Rate Application (AUC Decision 21340-D01-2017)

In Decision 21340-D01-2017, the AUC considered Horse Creek Water Services Inc.’s (“HCWS”) general rate application requesting approval of its proposed water rates for 2017 and 2018.

Based on the AUC’s determinations regarding operating, maintenance and administration (“OM&A”) expenses, depreciation, and return on owner-invested capital, the AUC directed HCWS to maintain its current rates, effective as of November 1, 2017.

The AUC further directed that HCWS’ interim rates approved in Decision 20663-D01-2015 be deemed as final.

AltaLink Management Ltd. – 2015-2016 General Tariff Application Second Compliance Filing (AUC Decision 22378-D01-2017)

The AUC denied AltaLink’s proposal to recapitalize allowance for funds used during construction (“AFUDC”) in the amount of $7.1 million related to cancelled transmission projects. The AUC directed AltaLink to refund $167.1 million related to the amount of return it collected from customers on its CWIP-in-rate base balances over the years 2011-2014, $22.7 million related to the return earned on the accumulated CWIP-in-rate base returns in the years 2011-2014, and $22.4 million related to the return earned on the accumulated CWIP-in-rate base returned in the years 2015-2016.

ATCO Gas and Pipelines Ltd. – 2015 Capital Tracker True-up Application (AUC Decision 21843-D01-2017)

The AUC approved the 2015 K factor true-up refund of $2.9 million and $1.8 million in the north and south, respectively, the portions of the 2017 forecast K factor amounts of $0.8 million and $0.5 million in the north and south, respectively, arising from the approval of the 2017 updated SMR forecast, and the portion of the 2014 K factor amount associated with the Alberta Floods program of $0.375 million in the south.

ENMAX Power Corporation Distribution Terms and Conditions Compliance Filing (AUC Decision 22141-D01-2017)

ENMAX Power Corporation’s proposed changes to its terms and conditions of service are approved, with the exception of Section 5.5.1 Force Majeure Relief, which is approved on an interim basis, both effective the date of this decision. The interim approval will remain in effect until ENMAX Power Corporation’s next terms and conditions of service application or its next annual  performance based regulation rate adjustment filing, whichever occurs first.

Milner Power Inc. – Complaints regarding the ISO Transmission Loss Factor Rule and Loss Factor Methodology – Phase 2 Module C – Preliminary Issues (AUC Decision 790-D04-2016)

The AUC directed that the AESO file with the AUC a list that includes the contact information for all parties that received an ISO tariff invoice with a loss factor component since January 1, 2006. The AUC directed the AESO to file that information within one month of the decision. The AESO had to file that list by October 28, 2016.

ENMAX Power Corporation 2015-2017 Electricity Distribution Performance-Based Regulation Plan – Negotiated Settlement Agreement and Interim X Factor (AUC Decision 21149-D01-2016)

The AUC concluded that the NSA provides a reasonable balance of customer interests from all rate classes. Based on this review – and the fact that no larger commercial or industrial customers filed submissions in opposition of the NSA – the AUC concluded the negotiated settlement process was fair. The AUC did not adopt either of the proposed interim X Factors advanced by EPC or the consumer groups. Instead, the AUC ordered the interim X Factor be set at 0.8 percent, as determined in Decision 2009-035.

ATCO Electric Transmission and ATCO Pipelines Application for ATCO Electric Transmission 2015-2017 and ATCO Pipelines 2015-2016 Licence Fees (AUC Decision 21029-D01-2016)

The AUC found that licence fee payments by the regulated utilities, and indirectly by customers, should not be included in revenue requirement. The AUC therefore denied the application and directed ATCO Electric to reflect the findings of this decision in its compliance filing to its 2015-2017 general tariff application. ATCO Pipelines was directed to remove the licence fees placeholders from its next general rate application.

Alberta Electric System Operator 2016 ISO Tariff Update (AUC Decision 21302-D01-2016)

The AUC approved the AESO 2016 ISO Tariff update for Rate DTS, Fort Nelson demand transmission service (Rate FTS), demand opportunity service (“Rate DOS”), export opportunity service (Rate XOS), export opportunity merchant service (Rate XOM), primary service credit (Rate PSC), supply transmission service (Rate STS), Rider J and Section 8 costs for 2016, effective April 1, 2016.