ATCO Undeterred by AUC Decision

June 25, 2025

ATCO is extremely disappointed with the position announced by the Alberta Utilities Commission (AUC) yesterday.  

ATCO has already been granted the right to appeal the AUC PBR 2 Reopener decision, and the matter will be heard in the Alberta Court of Appeal this October.

As an energy provider in Alberta for more than 110 years, ATCO remains steadfast in its mission to serve Albertans with integrity and a long-term vision for reliable and affordable energy. ATCO continues to be a leader in advocating for a fair, affordable, and efficient regulatory and business environment in Alberta.

Background on Performance Based Regulation

Rates for electric and gas distribution utilities in Alberta are set under a form of Performance Based Regulation (PBR). PBR is designed to mimic competition and encourage efficiency by providing incentives for the utility to reduce costs, while safeguarding reliability, and minimizing rate increases.

The issue concerns the AUC’s position that ATCO was not detailed enough in documenting the specific sources of all the cost savings achieved by its Alberta natural gas and electricity distribution utilities during the previous PBR period of 2018-2022.

The AUC has previously acknowledged that “it is difficult, if not impossible, to identify and separate cost reductions that the ATCO Utilities would have undertaken” in response to the PBR framework from other factors. Yet in the May 2024 PBR2 reopener decision, the AUC claimed that the ATCO Utilities failed to fully quantify or attribute all efficiency gains under PBR to specific programs or initiatives —leading to today’s remedy decision. This contradiction underscores the pressing need for regulatory certainty. While the May 2024 PBR2 reopener decision is currently under appeal, ATCO requested that the AUC delay determining any remedy until the appeal is resolved. That request was denied.

From 2023 – 2028 ATCO Gas and ATCO Electric businesses will deliver over $500 million in distribution savings to its Alberta customers, already reducing distribution costs charged to customers by eight per cent. ATCO is the only Alberta utility that delivered natural gas and electricity rate reductions to customers at the end of the PBR2 period. While ATCO disagrees with the remedy decision issued, we  remain proud to have already reduced rates for customers through the actions taken.

Distribution rates are the costs of operating the pipes and wires that provide natural gas and electricity to homes and businesses and represent the portion of the utility bill for which ATCO Gas and ATCO Electric are responsible.

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