epcor energy alberta gp inc....application for final review and disposition of regulated rate option...

Decision 25629-D01-2020

EPCOR Energy Alberta GP Inc. Application for Final Review and Disposition of Regulated Rate Option Rate Cap Deferral Account July 7, 2020

Alberta Utilities Commission

Decision 25629-D01-2020

EPCOR Energy Alberta GP Inc.

Application for Final Review and Disposition of

Regulated Rate Option Rate Cap Deferral Account

Proceeding 25629

July 7, 2020

Published by the:


Eau Claire Tower

1400, 600 Third Avenue S.W.

Calgary, Alberta T2P 0G5

Telephone: 310-4AUC (310-4282 in Alberta)

1-833-511-4AUC (1-833-511-4282 outside Alberta)

Email: [email protected]

Website: www.auc.ab.ca

The Commission may, within 30 days of the date of this decision and without notice, correct

typographical, spelling and calculation errors and other similar types of errors and post the

corrected decision on its website.

Decision 25629-D01-2020 (July 7, 2020) i

Contents

1 Decision summary ................................................................................................................ 1

2 Introduction .......................................................................................................................... 1

3 Background .......................................................................................................................... 2

4 The role of the Commission ................................................................................................ 3

4.1 Commission’s role regarding monthly deferral account statements ............................. 3 4.2 Commission’s role regarding the final review and disposition of the RRO rate cap

deferral account ............................................................................................................. 4

5 Details of the application and Commission review ........................................................... 5

6 Order ................................................................................................................................... 14

Appendix 1 – Proceeding participants ...................................................................................... 15

List of tables

Table 1. Commission-approved monthly deferral account statements for EEA ................. 4

Table 2. Information regarding EEA’s final deferral account amounts .............................. 6

Table 3. Payment amounts regarding final deferral account amounts .............................. 10

Table 4. Commission review of actual consumption amounts ............................................. 12

Decision 25629-D01-2020 (July 7, 2020) 1


Calgary, Alberta

EPCOR Energy Alberta GP Inc.

Application for Final Review and Disposition of Decision 25629-D01-2020

Regulated Rate Option Rate Cap Deferral Account Proceeding 25629

1 Decision summary

1. In this decision, the Alberta Utilities Commission includes the results of its final review

and disposition of the regulated rate option (RRO) rate cap deferral account for EPCOR Energy

Alberta GP Inc. (EEA), in accordance with An Act to Cap Regulated Electricity Rates and one of

its associated regulations, the Rate Cap (Commission Approved Regulated Rate Tariffs)

Regulation. The Commission-determined final deferral amounts for EEA are set out in Table 2

of this decision, and total $64,988,252.94951, excluding goods and services tax (GST).

2 Introduction

2. On May 29, 2020, EEA filed an application with the Commission, pursuant to An Act to

Cap Regulated Electricity Rates and one of its associated regulations, the Rate Cap (Commission

Approved Regulated Rate Tariffs) Regulation. Section 6(1) of the regulation requires EEA to

apply to the Commission for a final review and disposition of its RRO rate cap deferral account.

In the application, EEA requested a final review and disposition of its rate cap deferral account.

3. The Commission issued notice of the application on June 1, 2020. In the notice, the

Commission indicated that it “intends to conduct the review without active intervention from

third parties, unless any third party can provide valid reasons why it should be permitted to

actively participate in the proceeding.”1 The deadline for written submissions was June 10, 2020.

No submissions requesting active participation were received.

4. Subsequent to its review of the application, the Commission identified certain aspects of

the application that required responses to information requests (IRs). EEA filed the IR responses

on June 18, 2020. The Commission determined that no further information was required to be

filed by EEA and the close of record for this proceeding was June 18, 2020.

5. In reaching the determinations set out within this decision, the Commission has

considered all relevant materials comprising the record of this proceeding. 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.

1 Exhibit 25629-X0006.

Application for Final Review and Disposition of Regulated Rate Option Rate Cap Deferral Account EPCOR Energy Alberta GP Inc.

Decision 25629-D01-2020 (July 7, 2020) 2

3 Background

6. During the period beginning on June 1, 2017, and ending on November 30, 2019,2 An Act

to Cap Regulated Electricity Rates imposed maximum rates for the monthly electric energy

charges that EEA, as an RRO provider, could bill its RRO customers. The monthly electric

energy charges during this period were determined as the lower of: (i) 6.8 cents per kilowatt hour

(kWh); or (ii) the applicable monthly amount determined in accordance with EEA’s energy price

setting plan (EPSP).3 For the months during this period where the applicable monthly electric

energy charge for a rate class determined in accordance with EEA’s EPSP exceeded

6.8 cents/kWh, the Government of Alberta would make payments to EEA for the difference.

7. For any months where payments were to be made to EEA by the Government of Alberta,

the initial payment amount was determined using the electric energy charge difference (i.e., the

difference between the charge determined in accordance with the EPSP and 6.8 cents/kWh) by

rate class applied to the forecast consumption in kWh for the rate class. Once the actual

consumption in kWh for the rate class was determined through the final load settlement

calculations, the deferral amount difference caused by the mismatch between the forecast

consumption and the actual consumption was accounted for, and the resulting payment amount

was either refunded to the Government of Alberta by EEA4 or paid to EEA.5 For reference, the

actual consumption volumes for a particular month are normally available five months after the

end of the particular month.6 Section 2(2) of the Rate Cap (Commission Approved Regulated

Rate Tariffs) Regulation sets out that the amounts payable to EEA in respect of a month must

undergo a final review by the Commission and be either confirmed or varied by the Commission.

Section 3(3)(b)(ii) of the regulation allows for an adjustment in a given month to account for the

actual consumption in kWh of customers in each rate class determined through the final load

settlement calculations.

8. In order to administer the payments from the Government of Alberta, EEA was required

under the regulation to establish a deferral account.7 EEA was required to include deferral

account statements as part of the monthly electric energy charges filings it made to the

Commission, even if no payment was being requested for the month.

9. As required by a transitional provision in the regulation, the deferral account statements

for June, July, August and September 2017 were included with the monthly electric energy

charges filing for September 2017.8 Each of the monthly electric energy charges filings for

October 2017 to November 2019 included deferral account statements. The regulation required

EEA to submit a corrected deferral account statement if the Commission determined that it was

necessary to do so, if EEA determined that the previous deferral account statement included a

2 An Act to Cap Regulated Electricity Rates, Section 2(1). 3 An Act to Cap Regulated Electricity Rates, Section 2(1). 4 EEA would refund an amount in the case where the actual consumption was less than the forecast consumption. 5 EEA would receive a payment in the case where the actual consumption was greater than the forecast

consumption. 6 For example, the actual consumption values for June 2017 would be available in November 2017. 7 Rate Cap (Commission Approved Regulated Rate Tariffs) Regulation, Section 3(1). 8 Rate Cap (Commission Approved Regulated Rate Tariffs) Regulation, Section 7.


Decision 25629-D01-2020 (July 7, 2020) 3

material error or if EEA determined there had been a material change in the information set out

in the previous deferral account statement.9

10. Because of the timing of the Ensuring Fiscal Sustainability Act, 2019, which received

royal assent on December 5, 2019, and which amended sections 2(1) and 2(2) of An Act to Cap

Regulated Electricity Rates, to end the RRO rate cap effective November 30, 2019, EEA

included a deferral account statement as part of the filing of its electric energy charges for

December 2019. The deferral account statement was approved by the Commission in Decision

25111-D01-2019,10 which was issued on November 28, 2019, and included a net amount payable

by the Government of Alberta to EEA of $5,781,171.224, with $5,791,359.267 relating to

December 2019 and ($10,188.04306) relating to June 2019. EEA confirmed in an IR response

that it did not submit this Commission-approved deferral account statement to the Government

of Alberta and accordingly did not receive the approved payment amount of $5,781,171.224.11

EEA also confirmed that it included the deferral amount of ($10,188.04306) relating to June

2019 as part of the deferral account statement that was filed as part of the electric energy charges

filing for January 2020,12 which was approved in Decision 25216-D01-2019.13

11. Because of the timing associated with the availability of the actual consumption

information, as explained above, EEA included deferral account statements as part of its monthly

electric energy charges filings for the months of January 2020 to May 2020. Those deferral

account statements only included information showing the deferral amount difference caused by

the difference between the forecast consumption and the actual consumption for the months prior

to December 2019, as applicable.

4 The role of the Commission

12. The Commission has oversight regarding two aspects of the RRO rate cap program. The

first aspect of the program related to the filing of the deferral account statements by EEA and the

other RRO providers each month. The second aspect was the filing of applications for the

Commission’s final review and disposition of the RRO providers’ rate cap deferral accounts for

the time period that the rate cap was in effect. This decision addresses the second aspect of the

RRO rate cap program.

4.1 Commission’s role regarding monthly deferral account statements

13. The Commission’s duties with respect to EEA’s monthly deferral account statements are

included in Section 4 of the regulation, where its first duty was to determine whether or not to

approve the monthly deferral account statements of each RRO provider. The Commission-

approved monthly deferral account statements for EEA are included as part of the Commission’s

monthly acknowledgments of EEA’s electric energy charges, and the corresponding decisions

are listed in Table 1 below:

9 Rate Cap (Commission Approved Regulated Rate Tariffs) Regulation, Section 4(4). 10 Decision 25111-D01-2019: EPCOR Energy Alberta GP Inc., Regulated Rate Tariff Electric Energy Charges –

December 2019, Proceeding 25111, November 28, 2019. 11 Exhibit 25629-X0010, EEA-AUC-2020JUN11-001(a). 12 Exhibit 25629-X0010, EEA-AUC-2020JUN11-001(c). 13 Decision 25216-D01-2019: EPCOR Energy Alberta GP Inc., Regulated Rate Tariff Electric Energy Charges –

January 2020, Proceeding 25216, December 19, 2019.


Decision 25629-D01-2020 (July 7, 2020) 4

Table 1. Commission-approved monthly deferral account statements for EEA

Month and year Decision14 Month and year Decision

June 2017 22904-D01-2017 December 2018 24093-D01-2018

July 2017 22904-D01-2017 January 2019 24170-D01-2018

August 2017 22904-D01-2017 February 2019 24273-D01-2019

September 2017 22904-D01-2017 March 2019 24354-D01-2019

October 2017 22970-D01-2017 April 2019 24450-D01-2019

November 2017 23048-D01-2017 May 2019 24536-D01-2019

December 2017 23136-D01-2017 June 2019 24603-D01-2019

January 2018 23228-D01-2017 July 2019 24669-D01-2019

February 2018 23297-D01-2018 August 2019 24775-D01-2019

March 2018 23362-D01-2018 September 2019 24836-D01-2019

April 2018 23449-D01-2018 October 2019 24922-D01-2019

May 2018 23517-D01-2018 November 2019 25026-D01-2019

June 2018 23590-D01-2018 December 2019 25111-D01-2019

July 2018 23692-D01-2018 January 2020 25216-D01-2019

August 2018 23773-D01-2018 February 2020 25319-D01-2020

September 2018 23856-D01-2018 March 2020 25392-D01-2020

October 2018 23931-D01-2018 April 2020 25473-D01-2020

November 2018 23997-D01-2018 May 2020 25530-D01-2020

4.2 Commission’s role regarding the final review and disposition of the RRO rate

cap deferral account

14. Section 6 of the regulation sets out the requirements regarding the final review and

disposition of EEA’s RRO rate cap deferral account. Section 6(1) of the regulation requires EEA

to apply to the Commission for the final review and disposition within six months after

November 30, 2019.

15. Sections 6(2) to 6(5) of the regulation specify the role of the Commission with regard to

this application for a final review and disposition of EEA’s RRO rate cap deferral account. These

sections are reproduced below:

(2) In conducting a final review and disposition of an owner’s deferral account the

Commission shall review the deferral account statements submitted by the owner in

respect of the period beginning on June 1, 2017, and ending on November 30, 2019, to

confirm the information and amounts set out in the deferral account statements and

determine whether

(a) an amount remains owing to the owner under section 2(1) of this Regulation, or

(b) the owner has been overpaid an amount under section 2(1) of this Regulation.

(3) An owner shall provide to the Commission any records or other information the

Commission may require to confirm the information and amounts set out in deferral

account statements submitted by the owner.

(4) If, on a final review, the Commission determines that an amount is owing to an

owner under section 2(1), the amount shall be paid to the owner within 30 days after the

date of the Commission’s determination.

14 These decisions are publicly available through the Commission’s website at www.auc.ab.ca.


Decision 25629-D01-2020 (July 7, 2020) 5

(5) If, on a final review, the Commission determines that an owner has been overpaid

under section 2(1), the owner shall repay the amount to the Minister within 30 days after

the date of the Commission’s determination.

16. The remainder of this decision addresses EEA’s application and the Commission’s

review and disposition of EEA’s RRO rate cap deferral account.

5 Details of the application and Commission review

17. EEA provided a schedule as Attachment 1 to its application15 that included information

for each of the months from June 2017 to November 2019 for each of its customer rate classes in

the EPCOR Distribution & Transmission Inc. (EDTI) distribution service area and the

FortisAlberta Inc. distribution service area. Attachment 1 showed: (i) the actual consumption

volume in kWh; (ii) the RRO rates determined in accordance with its approved EPSP; (iii) the

maximum rate of 6.8 cents/kWh; and (iv) the final calculated deferral amounts for any months

where the RRO rates determined in accordance with its approved EPSP exceeded the maximum

rate of 6.8 cents/kWh. The final calculated deferral amounts reported exclude the GST.

18. The schedule in Attachment 1 to EEA’s application set out the final calculated deferral

amounts for the applicable months of:

• April 2018

• July 2018

• August 2018

• September 2018

• December 2018

• January 2019

• February 2019

• April 2019

• May 2019

• June 2019

• July 2019

• August 2019

• September 2019

• October 2019

• November 2019

19. The Commission reviewed the monthly approved deferral account statements for all the

months listed in Table 1 above, and it confirms that EEA only included non-zero deferral

amounts for the months listed in the previous paragraph, with the exception of December 2019.

As previously explained, EEA did not receive any deferral amount payment from the

Government of Alberta for December 2019.

15 Exhibit 25629-X0003. A revised version of this exhibit was submitted as part of the response to IR EEA-AUC-

2020JUN11-003 (in Exhibit 25629-X0010), in order to correct some proceeding number references. The revised

version is found in Exhibit 25629-X0013.


Decision 25629-D01-2020 (July 7, 2020) 6

20. The Commission has included relevant information in Table 2 from Attachment 1 to

EEA’s application. Table 2 only includes information for the months listed in paragraph 18

above, because these are the only months for which EEA reported non-zero deferral amounts.

Table 2. Information regarding EEA’s final deferral account amounts16

Month and year Rate class Actual

consumption, in kWh17

Electric energy

charge per EPSP, in

cents/kWh

Maximum rate per

legislation, in

cents/kWh

Final deferral amount as

calculated by EEA, in dollars18

April 2018 EDTI Residential 107,820,818.8767 7.872 6.800 1,155,839.17836

April 2018 EDTI Small Commercial 45,199,735.3442 7.872 6.800 484,541.16289

April 2018 EDTI Lighting 153,761.9833 5.708 6.800 -

April 2018 Total - EDTI 153,174,316.2042

April 2018 Fortis Residential 143,206,246.1109 7.767 6.800 1,384,804.39989

April 2018 Fortis Small Commercial 50,143,440.2330 7.876 6.800 539,543.41691

April 2018 Fortis Lighting 386,523.0548 5.588 6.800 -

April 2018 Fortis Farm 33,490,760.0856 7.824 6.800 342,945.38328

April 2018 Fortis Irrigation 311,871.7292 7.706 6.800 2,825.55787

April 2018 Fortis Oil & Gas 991,424.0172 7.687 6.800 8,793.93103

April 2018 Fortis REA [Rural Electrification Association] Farm

627.0219 7.832 6.800 6.47087

April 2018 Total - Fortis 228,530,892.2526

April 2018 Total - EDTI & Fortis 381,705,208.4568 3,919,299.50109

July 2018 EDTI Residential 112,196,844.2906 7.856 6.800 1,184,798.67571

July 2018 EDTI Small Commercial 47,295,119.1916 7.856 6.800 499,436.45866

July 2018 EDTI Lighting 109,337.5983 4.633 6.800 -

July 2018 Total - EDTI 159,601,301.0805

July 2018 Fortis Residential 142,945,639.2322 7.775 6.800 1,393,719.98251

July 2018 Fortis Small Commercial 52,638,963.1939 7.884 6.800 570,606.36102

July 2018 Fortis Lighting 266,446.8783 4.819 6.800 -

July 2018 Fortis Farm 24,567,267.3926 7.833 6.800 253,779.87217

July 2018 Fortis Irrigation 31,734,716.6247 7.597 6.800 252,925.69150

July 2018 Fortis Oil & Gas 919,855.8652 7.576 6.800 7,138.08151

July 2018 Fortis REA Farm 475.1473 7.840 6.800 4.94153

July 2018 Total - Fortis 253,073,364.3342

July 2018 Total - EDTI & Fortis 412,674,665.4146 4,162,410.06462

August 2018 EDTI Residential 107,797,255.3006 8.470 6.800 1.800.214.16352

August 2018 EDTI Small Commercial 46,154,566.4259 8.470 6.800 770.781.25931

August 2018 EDTI Lighting 127,349.6243 4.992 6.800 -

August 2018 Total - EDTI 154,079,171.3508

August 2018 Fortis Residential 139,044,650.1889 8.358 6.800 2,166,315.64994

August 2018 Fortis Small Commercial 54,053,375.9493 8.475 6.800 905,394.04715

August 2018 Fortis Lighting 323,405.7998 5.439 6.800 -

August 2018 Fortis Farm 24,879,251.9648 8.420 6.800 403,043.88183

16 The information is included only for months where there is a non-zero deferral account amount. All amounts

and totals included in the last column of this table exclude GST. 17 The figures in the Total row for each month may not equal the sum of the figures above it, because of rounding. 18 This is calculated as the difference between the electric energy charge per EPSP and the maximum rate per

legislation, multiplied by the actual consumption and then divided by 100. The figures shown in this column of

the table may not equal the results of the calculations, because of rounding.


Decision 25629-D01-2020 (July 7, 2020) 7



Electric energy

charge per EPSP, in

cents/kWh

Maximum rate per

legislation, in

cents/kWh



August 2018 Fortis Irrigation 17,507,262.5765 8.133 6.800 233,371.81015

August 2018 Fortis Oil & Gas 846,738.3992 8.108 6.800 11,075.33826

August 2018 Fortis REA Farm 776.9108 8.428 6.800 12.64811

August 2018 Total - Fortis 236,655,461.7894

August 2018 Total - EDTI & Fortis 390,734,633.1402 6,290,208.79827

September 2018 EDTI Residential 102,797,287.5165 7.774 6.800 1,001,245.58041

September 2018 EDTI Small Commercial 41,760,079.2995 7.774 6.800 406,743.17238

September 2018 EDTI Lighting 158,595.8673 5.109 6.800 -

September 2018 Total - EDTI 144,715,962.6833

September 2018 Fortis Residential 133,754,758.5787 7.636 6.800 1,118,189.78172

September 2018 Fortis Small Commercial 49,346,155.6698 7.743 6.800 465,334.24797

September 2018 Fortis Lighting 390,678.9390 5.214 6.800 -

September 2018 Fortis Farm 25,727,520.7322 7.693 6.800 229,746.76014

September 2018 Fortis Irrigation 4,697,581.0613 7.446 6.800 30,346.37366

September 2018 Fortis Oil & Gas 824,249.1330 7.423 6.800 5,135.07210

September 2018 Fortis REA Farm 404.0639 7.700 6.800 3.63658

September 2018 Total - Fortis 214,741,348.1779

September 2018 Total - EDTI & Fortis 359,457,310.8612 3,256,744.62494

December 2018 EDTI Residential 128,450,263.5542 7.769 6.800 1,244,683.05384

December 2018 EDTI Small Commercial 48,708,429.2884 7.769 6.800 471,984.67980

December 2018 EDTI Lighting 236,718.4092 6.948 6.800 350.34325

December 2018 Total - EDTI 177,395,411.2518

December 2018 Fortis Residential 177,593,926.6709 7.672 6.800 1,548,619.04057

December 2018 Fortis Small Commercial 59,410,759.5623 7.779 6.800 581,631.33611

December 2018 Fortis Lighting 609,375.3754 6.924 6.800 755.62547

December 2018 Fortis Farm 41,460,814.8905 7.728 6.800 384,756.36218

December 2018 Fortis Irrigation 164,192.0655 7.672 6.800 1,431.75481

December 2018 Fortis Oil & Gas 1,572,963.4872 7.659 6.800 13,511.75636

December 2018 Total - Fortis 280,812,032.0518

December 2018 Total - EDTI & Fortis 458,207,443.3035 4,247,723.95239

January 2019 EDTI Residential 125,491,398.2511 7.733 6.800 1,170,834.74568

January 2019 EDTI Small Commercial 51,189,803.1506 7.733 6.800 477,600.86340

January 2019 EDTI Lighting 238,020.1248 6.723 6.800 -

January 2019 Total - EDTI 176,919,221.5266

January 2019 Fortis Residential 171,602,405.3019 7.626 6.800 1,417,435.86779

January 2019 Fortis Small Commercial 61,080,666.4577 7.733 6.800 569,882.61805

January 2019 Fortis Lighting 586,492.4415 6.637 6.800 -

January 2019 Fortis Farm 41,472,009.2473 7.683 6.800 366,197.84165

January 2019 Fortis Irrigation 156,265.4520 7.594 6.800 1,240.74769

January 2019 Fortis Oil & Gas 1,210,275.4098 7.577 6.800 9,403.83993

January 2019 Total - Fortis 276,108,114.3102

January 2019 Total - EDTI & Fortis 453,027,335.8368 4,012,596.52420

February 2019 EDTI Residential 127,897,059.6047 7.189 6.800 497,519.56186

February 2019 EDTI Small Commercial 49,662,549.8569 7.189 6.800 193,187.31894

February 2019 EDTI Lighting 194,867.5898 6.159 6.800 -

February 2019 Total - EDTI 177,754,477.0514

February 2019 Fortis Residential 183,351,621.7579 7.086 6.800 524,385.63823


Decision 25629-D01-2020 (July 7, 2020) 8



Electric energy

charge per EPSP, in

cents/kWh

Maximum rate per

legislation, in

cents/kWh



February 2019 Fortis Small Commercial 59,388,223.8066 7.185 6.800 228,644.66166

February 2019 Fortis Lighting 463,914.2639 5.968 6.800 -

February 2019 Fortis Farm 46,897,856.1195 7.138 6.800 158,514.75368

February 2019 Fortis Irrigation 157,366.7067 7.076 6.800 434.33211

February 2019 Fortis Oil & Gas 950,325.8552 7.062 6.800 2,489.85374

February 2019 Total - Fortis 291,209,308.5098

February 2019 Total - EDTI & Fortis 468,963,785.5612 1,605,176.12022

April 2019 EDTI Residential 98,303,161.2313 6.981 6.800 177,928.72183

April 2019 EDTI Small Commercial 41,619,003.4261 6.981 6.800 75,330.39620

April 2019 EDTI Lighting 152,217.2400 5.272 6.800 -

April 2019 Total - EDTI 140,074,381.8974

April 2019 Fortis Residential 128,438,740.4340 6.869 6.800 88,622.73090

April 2019 Fortis Small Commercial 45,776,643.7427 6.965 6.800 75,531.46218

April 2019 Fortis Lighting 341,408.3500 5.158 6.800 -

April 2019 Fortis Farm 27,359,751.7446 6.920 6.800 32,831.70209

April 2019 Fortis Irrigation 530,225.6011 6.835 6.800 185.57896

April 2019 Fortis Oil & Gas 741,666.6221 6.820 6.800 148.33332

April 2019 Total - Fortis 203,188,436.4946

April 2019 Total - EDTI & Fortis 343,262,818.3920 450,578.92548

May 2019 EDTI Residential 98,058,373.6510 6.990 6.800 186,310.90994

May 2019 EDTI Small Commercial 42,842,969.2420 6.990 6.800 81,401.64156

May 2019 EDTI Lighting 131,511.6279 4.763 6.800 -

May 2019 Total - EDTI 141,032,854.5209

May 2019 Fortis Residential 127,316,646.1842 6.868 6.800 86,575.31941

May 2019 Fortis Small Commercial 48,848,622.7231 6.963 6.800 79,623.25504

May 2019 Fortis Lighting 282,539.9404 4.684 6.800 -

May 2019 Fortis Farm 25,256,657.1260 6.918 6.800 29,802.85541

May 2019 Fortis Irrigation 7,930,524.3492 6.767 6.800 -

May 2019 Fortis Oil & Gas 434,408.2475 6.750 6.800 -

May 2019 Total - Fortis 210,069,398.5705

May 2019 Total - EDTI & Fortis 351,102,253.0914 463,713.98135

June 2019 EDTI Residential 97,032,119.9800 7.231 6.800 418,208.43711

June 2019 EDTI Small Commercial 41,180,759.0140 7.231 6.800 177,489.07135

June 2019 EDTI Lighting 101,827.3003 4.275 6.800 -

June 2019 Total - EDTI 138,314,706.2942

June 2019 Fortis Residential 124,354,085.7056 7.112 6.800 387,984.74740

June 2019 Fortis Small Commercial 46,674,661.7952 7.212 6.800 192,299.60660

June 2019 Fortis Lighting 223,010.3400 4.424 6.800 -

June 2019 Fortis Farm 22,489,374.2157 7.165 6.800 82,086.21589

June 2019 Fortis Irrigation 21,918,597.5273 6.960 6.800 35,069.75604

June 2019 Fortis Oil & Gas 390,230.0098 6.941 6.800 550.22431

June 2019 Total - Fortis 216,049,959.5936

June 2019 Total - EDTI & Fortis 354,364,665.8878 1,293,688.05871

July 2019 EDTI Residential 102,391,185.1363 9.574 6.800 2,840,331.47568

July 2019 EDTI Small Commercial 43,883,450.6096 9.574 6.800 1,217,326.91991

July 2019 EDTI Lighting 108,149.0484 5.338 6.800 -

July 2019 Total - EDTI 146,382,784.7944


Decision 25629-D01-2020 (July 7, 2020) 9



Electric energy

charge per EPSP, in

cents/kWh

Maximum rate per

legislation, in

cents/kWh



July 2019 Fortis Residential 132,552,131.5288 9.420 6.800 3,472,865.84605

July 2019 Fortis Small Commercial 49,908,544.7934 9.552 6.800 1,373,483.15271

July 2019 Fortis Lighting 235,773.3374 5.561 6.800 -

July 2019 Fortis Farm 23,377,195.5350 9.490 6.800 628,846.55989

July 2019 Fortis Irrigation 27,093,888.5613 9.170 6.800 642,125.15890

July 2019 Fortis Oil & Gas 426,384.2071 9.142 6.800 9,985.91813

July 2019 Total - Fortis 233,593,917.9629

July 2019 Total - EDTI & Fortis 379,976,702.7573 10,184,965.03129

August 2019 EDTI Residential 98,957,752.4195 10.191 6.800 3,355,657.38454

August 2019 EDTI Small Commercial 42,496,189.4394 10.191 6.800 1,441,045.78389

August 2019 EDTI Lighting 124,768.8077 6.147 6.800 -

August 2019 Total - EDTI 141,578,710.6665

August 2019 Fortis Residential 128,922,707.6487 10.024 6.800 4,156,468.09459

August 2019 Fortis Small Commercial 49,367,485.5217 10.165 6.800 1,661,215.88781

August 2019 Fortis Lighting 293,826.4111 6.638 6.800 -

August 2019 Fortis Farm 23,206,107.1208 10.099 6.800 765,569.47392

August 2019 Fortis Irrigation 15,492,735.1551 9.775 6.800 460,908.87086

August 2019 Fortis Oil & Gas 525,053.8828 9.746 6.800 15,468.08739

August 2019 Total - Fortis 217,807,915.7402

August 2019 Total - EDTI & Fortis 359,386,626.4067 11,856,333.58300

September 2019 EDTI Residential 95,776,117.3391 8.200 6.800 1,340,865.64275

September 2019 EDTI Small Commercial 40,108,512.2470 8.200 6.800 561,519.17146

September 2019 EDTI Lighting 153,211.0263 5.546 6.800 -

September 2019 Total - EDTI 136,037,840.6125

September 2019 Fortis Residential 123,214,321.5687 8.046 6.800 1,535,250.44675

September 2019 Fortis Small Commercial 47,093,587.3886 8.158 6.800 639,530.91674

September 2019 Fortis Lighting 351,294.3564 5.634 6.800 -

September 2019 Fortis Farm 23,712,547.3305 8.105 6.800 309,448.74266

September 2019 Fortis Irrigation 4,411,346.8402 7.869 6.800 47,157.29772

September 2019 Fortis Oil & Gas 664,164.7250 7.845 6.800 6,940.52138

September 2019 Total - Fortis 199,447,262.2093

September 2019 Total - EDTI & Fortis 335,485,102.8218 4,440,712.73945

October 2019 EDTI Residential 105,751,060.2965 7.342 6.800 573,170.74681

October 2019 EDTI Small Commercial 42,922,662.8402 7.342 6.800 232,640.83259

October 2019 EDTI Lighting 180,879.4774 5.680 6.800 -

October 2019 Total - EDTI 148,854,602.6140

October 2019 Fortis Residential 139,933,138.5941 7.217 6.800 583,521.18794

October 2019 Fortis Small Commercial 52,259,363.9871 7.317 6.800 270,180.91181

October 2019 Fortis Lighting 439,318.2348 5.589 6.800 -

October 2019 Fortis Farm 31,379,704.4241 7.270 6.800 147,484.61079

October 2019 Fortis Irrigation 453,765.9667 7.133 6.800 1,511.04067

October 2019 Fortis Oil & Gas 1,157,083.1054 7.116 6.800 3,656.38261

October 2019 Total - Fortis 225,622,374.3123

October 2019 Total - EDTI & Fortis 374,476,976.9263 1,812,165.71323

November 2019 EDTI Residential 111,385,139.6178 8.630 6.800 2,038,348.05501

November 2019 EDTI Small Commercial 44,283,053.8792 8.630 6.800 810,379.88599

November 2019 EDTI Lighting 214,341.3910 7.143 6.800 735.19097


Decision 25629-D01-2020 (July 7, 2020) 10



Electric energy

charge per EPSP, in

cents/kWh

Maximum rate per

legislation, in

cents/kWh



November 2019 Total - EDTI 155,882,534.8880

November 2019 Fortis Residential 150,214,791.8390 8.475 6.800 2,516,097.76330

November 2019 Fortis Small Commercial 54,246,446.5715 8.594 6.800 973,181.25149

November 2019 Fortis Lighting 492,360.2984 6.997 6.800 969.94979

November 2019 Fortis Farm 36,302,882.5647 8.538 6.800 630,944.09898

November 2019 Fortis Irrigation 193,491.1263 8.381 6.800 3,059.09471

November 2019 Fortis Oil & Gas 1,167,951.3495 8.360 6.800 18,220.04105

November 2019 Total - Fortis 242,617,923.7494

November 2019 Total - EDTI & Fortis 398,500,458.6374 6,991,935.33128

Total - EDTI 2,291,798,277.4365

Total - Fortis 3,529,527,710.0587

Total19 5,821,325,987.4952 64,988,252.94951

21. Using information from the applicable Commission-approved monthly deferral account

statements for EEA, the Commission confirmed that the final deferral amounts as calculated by

EEA for each month and set out in Table 2 above, agree to the total payment amounts for these

months. Table 3 includes the results of the Commission’s confirmation of payment amounts, and

sets out the initial payments and the true-up payments relating to the difference between the

initial and final volumes:

Table 3. Payment amounts regarding final deferral account amounts20

Month and year Final deferral

amount as calculated by EEA

Initial payment Initial

payment proceeding

True-up payment

between initial and final volume

True-up payment

proceeding Total payments21

$ $ $ $

April 2018 3,919,299.50109 3,685,508.30209 23449 233,791.19899 23931 3.919,299.50109

July 2018 4,162,410.06462 3,989,596.07478 23692 172,813.98984 24170 4,162,410.06462

August 2018 6,290,208.79827 6,107,978.55884 23773 182,230.23943 24273 6,290,208.79827

September 2018 3,256,744.62494 3,181,531.36266 23856 75,213.26228 24354 3,256,744.62494

December 2018 4,247,723.95239 4,483,154.39566 24093 (235,430.44327) 24603 4,247,723.95239

January 2019 4,012,596.52420 4,280,144.02786 24170 (267,547.50366) 24669 4,012,596.52420

February 2019 1,605,176.12022 1,413,088.38119 24273 192,087.73903 24775 1,605,176.12022

April 2019 450,578.92548 463,204.52907 24450 (12,625.60359) 24922 450,578.92548

May 2019 463,713.98135 460,146.63726 24536 3,567.34409 25026 463,713.98135

June 2019 1,293,688.05871 1,303,390.95686 24603 (9,702.89816) 2521622 1,293,688.05871

July 2019 10,184,965.03129 10,486,326.00751 24669 (301,360.97622) 25216 10,184,965.03129

August 2019 11,856,333.58300 12,183,575.23419 24775 (327,241.65119) 25319 11,856,333.58300

September 2019 4,440,712.73945 4,450,542.60736 24836 (9,829.86791) 25392 4,440,712.73945

19 The figures in the Total row may not equal the sum of the figures above it, because of rounding. 20 The information is included only for months where there is a non-zero deferral account amount. All dollar

amounts and totals included in this table exclude GST. 21 This is calculated as the sum of the values in the “Initial payment” column and the “True-up payment between

initial and final volume” column. The figures shown in this column of the table may not equal the results of the

calculations, because of rounding. 22 The payment was first approved in Proceeding 25111, but as explained in paragraph 10 above, that payment

was not received. The payment was subsequently included and approved as part of Proceeding 25216.


Decision 25629-D01-2020 (July 7, 2020) 11

Month and year Final deferral

amount as calculated by EEA

Initial payment Initial

payment proceeding

True-up payment

between initial and final volume

True-up payment

proceeding Total payments21

October 2019 1,812,165.71323 1,779,596.35681 24922 32,569.35642 25473 1,812,165.71323

November 2019 6,991,935.33128 7,000,038.20984 25026 (8,102.87856) 25530 6,991,935.33128

Total23 64,988,252.94951 65,267,821.64199 (279,568.69247) 64,988,252.94951

22. As part of its review of the application, the Commission requested EEA to submit the

supporting documentation, reports or files that verify the actual consumption figures that are

included in Table 2 above. In response, EEA provided its internal and external data files. EEA

indicated that the internally produced data provided24 include the final settlement data of actual

consumption in kWh by rate class. EEA explained that the external data files provided are the

wholesale settlement summary (WSS) transaction files for each of the months in Table 2.25 It

added that these WSS transaction files, which were provided to EEA by EDTI and Fortis, are

control reports that provide a monthly summation of settlement data. EEA noted that the WSS

transaction files are raw data reports and the fields included in these reports and their

descriptions are set out in Table 14 of Rule 021: Settlement System Code Rules.26 Based on the

information in Table 14 of Rule 021, the Commission notes that the actual consumption values,

labelled as sequence 10 (retailer usage total in kWh) in Table 14, are found in Column J of the

WSS transaction files submitted by EEA.

23. The Commission reviewed each of the WSS transaction files27 and compared the actual

total consumption figures from those files to the actual total consumption figures included on the

deferral account statements, as set out in Table 2 above. Table 4 below reflects the results of the

Commission’s review. Table 4 also reflects the actual consumption data for the Fortis REA Farm

rate class that was not included on the deferral account statements, which accounts for the

majority of the difference each month between the actual consumption in the WSS transaction

files and the actual consumption in the deferral account statements for the Fortis distribution

area. The latter information was reported on the internally produced data provided by EEA.28

23 The figures in the Total row may not equal the sum of the figures above it, because of rounding. 24 Exhibit 25629-X0011, EEA-AUC-2020JUN11-002, Attachment 1. 25 Exhibit 25629-X0012, EEA-AUC-2020JUN11-002, Attachment 2. 26 Exhibit 25629-X0010, EEA-AUC-2020JUN11-002. 27 Exhibit 25629-X0012, EEA-AUC-2020JUN11-002, Attachment 2. 28 Exhibit 25629-X0011, EEA-AUC-2020JUN11-002, Attachment 1.


Decision 25629-D01-2020 (July 7, 2020) 12

Table 4. Commission review of actual consumption amounts

Month and year Distribution

company

Actual consumption per WSS

transaction file

Actual consumption per deferral account

statement

Fortis REA Farm rate class

consumption not included on deferral account statement

Difference29

kWh

April 2018 EDTI 153,174,316.2004 153,174,316.2042 (0.0038)

April 2018 Fortis 230,744,914.3426 228,530,892.2526 2,214,022.0900 -

July 2018 EDTI 159,601,301.0779 159,601,301.0805 (0.0026)

July 2018 Fortis 254,759,754.1057 253,073,364.3342 1,686,389.7715 -

August 2018 EDTI 154,079,171.3469 154,079,171.3508 (0.0039)

August 2018 Fortis 238,342,649.9909 236,655,461.7894 1,687,188.2016 (0.0001)

September 2018 EDTI 144,715,962.6807 144,715,962.6833 (0.0026)

September 2018 Fortis 216,556,408.6323 214,741,348.1779 1,815,060.4544 -

December 2018 EDTI 177,395,411.2487 177,395,411.2518 (0.0031)

December 2018 Fortis 283,590,216.9425 280,812,032.0518 2,778,184.8907 -

January 2019 EDTI 176,919,221.5221 176,919,221.5266 (0.0045)

January 2019 Fortis 278,919,661.4025 276,108,114.3102 2,811,547.0925 (0.0002)

February 2019 EDTI 177,754,477.0478 177,754,477.0514 (0.0036)

February 2019 Fortis 294,304,532.6488 291,209,308.5098 3,095,224.1390 -

April 2019 EDTI 140,074,381.8944 140,074,381.8974 (0.0030)

April 2019 Fortis 205,090,528.3873 203,188,436.4946 1,902,091.8926 0.0001

May 2019 EDTI 141,032,854.5172 141,032,854.5209 (0.0037)

May 2019 Fortis 211,805,993.1845 210,069,398.5705 1,736,594.6140 -

June 2019 EDTI 138,314,706.2892 138,314,706.2942 (0.0050)

June 2019 Fortis 217,621,470.2327 216,049,959.5936 1,571,510.6392 (0.0001)

July 2019 EDTI 146,382,784.7921 146,382,784.7944 (0.0023)

July 2019 Fortis 235,216,539.2671 233,593,917.9629 1,622,621.3040 0.0002

August 2019 EDTI 141,578,710.6626 141,578,710.6665 (0.0039)

August 2019 Fortis 219,415,584.0174 217,807,915.7402 1,607,668.2773 (0.0001)

September 2019 EDTI 136,037,840.6091 136,037,840.6125 (0.0034)

September 2019 Fortis 201,098,402.1942 199,447,262.2093 1,651,139.9848 0.0001

October 2019 EDTI 148,854,602.6089 148,854,602.6140 (0.0051)

October 2019 Fortis 227,697,662.5719 225,622,374.3123 2,075,288.2597 (0.0001)

November 2019 EDTI 155,882,534.8841 155,882,534.8880 (0.0039)

November 2019 Fortis 245,079,164.0983 242,617,923.7494 2,461,240.3490 (0.0001)

Total30 5,852,041,759.4008 5,821,325,987.4952 30,715,771.9603 (0.0547)

24. The Fortis REA Farm rate class consumption data was not included on EEA’s monthly

deferral account statements filed for Commission approval, because the Commission does not

approve the monthly electric energy charges for any REAs. The monthly deferral account

statements for the Fortis REA Farm rate class were filed with the Market Surveillance

Administrator for approval. EEA clarified that the consumption figures labelled as Fortis REA

Farm for April 2018, July 2018, August 2018 and September 2018, in Table 2, were for Fortis

REA farm sites that were erroneously enrolled with EEA. EEA added that these consumption

29 This figure is calculated by taking the figure in the column titled “Actual consumption per WSS transaction

file” and subtracting the figures in the columns titled “Actual consumption per deferral account statement” and

“Fortis REA Farm rate class consumption not included on deferral account statement.” 30 The figures in the Total row may not equal the sum of the figures above it, because of rounding.


Decision 25629-D01-2020 (July 7, 2020) 13

values were included in its deferral account statements that were filed with the Commission for

approval, as agreed upon by EEA and the Alberta Department of Energy.31

25. The Commission considers that all of the differences in the consumption figures set out in

Table 4 are immaterial, and would not result in any material misstatements of the deferral

amounts that were reported by EEA.

26. The Commission reviewed the internally produced information that was provided by

EEA,32 which included the final settlement data of actual consumption in kWh by rate class and

compared the consumption data for each rate class from that internally produced information to

the consumption data set out in Table 2. The Commission found no differences in the

consumption data figures reported on these two sources.

27. With the exception of the electric energy charges for July 2019 reflected in Table 2, all of

the other electric energy charges in Table 2 were included in the calculation of the initial

payment amount for the applicable month and in the calculation of the true-up payment for the

applicable month. The Commission verified that the electric energy charges for all the months in

Table 2 agreed with the applicable Commission-approved deferral account statements for those

months. With the exception of July 2019, the Commission further verified that the electric

energy charges for all the months in Table 2 agreed with the Commission-approved electric

energy charges for those months.

28. With respect to the electric energy charges for July 2019, the Commission approved these

charges in Decision 24669-D01-2019.33 These rates were also included in EEA’s calculation of

the initial payment amount for July 2019, as shown on the Commission-approved deferral

account statement issued as part of Decision 24669-D01-2019, which was issued on June 27,

2019. In its calculation of the true-up payment for July 2019, which was submitted as part of the

deferral account statement filed in Proceeding 25216, EEA used different rates. The Commission

explained the difference in rates in Decision 25216-D01-2019, as follows:

7. The Government of Alberta passed the Job Creation Tax Cut (Alberta Corporate

Tax Amendment) Act on June 28, 2019, reducing the corporate income tax rate by one per

cent. Because this act was passed after acknowledgment of EEA’s July 2019 rates, the

previous income tax rate was used for calculation of EEA’s July 2019 energy charges.

Now that EEA has final settlement data for July 2019, it has included a true-up of its

income tax in its January 2020 filing. All of EEA’s July 2019 rates, except for the EDTI

Lighting and Fortis Lighting rate classes, exceeded the RRO rate cap. Therefore, the

income tax true-up is reflected in its rates for those two rate classes and in its deferral

account statement for all other rate classes.

29. Based on its review and considering the July 2019 rates set in Decision 25216-D01-2019,

the Commission has determined that the final deferral amounts for EEA’s RRO rate cap deferral

account, excluding GST, are those figures shown in Table 2, and total $64,988,252.94951.

31 Exhibit 25629-X0011, Note 3. 32 Exhibit 25629-X0011, EEA-AUC-2020JUN11-002, Attachment 1. 33 Decision 24669-D01-2019: EPCOR Energy Alberta GP Inc., Regulated Rate Tariff Electric Energy Charges –

July 2019, Proceeding 24669, June 27, 2019.


Decision 25629-D01-2020 (July 7, 2020) 14

6 Order

30. It is hereby ordered that:

(1) The Commission-determined final deferral amounts for EPCOR Energy Alberta

GP Inc. in accordance with An Act to Cap Regulated Electricity Rates and the

Rate Cap (Commission Approved Regulated Rate Tariffs) Regulation are set out

in Table 2 of this decision, and total $64,988,252.94951, excluding goods and

services tax.

(2) The disposition of EPCOR Energy Alberta GP Inc.’s regulated rate option rate

cap deferral account is approved.

(3) No amount remains owing to EPCOR Energy Alberta GP Inc. under sections 2(1)

and 6(2)(a) of the Rate Cap (Commission Approved Regulated Rate Tariffs)

Regulation.

(4) EPCOR Energy Alberta GP Inc. has not been overpaid an amount under sections

2(1) and 6(2)(b) of the Rate Cap (Commission Approved Regulated Rate Tariffs)

Regulation.

Dated on July 7, 2020.


(original signed by)

Carolyn Dahl Rees

Chair


Decision 25629-D01-2020 (July 7, 2020) 15

Appendix 1 – Proceeding participants

Name of organization (abbreviation) Company name of counsel or representative

EPCOR Energy Alberta GP Inc. (EEA)

Consumers’ Coalition of Alberta (CCA)

Alberta Utilities Commission Commission panel C. Dahl Rees, Chair Commission staff

A. Sabo (Commission counsel) D. Mitchell C. Burt C. Arnot O. Saenz E. Chu

epcor energy alberta gp inc....application for final review and disposition of regulated rate option...

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