Decision 2014-356

Decision 2014-356
ATCO Electric Ltd.
2015 Interim Transmission Facility Owner Tariff
December 17, 2014
The Alberta Utilities Commission
Decision 2014-356: ATCO Electric Ltd.
2015 Interim Transmission Facility Owner Tariff
Application No. 1611032
Proceeding No. 3544
December 17, 2014
Published by
The Alberta Utilities Commission
Fifth Avenue Place, Fourth Floor, 425 First Street S.W.
Calgary, Alberta
T2P 3L8
Telephone: 403-592-8845
Fax: 403-592-4406
Website: www.auc.ab.ca
Contents
1
Introduction ........................................................................................................................... 1
2
Issues ...................................................................................................................................... 1
3
Commission findings ............................................................................................................. 2
4
Order ...................................................................................................................................... 3
Appendix 1 – Proceeding participants ........................................................................................ 5
Appendix 2 – 2015 interim transmission facility owner tariff rate schedule........................... 6
AUC Decision 2014-356 (December 17, 2014) • i
The Alberta Utilities Commission
Calgary, Alberta
ATCO Electric Ltd.
2015 Interim Transmission Facility Owner Tariff
1
Decision 2014-356
Application No. 1611032
Proceeding No. 3544
Introduction
1.
ATCO Electric Ltd. (ATCO Electric) filed an application (the application) with the
Alberta Utilities Commission (the AUC or Commission) on November 28, 2014, requesting
approval, on an interim basis, of its 2015 interim transmission facility owner (TFO) tariff
effective January 1, 2015.
2.
The Commission issued a notice of application (notice) on December 1, 2014, which
advised that interested parties must submit a statement of intent to participate (SIP) by
December 12, 2014. The Commission received SIPs from the Consumers’ Coalition of Alberta
(CCA) and the City of Calgary (Calgary).
3.
In its SIP, the CCA commented that it did not object to the application in principle, but
was concerned by the manner in which ATCO Electric had, in its application, suggested that the
fact that no party had objected to its second compliance filing in respect of its 2013-2014 general
tariff application (GTA) (Proceeding No. 3337) should militate in favour of the Commission
approving the interim rates requested in this proceeding. The CCA further submitted that ATCO
Electric’s request for $579.0 million interim rates should only be granted if the Commission
actually approves that rate in Proceeding No. 3337. Finally, the CCA further argued that if the
Commission does not approve the $579.0 million amount in Proceeding No. 3337, ATCO
Electric’s 2014 interim rate of $572.550 million should become the basis for its 2015 interim
rate.1
4.
The SIP filed by Calgary did not provide any information concerning this party’s position
on the application, or the extent to which it proposed to participate in the proceeding.2
5.
After reviewing the application, the Commission found that no additional information
was required to make a determination on the application. The Commission considers the record
of this proceeding to have closed on December 12, 2014.
2
Issues
6.
ATCO Electric previously received approval of an interim TFO rate of $572.550 million
for 2014 in Decision 2014-006.3 In ATCO Electric’s refiling application,4 it requested a 2014
1
2
3
4
Exhibit No. 6.01, PDF pages 2 and 3.
Exhibit No. 7.01.
Decision 2014-006: ATCO Electric Ltd., 2014 Interim Transmission Facility Owner Tariff, Application
No. 1610180, Proceeding No. 2980, January 9, 2014.
Proceeding No. 3337, Application 1610733.
AUC Decision 2014-356 (December 17, 2014) • 1
2015 Interim Transmission Facility Owner Tariff
ATCO Electric Ltd.
tariff of $579.0 million. ATCO Electric is seeking approval of the full amount of the
$579.0 million requested in its refiling, on an interim basis in 2015.
7.
ATCO Electric submitted it is currently preparing its 2015 transmission GTA, in which it
will request approval for 2015 final rates. ATCO Electric stated that it intends to file a second
interim tariff application, containing a proposed rate increase, after filing its 2015 GTA.
8.
ATCO Electric requested a determination from the Commission in respect of the
application by January 15, 2015, in order to allow it to implement a new tariff effective
January 1, 2015.5
9.
On December 15, 2014, the Commission issued Decision 2014-3486 regarding ATCO
Electric’s second compliance filing for its 2013-2014 transmission GTA. In that decision, ATCO
Electric’s final revenue requirement of $579.0 million was approved for 2014.
3
Commission findings
10.
The Commission agrees with the CCA that the fact that no intervener registered
objections in connection with ATCO Electric’s second 2013-2014 GTA compliance proceeding
should not militate in favour of the Commission granting an interim rate in this proceeding.
11.
The test that the Commission applies in determining whether interim rates should be
established is described in Decision 2005-102.7 The first part of the test considers factors related
to quantum and need, as applied to the specifics of the requested rate increase. If all or a portion
of the suggested rate increase appears warranted after a consideration of the quantum and need
factors, the second part of the test is considered. Application of the second part of the test
involves a consideration of certain general public interest factors to see if a rate increase is
justified.
12.
The Commission notes that no party has identified concerns relating to rate stability, rate
shock or other public interest issues that would militate against approval of the requested interim
rates, and, having considered these factors, finds no grounds for concern in this regard.
13.
The Commission acknowledges that ATCO Electric is currently preparing its 2015
transmission GTA and therefore, final rates for 2015 will not be in place for January 1, 2015. It
also considers that ATCO Electric’s request for approval of continued collection of its final 2014
TFO tariff of $579.0 million on an interim basis is reasonable and accords with the public
interest. Consequently, ATCO Electric’s request for interim rates is approved, as filed. ATCO
Electric’s 2015 interim TFO rate shall remain in effect until varied or superseded by a
Commission order.
5
6
7
Exhibit No.1, PDF pages 3 and 4.
Decision 2014-348: ATCO Electric Ltd., Second Compliance Filing for 2013-2014 Transmission General Tariff
Application, Application No. 1610733, Proceeding No. 3337, December 15, 2014.
Decision 2005-102: ATCO Electric Ltd. 2005 Interim Transmission Facility Owner Tariff, Application
No. 1407551, September 7, 2005.
2 • AUC Decision 2014-356 (December 17, 2014)
2015 Interim Transmission Facility Owner Tariff
4
14.
ATCO Electric Ltd.
Order
It is hereby ordered that:
(1)
ATCO Electric Ltd.’s 2015 transmission facility owner tariff is approved on an
interim basis in the amount of $48,250,000 per month, effective January 1, 2015,
and until otherwise directed by the Commission.
Dated on December 17, 2014.
The Alberta Utilities Commission
(original signed by)
Anne Michaud
Commission Member
AUC Decision 2014-356 (December 17, 2014) • 3
2015 Interim Transmission Facility Owner Tariff
ATCO Electric Ltd.
Appendix 1 – Proceeding participants
Name of organization (abbreviation)
counsel or representative
ATCO Electric Ltd.. (ATCO Electric)
L. Keough
S. Ambeault
L. Brown
K. Clark
D. Hoshowski
L. Kizuk
The City of Calgary
D. Evanchuk
H. Johnson
M. G. Matwichuk
M. Rowe
Consumers’ Coalition of Alberta (CCA)
J. A. Wachowich
The Alberta Utilities Commission
Commission Panel
A. Michaud, Commission Member
Commission Staff
R. Finn (Commission counsel)
E. von Engelbrechten (Commission counsel)
M. Kopp-van Egteren
D. Cherniwchan
AUC Decision 2014-356 (December 17, 2014) • 5
2015 Interim Transmission Facility Owner Tariff
ATCO Electric Ltd.
Appendix 2 – 2015 interim transmission facility owner tariff rate schedule
Effective January 1, 2015
ATCO Electric Ltd.
2015 INTERIM TRANSMISSION FACILITY OWNER TARIFF
RATE SCHEDULE
AVAILABLE
To the Alberta Electric System Operator
APPLICABLE
To the Alberta Electric System Operator for use of ATCO Electric Ltd’s
transmission facilities.
RATE
Effective January 1, 2015 the transmission tariff charged to the Alberta
Electric System Operator shall be:
Monthly Charge:
6 • AUC Decision 2014-356 (December 17, 2014)
$48,250,000

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