CALGARY, Alberta, Sept. 06, 2017 (GLOBE NEWSWIRE) -- An agreement reached between AltaLink and the customer groups representing Alberta’s industrial and residential electricity consumers will save Albertans more than $50 million during 2017 and 2018. Approved by the Alberta Utilities Commission (AUC) on August 30, this agreement is the first negotiated settlement between an Alberta transmission company and its customers.
Combined with the previously approved $600 million in rate relief, AltaLink has introduced cost savings to Albertans totaling more than $650 million between 2015 and 2018.
“We’re proud to have delivered solutions that will save Albertans more than $650 million in electricity costs by the end of 2018,” said Scott Thon, President and Chief Executive Officer of AltaLink. “Reaching a first-of-its kind agreement like this is an important step in changing how energy companies and their customers can collaboratively work together to save money for every electricity customer in Alberta.”
The negotiated agreement was reached by AltaLink and consumer groups representing Alberta’s industrial, commercial and residential customers.
The agreement includes a reduction of $15.5 million in operating costs and $5 million in other cost savings during 2017 and 2018. If AltaLink is able to achieve additional operating cost savings beyond the $15.5 million, those savings would be shared equally between AltaLink and its customers. The negotiated settlement also eliminates the more than $1 million in additional costs to customers from an extended regulatory process and hearing.
An additional $31.4 million in savings is driven from previously-funded depreciation costs. AltaLink completed engineering studies that conclude the company’s newly constructed transmission towers are expected to have longer lives. As a result, AltaLink will refund $31.4 million of depreciation costs that were collected under previous AUC decisions.
“Our commitment is to continue to reduce costs for our customers and deliver the reliable and affordable energy that drives our economy,” said Thon. “As Alberta moves to diverse and greener energy sources, the transmission system will be more important than ever in ensuring Alberta’s sustainable electricity future.”
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.