Business
FortisAlberta files for interim tariff to recover transmission costs
FortisAlberta files for interim tariff to recover transmission costs.
About this update from Fortis Inc.
[{"type":"text","content":"\n\n\n\n\nCalgary, Dec. 8 /CNW/ - (TSX:FTS) - FortisAlberta Inc. filed today an\napplication with the Alberta Energy and Utilities Board (EUB) for approval of\ninterim rates effective Jan. 1, 2006 to recover from our customers the\ntransmission costs under the new rate structure that we must now pay to the\nAlberta Electric System Operator (AESO). Transmission costs paid to the AESO\nare subject to deferral account treatment by the EUB and, as a result, do not\nimpact FortisAlberta's earnings.\n\"FortisAlberta recognizes that the recovery of the revised transmission\ncosts through these interim rates will impact the majority of our customers,\"\nsays Philip G. Hughes, President and Chief Executive Officer, FortisAlberta.\n\"We are committed to continue focusing on building capacity, improving\nreliability and investing capital to upgrade the system to keep distribution\nrates as low as possible for our customers.\"\nThese interim rates are required to align costs with the Transmission\nRegulation, which shifts the majority of the costs to run the transmission\nsystem from generators to load customers. The actual amount of the increase\nwill vary for individual customers depending on their rate classification and\nthe amount of electricity they consume. FortisAlberta's distribution revenue\nwill remain unaffected by the collection of these interim rates.\nFortisAlberta anticipates filing a full 2006/07 Distribution Tariff\nApplication the week of December 12, 2005, and is proposing no distribution\nrate increase in 2006 and a three per cent rate increase to customers on base\nrates in 2007.\n\nFortisAlberta is an electric distribution company with approximately\n412,000 customers and more than 103,000 kilometres of power lines. It is a\nwholly owned, indirect subsidiary of Fortis Inc. - a diversified,\ninternational electric utility holding company with assets exceeding\n$4.1 billion and annual revenues of over $1.2 billion. The Common Shares,\nSeries C First Preference Shares and Series E First Preference Shares of\nFortis Inc. are traded on the Toronto Stock Exchange under the symbols FTS,\nFTS.PR.C and FTS.PR.E, respectively. Fortis Inc. information can be accessed\nat www.fortisinc.com.\n\nFortisAlberta may include forward-looking statements in this release. By\ntheir very nature, forward-looking statements are based on under...