decision 2010-576 fortisalberta inc. · 2018. 2. 23. · 2010 phase ii compliance filing...

Decision 2010-576

FortisAlberta Inc. 2010 Phase II Compliance Filing December 14, 2010

ALBERTA UTILITIES COMMISSION Decision 2010-576: FortisAlberta Inc. 2010 Phase II Compliance Filing Application No. 1606552 Proceeding ID. 834 December 14, 2010 Published by Alberta Utilities Commission Fifth Avenue Place, 4th Floor, 425 - 1 Street SW Calgary, Alberta T2P 3L8 Telephone: (403) 592-8845 Fax: (403) 592-4406 Web site: www.auc.ab.ca

http://www.auc.ab.ca/

AUC Decision 2010-576 (December 14, 2010) • i

Contents

1 INTRODUCTION................................................................................................................. 1

2 ISSUES................................................................................................................................... 2 2.0 Compliance with Directions from Decision 2010-309 .................................................. 2 2.1 Compliance with Directions from Decision 2010-329 .................................................. 3

2.1.1 Direction 13 – Rate Cap.................................................................................... 3 2.1.2 Balance of Directions from Decision 2010-329 ............................................... 6

2.2 Other Matters – Cost Allocation .................................................................................... 7 2.3 Other Matters – Rate Design.......................................................................................... 7 2.4 Other Matters – Approval of Items Not Individually Addressed................................... 8 2.5 Other Matters – 2011 Balancing Pool Allocation Rider ................................................ 8

3 ORDER .................................................................................................................................. 9

APPENDIX 1 – PROCEEDING PARTICIPANTS................................................................. 11

APPENDIX 2 – FINAL 2011 RATE AND RIDER SCHEDULES......................................... 12

APPENDIX 3 – BILL IMPACT SCHEDULES....................................................................... 13

APPENDIX 4 – DISTRIBUTION LOSS PERCENTAGES BY RATE CLASS................... 14 List of Tables Table 1. 2010 Rate Design Revenue to Cost Ratios Comparisons......................................... 5

AUC Decision 2010-576 (December 14, 2010) • 1

ALBERTA UTILITIES COMMISSION Calgary Alberta Decision 2010-576 FORTISALBERTA INC. Application No. 1606552 2010 PHASE II COMPLIANCE FILING Proceeding ID. 834

1 INTRODUCTION

1. FortisAlberta Inc. (FAI) filed its 2010-2011 General Tariff Application – Phase II Compliance Filing (Phase II Compliance Application) on September 10, 2010 with the Alberta Utilities Commission (AUC or Commission) pursuant to Decision 2010-3291 FortisAlberta Inc. 2010-2011 Distribution Tariff – Phase II.

2. On June 16, 2009, FAI filed a 2010/2011 Distribution Tariff Application (2010/2011 DTA or Application) with the Commission. As the processing of the Application moved forward, the Commission separated consideration of the Phase I and Phase II aspects of the Application.

3. Phase I moved forward as Proceeding ID. 212 and, on July 6, 2010, the Commission issued Decision 2010-3092 in respect of Phase I. A Phase I compliance filing application was made on August 30, 2010, as directed by Decision 2010-309. As part of its Phase I compliance filing application, FAI included placeholder values with respect to its advanced metering infrastructure. Specifically, FAI indicated that it filed a review and variance (R&V) application with respect to the advanced metering infrastructure with the Commission and included $125.7 million in the Phase I compliance filing application as a placeholder pending a decision on the R&V.3 On December 6, 2010, the Commission issued Decision 2010-5604 in respect of the Phase I compliance filing application. Decision 2010-560 rejected FAI’s proposed use of the Review and Variance placeholders.5

4. Phase II became Proceeding ID. 362 and, on July 22, 2010, the Commission issued Decision 2010-329 in respect of the Phase II. FAI was directed to file a compliance filing by September 10, 2010. This Phase II Compliance Application is in response to that direction.

5. The Phase II Compliance Application included responses pursuant to Commission Directions in Decision 2010-329 and requested Commission approval for 2011 Rates, Options and Riders Schedules (Attached as Appendix 2) for an effective implementation date of January 1, 2011.

1 Decision 2010-329: FortisAlberta Inc. 2010 Phase II (Application No. 1605580, Proceeding ID. 362) (Released:

July 22, 2010). 2 Decision 2010-309: FortisAlberta Inc. 2010-2011 Distribution Tariff – Phase I (Application 1605170,

Proceeding ID 212) (Released: July 6, 2010). 3 Proceeding ID 804, Exhibit 4, Application, page 14, paragraph 79. 4 Decision 2010-560: FortisAlberta Inc 2010-2011 Distribution Tariff – Phase I Compliance Filing (Application

No. 1606513, Proceeding ID. 804) (Released: December 6, 2010), paragraph 22. 5 Decision 2010-560, paragraph 22.

http://www.auc.ab.ca/applications/decisions/Decisions/2010/2010-329.pdfhttp://www.auc.ab.ca/applications/decisions/Decisions/2010/2010-309.pdfhttp://www.auc.ab.ca/applications/decisions/Decisions/2010/2010-560.pdf

2010 Phase II Compliance Filing FortisAlberta Inc.

2 • AUC Decision 2010-576 (December 14, 2010)

6. The Commission issued a Notice of Application on September 13, 2010 and received Statements of Intent to Participate (SIPs) from the Office of the Utilities Consumer Advocate (UCA) and the Consumers’ Coalition of Alberta (CCA). The UCA indicated in its SIP that it had concerns with respect to FAI’s Phase I revenue requirement that was included in the Phase I compliance filing and that approval of Phase II rates based on this revenue requirement is not appropriate. The UCA further indicated that FAI had changed the approved rate cap of 20 percent in Decision 2010-329 to 25 percent and that this is effectively represented as a Review and Variance (R&V) of that Decision and should not be dealt with in the context of a compliance filing.6

7. The CCA indicated in its SIP that it was unable to advise whether it supports or objects to the Compliance Application and requested the Commission to set scheduled dates for Information Requests (IRs), Argument and Reply.

8. The Commission determined that the Phase II Compliance Application would be addressed using a written process and established the following schedule for the proceeding:

Activity Due Date Information requests to FAI October 12, 2010 Information responses from FAI October 22, 2010 Argument October 29, 2010 Reply Argument November 5, 2010 9. The Commission received Argument and Reply submissions from FAI, the UCA and the CCA as scheduled on October 29, 2010 and November 5, 2010 respectively. The Commission considers that the record with respect to this proceeding closed on November 5, 2010.

10. In reaching the determinations set out within this decision, the Commission has considered all relevant materials comprising the record of this proceeding, including the evidence and argument provided by each party. Accordingly, references in this decision to specific parts of the record are intended to assist the reader in understanding the Commission’s reasoning relating to a particular matter and should not be taken as an indication that the Commission did not consider all relevant portions of the record with respect to that matter.

2 ISSUES

2.0 Compliance with Directions from Decision 2010-309 11. FAI noted in the 2010 Phase II Distribution Tariff Application Compliance Application that the revenue requirements (distribution and transmission) used in the Phase II Compliance Application were those used in the Phase I compliance filing.7 In Argument, FAI submitted that “the placeholders were considered reasonable and have a relatively small effect on overall rate levels.”8

12. The UCA, after receiving confirmation from FAI that the Phase II Compliance Application included revenue requirements related to additional meter reading costs and 6 UCA Statement of Intent to Participate, September 24, 2010. 7 Application, paragraph 4. 8 FAI Argument, paragraph 7.



Advanced Metering Infrastructure, submitted that FAI acted contrary to directions given in Decisions 2010-309 and 2010-329.9 The CCA took the position that the placeholders should be removed and FAI should re-file the Phase II Compliance Application.10

13. FAI said in its Reply:

FortisAlberta concurs that the apt revenue requirement to be used for this proceeding is that which arises from the pending decision in the Phase I compliance filing Proceeding ID 804.11

Commission Findings 14. The approved revenue requirement (Directions 20 and 32 of Decision 2010-309) was dealt with in Proceeding ID. 804 and decided in Decision 2010-560.12 The Commission did not accept the placeholder amounts in the Phase I Compliance filing and accordingly does not accept the placeholder amounts for the Phase II Compliance Application. In response to AUC-FAI-1(a) and (b), FAI re-filed Appendices 1 through 7 (excluding Appendix 4) using the revenue requirements as directed in Decision 2010-309. As no issues were identified with this information response, the Commission accepts Appendices 1 and 2, as they relate to the transmission and distribution cost of service as submitted in response to AUC-FAI-1(a).

2.1 Compliance with Directions from Decision 2010-329 15. The UCA and CCA submitted that there were a number of Commission Directions which FAI had not properly addressed in its Phase II Compliance Application. The Commission addresses these Directions in the following sections.

2.1.1 Direction 13 – Rate Cap 16. The Commission directed FAI to use its proposed 20 percent rate cap in its Phase II Compliance Application.13 FAI responded in its Compliance Application and stated:

FortisAlberta is proposing that the rate cap of 20% (approved per Direction 13) be reviewed by the Commission in light of the Phase I findings and increased to a 25% cap for purposes of this Compliance Filing in order to make any meaningful progress towards rate class revenue-to-cost ratios in the range of 95% to 105%.14

17. FAI indicated that the Phase I and Phase II Decisions are interrelated in that the Phase I revenue requirement bears upon the Phase II rate design and affects the transition towards the 95 percent to 105 percent revenue to cost range by rate class.

18. The UCA stated that FAI is attempting to have the Commission review and vary Decision 2010-329 without filing an application and when asked by FAI why it did not request a review

9 UCA Argument, page 2. 10 CCA Argument, paragraph 7. 11 FAI Reply, paragraph 2. 12 Decision 2010-560, paragraph 22. 12 Decision 2010-329, paragraph 168 of that decision the Commission said: “For Compliance Filing schedules,

FAI is directed to use its proposed 20 percent cap.” 14 FortisAlberta Ltd. Compliance Application, page 8, paragraph 53.



and variance (R&V), FAI indicated that it viewed the compliance filing process as more efficient.15

19. In response to the UCA’s position that this appears to effectively be an R&V of Decision 2010-329 with respect to the 25 percent rate cap, FAI stated that:

Until the impacts of the Phase I decision were known and incorporated, the impacts of the Phase II Decision were also not known. Specifically, the disallowance of the depreciation deferral account in the Phase I Decision had the effect of shifting recovery of depreciation costs into 2010 which has an impact on 2010 distribution revenue requirement and rate design. In other words, the basis for the proposed rate cap of 20% was rendered insufficient once impacted by the Phase I Decision. As such, FortisAlberta proposed that further assessment by the Commission and parties is required and appropriate.

And FortisAlberta did not believe an R&V of the Decision was the most efficient regulatory process in the circumstance, particularly since FortisAlberta was forthcoming about its intentions in such an event in the oral hearing.16

20. The UCA argued that since the FAI Phase I decision (Decision 2010-309) was issued on July 6, 2010 and the Phase II decision (Decision 2010-329) was issued on July 22, 2010, the Commission would have been aware of the impacts of its Phase I decision when it rendered the Phase II decision, and that FAI’s explanation is not a reason for FAI to disregard the Commission’s Direction.17

21. The CCA submitted that FAI should be directed to re-file its 2010 Phase II Compliance Application which would reflect a maximum rate cap of 20 percent as directed by the Commission and the only change that may yet impact this re-filing would be the Commission decision on the Phase I Compliance Application.

22. FAI submitted in its Reply Argument that the use of the proposed 25 percent rate cap rather than the earlier considered 20 percent rate cap will provide better results and will leave smaller steps to be contemplated for the next Phase II process.18 FAI supported this position in its Reply Argument by referring to the following table that had been previously provided in response to Information Request UCA-FAI-2(d):19

15 UCA Argument, page 4. 16 FAI Argument, page 2, paragraph 11. 17 UCA Argument, page 3. 18 FAI Reply Argument, page 1, paragraph 5. 19 FAI Reply Argument, page 3, paragraph 9, IR Response UCA-FAI-002(d).



Table 1. 2010 Rate Design Revenue to Cost Ratios Comparisons

A Schedule 8.3-A2(Scenario 4) As approved

in Ph II Decision 2010-329 20% Cap

B Schedule 8.3-

A2 PH II Compliance

Filing assuming a

20% Cap

C Schedule

8.3-A2 PH II Compliance

Filing 25% Cap

D Rate Design comments

(Note 1)

No Rate Class Description Rate Code Total % Total % Total %

1 Residential 11 102 101 103

2 FortisAlberta Farm 21-23 83 77 80

3 REA Farm 24-29 100 100 100 Set to 100%

4 FortisAlberta Irrigation 26 113 106 111 Set to rate cap

5 Exterior Lighting 31-38 92 83 86

6 Small General Service 41 102 104 104

7 Oil and Gas 44-45 102 96 100

8 General Service 61 103 107 104

9 Large General Service 63 103 107 104

10 Transmission Connected 65 100 100 100 Set to 100%

11 Total FortisAlberta 100% 100% 100% REA Farm and Transmission Connected Revenue to cost Ratio set to 100% and FortisAlberta Irrigation rate increase set to 25% as discussed in AUC Decision 2010-329, paragraph 155. 23. FAI submitted that the table above shows that for the seven rate classes subject to changes based on their distance from 100 percent revenue to cost ratio, under column C, only two rate classes would remain outside the 95 percent to 105 percent revenue to cost ratio and would have similar ratios to those considered by the Commission in Decision 2010-329 (Column A).

24. In its Reply Argument, the UCA stated:

Given the Phase 2 decision was issued after the Phase 1 Decision, and all Commission members and staff that were assigned to the Phase 2 proceeding were also assigned to the Phase 1 proceeding, it is not reasonable to now allow a change to a Phase 2 ruling based on unknown impacts of the Phase 1 Decision. The UCA submits that the revised rate cap should be rejected.20

Commission Findings 25. The Commission considers that a Compliance Application should reflect the Commission’s approvals and directions. The Commission has reviewed the schedules provided by FAI for both rate cap levels of 20 percent and 25 percent. In the FAI Phase I Compliance Filing Decision 2010-560, the Commission stated:

20 UCA Reply Argument, page 2.



...[A]s the placeholder values included in the Compliance Application are different than the amounts approved by the Commission in Decision 2010-309, the Commission does not approve the adoption of these placeholder values. The Commission has used the amounts as approved in Decision 2010-309. The Commission recognizes that if the Review and Variance Application decision results in a change to the amounts approved in Decision 2010-309, those changes will be given effect in Phase II of the review and variance process. The Commission notes that Phase I of the Review and Variance Application was approved in Decision 2010-554, issued December 1, 2010.21 (footnote omitted)

26. The Commission reiterates that a compliance filing is intended to reflect the Commission’s approvals and directions. The Commission stated in Decision 2010-329:

…Notwithstanding the Commission’s desire that the company achieve the goal of all classes being within this tolerance, it may take time for some rate classes to reach the range of 95 percent to 105 percent revenue to cost ratio. As such, the Commission considers that the proposed 20 percent maximum rate class increase cap to be a reasonable measure to reduce significant rate shock impacts on customers.22

27. As the 25 percent rate cap employed by FAI in this compliance filing is different than the 20 percent rate cap approved by the Commission in Decision 2010-329, the Commission does not approve the 25 percent rate cap and has utilized the rate cap of 20 percent as determined in Decision 2010-329. The Commission finds that information response AUC-FAI-1(b) Appendices 6 and 7 reflect rate schedules and bill impacts by rate class that are compliant with Decision 2010-329. The approved rate schedules are attached as Appendix 2 to this Decision. Bill impacts by rate class are attached as Appendix 3.

28. The Commission notes the following from Decision 2010-329:

The Commission notes that much of the concern of the CCA and IPCAA relates to FAI being outside of the 95 to 105 percent revenue to cost range for some rate classes prior [to] FAI entering a PBR scheme. The Commission considers that there are ways within a PBR scheme to deal with these sorts of issues and it is not imperative to ensure that all rate classes are aligned prior to the commencement of a PBR scheme.23

29. The Commission shares the concerns expressed by the CCA, IPCAA and by FAI (above) with respect to getting all rate classes within the 95 percent to 105 percent revenue to cost ratio range. The Commission invites FAI, at the time of its PBR application, to provide a proposal for moving all rate classes within the 95 percent to 105 percent revenue to cost ratio range, either by way of adjustments to its going-in rates or by way of rate adjustments to be implemented during the PBR term.

2.1.2 Balance of Directions from Decision 2010-329 30. The Commission has reviewed FAI’s submissions with respect to the balance of the Directions of Decision 2010-329 that are not specifically discussed herein. The Commission is satisfied that the Phase II Compliance Application adequately addresses and responds to those Directions and accordingly accepts FAI’s responses to them. 21 Decision 2010-560, paragraph 22. 22 Decision 2010-329, page 30, paragraph 167. 23 Decision 2010-329, page 29, paragraph 166.



2.2 Other Matters – Cost Allocation 31. FAI submitted in its Phase II Compliance Application that it has updated the respective 2010 distribution cost allocation in Schedules 8.2-A and its related schedules to reflect the above distribution revenue requirement. FAI indicated that the Component Analysis Method (CAM) study was not changed from the original application and therefore Schedules 8.2-Q1 through 8.2-R100 were not included in this Phase II Compliance Application.24

32. FAI submitted that complying with the directives was a straightforward, mechanical exercise in which:

• Schedule 8.2-A and the associated distribution cost allocation schedules have been updated with the 2010 distribution revenue requirement amounts as filed in the Phase I compliance filing;

• Schedules 8.2-C through E have been updated with the 2010 and 2011 transmission revenue requirement amounts as filed in the Phase I compliance filing;

• Updated meter cost ratios are now used in Schedule 8.2-I1a per Direction 9; and • The Return on Equity (ROE) deferral amount is a new item since filing of the

2010/2011 DTA and has been added and allocated consistent with other ROE amounts in Schedule 8.2-L (Compliance Filing).25

Commission Findings 33. From the response to AUC-FAI-1(a) and (b), FAI has re-filed its appendices using the revenue requirements as directed in Decision 2010-309 and reaffirmed in Decision 2010-560 (FAI Phase I Compliance Filing). The Commission has reviewed the updated schedules on cost allocation provided by FAI and has determined that FAI has complied with the directions set out in Decision 2010-329 (Appendices 1 and 2 from AUC-FAI-1(a)).

2.3 Other Matters – Rate Design 34. FAI indicated that it had applied the rate cap design as described and approved in the Phase II proceeding, however as discussed in Direction 13, FAI proposed to increase the approved rate cap from 20 percent to 25 percent.

35. FAI submitted that in order to recover the 2011 distribution revenue requirement and design base rates for 2011, the 2010 distribution component of the 2010 proposed rates was scaled upwards by 4.9 percent consistent with what was proposed in the proceeding. FAI further submitted that the transmission component of 2011 rates was based on the allocation of the 2011 transmission revenue requirement consistent with the approved transmission allocation method.26

36. FAI explained that it provided calculations, attached as Appendix 5 to its Phase II Compliance Application and restated as Appendix 5 to AUC-FAI-1(b), for the 2011 Distribution Adjustment Rider (DAR) which recovers the difference in 2010 revenues by rate class between the 2010 distribution revenue requirement, as filed in compliance with Decision 2010-309, and the expected distribution revenues on interim rates that were in effect throughout 2010.27

24 Compliance Filing, page 10, paragraph 59. 25 Compliance Filing, page 10, paragraph 60. 26 Compliance Filing, page 11, paragraph 65. 27 Compliance Filing, page 11, paragraph 66.



Commission Findings 37. The Commission has ruled above in Section 2.1.1 with respect to FAI’s proposed rate cap increase from 20 percent to 25 percent. With respect to the 4.9 percent increase of the 2010 distribution rates to meet the 2011 revenue requirement, the Commission finds that the increase is reasonable. The Commission also notes that no interveners raised any issues with this increase. Therefore, the Commission approves the 4.9 percent increase for 2010 distribution rates to recover 2011 distribution revenue requirement.

38. The Commission has reviewed the schedules submitted by FAI with respect to the 2011 DAR and finds them satisfactory. The Commission notes no interveners raised concerns with FAI calculations on its DAR. Accordingly, the Commission approves the FAI calculations for DAR and the DAR as included with the rate schedules in Appendix 2 attached to this Decision.

2.4 Other Matters – Approval of Items Not Individually Addressed 39. FAI submitted in its Phase II Compliance Application that New Distribution Loss Percentages by rate class were approved in Decision 2010-32928 as set out in the Distribution Losses Study (Appendix W29 of the 2010/2011 DTA). FAI proposed that these loss percentages by rate class be implemented in load settlement for an effective date of January 1, 2011.

Commission Findings 40. The Commission notes no interveners raised issues with FAI’s New Distribution Loss Percentages. The Commission has reviewed Appendix W provided by FAI and finds these loss percentages by rate class to be reasonable. Therefore, the Commission approves FAI’s New Distribution Loss Percentages as applied for and attached as Appendix W of its 2010/2011 DTA for implementation in load settlement for an effective date of January 1, 2011.

2.5 Other Matters – 2011 Balancing Pool Allocation Rider 41. As noted in paragraph 38 of Decision 2010-560 (FAI Phase I Compliance Filing), the AESO Rider F change to $2.00 per MWh effective July 1, 2010, which was approved in Decision 2010-285,30 was reflected in the Phase I Compliance Application31 and in this Phase II Compliance Application. Subsequent to the submission of the Phase II Compliance Application, the AESO 2011 Balancing Pool Consumer Allocation Rider F,32 representing a continuation of a $2.00/MWh credit to AESO customers effective January 1, 2011, was approved by the Commission in Decision 2010-564.33

Commission Findings 42. The Commission accepts FAI’s 2011 Balancing Pool Allocation Rider as included in Appendix 2 to this Decision as it reflects the most recently approved AESO 2011 Balancing Pool Allocation Rider F. 28 Decision 2010-329, paragraph 189. 29 Exhibit 3, starting at page 853 of 903. 30 Decision 2010-285: FortisAlberta Inc. 2010 Revised Balancing Pool Allocation Rider (Application No. 1606258,

Proceeding ID 665) (Released June 23, 2010). 31 Exhibit 4, FortisAlberta 2010-2011 Phase I DTA Compliance Filing (Proceeding ID 804) (Application No.

1606513), page 2, paragraph 12. 32 Proceeding ID 948, Application No. 1606767 was received November 23, 2010. 33 Decision 2010-564: AESO 2011 Balancing Pool Consumer Allocation Rider F (Application No. 1606767,

Proceeding ID 948) (Released December 7, 2010).

http://www.auc.ab.ca/applications/decisions/Decisions/2010/2010-285.pdfhttp://www.auc.ab.ca/applications/decisions/Decisions/2010/2010-564.pdf



3 ORDER

43. IT IS HEREBY ORDERED THAT:

(1) FortisAlberta Inc.’s 2011 Rates, Options and Riders set out within Appendix 2 of this decision are approved for an effective date of January 1, 2011.

(2) FortisAlberta Inc.’s 2011 Distribution Adjustment Rider, as set out within the rate

schedules attached as Appendix 2 of this decision to be effective for the period of January 1, 2011 through December 31, 2011.

(3) FortisAlberta Inc.’s prior approved Distribution Loss Percentages by rate class as

set out within Appendix 4 of this Decision to be implemented in load settlement for an effective date of January 1, 2011.

Dated on December 14, 2010. ALBERTA UTILITIES COMMISSION (original signed by) Carolyn Dahl Rees Vice-Chair (original signed by) Mark Kolesar Commissioner (original signed by) Moin A. Yahya Commissioner

2010-2011 Phase II Compliance Filing FortisAlberta Inc.


APPENDIX 1 – PROCEEDING PARTICIPANTS

Name of Organization (Abbreviation) Counsel or Representative

FortisAlberta Inc. (FAI) T. Dalgleish, QC M. Stroh J. Walsh Consumers’ Coalition of Alberta (CCA)

J. Wachowich Office of the Utilities Consumer Advocate (UCA)

T. D Mariott Alberta Utilities Commission Commission Panel C. Dahl Rees, Vice-Chair M. Kolesar, Commissioner M. A. Yahya, Commissioner Commission Staff

S. Ramdin (Commission Counsel) D. Ward U. Pillai W. Frost



APPENDIX 2 – FINAL 2011 RATE AND RIDER SCHEDULES

(return to text)

Appendix 2 - FAI Final 2011 Rate Optio

(consists of 32 pages)


APPENDIX 3 – BILL IMPACT SCHEDULES

(return to text)

Appendix 3 - FAI 2011 Bill Impact Sched

(consists of 35 pages)




APPENDIX 4 – DISTRIBUTION LOSS PERCENTAGES BY RATE CLASS

(return to text)

Appendix 4 - Distribution Losses St

(consists of 1 page)


FortisAlberta’s Customer and Retailer Terms and Conditions of Electric Distribution Service provide for other charges, including an arrears charge of 1.5% per month. AUC Decision 2010-576 (December 14, 2010)

APPENDIX 2

FORTISALBERTA INC.

2011 RATE AND RIDER SCHEDULES

JANUARY 1, 2011

FortisAlberta Inc. 2010 Phase II Compliance Filing Appendix 2 – Final 2011 Rate and Rider Schedules


Rates Residential Rate 11 Residential Service...................................................................................................... 3 Farm Rate 21 FortisAlberta Farm Service......................................................................................... 4 Rate 23 FortisAlberta Grain Drying Service............................................................................ 5 Rate 24 REA Farm Service ...................................................................................................... 6 Rate 26 FortisAlberta Irrigation Service .................................................................................. 7 Rate 29 REA Irrigation Service ............................................................................................... 8 Lighting Rate 31 Street Lighting Service (Investment Option).............................................................. 9 Rate 33 Street Lighting Service (No Investment Option) ...................................................... 10 Rate 38 Yard Lighting Service............................................................................................... 11 Commercial / O&G Rate 41 Small General Service............................................................................................... 12 Rate 44 Oil & Gas (Capacity) Service (Closed) .................................................................... 13 Rate 45 Oil & Gas (Energy) Service...................................................................................... 14 General Service Rate 61 General Service......................................................................................................... 15 Rate 63 Large General Service............................................................................................... 16 Rate 65 Transmission Connected Service.............................................................................. 17 Rate 66 Opportunity Transmission ........................................................................................ 18 Options Option A Primary Service Option............................................................................................. 19 Option C Idle Service Option ................................................................................................... 20 Option D Flat Rate Option........................................................................................................ 21 Option I Interval Metering Option .......................................................................................... 22 Option M Distribution Generation Credit/Charge..................................................................... 23 Riders Rider A-1 Municipal Assessment Rider .................................................................................... 24 Municipal Franchise Fee Ride Municipal Franchise Fee Riders .................................................. 27 2011 Balancing Pool Allocation Rider ......................................................................................... 30 2011 Quarterly Transmission Adjustment Rider .......................................................................... 31 2011 Distribution Adjustment Rider............................................................................................. 32


Page 3


RATE 11 RESIDENTIAL SERVICE Effective: January 1, 2011 Availability Rate 11 is available to individually metered single family dwelling units that are

used for domestic purposes only. Rate 11 Transmission Component

Distribution Component

Total Distribution Tariff

All kWh delivered 1.6869¢/kWh 1.7205¢/kWh 3.4074¢/kWh For all Units — $0.6107/day $0.6107/day The Rate Minimum is $0.6107/day. Application In addition to single family dwellings, Rate 11 is also available to:

1. an individually metered single dwelling unit with a maximum of 1,000 watts used in connection with small business;

2. an individually metered single motel rental unit, provided that the owner has contracted with FortisAlberta for service to each unit;

3. an individually metered private dwelling in a commercial travel trailer or mobile home park, provided that FortisAlberta charges the owner of the park if the occupancy is temporary;

4. existing multi-unit residential buildings which are currently served through a single meter and billed on a residential rate;

5. senior citizen apartment complexes served through a single meter; or 6. existing travel trailer or mobile home parks served through a single meter

where the owner of the park sub-meters each of the occupants of the park and charges the occupants of the park at rates no higher than FortisAlberta’s Residential Service Rate 11.

In cases 4, 5 and 6 (multi-residential), FortisAlberta charges for all units,

occupied or not. Except for cases 4 and 5, all multi-unit residential buildings (including apartment

and condominium buildings) must have individual dwelling units separately metered and billed on Residential Service Rate 11, with common use areas such as hallway, lobby, and laundry room lighting metered and billed on Small General Service Rate 41.


Page 4


RATE 21 FORTISALBERTA FARM SERVICE Effective: January 1, 2011 Availability Rate 21 is available in rural areas to Points of Service connected directly to

FortisAlberta’s distribution system that deliver energy to farming operations which include a residence.

Rate 21 Transmission Component



For all kWh delivered 1.733¢/kWh — 1.733¢/kWh For the first 5 kVA of

Capacity — $0.3820/kVA-day $0.3820/kVA-day

All additional kVA of Capacity — $0.3174/kVA-day $0.3174/kVA-day

The kVA of Capacity is:

1. for breakered services 25 kVA or less, the greater of the breaker kVA rating or 5 kVA; or

2. for non-breakered services greater than 10 kVA, the greatest of: a) the highest Metered Demand in the billing period; b) 85% of the highest Metered Demand in the past 12 months including and

ending with the billing period; c) the Rate Minimum of 10 kVA.


Page 5


RATE 23 FORTISALBERTA GRAIN DRYING SERVICE Effective: January 1, 2011 Availability Rate 23 is available to FortisAlberta Farm Points of Service that have, in addition

to the regular farm service, varying load levels throughout the year due to the use of grain drying equipment for part of the year.




For all kWh delivered 1.733¢/kWh 1.3832¢/kWh 3.1162¢/kWh For the first 5 kVA of

Capacity — $0.3820/kVA-day $0.3820/kVA-day

All additional kVA of Capacity — $0.2001/kVA-day $0.2001/kVA-day

The kVA of Capacity is:

1. for breakered services 25 kVA or less, the greater of the breaker kVA rating or 5 kVA; or

2. for non-breakered services greater than 10 kVA, the greatest of: a) the highest Metered Demand in the billing period; b) 85% of the highest Metered Demand in the past 12 months including and

ending with the billing period; c) the Rate Minimum of 10 kVA.

Application Rate 23 is only available to Farm Points of Service that qualify for basic service at

Rate 21 and operate more than 5 hp of grain drying equipment in addition to the basic service.


Page 6


RATE 24 REA FARM SERVICE Effective: January 1, 2011 Availability REA Rate 24 is available to services of members of a Rural Electrification

Association (REA) and to farmers who own their entire electric service extension (T-rurals).




For all kWh delivered 1.752¢/kWh — 1.752¢/kWh Basic Daily Charge — $0.0419/day $0.0419/day Plus:

1. Charges collected for and on behalf of REAs and farmers who own their entire electric service extension (T-rurals).

The Rate Minimum is the Basic Daily Charge.


Page 7


RATE 26 FORTISALBERTA IRRIGATION SERVICE Effective: January 1, 2011 Availability Rate 26 is available to Points of Service with individually metered motors driving

irrigation pumps that operate only in the Irrigation Season. Rate 26 Transmission Component



For all kWh delivered 2.302¢/kWh 0.4441¢/kWh 2.7461¢/kWh For all kW of Capacity — $0.1028/kW-day $0.1028/kW-day Idle Charges For all kW of Capacity — $0.0883/kW-day $0.0883/kW-day The kW of Capacity, for both active and idle services, is:

1. the sum of the motor nameplate horsepower ratings of all installed motors (1 horsepower equals 0.746 kW); or the greatest of:

2. the highest Metered Demand in the billing period; or 3. the Minimum kW of Installation (95% of Expected Peak Demand).

The Metered Demand is the greater of the registered demand in kilowatts or 90% of the registered demand in kilovolt-amperes.

Irrigation For the purposes of this rate, the Irrigation Season runs from April 1 to Season October 31.


Page 8


RATE 29 REA IRRIGATION SERVICE Effective: January 1, 2011 Availability Rate 29 is available to services of members of a Rural Electrification Association

(REA) and to farmers who own their entire electric service extension (T-rurals) for individually metered motors driving irrigation pumps that operate only in the Irrigation Season.




For all kWh delivered 1.752¢/kWh — 1.752¢/kWh Basic Daily Charge — $0.0419/day $0.0419/day Plus:

• Charges collected for and on behalf of REAs and farmers who own their entire electric service extension (T-rurals).

The Rate Minimum is the Basic Daily Charge. Irrigation For the purposes of this rate, the Irrigation Season runs from April 1 to Season October 31.


Page 9


RATE 31 STREET LIGHTING SERVICE (INVESTMENT OPTION)

Effective: January 1, 2011

Availability Rate 31 is available for standard street lighting fixtures. Rate 31 Transmission Component



All connected Watts 0.0276¢/Watt-day 0.0266¢/Watt-day 0.0542¢/Watt-day

Fixture Charge —

$0.5455/Fixture-day

[x Maintenance Multiplier, if other

than 1.0]

$0.5455/Fixture-day


than 1.0] Wattage charges do not apply if the fixture is temporarily disconnected or if the

energy is supplied to the customer through a separately metered service. The Rate Minimum is the Fixture Charge. Maintenance All standard maintenance costs are included in Rate 31 with a standard

Maintenance Multiplier of 1.0


Page 10


RATE 33 STREET LIGHTING SERVICE (NO INVESTMENT OPTION)


Availability Rate 33 is available for standard street and highway lighting fixtures and includes

maintenance of the luminaries only. This rate is available for new installations only.




All connected Watts 0.0276¢/Watt-day 0.0266¢/Watt-day 0.0542¢/Watt-day

Fixture Charge —

$0.1518/Fixture-day


than 1.0]

$0.1518/Fixture-day


than 1.0] Wattage charges do not apply if the fixture is temporarily disconnected or if the

energy is supplied to the customer through a separately metered service. The Rate Minimum is the Fixture Charge. Maintenance Rate 33 covers standard routine luminaire maintenance including replacement of

failed lamps, damaged glassware and reflectors; repair or replacement of defective ballasts and controls; lamp cleaning; and scheduled system inspections with a standard Maintenance Multiplier of 1.0

A separate bill is issued by FortisAlberta for all other maintenance and changes

beyond the secondary terminals of the power supply transformer including, but not limited to, replacement of the system or components following loss by any cause such as vehicle impact, vandalism or age.


Page 11


RATE 38 YARD LIGHTING SERVICE Effective: January 1, 2011 Availability Rate 38 is available for yard lighting. FortisAlberta is responsible for all

maintenance costs. Rate 38 Transmission Component



All connected Watts 0.0276¢/Watt-day 0.0266¢/Watt-day 0.0542¢/Watt-day Fixture Charge — $0.3414/Fixture-day $0.3414/Fixture-day Wattage charges do not apply if the fixture is temporarily disconnected or if the

energy is supplied to the customer through a separately metered service. The Rate Minimum is the Fixture Charge. Maintenance All maintenance costs are included in Rate 38. New Only sodium lighting is available for new installations. Installations


Page 12


RATE 41 SMALL GENERAL SERVICE Effective: January 1, 2011 Availability Rate 41 is available to Small General Service Points of Service with Operating

Demands less than 75 kW and do not qualify for other specific rates such as the Oil and Gas Service rates.




For the first 6.575 kWh/kW of Capacity/day 0.6045¢/kWh 0.8777¢/kWh 1.4822¢/kWh

All additional kWh 0.6045¢/kWh — 0.6045¢/kWh For the first 2 kW of

Capacity $0.0738/kW-day $0.35649/kW-day $0.43029/kW-day

All additional kW of Capacity $0.0738/kW-day $0.18146/kW-day $0.25526/kW-day

The kW of Capacity is the greatest of:

1. the highest Metered Demand in the billing period; 2. 85% of the highest Metered Demand in the 12 month period including and

ending with the billing period, less 50 kW; 3. the Rate Minimum of 3 kW.

The Metered Demand is the greater of the registered demand in kilowatts or 90%

of the registered demand in kilovolt-amperes.


Page 13


RATE 44 OIL & GAS (CAPACITY) SERVICE (CLOSED)


Availability Rate 44 is available to existing oil and natural gas field services that are

unmetered or have demand meters only. These services include pumping and related operations such as; rectifiers, cathodic protection and radio transmitters, and water pumping services. Rate 44 is available to existing services with Operating Demands less than 75 kilowatts. Flat Rate Option D applies to unmetered services. This rate is no longer available for new installations and existing services are being transitioned to Rate 45 as metering is installed.




For the first 5 kW of Capacity $0.1445/kW-day $0.54967/kW-day $0.69417/kW-day



1. for unmetered and energy metered services, the sum of all connected motors and equipment (1 horsepower equals 0.746 kW);

2. for demand metered services, the highest Metered Demand in the 12-month period including and ending with the current billing period; or

3. the Rate Minimum of 3 kW. The Metered Demand is the greater of the registered demand in kilowatts or 90% of the registered demand in kilovolt-amperes.

The kW of Capacity must bill for a minimum of 12 consecutive months before

being reduced.


Page 14


RATE 45 OIL & GAS (ENERGY) SERVICE Effective: January 1, 2011 Availability Rate 45 is available to oil and natural gas field services including pumping and

related operations such as rectifiers, cathodic protection and radio transmitters and to water pumping services. Rate 45 is available to services with Operating Demands less than 75 kilowatts and have a demand and energy measurement meter.




For all kWh delivered 0.5169¢/kWh — 0.5169¢/kWh For the first 5 kW of





ending with the current billing period; 3. the Rate Minimum of 3 kW.




Page 15


RATE 61 GENERAL SERVICE Effective: January 1, 2011 Availability Rate 61 is available to Points of Service that do not qualify for other specific

rates, with Operating Demands of 2,000 kW or less. A contract with FortisAlberta is required for service under this rate.




For all kWh delivered 0.5947¢/kWh — 0.5947¢/kWh For the first 50 kW of


For the next 450 kW of Capacity $0.1105/kW-day $0.09193/kW-day $0.20243/kW-day




ending with the billing period; 3. the Contract Minimum Demand as specified by the Terms and Conditions of

Electric Distribution Service; or 4. the Rate Minimum of 50 kW.

The Metered Demand is the greater of the registered demand in kilowatts or 90% of the registered demand in kilovolt-amperes.


Page 16


RATE 63 LARGE GENERAL SERVICE Effective: January 1, 2011 Availability Rate 63 is available to Points of Service that do not qualify for other specific

rates, with Operating Demands greater than 2,000 kW. A contract with FortisAlberta is required for service under this rate.




For all kWh delivered 0.5306¢/kWh — 0.5306¢/kWh For each kW of


For each Contract kilometre — $16.1531/km-day $16.1531/km-day



ending with the billing period; 3. 135% of the Contract Minimum Demand as specified in the Terms and

Conditions of Electric Distribution Service; or 4. the Rate Minimum of 2000 kW.


of the registered demand in kilovolt-amperes. The Contract kilometres are specified in an agreement.


Page 17


RATE 65 TRANSMISSION CONNECTED SERVICE Effective: January 1, 2011 Availability Rate 65 is available to Transmission Connected services, as defined by

FortisAlberta’s Terms and Conditions of Electric Distribution Service. Rate 65 Transmission Component Distribution Component The applicable rate(s) of the

Alberta Electric System Operator Tariff $36.11 per day

Conditions FortisAlberta will apply the Terms and Conditions of the Alberta Electric System

Operator (AESO) to Transmission Connected Services. Each Transmission Connected Service is equivalent to the respective AESO Point of Delivery (POD) and will be billed on this rate only when FortisAlberta has a distinct System Access Service Agreement in existence with the AESO, specifically for the POD, and is being charged the AESO tariff by the AESO for the POD.


Page 18


RATE 66 OPPORTUNITY TRANSMISSION Effective: January 1, 2011 Availability Rate 66 is available to Points of Service that:

1. are served under along term contract with FortisAlberta under Rate 61 or 63; 2. have interval metering at the Point of Service; 3. have agreement with FortisAlberta for the Firm Demand, above which Rate

66 applies ; and 4. have an Opportunity Transmission Agreement with FortisAlberta for the

period of usage under this rate. Rate 66 is available if FortisAlberta determines, upon receipt of an Opportunity

Agreement, that the requested capacity is available. Rate 66 Transmission Component



For all kWh consumption 10.2¢/kWh 2.1¢/kWh 12.3¢/kWh

A Service Charge of $75 per Opportunity Transmission Agreement will apply.

The Opportunity Transmission Agreement will indicate requested Opportunity Demand and number of hours, for no more than one calendar month at a time.

The minimum charge for each 24 hour (calendar day) period in which

Opportunity Demand is used, will be the Total Distribution Tariff rate × contract Opportunity Demand (kW) × 6 hrs.

If the Metered Demand exceeds the sum of the Firm Demand and the Maximum

Opportunity Demand specified in the agreement during any time within the period covered by the agreement, then the Firm Demand level will be increased by the excess (kW) amount. The increased Firm Demand will be the basis for billing the Point of Service’s Rate 61 or 63 load for the current and subsequent billing periods.




Page 19


OPTION A PRIMARY SERVICE OPTION Effective: January 1, 2011 Availability The Primary Service Option is available for a minimum period of 12

consecutive months to Points of Service: 1. supplied under a satisfactory contract on the General Service Rate 61or

the Large General Service Rate 63; 2. normally metered at a primary voltage with the customer providing the

transformation to the customer’s utilization voltage; 3. with an Operating Demand not less than 1,000 kW; and 4. where the total cost of the required customer-related supply facilities

(including any customer supplied transformation) is less than FortisAlberta’s investment.

The Primary Service Option is not available to Rate 65. Option A The Primary Service Option is a credit of $0.01248 per kW of Capacity

per day.


Page 20


OPTION C IDLE SERVICE OPTION Effective: January 1, 2011 Availability The Idle Service Option is available to all Points of Service types listed

below, that select to cease energy consumption for a period of time, and request that FortisAlberta leave the electric supply facilities in place.

Option C Charges for Idle Charges are as follows:

1. for Farm Rate 21, Grain Drying Rate 23, Small General Service Rate

41, Oil and Gas Rates 44 and 45, and General Service Rate 61, customers are charged for the kW (kVA) of Capacity as defined in the applicable rate; and

2. for FortisAlberta Irrigation Rate 26 the Idle Service Charges as specified in the rate will apply.

Sites on Idle Service Option C are not normally charged for the cost to

disconnect and reconnect the service.


Page 21


OPTION D FLAT RATE OPTION Effective: January 1, 2011 Availability The Flat Rate Option is available to unmetered services which qualify for

the Small General Service Rate 41 or Oil & Gas Service Rates 44 or 45 and which have a small kW of Capacity with minimal or accurately predictable average monthly kilowatt hour consumption.

The Flat Rate Option is applied for a minimum period of twelve

consecutive months. Option D A Flat Rate bill is calculated on the Small General Service Rate or the Oil

& Gas Service Rate, using an estimated kW of Capacity and an estimated monthly kilowatt hour consumption.


Page 22


OPTION I INTERVAL METERING OPTION Effective: January 1, 2011 Availability The Interval Metering Option is available for Points of Service with a

Contract Minimum Demand of less than 333 kW (which coincides with an Operating Demand of less than 500 kW), with Interval Meters, to enable 15-minute interval data (does not apply to DG customers who own and poll the meters).

Option I The Interval Metering Option is calculated at $7.11/day for all rate classes

other than Irrigation Rates 26, which is calculated at $12.14/day.


Page 23


OPTION M DISTRIBUTION GENERATION CREDIT/CHARGE


Availability Option M is available to Distribution Generation (DG) Customers that are

interconnected to the distribution system downstream of a FortisAlberta transmission Point of Delivery (POD) and are exporting into the Alberta Interconnected Electric System (AIES).

DG Customers who have contracts under the provisions of the Small Power Research and Development (SPRD) Act are exempt from Option M.

Option M The Option M Credit or Charge will be the difference between Alberta

Electric System Operator (AESO) System Access Service charges to FortisAlberta at the upstream POD with the generator in operation and the charges that would have been incurred if the generator had not been in operation, calculated based on the amount of electricity exported into the AIES at the Point of Interconnection.

System Access Service Charges include any charges applicable at the POD in accordance with the AESO approved tariff including, but not limited to, Demand Transmission Service (DTS) and Supply Transmission Service (STS).

The Distribution Generation Credits/Charges will be calculated and paid monthly for each DG Customer. For such Customers, with a maximum export capacity of 1 MW or greater in the month, the credits and charges will be calculated on an actual basis. For Customers below 1 MW, the credits and charges will be calculated based on the average credit and charge levels for those above 1 MW.


Page 24

RIDER A-1 MUNICIPAL ASSESSMENT RIDER Effective: July 1, 2010

Availability The percentages below apply to the base Distribution Tariff charges at each Point of Service,

according to the taxation authority in which the Point of Service is located. Rates 21, 23, 24, 26, 29, 38, and 65 are exempt from Rider A-1.

Rider A-1 Number Name Rider Number Name Rider


Rider A-1 er Municipal Assessment Rid03-0002 Acme, Village Of 4.15% 01-0003 Airdrie, City Of 1.32% 03-0004 Alberta Beach, S.V. Of 1.40% 25-0466 Alexander 1.58% 25-0467 Alexis(Lacsteanne)96-97 2.44% 03-0005 Alix, Village Of 0.27% 03-0007 Amisk, Village Of 0.78% 04-0009 Argentia Beach, S.V. Of -0.24% 03-0010 Arrowwood, Village Of 0.95% 06-0012 Athabasca 12, County Of 0.01% 02-0011 Athabasca, Town Of 1.37% 02-0387 Banff, Town Of 0.31% 03-0363 Barnwell, Village Of -0.15% 03-0013 Barons, Village Of -0.16% 06-0015 Barrhead #11, County Of 0.38% 02-0014 Barrhead, Town Of 0.88% 02-0016 Bashaw, Town Of 1.50% 02-0017 Bassano, Town Of 0.79% 03-0018 Bawlf, Village Of 0.61% 02-0019 Beaumont, Town Of 1.11% 06-0020 Beaver #9, County Of 1.00% 03-0022 Beiseker, Village Of 1.46% 02-0024 Bentley, Town Of 1.15% 04-0026 Betula Beach, S.V. Of 1.38% 06-0382 Bighorn #8, M.D. Of 0.09% 25-0469 Big Stone Cree Nation 1.39% 04-0384 Birch Cove, S.V. Of 1.02% 04-0028 Birchcliff, S.V. Of 0.08% 03-0029 Bittern Lk, Village Of 1.90% 02-0030 Black Diamond, Town Of 0.14% 02-0031 Blackfalds, Town Of 1.39% 02-0034 Bon Accord, Town Of 0.88% 04-0367 Bondiss, S.V. Of 0.11% 02-0039 Bow Island, Town Of 0.80% 02-0040 Bowden, Town Of 2.39% 03-0041 Boyle, Village Of 1.40% 06-0383 Brazeau #77, M.D. Of 0.70% 03-0042 Breton, Village Of 2.52% 01-0043 Brooks, City Of 1.55%

02-0044 Bruderheim, Town Of 1.89% 11-0406 Buffalo Lk Metis 2.24% 04-0414 Burnstick Lake, S.V. 0.92% 01-0046 Calgary, City Of -7.41% 02-0047 Calmar, Town Of 1.14% 06-0049 Camrose #22, County Of 0.00% 01-0048 Camrose, City Of 1.31% 02-0050 Canmore, Town Of 0.75% 06-0053 Cardston #6, M.D. Of 1.01% 02-0052 Cardston, Town Of 0.01% 03-0054 Carmangay, Village Of 0.23% 03-0055 Caroline, Village Of 0.82% 02-0056 Carstairs, Town Of 1.53% 04-0057 Castle Island, S.V. Of 0.24% 03-0061 Champion, Village Of 1.07% 03-0062 Chauvin, Village Of 1.99% 02-0356 Chestermere Lake, Town 1.46% 03-0064 Chipman, Village Of 0.83% 02-0065 Claresholm, Town Of 0.00% 06-0377 Clearwater #99, M.D. Of 0.51% 03-0066 Clive, Village Of 1.17% 03-0068 Clyde, Village Of 4.77% 02-0069 Coaldale, Town Of 1.13% 02-0360 Coalhurst, Town Of 0.51% 02-0070 Cochrane, Town Of 1.03% 03-0076 Coutts, Village Of 3.75% 03-0077 Cowley, Village Of 0.46% 03-0078 Cremona, Village Of 2.48% 02-0079 Crossfield, Town Of 0.70% 09-0361 Crowsnest Pass, Muni Of 1.14% 04-0080 Crystal Springs, S.V. Of 0.76% 06-0376 Cypress County 0.16% 03-0081 Czar, Village Of 1.18% 02-0082 Daysland, Town Of 2.97% 02-0086 Devon, Town Of 0.96% 02-0088 Didsbury, Town Of 0.98% 02-0091 Drayton Valley, Town Of -0.03% 03-0093 Duchess, Village Of 1.21% 02-0095 Eckville, Town Of 0.66%


Page 25


Rider A-1 Number Name Rider Number Name Rider (continued)


03-0096 Edberg, Village Of 0.06% 03-0097 Edgerton, Village Of 1.52% 01-0098 Edmonton, City Of 1.09% 02-0100 Edson, Town Of 1.64%

25-0426 Enoch 0.31% 03-0109 Ferintosh, Village Of 0.50% 06-0110 Flagstaff #29, County Of 0.64% 06-0111 Foothills #31, M.D. Of 0.16% 03-0112 Foremost, Village Of 0.82% 02-0115 Fort Macleod, Town Of -0.89% 06-0118 Forty Mile #8, County Of 0.50% 01-0117 Ft Saskatchewan, City Of 1.15% 04-0123 Ghost Lake, S.V. Of -0.50% 02-0124 Gibbons, Town Of 0.98% 03-0128 Glenwood, Village Of 0.73% 04-0129 Golden Days, S.V. Of 0.17% 04-0134 Grandview, S.V. Of 0.88% 02-0135 Granum, Town Of 1.20% 06-0481 Greenview #16, M.D. Of 0.08% 04-0138 Gull Lake, S.V. Of 0.07% 04-0358 Half Moon Bay, S.V. Of 0.46% 02-0143 Hardisty, Town Of 1.42% 03-0144 Hay Lakes, Village Of 1.40% 02-0148 High River, Town Of 0.79% 03-0149 Hill Spring, Village Of 2.03% 02-0151 Hinton, Town Of 0.95% 03-0152 Holden, Village Of 0.32% 03-0153 Hughendon, Village Of 0.99% 03-0154 Hussar, Village Of 1.03% 07-0168 ID No. 13 0.16% 07-0159 ID No. 4 0.31% 07-0164 ID No. 9 0.02% 02-0180 Innisfail, Town Of 0.73% 03-0182 Irma, Village Of 0.97% 02-0183 Irricana, Town Of 0.63% 04-0185 Island Lake, S.V. Of 0.35% 04-0368 Island Lk South, S.V. Of 0.57% 04-0186 Itaska Beach, S.V. Of 0.45% 04-0379 Jarvis Bay, S.V. Of 0.12% 07-0373 Kananaskis #5, I.D. Of 0.64% 04-0187 Kapasiwin, S.V. Of 0.66% 11-0411 Kikino Metis 3.58% 02-0188 Killam, Town Of 2.21% 06-0191 Kneehill # 48, M.D. Of 0.41% 06-4353 Lac La Biche, County Of 0.53% 06-0193 Lac Ste Anne #28, County 1.49% 06-0195 Lacombe County 0.10%

01-0194 Lacombe, City Of * 1.18% 04-0196 Lakeview, S.V. Of -0.45% 06-0198 Lamont #30, County Of 0.02% 02-0197 Lamont, Town Of 1.27% 04-0378 Larkspur, S.V. Of 1.23% 06-0201 Leduc County 0.49% 01-0200 Leduc, City Of 1.28% 02-0202 Legal, Town Of 1.49% 06-0507 Lesser Slave #124, M.D. 0.47% 06-0204 Lethbridge #26, County Of 0.42% 01-0203 Lethbridge, City Of -1.06% 03-0207 Lomond, Village Of 2.81% 03-0208 Longview, Village Of 1.25% 03-0209 Lougheed, Village Of 4.27% 02-0211 Magrath, Town Of 0.98% 04-0210 Ma-Me-O Beach, S.V. Of 0.86% 02-0215 Mayerthorpe, Town Of 3.40% 04-0359 Mewatha Beach, S.V. Of 0.17% 02-0218 Milk River, Town Of 3.15% 02-0219 Millet, Town Of 1.43% 03-0220 Milo, Village Of 0.92% 06-0222 Minburn # 27, County Of 1.19% 02-0224 Morinville, Town Of 1.16% 06-0226 Mountain View #17, Cty 0.24% 04-0230 Nakamun Park, S.V. Of 2.40% 02-0232 Nanton, Town Of 1.47% 03-0233 New Norway, Village Of 3.77% 03-0234 New Sarepta, Village Of ** 2.14% 06-0235 Newell #4, County Of 0.41% 03-0236 Nobleford, Village Of -0.59% 04-0237 Norglenwold, S.V. Of 0.01% 04-0385 Norris Beach, S.V. Of 0.59% 25-0442 O'Chiese 0.37% 02-0238 Okotoks, Town Of 0.84% 02-0239 Olds, Town Of 0.91% 02-0240 Onoway, Town Of 1.94% 06-0512 Opportunity 17, M.D. Of 9.58% 04-0374 Parkland Beach, S.V. Of -0.12% 06-0245 Parkland County 0.24% 25-0444 Paul Band Admin I.B. 0.94% 02-0248 Penhold, Town Of 2.90% 02-0249 Picture Butte, Town Of 0.64% 06-0251 Pincher Creek #9, M.D. Of 0.83%


Page 26




02-0250 Pincher Creek, Town Of 0.53% 04-0253 Point Alison, Village Of -2.11%

06-0255 Ponoka #3, County Of 0.48% 04-0256 Poplar Bay, S.V. Of 0.19% 06-0258 Provost #52, M.D. Of 0.39% 02-0257 Provost, Town Of 0.93% 06-0501 Ranchland #66, M.D. Of 0.01% 02-0261 Raymond, Town Of 0.14% 06-0263 Red Deer #23, County Of 0.86% 01-0262 Red Deer, City Of 0.49% 02-0265 Redwater, Town Of 1.44% 02-0266 Rimbey, Town Of 0.66% 02-0268 Rocky Mtn House, Town 0.66% 06-0269 Rocky View #44, M.D. Of 0.48% 03-0270 Rockyford, Village Of 0.89% 03-0272 Rosemary, Village Of 4.02% 04-0273 Ross Haven, S.V. Of 0.78% 03-0276 Ryley, Village Of 3.00% 04-0277 Sandy Beach, S.V. Of 6.97% 04-0279 Seba Beach, S.V. Of -0.77% 02-0280 Sedgewick, Town Of -0.31% 25-0419 Siksika (Blackfoot) 1.10% 04-0282 Silver Beach, S.V. Of 1.06% 04-0283 Silver Sands, S.V. Of 9.43% 04-0369 South Baptiste, S.V. Of 2.60% 04-0288 Southview, S.V. Of -3.02% 08-0142 Special Areas 0.51% 03-0099 Spring Lake,V. 0.93% 01-0291 Spruce Grove, City Of 0.74% 01-0292 St. Albert, City Of 1.63% 03-0295 Standard, Village Of 0.72% 02-0297 Stavely, Town Of 0.93% 06-0299 Stettler -0.60% 03-0300 Stirling, Village Of 1.65% 25-0451 Stoney Band 1.19% 02-0301 Stony Plain, Town Of 1.19% 09-0302 Strathcona County 0.96% 02-0303 Strathmore, Town Of 1.35% 03-0304 Strome, Village Of 1.03% 06-0305 Sturgeon #90, M.D. Of 0.26% 04-0388 Sunbreaker Cove, S.V. Of 0.78% 04-0306 Sundance Beach, S.V. Of 0.39% * Name changed effective September 1, 2010 ** Dissolved effective September 1, 2010


Page 27




02-0307 Sundre, Town Of 0.79% 04-0386 Sunrise Beach, S.V. Of 8.85% 04-0357 Sunset Beach, S.V. Of

0.41% 04-0308 Sunset Point, S.V. Of 1.13% 02-0310 Sylvan Lake, Town Of 1.10% 06-0312 Taber #14, M.D. Of 0.40% 02-0311 Taber, Town Of 0.98% 06-0314 Thorhild, County Of 1.20% 03-0315 Thorsby, Village 3.04% 03-0317 Tilley, Village Of 1.44% 02-0318 Tofield, Town 0.51% 25-0448 Tsuu T'Ina (Treas.Branch) 2.70% 02-0321 Turner Valley, Town Of 0.36% 04-0324 Val Quentin, S.V. Of 2.05% 02-0326 Vauxhall, Town Of 1.95% 06-0329 Vermilion River # 24, Cty 0.07% 02-0331 Viking, Town Of 2.61% 06-0334 Vulcan #2, County Of 0.53% 02-0333 Vulcan, Town Of 1.55% 03-0364 Wabamun, Village Of 1.63% 06-0336 Wainwright #61, M.D. Of 1.12% 02-0335 Wainwright, Town Of 0.74%

04-0380 Waiparous, S.V. Of -0.51% 03-0338 Warburg, Village Of 1.37% 06-0340 Warner #5, County Of -0.02% 03-0339 Warner, Village Of -0.25% 04-0370 West Baptiste, S.V. Of 0.29% 04-0344 West Cove, S.V. Of 0.65% 06-0346 Westlock #92, M.D. Of 1.59% 02-0345 Westlock, Town Of 1.38% 06-0348 Wetaskiwin #10, County 1.09% 01-0347 Wetaskiwin, City Of 2.28% 06-0349 Wheatland #16, County Of 0.54% 04-0371 Whispering Hills, S.V. Of 0.48% 02-0350 Whitecourt, Town Of 1.01% 06-0353 Willow Creek #26, M.D. 0.22% 09-0508 Wood Buffalo, Muni Of 0.41% 06-0480 Woodlands #15, M.D. Of 0.40% 06-0482 Yellowhead #94, M.D. Of 0.11% 04-0354 Yellowstone, S.V. Of 3.43%

Municipal Franchise Fee Ride Municipal Franchise Fee Riders

Municipality Percentage Surcharge Effective

Acme 3% 2002/02/01 Airdrie 0% 2005/07/01 Alix 20% 2008/01/01 Amisk 0% 2002/11/01 Athabasca 3% 2002/08/01 Barnwell 0% 2002/03/01 Barons 0% 2002/03/01 Barrhead 5% 2003/02/01 Bashaw 0% 2003/04/01 Bassano 7.30% 2009/01/01 Bawlf 0% 2006/04/01 Beaumont 5% 2009/01/01 Beiseker 0% 2002/04/01 Bentley 0% 2002/09/01


Bittern Lake 5% 2003/05/01 Black Diamond 10% 2007/01/01 Blackfalds 20% 2010/03/01 Bon Accord 20% 2010/07/01 Bow Island 5% 2007/01/01 Bowden 12.55% 2007/01/01 Boyle 3% 2002/08/01 Breton 10% 2002/02/01 Brooks 12.63% 2004/01/01 Bruderheim 0% 2004/02/01 Calmar 20% 2007/01/01 Camrose 3% 2007/01/01 Canmore 8% 2005/02/01 Carmangay 0% 2002/02/01


Page 28

MUNICIPAL FRANCHISE FEE RIDERS Effective: the first of the month following Commission approval for consumption from the first of the month following Commission approval

FortisAlberta’s Customer and Retailer Terms and Conditions of Distribution Tariff Services provide for other charges, including an arrears charge of 1.5% per month.


Caroline 3% 2003/02/01 Carstairs 5% 2008/01/01 Champion 3% 2002/04/01 Chauvin 5% 2002/11/01 Chestermere 0% 2006/06/01 Chipman 0% 2007/03/01 Claresholm 2% 2003/02/01 Clive 0% 2002/02/01 Clyde 5% 2010/01/01 Coaldale 9% 2008/01/01 Coalhurst 7% 2004/01/01 Cochrane 15% 2006/01/01 Coutts 3% 2004/01/01 Cowley 0% 2002/09/01 Cremona 10% 2009/01/01 Crossfield 0% 2002/04/01 Crowsnest Pass 5% 2009/01/01 Czar 5% 2003/07/01 Daysland 5% 2008/01/01 Devon 12% 2009/07/01 Didsbury 5% 2007/01/01 Drayton Valley 8% 2008/03/01 Duchess 12% 2010/01/01 Eckville 10% 2004/01/01 Edberg 6% 2010/01/01 Edgerton 8% 2010/01/01 Edson 5% 2006/01/01 Ferintosh 6% 2009/01/01 Foremost 3% 2002/02/01 Fort Saskatchewan 0% 2003/06/01 Gibbons 0% 2002/05/01 Glenwood 0% 2002/04/01 Granum 3.5% 2006/03/01 Hardisty 4% 2006/01/01 Hay Lakes 5% 2007/08/01


High River 20% 2005/10/01 Hill Spring 0% 2002/05/01 Hinton 5.7% 2006/01/01 Holden 3.5% 2008/01/01 Hughenden 0% 2002/12/01 Hussar 3% 2003/05/01 Innisfail 6% 2006/01/01 Irma 5% 2002/05/01 Irricana 0% 2002/01/01 Island Lake 0% 2006/05/01 Killam 5% 2005/01/01 Lacombe * 6.2% 2004/01/01 Lamont 5% 2002/09/01 Leduc 16% 2004/07/01 Legal 0% 2002/10/01 Lomond 0% 2002/05/01 Longview 15% 2008/01/01 Lougheed 0% 2004/11/01 Magrath 8% 2010/01/01 Mayerthorpe 4% 2004/01/01 Milk River 5% 2008/01/01 Millet 7% 2010/01/01 Milo 10% 2010/04/01 Morinville 20% 2006/01/01 Nakamun Park 0% 2003/03/01 Nanton 3% 2003/02/01 New Norway 6% 2009/01/01 New Sarepta ** 7% 2006/01/01 Nobleford 0% 2004/11/01 Okotoks 7% 2003/08/01 Olds 7.93% 2010/01/01 Onoway 5% 2008/01/01 Penhold 19% 2006/01/01 Picture Butte 8% 2009/01/01 Pincher Creek 8% 2009/01/01


Page 29

MUNICIPAL FRANCHISE FEE RIDERS Effective: the first of the month following Commission approval for consumption from the first of the month following Commission approval

FortisAlberta’s Customer and Retailer Terms and Conditions of Distribution Tariff Services provide for other charges, including an arrears charge of 1.5% per month.


Provost 15% 2010/01/01 Raymond 6% 2005/01/01 Redwater 0% 2003/05/01 Rimbey 7% 2004/01/01 Rocky Mtn House 3% 2003/04/01 Rosemary 4% 2003/02/01 Ryley 0% 2004/01/01 Sedgewick 5% 2005/01/01 Silver Sands 3% 2008/02/01 South Baptiste 0% 2005/05/01 South View 0% 2008/02/01 Spruce Grove 14.25% 2006/01/01 St. Albert 0% 2002/05/01 Standard 0% 2002/12/01 Stavely 3% 2003/02/01 Stirling 5% 2008/01/01 Stony Plain 5% 2009/01/01 Strathmore 5% 2009/05/01 Strome 8% 2003/04/01


Sundre 0% 2002/03/01 Sunrise Beach 0% 2008/08/01 Sunset Point 0% 2003/03/01 Sylvan Lake 10% 2004/01/01 Taber 20% 2004/01/01 Thorsby 10% 2010/01/01 Tilley 5% 2007/01/01 Tofield 5% 2002/10/01 Turner Valley 10% 2009/01/01 Vauxhall 0% 2004/09/04 Viking 5% 2009/01/01 Vulcan 0% 2002/02/01 Wabamun 0% 2002/10/01 Wainwright 3% 2002/04/01 Warburg 10% 2009/01/01 Warner 0% 2002/04/01 Westlock 6% 2003/02/01 Wetaskiwin 10% 2009/01/01 Whitecourt 2.5% 2004/01/01

* Name changed effective September 1, 2010 ** Dissolved effective September 1, 2010


Page 30

FortisAlberta’s Customer and Retailer Terms and Conditions of Electric Distribution Service provide for other charges, including an arrears charge of 1.5% per month.

2011 BALANCING POOL ALLOCATION RIDER

Effective: January 1, 2011to December 31, 2011

Availability: To collect from or refund to FortisAlberta customers, an amount transferred to

the AESO and its customers from the Balancing Pool under Section 82 of the Electric Utilities Act.

For all energy, wattage or kilowatts delivered, the rider applies to the Distribution Tariff by rate class:

Rate Class Description Rate Code 2011 Balancing Pool

Allocation Rider Charge/(Credit)

Residential Rate 11 (0.2046) ¢/kWh

FortisAlberta Farm Rate 21, 23 (0.2066) ¢/kWh

REA Farm Rate 24, 29 (0.2068) ¢/kWh

Irrigation Rate 26 (0.2047) ¢/kWh

Exterior Lighting Rates 31, 33, 38 (0.0030) ¢/Watt-day

Small General Rate 41 (0.2063) ¢/kWh

Oil & Gas (Capacity) Rate 44 (0.0216) $/kW-day

Oil & Gas (Energy) Rate 45 (0.2091) ¢/kWh

General Service Rate 61 (0.2111) ¢/kWh

Large General Service Rate 63 (0.2050) ¢/kWh Rate 65 For points of service that are served under Rate 65, Balancing Pool Allocation Transmission amounts will be flowed through as calculated and invoiced by the AESO for Connected the appropriate POD. Service


Page 31


2011 QUARTERLY TRANSMISSION ADJUSTMENT RIDER Effective: January 1, 2011to December 31, 2011

Availability For all energy delivered, estimated or actual from January 1, 2011 to

December 31, 2011, the following rider applies as a percentage (%) of base Distribution Tariff Transmission Component charges by rate class:

Rate Class Description Rate Code 2011 Quarterly Transmission

Adjustment Rider (QTAR) Charge / (Credit)

Q1

Jan 1, 2011 Q2

Apr 1, 2011Q3

Jul 1, 2011 Q4

Oct 1, 2011

Residential Rate 11

FortisAlberta Farm Rates 21, 23

REA Farm Rates 24

FortisAlberta Irrigation Rate 26

REA Irrigation Rate 29

Exterior Lighting Rates 31, 33, 38

Small General Service Rates 41

Oil & Gas Service Rates 44, 45

General Service Rate 61

Large General Service Rate 63

See Note (To be Determined)

Rate 65 To be addressed in 2009 AESO Charges Deferral Application Transmission Connected Service Note: The 2011 Quarterly Transmission Adjustment Rider (QTAR) is related to amounts

addressed in the FortisAlberta 2009 AESO Charges Deferral and 2011 Quarterly TAR Application. The QTAR for future quarters will be determined and posted in accordance with the quarterly adjustment mechanism as approved by the Commission and is effective on the date indicated above.


Page 32


2011 DISTRIBUTION ADJUSTMENT RIDER Effective: January 1, 2011to December 31, 2011

Availability For all distribution access service, estimated or actual from January 1, 2011 to

December 31, 2011, the following rider applies as a percentage of the base DT Distribution Component charges:

Rate Class Description Rate Code 2011 Distribution

Adjustment Rider (DAR) Charge/(Credit)

Residential Rate 11 10.05%

FortisAlberta Farm Rates 21, 23 10.10%

REA Farm Rate 24, 29 10.86%

FortisAlberta Irrigation Rate 26 11.28%

Exterior Lighting Rates 31, 33, 38 8.01%

Small General Service Rates 41 9.99%

Oil & Gas Service Rate 44, 45 10.19%

General Service Rate 61 7.88%

Large General Service Rate 63 14.66%

Transmission Connected Service Rate 65 27.78%

Schedule 8.4-A

Summary of Typical Bill Impacts by Rate Class(January 1, 2011 Vs. December 1, 2010)

A B C D

Line No. Rate Class (typical usage)

D Base RatesIncrease

(%)

DT Base RatesIncrease

(%)

DT Increase withRiders

(%)

Total ElectricityBill Increase

(%)

1 Rate 11 - Residential 17.1% 11.5% 16.8% 7.9%2 Rate 21 - FortisAlberta Farm 17.2% 11.7% 17.8% 9.1%3 Rate 24 - REA Farm (1) N/A N/A N/A N/A4 Rate 26 - FortisAlberta Irrigation 18.4% 9.0% 13.0% 6.1%5 Rate 29 - REA Irrigation (1) N/A N/A N/A N/A6 Rate 31 - Street Lighting (Investment Option) 14.4% 13.3% 20.6% 18.0%7 Rate 33 - Street Lighting (No Investment Option) 14.9% 11.8% 17.3% 12.8%9 Rate 41 - Small General Service 17.1% 11.1% 15.9% 7.3%

10 Rate 44/45 - Oil & Gas Service 17.7% 10.5% 15.6% 7.5%11 Rate 61 - General Service 14.3% 6.2% 7.5% 2.1%12 Rate 63 - Large General Service 23.3% 4.9% 6.6% 1.5%

Note (1) Increases for REA Farm and REA Irrigation are not shown as those REA wire owners have their own distribution costs and Distribution Tariffs that are not considered in this Application.

2010 Phase II Compliance Filing

FortisAlberta Inc. Appendix 3 - Bill Impact Schedules Page 1 of 35

AUC Decision 2010-576 (December 14, 2010)

Schedule 8.4-B

Typical Bill Impacts by Rate Class -Including Energy, Retail, and DT Rates & Riders

A B C

Line No. Rate Class Description Usage Dec 2010 Bill Jan 2011 Bill

Dec vs. Jan [ ( B - A ) / A ]

1 Low 56.18$ 61.88 10.1%2 Rate 11 - Residential Typical 89.09 96.15 7.9%3 High 154.90 164.71 6.3%

4 Low 141.33$ 154.89 9.6%5 Rate 21 - FortisAlberta Farm Typical 209.71 228.79 9.1%6 High 936.80 992.06 5.9%

7 Low 92.81$ 92.598 Rate 24 - REA Farm (1) Typical 140.57 140.05 N/A9 High 723.33 719.06

10 Low 2,843.54$ 3,142.92 10.5%11 Rate 26 - FortisAlberta Irrigation Typical 4,892.99 5,192.54 6.1%12 High 6,942.43 7,242.16 4.3%

13 Low 1,966.11$ 1,796.2914 Rate 29 - REA Irrigation (1) Typical 3,921.60 3,579.60 N/A15 High 5,877.08 5,362.90

16 Rate 3X - Exterior Lighting Rate 31 2,089.06$ 2,464.35 18.0%17 (100 Lights) Rate 33 941.64 1,062.55 12.8%18 Rate 38 1,457.86 1,698.59 16.5%

19 Low 150.89$ 162.65 7.8%20 Rate 41 - Small General Service Typical 286.08 306.91 7.3%21 High 1,367.65 1,460.99 6.8%

22 Low 302.39$ 327.42 8.3%23 Rate 44/45 - Oil & Gas Service Typical 576.20 619.26 7.5%24 High 2,766.68 2,954.01 6.8%

25 Low 4,361.12$ 4,474.98 2.6%26 Rate 61 - General Service Typical 20,723.42 21,149.74 2.1%27 High 61,262.22 62,333.09 1.7%

28 Low 112,548.38$ 115,703.24 2.8%29 Rate 63 - Large General Service Typical 238,915.11 242,483.94 1.5%30 High 531,500.85 535,953.31 0.8%

Notes:

Riders Included:- Municipal Franchise Fee (Weighted Average)- Municipal Assessment Rider (2.02% on July 1, 2009)- 2010 Q4 TAR- Jul 2010 BPAR & Jan 2011 BPAR

Retail / Energy Price Assumptions:Rates 11 thru 44 -- Jan to Sep 2010 Average EEAI RRT RatesRates 61 & 63 -- Jan to Jul 2010 Average EPCOR Default Supply Rates

REA Farm and REA Irrigation are shown without those wire owners distribution costs and as a result, FortisAlberta would expect that the impacts would actually be much lower when their Distribution Tariffs are considered.

Rate 65 Customers receive a flow through of AESO DTS costs

Monthly / Seasonal Bill

2010 Phase II Compliance Filing

FortisAlberta Inc. Appendix 3 - Bill Impact Schedules Page 2 of 35

AUC Decision 2010-576 (December 14, 2010)

Schedule 8.4-C

Typical Bill Impacts by Rate Class -Including DT Rates & Riders

A B C

Line No. Rate Class Description Usage Dec 2010 Bill Jan 2011 Bill

Dec vs. Jan [ ( B - A ) / A ]

1 Low 29.62$ 35.32 19.2%2 Rate 11 - Residential Typical 42.08 49.16 16.8%3 High 67.02 76.83 14.6%

4 Low 73.38$ 86.94 18.5%5 Rate 21 - FortisAlberta Farm Typical 107.20 126.27 17.8%6 High 412.68 467.95 13.4%

7 Low 24.85$ 24.648 Rate 24 - REA Farm (1) Typical 38.06 37.54 N/A9 High 199.22 194.95

10 Low 1,545.38$ 1,844.76 19.4%11 Rate 26 - FortisAlberta Irrigation Typical 2,299.76 2,599.32 13.0%12 High 3,054.14 3,353.87 9.8%

13 Low 667.96$ 498.1314 Rate 29 - REA Irrigation (1) Typical 1,328.37 986.38 N/A15 High 1,988.79 1,474.62

16 Rate 3X - Exterior Lighting Rate 31 1,82

decision 2010-576 fortisalberta inc. · 2018. 2. 23. · 2010 phase ii compliance filing...

Documents