Business
FortisAlberta files Settlement on 2006 and 2007 Revenue Requirement
FortisAlberta files Settlement on 2006 and 2007 Revenue Requirement.
About this update from Fortis Inc.
[{"type":"text","content":"\n\n\n\n\nCALGARY, May 17 /CNW/ - FortisAlberta has filed today an application with\nthe Alberta Energy and Utilities Board (\"AEUB\") to approve a Negotiated\nSettlement Agreement (\"Settlement\") dealing with the Company's 2006 and 2007\nrevenue requirement.\nThe Settlement allows for a distribution revenue requirement of $217\nmillion in 2006 and $228 million in 2007, resulting in an approximately one\nper cent reduction to base distribution rates over two years. In reaching this\nSettlement, the Company has agreed, for rate-making purposes, to a level of\noperating expense of approximately $114 million for each year and capital\nexpenditures, before customer contributions, of approximately $400 million\nover the two years.\n\"This settlement, if approved by the AEUB, will allow us to focus on our\nsubstantial capital program, while at the same time continuing to improve\ncustomer service, productivity and the reliability of Alberta's electrical\nsystem in 2006 and 2007,\" says Philip Hughes, President and Chief Executive\nOfficer, FortisAlberta Inc.\nThe parties to the Settlement are Alberta Association of Municipal\nDistricts and Counties, Alberta Federation of REAs, Alberta Sugar Beet\nGrowers, Potato Growers of Alberta, Alberta Urban Municipalities Association,\nAlexis Nakota Sioux Nation, Canadian Federation of Independent Business, Care\nCentre Group, Central Alberta Rural Electrification Association Ltd.,\nConsumers Coalition of Alberta, Industrial Power Consumers Association of\nAlberta, Garneau Inc., Lehigh Cement Ltd., Montana First Nation, Office of the\nUtilities Consumer Advocate, and Public Institutional Consumers of Alberta.\nIf the Settlement is approved, there will not be a Phase I hearing\n(revenue requirement) for FortisAlberta's 2006/07 Distribution Tariff\nApplication. However, FortisAlberta will participate in a Phase II hearing\nbeginning May 29, 2006, dealing with rate design and cost allocation to\ndetermine the amount of revenue that should be recovered from each customer\nrate class. AEUB approval of the Settlement is expected by the end of second\nquarter, provided there are no material objections to the Application.\nFortisAlberta is an electric distribution company with approximately\n420,000 customers and more than 103,600 kilometres of power lines. It is a\nwholly owned indirect subsidiary of F...