AltaLink salvage proposal approved, saving Alberta electricity ratepayers more than $170 million over five years
CALGARY, ALBERTA (Globe Newswire ) – An AltaLink proposal to save Albertan electricity customers more than $170 million over a five-year period was approved in a decision from the Alberta Utilities Commission (AUC) announced on November 19, 2020.
The decision applies to the proposal that we included in our 2019-2021 General Tariff Application (GTA) to change the existing salvage methodology under which we pre-collected the future cost to salvage an electricity transmission line or substation.
By deferring the collection of salvage costs to the actual time when an asset is removed, and recovering that salvage cost over 40 years, Albertans will keep more money in their pockets now, during a time of economic uncertainty when they need it most.
“We made a commitment to our customers that we would not raise our rates for five years, through to the end of 2023,” said Scott Thon, AltaLink’s President and CEO. “AltaLink is the only regulated electricity company in Alberta that has made the commitment to keeping our costs flat. During a time when Alberta’s economy is under pressure, we’re proud to have proposed a solution that will reduce millions of dollars in costs to Albertans.”
Customer support was instrumental to the proposal being approved. Industry groups representing Alberta’s industrial and residential electricity consumers offered their support during the AUC process.
“We welcome this reduction in rates for the next few years. This will provide some much-needed relief to every electricity ratepayer in Alberta” said Vittoria Bellissimo, Executive Director of the Industrial Power Consumers Association of Alberta. “We thank AltaLink for working with customers to achieve this outcome and we look forward to examining other rate relief opportunities in the future.”
During the three-year tariff from 2019 to 2021, the total savings to Albertans total $81.5 million. Additional savings in 2022 and 2023 increase the total reduction in AltaLink’s tariff to more than $171 million.
AltaLink submits a GTA every two to three years to cover its regulated operating and capital costs.
Headquartered in Calgary, with offices in Edmonton, Red Deer and Lethbridge, AltaLink is Alberta’s largest electricity transmission provider. AltaLink is partnering with its customers to provide innovative solutions to meet the province’s demand for reliable and affordable energy. A wholly-owned subsidiary of Berkshire Hathaway Energy, AltaLink is part of a global group of companies delivering energy services to customers worldwide.
For more information please contact:
Vice President, Communications
AltaLink Management Ltd.
E-mail: [email protected]