Returning a portion of ATCO earnings is called insufficient
ATCO Electric Yukon’s proposed rate relief measures fall short of what Yukoners are expecting, the territory’s NDP said Tuesday.
ATCO Electric Yukon’s proposed rate relief measures fall short of what Yukoners are expecting, the territory’s NDP said Tuesday.
“After six years of over-earning millions of dollars, ATCO is still planning to keep hundreds of thousands in extra profits every year – in addition to the millions of dollars from the previous years,” the party said in a statement.
ATCO has applied to the Yukon Utilities Board for approval of two new rate-relief measures on consumers’ bills.
The proposed changes come after the Yukon NDP raised the issue of ATCO’s over-earnings last March in response to concerns about high electricity bills, the party noted.
“ATCO is trying to avoid public scrutiny by giving back just a portion of their over-earnings,” said Emily Tredger, the NDP MLA Whitehorse Centre.
“Giving some of the money back is not good enough. Yukoners want fair electricity rates.
“We shouldn’t have to fund ATCO’s excess profits from our electricity bills.”
ATCO is also proposing to return a portion of funds collected for regulatory expenses related to a General Rate Application (GRA), while rejecting the pursuit of another GRA, the party said.
“The Yukon NDP has been pressing the Liberals to address electricity rates by ordering ATCO to file for a rate review, but so far, they have refused. A GRA could end the millions in over-earnings by ATCO.
“Yukoners are struggling to stay ahead of rising costs of living and the government doesn’t seem to care,” Tredger added.
“The Liberals could order ATCO to review their rates to make them fairer for Yukoners, but they just won’t do it.” said Tredger.
The utilities board has limited ATCO’s rate of return on equity to nine per cent.
According to the NDP’s calculations, since its last GRA in 2016, ATCO has over-earned by more than $8.5 million above the amount set by the board.
“The proposal to set aside the Rider R revenue from industrial customers does not capture all of the over-earnings and would allow ATCO to keep a substantial portion of over-earnings,” the NDP said.
“ATCO has not offered to return the $7.15 millions in over-earnings from 2016-2020.”
The proposed Rider Y would return a portion of the $300,000 per year that ATCO has been collecting since 2016 to finance regulatory costs like those associated with a GRA, the party added.
“Yukon Government has the power to compel ATCO to submit a general rate application to review the rates and riders. So far, they have refused to do so.”
Energy, Mines and Resources Minister John Streicker told the Star Wednesday the growth in the territory’s population and mining industry has elevated ATCO’s revenues to higher-than-anticipated levels.
The Yukon Chamber of Commerce has been examining the over-earnings and what can be done, he noted.
“Yukoners are not being charged more than they are supposed to be charged,” the minister said.
“I sat down with them (ATCO) and suggested they try to look for rate relief for Yukoners,” he said. “It’s in front of the utilities board as we speak.”
The two rider reductions are worth $900,000 and $300,000, he said.
“I went to ATCO and said, ‘I don’t think it is enough.’ I have asked them to go further.”
Justice Minister Tracy-Anne McPhee and her officials are researching the question of whether a cabinet minister can order a GRA, Streicker added.
“We are seeing what is possible. She (McPhee) is looking at amending the act. This is new terrain for us.”
Meanwhile, the three $50 power rate rebates the government is issuing to every Yukoner this year are costing about $3 million, Streicker said.
“ATCO has not increased the rates for customers since 2017,” Jay Massie, the company’s vice-president, Northern Development and Indigenous Relations, told the Star last March.
“The rates customers pay ATCO today are the rates set in 2017. The increase in revenue is a result of increase in number of customers and the continued development of the resource sector.”
The Yukon has led the nation in population growth since 2016, Massie noted.
“We, like many other organizations, were not expecting this growth. With more people in the Yukon, there is more electricity being used which has resulted in the increased revenue.”
Massie explained that each year, ATCO sets its budget based on a number of factors. Those include current operational expenses, forecasts of customer growth, investments needed in the system, and rising expenses like general inflation, fuel and labour costs.
Comments (16)
Up 4 Down 1
General Citizen on Sep 8, 2022 at 1:45 pm
Maybe government needs to re-evaluate the OIC from 1995 that enables them to KEEP all our MONEY and KEEP OVERCHARGING US!! AS WELL AS THE PUBLIC UTILITIES ACT.
OIC 1995/90, whereby a moratorium on rate rebalancing exists, suggest a
certain level of acceptability for cross-subsidization.
The base rates were last approved in 2011 following extensive rate hearings for
YEC, AEY, and a joint Phase 2 rate hearing for AEY and YEC. Following 2011,
changes to base rates were made after various Phase 1 GRAs. The base rate
changes approved in the Phase 1 Applications were applied using an equal
percentage-based adjustment to all ratepayers in the territory, regardless if the
ratepayer is served by AEY or YEC (in accordance with OIC 1995/90).
As a base rate increase, Rider R must be an equivalent
percentage and apply to all ratepayers in the Yukon, in accordance with OIC
1995/90 Per the OIC, Rider R is
designed to ensure matching in a Phase 1 GRA.
AEY’s shortfall rider must apply to all ratepayers
in the Yukon on an equivalent basis in accordance with OIC 1995/90
Read the full application and responses.... ATCO keeps referring to OIC 1995/90...... HMMM managed by the Government - Come on Streicker you tell them they can do better than.... guess what... SO CAN YOU by updating this OIC AND THE PUBLIC UTILITES ACT that governs the RATES WE PAY to PROTECT us.....
https://yukonutilitiesboard.yk.ca/proceedings/aey-2022-rate-relief-application/
https://yukonutilitiesboard.yk.ca/pdf/General/149_pua.pdf
The OIC 1995/090 only states: 1. This Direction amends the Rate Policy Directive (1995).
2 In subsections 2.1(3) and 6(3), the expression ,December 31,2013 is replaced with the expression "December 31,2018.
So this is all that was done in 2014 when the OIC was "Updated". Nothing was done to hold more accountability on the "rates" they can charge as set out in the Public Utilities Act.
Up 9 Down 3
Legitimate human name on Sep 7, 2022 at 6:12 am
So, giving control of public utilities DIDNT work out in favor of the people?
If you don't say. I am just shocked.
Who would think that giving over control of public utilities (after most of the infrastructure was created by the pro-socialist, anti-facist men and women of the army) would result in a private company decided to make money it's priority over quality for the people?
That just shocking. I am in awe.
Maybe, just maybe, the people aka that pesky government should own the electric, heat and water?
Giving control to private industry has historically not worked out. For the people.
Ever.
Up 20 Down 1
SH on Sep 6, 2022 at 8:59 am
"Legitimate human name",
The issue is that ATCO exceeded its limited rate of return (9%). It sounds like this is due to an increase in business.
Regardless, I feel Yukoners with electric heat pay far too much to heat their homes, especially those in older homes.
Up 8 Down 8
AdmiralA$$ on Sep 6, 2022 at 8:39 am
Monopoly created by the great government monopoly.
Their solution will be to give it to them, just watch. Government loves resource control. They already can't keep the lights on for 30 full consecutive days so they are already government efficient.
Up 14 Down 0
Bingo on Sep 5, 2022 at 11:01 pm
More electrified homes means more demand which means more profits - it’s economics 101.
Up 14 Down 1
CASA on Sep 5, 2022 at 2:06 pm
The NDP should have made this a condition of propping the Liberals up if they truly cared about it.
Up 24 Down 2
North_of_60 on Sep 5, 2022 at 1:06 pm
We need an open and transparent public review of all those 'riders' on our electric bills. The LIBgov likes to claim our rates have not increased, while 'ignoring' that the additional charges tacked onto our bills continue to rise. The true cost of electricity calculated as total $$ divided by kWh used has increased from year to year.
Up 42 Down 4
Max Mack on Sep 3, 2022 at 5:29 pm
I'm not sure what qualifies as "excess" profits, but it does concern me that our electrical rates are set so that the utility is guaranteed a profit of x%.
What other business is guaranteed a profit?
I wonder if at least part of this outrage over "excess" profits is to misdirect from the enormous sums of money being spent on "green" energy -- with much of that money being diverted into FN pockets. How much lower would our rates be without the costly green agenda?
Up 35 Down 3
Wilf Carter on Sep 3, 2022 at 9:07 am
Yukoners should own our utilities' like electric supply.
Up 15 Down 28
Legitimate human name on Sep 3, 2022 at 7:54 am
What?
I am just shocked that a private company chose to keep its profits.
How dare those capitalists be capitalists!
Maybe privatization of public utilities only benefits the rich and not the average citizens.
Good thing the right winger nutters fully support capitalists and aren't at all mad about this decision to support capitalists over their fellow humans.
Up 43 Down 3
A.S. on Sep 2, 2022 at 10:18 pm
@Peter
Here was the conclusion,
https://calgary.ctvnews.ca/alberta-utilities-commission-approves-31m-atco-fine-says-in-public-interest-1.5969380
The companies leadership is corrupt. They paid off a FN band to get a contract and then tried to stick customers with the cost. Got caught and not a single executive will be held accountable...just cut a check and back to it. Great system.
Electricity should be run as a public utility and owned by the people of the Yukon.
Up 29 Down 13
Enough is enough on Sep 2, 2022 at 7:34 pm
The NDP continue to try and shame people and companies for finding success while running good efficient businesses. It is impossible for ATCO to hide anything as they are required to report their earnings. We need more politicians that understand business, economics and budgeting.
Up 36 Down 7
bonanzajoe on Sep 2, 2022 at 5:50 pm
So, let's investigate ATCO annual bonuses.
Up 50 Down 4
Peter on Sep 2, 2022 at 4:53 pm
Read this from November 30 2021 Cargary Herald
EDMONTON — Investigators at the Alberta Utilities Commission are asking the regulator to look into what they say is illegal behaviour by one of the province’s largest and most prominent homegrown companies.
Up 56 Down 7
Juniper Jackson on Sep 2, 2022 at 3:45 pm
Large businesses who have a monopoly don't have to compete, don't have to follow the rules. They are let loose with no moral compass what so ever. Individually, they throw $5. bucks into the Sally Ann pot, Collectively, they financially rape and pillage unchecked. So, years of over charging. Not just one year where the budget was "off" a few dollars on their "number of factors". Those include current operational expenses, forecasts of customer growth, investments needed in the system, and rising expenses like general inflation, fuel and labour costs.
ATCO got away with it, now they're caught.. and going to keep as much of the overpayments as they can, what are we going to do about it? ummm. Nothing. There is no other option except.. ATCO.. They will do what they will do, and we will pay for it. You live.. and then you die.
Up 58 Down 5
Groucho d'North on Sep 2, 2022 at 3:05 pm
As I have stated previously, it would be nice for the utility and government or the Utilities Board to make public an up to date status report on the the existing riders on our electrical bills, I am especially interested in the rider to offset the loss of energy profit for the Curragh mine in Faro. How much has been gathered since the application of the rider and how much is still outstanding?
Considering the NDP government of the day allowed Mr. Frame to ship the ore inventory to market rather than placing a lien on it for security against outstanding bills like the one to ATCO. We are still paying for bad political decisions.