2023 General Rate Application
Summary of Application
The Yukon Electrical Company Limited, carrying on business as ATCO Electric Yukon (AEY), has filed an application with the Yukon Utilities Board (Board) requesting an order approving its forecast revenue requirements for the two-year test period 2023 and 2024 (Application). AEY provides electrical services to customers in 19 communities.
AEY is seeking approval of forecast revenue requirements of $60.992 million for 2023 and $68.096 million for 2024. This represents a decrease of $1.211 million for 2023 over revenues from existing rates and riders of $62.203 million (1.9% decrease). For 2024, this represents an increase of $7.914 million over the proposed 2023 revenue requirement (13% increase).
In addition, in its Application, AEY is also seeking approval of an interim refundable rate rider (Rider R) for 2023 of 6.68% (down 1.62% from the existing approved 8.3% for Rider R) for retail and industrial firm rates, effective August 1, 2023. AEY is also requesting a Rider R increase of 5.2% above the current 8.3% for retail and industrial firm rates, effective January 1, 2024.
AEY will hold a Procedural Conference regarding the Application on Thursday, July 27, 2023. The Procedural Conference is designed to assist the public in gaining a better understanding of the Application and process surrounding the Application.
Workshop Time: 2:00 p.m
Date: July 27, 2023
Location: Kwanlin Dün Cultural Centre Multi-purpose Room
An oral public hearing regarding the Application will take place in Whitehorse, Yukon. The venue for the hearing will be determined by the Board at a later date.
Schedule of Proceeding
Pending Ministerial approval, the Board has established the following schedule for this proceeding:
- AEY Procedural Conference - July 27
- Interveners register with the Board - August 4
- Interveners file submissions regarding AEY interim rate request - August 4
- AEY reply to interveners’ interim rate submissions - August 10
- IRs to AEY - August 24
- IR Responses from AEY - September 14
- AEY files depreciation parameter information - August 31
- Interveners file any motions regarding IR Responses from AEY - September 21
- IRs to AEY on depreciation parameters - September 26
- IR Responses from AEY on depreciation parameters - October 10
- Intervener evidence - October 19
- IRs on intervener evidence - October 26
- IR Responses on intervener evidence - November 2
- Rebuttal evidence - November 9
- Oral public hearing - November 20-23
- Final argument - December 5
- Reply argument - December 12
Interveners actively participate in a proceeding, including the filing of evidence (if needed), argument, and reply argument.
Interveners intending to participate in the workshop, hearing, and other process steps are to register in writing with the Board’s Executive Secretary by no later than August 4, 2023, indicating the nature of their interest and the issues of interest in relation to the Application. Interveners are also to submit any comments regarding AEY’s interim rate request at that time.
To register for AEY’s procedural conference as an intervener, member of the public, or organization, please email Beth Rogers at firstname.lastname@example.org.
The Application and supporting documents are also available on the Board’s website at the following URL: https://yukonutilitiesboard.yk.ca/proceedings/atco-electric-yukons-2023-2024-general-rate-application/
Clarification and Board Contact
Persons who wish to intervene or present, and who are uncertain as to the manner in which to proceed, may contact Deana Lemke, Executive Secretary, Yukon Utilities Board, by telephone at (867) 667-5058, in writing at Box 31728, Whitehorse, Yukon Y1A 6L3, by email to email@example.com or by fax at (867) 667-5059.
Frequently Asked Questions
Who regulates ATCO Electric Yukon's rates?
ATCO Electric Yukon is regulated by the Yukon Utilities Board, which means our rates are reviewed, scrutinized, and approved through a quasi-judicial process.
What is a rate rider?
Rate riders are charges or credits approved by the Yukon Utilities Board to recover costs or refund money for something that is temporary or caused by factors outside our control. Riders exist for various reasons and periods of time. We list all of the current rate riders on our website.
What is rider R?
Rider R is ATCO Electric Yukon’s base rate adjustment rider applied to all electric service throughout the Yukon. The Rider R collects/refunds the difference between AEY’s base rates and approved revenue requirement.
Why is rider R an interim rider?
Rider R is normally applied to determine final rates but is also used, on an interim basis, to begin collecting/refunding amounts prior to when final rates are approved by the Yukon Utilities Board (YUB). Please note that the interim rates are placeholders to lessen the true-ups upon final rates being determined. Any approved surplus or shortfall amounts that arise from the YUB’s Decision respecting Final rates, will be fully refunded/collected to/from customers.
How much is the actual proposed rate increase? What is the fuel adjustment factor?
AEY is proposing a 1.6 percent rate decrease for 2023 and a 5.2 percent cumulative increase for 2024. The fuel adjustment factor is a mechanism to adjust Rider R based on current fuel prices, but it won't affect what customers pay for fuel on their bills. The 5.2% rate increase in 2024 is necessary to cover the difference between existing rates and the required revenue starting from January 1, 2024. Any fuel-related adjustments will be handled separately through Rider F, which won't be adjusted until mid-next year.
Is the proposed rate decrease beginning on August 1 to pay back extra revenue received?
No, the proposed rate decrease is temporary and serves as a placeholder until a final decision is made for the 2023 test year. It is based on the expected revenue requirement for that specific year. The rate decrease is not a repayment of extra revenue but a temporary measure until the final decision is made for the 2023 test year.
Has the application for interim rates been approved?
No, AEY has not received a decision on interim rates as of today.
What is the process for rate changes?
The application will undergo a fully litigated quasi-judicial public hearing process. Interested parties can participate as intervenors and submit information requests. A hearing is scheduled to take place in Whitehorse in late November. Parties intending to participate in the proceeding need to register with the Board Secretary by Monday, July 31, 2023, indicating their interest and the issues of interest in relation to the Application. AEY will host a procedural conference in Whitehorse on July 27 that is open to the public. The conference will take place at 2pm in the Kwanlin Dün Cultural Centre Multi-purpose Room. To register, please contact Beth Rogers at firstname.lastname@example.org.
Why does AEY expect to need higher rates beginning in 2024?
AEY is proposing a rate reduction for 2023. The rate increase in 2024 is largely driven by system growth and replacing aging infrastructure.
What infrastructure improvements will a rate increase support?
AEY's main reasons for infrastructure improvements include accommodating the increasing demand for electricity due to the growing number of customers, upgrading aging infrastructure to ensure reliable service, implementing a new customer billing system to enhance efficiency, and replacing assets that have reached their end of life. These upgrades are essential to maintain a reliable and modern electric system for customers.
Is the rate increase linked to the Yukon government's Our Clean Future plan?
Electric Utilities across Canada are undergoing significant transition in all jurisdictions in response to federal, territorial and provincial emissions targets and the availability of technologies to do so. This transition has implications on how energy is generated and distributed, as well as how consumers use their electricity services.
AEY is committed to doing our part to reduce GHG emissions and participate in ‘Our Clean Future’ for the Yukon. We are partnering with the communities we serve in the development of renewable projects and ongoing integration with AEY’s isolated grids. In addition to enabling grid modernization initiatives such as Automated Metering Infrastructure (AMI), smart grid and demand response programs to enable this transition and allow customers to understand their electrical usage.
Is the rate increase linked to the cost of electricity from Yukon Energy?
AEY's General Rate Application focuses on our own costs. Yukon Energy completes their own General Rate Applications for their costs as we are separate utilities.