ATCO Pipelines is an integral part of Alberta’s natural gas transmission system. ATCO Pipelines is regulated by the Alberta Utilities Commission (AUC) which administers acts and regulations covering such matters as rates, financing and service area.
The AUC regulates natural gas, electric and water utilities to ensure that customers receive safe and reliable service at just and reasonable rates.
The AUC approves:
The revenue that ATCO Pipelines derives from the approved revenue requirement is first used for Operations & Maintenance expenses, income taxes, property taxes, depreciation, interest on the long-term debt, and dividends on preferred shares. The residual revenue is returned to shareowners through dividends on common shares, or retained by the company to fund new investment. Since common shareowners are paid last, they take the risk that the residual revenue is sufficient to provide a reasonable return.General Rate Application (GRA)A GRA is a formal regulatory submission to the AUC to review and approve the company’s revenue requirement (the amount of money required to cover its costs). ATCO Pipelines files a GRA when forecast revenues over a one or two year period (test period) under-recover the forecast costs of providing service. In addition, a GRA can be triggered if current revenues have been approved with a specific end date.
The AUC or interveners can also initiate a GRA. Interveners (usually represented by lawyers) are groups or individuals who wish to participate in this process because they may be affected by the AUC decision. Parties such as the Canadian Association of Petroleum Producers, the Office of the Utilities Consumer Advocate, the Industrial Gas Consumers Association of Alberta, as well as individual customers may participate in an ATCO Pipelines GRA.The GRA cycle typically has two phases (Phase I - Revenue Requirement and Phase II - Rates and ATCO Pipelines Service Regulations).
ATCO Pipelines will no longer be required to undertake a Phase II process as a result of the Alberta System Integration with Nova Gas Transmission Limited and our role in the Alberta System.
ATCO is a diversified global corporation delivering service excellence and innovative business solutions in Structures & Logistics, Electricity, Pipelines & Liquids, and Retail Energy. More information about ATCO can be found on www.ATCO.com.