2021 Generic Cost of Capital

2021 Generic Cost of Capital


The Alberta Utilities Commission periodically approves a rate of return on equity for regulated utilities and also establishes specific deemed equity ratios (the percentage of common equity in the capital structures) for each utility. The deemed equity ratio multiplied by debt and equity funded rate base and further multiplied by the allowed return on equity must result in an overall fair return for equity investors.

The determination of the approved rate of return on equity and deemed equity ratios is part of a complex and technical proceeding, which involves a public hearing involving natural gas and electric distribution and transmission utilities regulated by the AUC, as well as parties representing consumer interests.

The utilities regulated by the AUC participating in the current generic cost of capital proceeding are: AltaGas Utilities Inc., AltaLink Management Ltd., ATCO Electric Ltd., ATCO Gas, ENMAX Power Corporation, EPCOR Distribution & Transmission Inc., and FortisAlberta Inc.

The proceeding will consider the following:

  • Whether changes in the approved return on equity and deemed equity ratios, established in Decision 22570-D01-2018 (the 2018 generic cost of capital decision) are warranted for the years 2021 and 2022. The approved rate of return on equity for 2020 is 8.5 per cent. The approved deemed equity ratios are 39 per cent for AltaGas and 37 per cent for the remaining utilities.
  • How the Commission should consider the traditional approaches and models used in previous generic cost of capital proceedings for determining an approved return on equity and equity ratios.
  • Whether an annual return on equity formula should be implemented in 2021.

Accessing proceeding documents

The eFiling System should be accessed to view the applications and the other documents the AUC will be considering in this proceeding. The system is also used to file submissions and evidence to participate in the proceeding.

To create an account, select "New account" and follow the steps to create a user ID and password. If you have any questions about how to use the system please contact us at info@auc.ab.ca or 403-310-4282.

Documents being considered in this proceeding can be found in the eFiling System (which requires log in). Once you have logged in, enter 24110 in the "go to" section at the top left corner of your screen.

Proceeding 24110            Register

Application status: complete

Decision 24110-D01-2020​ issued October 13, 2020​

AUC contact: 

Artyom Jukov 403-592-4507 or artyom.jukov@auc.ab.ca​


Listen to a hearing

Access all regulatory documents

Anyone can access applications and proceeding information through the eFiling System.

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