In a utilities rate-setting appeal, the Court considered whether Alberta statutes requiring prudent costs imposed a mandatory no-hindsight methodology.
The Court held the regulator retained discretion to choose its analytical approach, provided resulting rates were just and reasonable to both consumers and utilities.
On the record, the disallowed pension cost-of-living adjustment component was reasonably treated as forecast rather than committed cost.
Limiting recoverable COLA to 50 percent of CPI, capped at 3 percent, for specified pension calculations was therefore reasonable.
The appeal was dismissed.
