Case # 35624
ATCO Gas and Pipelines Ltd., et al. v. Alberta Utilities Commission, et al. (December 3, 2014)
The appellants participate in pension plans which had accumulated an actuarial unfunded liability of $157.1 million by the end of 2009. Each year, the management pension committee decides how much of a cost of living adjustment increment should be granted. The cost of living adjustment (“COLA”) is granted to a maximum of 3%. The committee, based on historical practices and on advice received from the pension fund actuary, decided the full 3% should be granted. ATCO applied to the Alberta Utilities Commission to include their full pension costs in their revenue requirements. The commission reviewed other pension plans and determined atco’s policy of providing the maximum adjustment was excessive. ATCO brought an application for review and variance before the commission which was denied. A subsequent appeal to the court of appeal was dismissed.