Utility asset dispositions are a common recurring aspect of utility regulation. In the normal course, utilities invest in assets necessary for the provision of utility service, then these investments are depreciated or amortized over the life of the assets, and […]
THE PROBLEM WITH AVERAGE COST-BASED PRICING Bonbright’s principles of public utility rates assumed vertically integrated electricity monopolies and proposed that ratemaking balance the interests of utility capital attraction with those of ratepayers. Bonbright’s approach focused on establishing a reasonable utility […]
ATCO Electric Ltd. (ATCO Electric) and ATCO Gas and Pipelines Ltd (ATCO Gas), collectively the ATCO Utilities, were regulated under the Alberta Utilities Commission (AUC) second Performance-Based Regulation (PBR) plan from 2018 to 2022 (PBR2). The plan, which was approved […]
THE REGULATOR’S DILEMMA Regulators are increasingly confronted with the dilemma posed by proposals to advance electrification or, alternatively, to undertake investments that may appear to oppose electrification. For the regulator, these proposals raise issues with respect to the assessment of […]