The ATCO case - Did the Supreme Court of Canada Alter the Regulatory Compact?

Author

Michael Janigan

Organization

Public Interest Advocacy Centre (PIAC)

Published

2007

Summary

The Supreme Court of Canada's decision in the case of ATCO Gas & Pipelines Ltd. v. Alberta (Energy and Utilities Board) (hereinafter ATCO) poses challenges to the traditional approach of regulators in dealing with transactions of a regulated utility that involve assets that are or were formerly included in its rate base and thus reflected in rates paid by utility customers. The historic understanding was that, because customers pay for the acquisition, development and maintenance of assets in rate base, there had to he an accounting and sharing of revenues and proceeds of sale of such assets. This was the case even if the assets are no longer used to generate service and have been removed from rate base. This report will analyze the ATCO decision and its aftermath in Canadian regulatory tribunals. In particular, it will examine the particular facts and regulatory framework at issue in the ATCO case as well as the state of regulatory law and practice in other jurisdictions prior to the ATCO decision. It will finally draw some conclusions from the case and its likely effect on utility regulation.

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OCA Funded Research
This research received funding support through the Office of Consumer Affairs' Contributions Program.

Contact information

Source: Consumer Policy Research Database