Alberta Utilities Commission

This decision provides the Alberta Utilities Commission’s determination of an application from ATCO Gas, a division of ATCO Gas and Pipelines Ltd., to recover $11.199 million through a Z factor rate adjustment to compensate it for the costs it incurred as a result of the 2016 Regional Municipality of Wood Buffalo wildfire (wildfire). For the reasons outlined in this decision, the Commission is satisfied that, for 2016, all five of the criteria to qualify for a Z factor rate adjustment have been met. Additionally, the Commission has determined that the characteristics of the wildfire were of a similar nature and magnitude to the nature-related events identified in ATCO Gas’s 2009 depreciation study, and has concluded that the wildfire did not give rise to an extraordinary retirement of the destroyed assets. Therefore, the depreciation expense associated with the assets that were replaced will continue to be recovered from ratepayers. The Commission has also directed ATCO Gas to provide specific information and make certain adjustments to the applied-for amount in the compliance filing to this decision.