K-bar

Decision on review of 2018-2022 Performance-Based Regulation (PBR) for ATCO Gas and ATCO Electric

In proceeding 28300, the Alberta Utilities Commission (the Commission) determined that it will reopen the 2018-2022 PBR term (PBR2) of ATCO Gas and ATCO electric (collectively referred to as ATCO). The Commission found specifically within the years of 2021 and 2022 the PBR plan did not operate as intended. This created rates that were not just and reasonable within those years for consumers along with rates of return achieved by ATCO that exceeded the approved amount. The Commission will therefore reopen PBR2 but will only focus on 2021 and 2022. [1]



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Decision (27388-D01-2023) on Enmax R&V Application of the PBR3 K-bar Mechanism

In proceeding 28574, the Alberta Utilities Commission (the Commission) denies the application by ENMAX Power Corporation (ENMAX) to review and vary AUC decision 27388-D01-2023. The Commission deduced that ENMAX did not prove on a balance of probabilities that the decision contained an error of fact, or mixed fact and law.[1]



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ATCO PBR2 Plan Review – Evidence and Arguments

In proceeding 28300, the Alberta Utilities Commission (the Commission) hears arguments for and against whether the plan for the second term of performance-based regulation (PBR2) of ATCO Gas and ATCO Electric (ATCO) was flawed; and if so, whether it is reasonable to re-open the plan. In proceeding 20414, the Commission set out a reopener provision allowing for the review of PBR plans if a utility’s return on equity (ROE) is 300 basis points above or below the approved ROE for two consecutive years, or if it is above or below 500 points in a single year. ATCO exceeded the 300-basis point threshold for 2021 and the 500-basis point threshold for 2022, triggering this current proceeding.[1]



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ENMAX’s R&V Application of the PBR3 K-bar Mechanism

In proceeding 28574, ENMAX Power Corporation (ENMAX) applies for a review and variance of the K-bar mechanism approved by the Alberta Utilities Commission (the Commission) for the third generation of performance-based regulation (PBR3). ENAMX asserts that the Commission erred in believing that the K-bar would provide ENMAX with sufficient funding and seeks the Commission to grant a review of the PBR3 K-bar. ENMAX’s case is grounded in its concern that the approved K-bar does not meet ENMAX’s needs to fund the replacement of its aging assets or to respond to the growing need to modernize the grid. Furthermore, ENMAX states that the current K-bar will force the utility to choose which benefits its customers will forgo and that it may have to put off investment into reliability drivers, externally driven projects, and grid modernization to prioritize safety on its network.[1]



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