The Alberta Utilities Commission (the Commission) denied AltaGas Utilities Inc.’s (AltaGas’s) Stage II Review and Variance Application on the 2018 Generic Cost of Capital (GCOC) proceeding.
Alberta Utilities Commission approves AltaGas’ Review and Variance application of Decision 22750: The Generic Cost of Capital in Decision 23947.
On August 2, 2018, the Commission issued Decision 22570 regarding AltaGas Utilities Inc.’s approved return on equity and deemed equity ratio for all affected utilities for the test years of 2018 – 2020.[1] In the decision the Commission ruled AltaGas’ deemed equity ratio to be reduced from 41 % to 39 % to recognize AltaGas’ inability to obtain lower cost debt that is typically associated with A-level credit ratings. Historically, AltaGas has been granted a higher equity ratio because it was higher risk than other utilities. However, in order to ensure greater symmetry between the actual credit rating associated with AltaGas’ debt (a rating of BBB at the time) and its equity thickness, the Commission ruled that reducing equity thickness was warranted.
Alberta Utilities Commission (AUC) allows AltaGas Utilities Inc. (AltaGas) to submit a review and variance application after expiration of the 60-day time limit.