Alberta Utilities Commission approves $31M ATCO fine, says in public interest

Power lines are shown in this file photo from Monday, Aug. 19, 2019. (THE CANADIAN PRESS/Nathan Denette)

CALGARY — The Alberta Utilities Commission has approved a $31-million fine proposed for ATCO Electric's attempts to overcharge ratepayers for costs it shouldn't have incurred.

In April, ATCO Electric agreed to pay the penalty after a commission investigation found it deliberately overpaid a First Nation group for work on a new transmission line.

It said ATCO also failed to disclose the reasons for the overpayment when it applied to be reimbursed by ratepayers for the extra cost.

But in May, the Consumers' Coalition of Alberta said the proposed settlement doesn't adequately compensate people in the province for the harm they have suffered.

The commission says in its ruling that after carefully considering the settlement agreement, it is satisfied that accepting it is consistent with the public interest.

The commission also says the agreement would not bring the administration of justice into disrepute.

"The commission considers that the settlement is fit and reasonable, falling within a range of reasonable outcomes given the circumstances," reads the ruling released Wednesday.

The settlement came after an investigation into a complaint that ATCO Electric sole-sourced a contract in 2018 for work needed for a transmission line to Jasper, Alta.

The agreement says that was partly because another of Calgary-based ATCO's subsidiaries had a deal with a First Nation for projects, including for work camps on the Trans Mountain Pipeline expansion.

The statement of facts says ATCO Electric feared that if it didn't grant the Jasper contract to the First Nation, it might back out of its deal with ATCO Structures and Logistics. It's illegal for a regulated utility to benefit a non-regulated company in this way.

This report by The Canadian Press was first published June 29, 2022.