Efficiency

The Alberta Utilities Commission’s vision is to be a trusted leader that delivers innovative and efficient regulatory solutions for Alberta.

The AUC focuses on innovative ideas to improve efficiency in its own operations and develops regulatory solutions aimed at encouraging efficiency among Alberta’s utilities providers to provide safe and reliable utility service at just and reasonable prices.

Receives NO government funding

• The AUC recovers its operating and capital costs through a consumer fee charged to regulated utilities (based on the utility’s number of ratepayers), market participants and transmission owners based on their related regulatory demands.
• The total AUC 2017-2018 regulatory cost from regulatory operations was forecasted at $31.41 million, which worked out to about $10 per year, per site. AUC costs are highly scrutinized and the AUC is accountable and prudent with its expenditures. In fact, since its inception the cost per ratepayer has been decreasing due to innovative efficiencies and is considerably lower now than when the AUC was founded in 2008.
• Certain regulatory costs are applied directly to specific applicants participating in the regulatory process, however in all cases, the AUC believes in ensuring costs are controlled and resources are managed efficiently.

Strict accountability in staff resourcing

• The AUC reviews its staff complement at least annually to ensure every position is required and all resources provide maximum benefit to the AUC.
• Over the past several years the AUC has reduced its staff complement in areas where the regulatory environment has evolved and certain work was no longer required or was consciously streamlined.
• In 2013, the AUC reviewed third-party service agreements and where it made sense, converted these agreements into staff positions that resulted in net savings of more than $1 million annually. The AUC closely monitors staffing levels and business cases are required to fill any vacated positions.
• The AUC’s staff complement has remained 15 to 20 full-time equivalents (FTEs) below the target set by Alberta Treasury Board, during our entire existence.

Diminishing costs per ratepayer/utility site

The Alberta Utilities Commission works actively to conduct its activities in the most financially efficient way, while ensuring appropriate scrutiny of applications, full input from affected parties that choose to participate, serving the public interest and general regulatory excellence.

• Since the AUC was established in 2008 the costs of the organization on a per-ratepayer basis have declined to approximately $10.25 per site.
• In this period, the number of regulated sites in Alberta rose 22.8 per cent to nearly three million.
• At the same time, the administration fee collected by the AUC from Alberta ratepayers fell more than four per cent.
• Inflation during this total period was approximately 11.5 per cent, indicating efficiencies of even greater than 22 per cent.
  In the 10 years since it was established, the AUC’s careful ability to spend less than budgeted has resulted in savings of 11 per cent of our budget over this period, or an amount equal to the AUC’s budget for an entire year.

Performance-based organization planning, budgeting and staff evaluation

• Each year, the Alberta Utilities Commission assesses and uses the results from its year-earlier performance measures, along with new initiatives, stakeholder survey results and the Ministry of Energy’s business plan to develop its detailed business plan.
• The AUC business plan directly guides development of divisional operational plans for each of Rates, Facilities, Market Oversight and Enforcement, Law, Corporate Services and the office of the Chief Executive. The business plan and divisional operational plans are developed concurrently with the AUC’s annual budget.
• Individual (AUC staff personnel) performance plans are derived from division operational plans.
• Performance against the AUC business plan, division operational plans, individual performance plans and the AUC budget are tracked, monitored and assessed throughout the year. Adjustments and resource allocation shifts are shaped by performance results.
• The AUC reaches its decisions in a fair, efficient manner that produces timely decisions. The AUC is accountable for measurable performance timelines outcomes, and commits to issuing decisions within predetermined deadlines. The AUC is proud to be within its targeted outcomes almost 100 per cent of the time.