Collaborative Process

Transcription

1 Alberta Energy and Utilities Board Utility Cost Order Uniform System of Accounts and Minimum Filing Requirements Cost Awards

2 ALBERTA ENERGY AND UTILITIES BOARD Utility Cost Order Uniform System of Accounts and Minimum Filing Requirements Cost Application No Published by Alberta Energy and Utilities Board Avenue SW Calgary, Alberta T2P 3G4 Telephone: (403) Fax: (403) Web site:

3 Contents 1 INTRODUCTION VIEWS OF THE BOARD AUTHORITY TO AWARD COSTS VIEWS OF THE BOARD - ASSESSMENT GST ORDER... 3 APPENDIX A Summary of Costs Claimed and Awarded... 4 APPENDIX B Summary of Costs by the Utilities... 4 EUB Utility Cost Order i

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5 ALBERTA ENERGY AND UTILITIES BOARD Calgary, Alberta Uniform System of Accounts and Utility Cost Order Minimum Filing Requirements Cost Application No INTRODUCTION By letter dated December 6, 2004 the Alberta Energy and Utilities Board (EUB or Board) established the Uniform System of Accounts (USA) Committee to collaboratively develop a USA and Minimum Filing Requirements (MFR) that could be used in the context of General Tariff Applications filed with the EUB by Transmission Facility Owners and Distribution Facility Owners. In a letter dated May 8, 2006, the USA Committee filed (Filing) a proposed USA and MFR with the EUB and advised the Board that the Committee considered the Filing to have fulfilled the Board s expectations set out in the December 6 th letter. On July 7, 2006, a summary of the costs being claimed was circulated to interested parties. Parties were advised that any comments regarding the figures listed in the summary or the merits of the total costs claimed were to be filed by July 21, The Board did not receive any comments. Accordingly, the Board considers, for the purposes of this Cost Order, the cost process to have closed on July 7, VIEWS OF THE BOARD Authority to Award Costs The Board's authority to award costs is derived from section 68 of the Public Utilities Board Act, R.S.A. 2000, c. P-45, which states in part: (1) The costs of and incidental to any proceeding before the Board, except as otherwise provided for in this Act, are in the discretion of the Board, and may be fixed in any case at a sum certain or may be taxed. (3) The Board may order by whom or to whom any costs are to be paid, and by whom they are to be taxed and allowed. When assessing a cost claim pursuant to section 68, the Board is guided by Part 5 of its Rules of Practice, AR 101/2001 and by the principles and policies expressed in Directive 031B, Guidelines for Utility Cost Claims (Directive 031B). Before exercising its discretion to award costs, the Board must consider the effectiveness of a participant's contribution to the process, its relevance to the issues, and whether the costs claimed are fair and reasonable in light of the scope and nature of the issues in question. In the Board s view, the responsibility to contribute positively to the process is inherent in the choice to intervene in a proceeding. The Board expects that those who choose to participate will prepare and present a position that is reasonable in light of the issues arising in the proceeding EUB Utility Cost Order

6 USA and MFR and necessary for the determination of those issues. When determining a cost award, the Board will consider if the participant acted responsibly in the proceeding and contributed to a better understanding of the issues before the Board. To the extent reasonably possible, the Board will be mindful of participants will to co-operate with the Board and other participants to promote an efficient and cost-effective proceeding. As the costs of a utility proceeding are generally passed on to customers, it is the Board's duty to ensure that customers receive fair value for a party s contribution. As such, the Board only approves those costs that are reasonable and directly and necessarily related to the party's participation in the proceeding. 3 VIEWS OF THE BOARD - Assessment Various participants submitted cost claims totalling $146, including actual GST of $6, with respect to the collaborative process. The Board has reviewed the costs submitted by the participants, bearing in mind the principles specified in the Board's Scale of Costs set out in Appendix C to Directive 031B. The Board finds that the participation of the parties was, for the most part, effective and of assistance in the overall collaborative process. The Board notes the scope and complexity of the issues before it and the extent of the examination thereof. The Board also notes that the claims for professional fees and other claims were in accordance with the Scale of Costs. Accordingly, the Board considers the claims for fees, disbursements, and for the applicable GST of $ for all participants to be reasonable as outlined in Appendix A to this Order in the total amount of $142, In addition to the costs outlined in Appendix A attached, the Board also received a summary of the costs incurred by the utility companies involved in the collaborative process. The summary was submitted by ENMAX Corporation (ENMAX) and reflected the costs incurred by the following utilities (collectively, the Utilities). ENMAX Power Corporation (EPC) FortisAlberta (Fortis) AltaLink ATCO Electric (AE) EPCOR Transmission and Distribution (EPCOR) The details of the costs incurred by the Utilities are shown in Appendix B attached. The Board notes the following from the correspondence submitted by ENMAX 1. The utilities are proposing to capture these costs into separate USA/MFR deferral accounts. As per the EUB letter of May 8, 2006, regarding the USA and MFR, the utilities are currently engaged in USA cost estimation and implementation schedule activities where those results are to be filed on September 29, The costs incurred by the utilities will also be provided at that time. 1 Correspondence is not dated. 2 EUB Utility Cost Order

7 USA and MFR In light of the above submission, the Board has not assessed the costs or made any conclusions regarding the costs which have been incurred by the Utilities. 4 GST In accordance with the Board's treatment of the GST on cost awards, each of the Utilities are required to pay only that portion of the GST paid by participants that may not be recoverable through the GST credit mechanism, accordingly where parties are eligible for a GST credit the Board has reduced this particular portion of their claim. Eligible GST approved by the Board amounts to $2, as shown in column (g) of Appendix A. The GST allowed by the Board may also be charged against each of the Utilities respective Hearing Cost Reserve Account. The table reflecting allocated cost awards in section 4 above is inclusive of allowed GST. The Board emphasizes that its treatment of the GST claimed in no way relieves participants or their lawyers and consultants from their GST obligations pursuant to the Excise Tax Act, R.S.C. 1985, c. E ORDER IT IS HEREBY ORDERED: 1. Each of the Utilities is responsible for an equal share of the approved costs. 2. The Utilities shall pay intervener costs in the amount of $142,902.79, as set out in column (h) of Appendix A and as allocated in the table below. 3. The Utilities shall record in their respective Hearing Cost Reserve Account an equal share of the allowed intervener costs as shown in the table below. ENMAX Fortis AltaLink AE EPCOR AAMDC $4, $4, $4, $4, $4, REA s $5, $5, $5, $5, $5, AUMA $8, $8, $8, $8, $8, CCA $ $ $ $ $ IPCAA $9, $9, $9, $9, $9, Sub-Total $28, $28, $28, $28, $28, Dated in Calgary, Alberta on this 1 st day of December, ALBERTA ENERGY AND UTILITIES BOARD <Original Signed by Thomas McGee> Thomas McGee Board Member EUB Utility Cost Order

8 USA and MFR APPENDIX A Summary of Costs Claimed and Awarded Appendix A APPENDIX B Summary of Costs by the Utilities Appendix B (Back to Table of Contents) 4 EUB Utility Cost Order

9 Alberta Energy and Utilities Board Appendix A EUB for USA and MFR Cost App. No Costs Claimed and Awarded UCO Total Fees Claimed (a) Total Expenses Claimed (b) Total GST Claimed (c) Total Amount Claimed (d) Total Fees Awarded (e) Total Expenses Awarded (f) Total GST Awarded (g) Total Amount Awarded (h) Participants Alberta Association of Municipal Districts & Counties Collins Barrow $23, $1, $1, $26, $23, $1, $0.00 $24, Sub-Total $23, $1, $1, $26, $23, $1, $0.00 $24, Alberta Federation of REA's Collins Barrow $23, $1, $1, $26, $23, $1, $0.00 $24, Sisson Warren Sinclair $1, $0.00 $77.25 $1, $1, $0.00 $0.00 $1, Sub-Total $24, $1, $1, $27, $24, $1, $0.00 $26, Alberta Urban Municipalities Association Reynolds, Mirth, Richards & Farmer LLP $8, $ $ $9, $8, $ $ $9, Barry Shymanski Regulatory Consulting Ltd. $27, $2, $1, $32, $27, $2, $1, $32, Sub-Total $36, $2, $2, $41, $36, $2, $2, $41, Consumers' Coalition of Alberta Professional Regulatory Services, Inc. $3, $0.00 $ $4, $3, $0.00 $ $4, Sub-Total $3, $0.00 $ $4, $3, $0.00 $ $4, Industrial Power Consumers Association of Alberta Industrial Power Consumers Association of Alberta $35, $0.00 $0.00 $35, $35, $0.00 $0.00 $35, Industrial Power Consumers Association of Alberta $11, $0.00 $0.00 $11, $11, $0.00 $0.00 $11, Sub-Total $46, $0.00 $0.00 $46, $46, $0.00 $0.00 $46, TOTAL PARTICIPANTS' COSTS $135, $5, $6, $146, $135, $5, $2, $142,

10 Alberta Energy and Utilities Board Appendix B EUB for USA and MFR UCO Cost App. No ENMAX Power Corporation Fortis Alberta AltaLink ATCO Electric EPCOR Distribution Participants Total Fees (a) Total Expenses (b) Total GST (c) Total Amount (d) Bearing Point $23, $0.00 $0.00 $23, Robert Half $13, $0.00 $0.00 $13, Sub-Total $36, $0.00 $0.00 $36, Bearing Point $23, $0.00 $0.00 $23, Robert Half $31, $0.00 $0.00 $31, GH & Assoc $34, $0.00 $0.00 $34, Sub-Total $88, $0.00 $0.00 $88, Bearing Point $31, $0.00 $0.00 $31, Robert Half $13, $0.00 $0.00 $13, Sub-Total $44, $0.00 $0.00 $44, Robert Half $13, $0.00 $0.00 $13, ATCO Distribution $8, $0.00 $0.00 $8, Sub-Total $21, $0.00 $0.00 $21, Bearing Point $11, $ $0.00 $11, Allstream $11, $3, $0.00 $14, Robert Half $6, $0.00 $0.00 $6, IBM Global Services $2, $0.00 $0.00 $2, EPCOR Distribution $ $4, $0.00 $4, Sub-Total $32, $7, $0.00 $40,

11 Alberta Energy and Utilities Board Appendix B EUB for USA and MFR UCO Cost App. No EPCOR Transmission Total Fees (a) Total Expenses (b) Total GST (c) Total Amount (d) Bearing Point $11, $ $0.00 $11, Allstream $11, $3, $0.00 $14, Robert Half $6, $0.00 $0.00 $6, IBM Global Services $2, $0.00 $0.00 $2, EPCOR Distribution $ $4, $0.00 $4, Sub-Total $32, $7, $0.00 $40, TOTAL PARTICIPANTS' COSTS $255, $15, $0.00 $271,