The Alberta Utilities Commission (AUC) releases a decision regarding METSCO Energy Solutions’ (METSCO) methodologies used as support for asset management programs and capital planning activities by ENMAX Power Corporation (ENMAX) and EPCOR Distribution & Transmission (EPCOR).
On December 16, 2016, the AUC released Decision 20414-D01-2016 the second generation of Performance Based Regulation (2018-2022).
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The oral hearing portion of the Commission-initiated next generation Performance Based Regulation (PBR) generic proceeding wrapped up at the end of July 2016.
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The Alberta Utilities Commission has released a final issues list for the second generation PBR hearing.
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On April 8th, the AUC released Decision 3558-D01-2015, which revisited the issue of minimum filing requirements for PBR utilities filing annual capital tracker applications.
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Under the performance-based regulation (PBR) mechanism, distribution utilities can apply for supplemental funding for certain capital-related costs. The revenue requirement associated with the approved capital-related costs is collected from rate- payers by way of a ‘K factor’ adjustment to the annual PBR rate-setting formula.
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In addition to individual capital tacker decision, the Commission initiated a generic proceeding on the methodology and assumptions used in the accounting test requirement for capital tracker forecast and true-up applications. The Commission was interested in achieving consistency, where possibly, among the assumptions used for companies’ respective weighted average cost of capital (WACC) rate – specifically, debt rates, return on equity (ROE) rates and capital structure.
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