A July 4 decision from the Alberta Utilities Commission (AUC) denied an application from the Central Alberta Rural Electrification Association (CAREA) that sought a declaration it is the primary electricity distribution service provider within its service area.The decision comes after the CAREA application was filed in September 2010. The oral argument occurred in early April 2012.According to the written decision issued by the AUC, making CAREA the primary service provider for electricity in its service area instead of FortisAlberta, goes against legislation that addresses the overlapping service areas of Rural Electrification Associations and public utilities providers.CAREA serves members who go through an application process while FortisAlberta is essentially the default provider.CAREA has issued a press release saying FortisAlberta has been misrepresenting the decision, reiterating that the denial of their application is just a denial.“Central Alberta REA hopes it is not the province's intent to hand a protected service area to a giant utility company whose entire focus is to provide guaranteed profits for its stockholders at the expense of higher costs for customers,” said Jim Towle, chairman of CAREA, in a press release issued July 17.The release said CAREA is seeking legal advice about whether or not the AUC decision should be appealed.A release from FortisAlberta on July 6 said the decision regarding CAREA's application to the AUC confirmed FortisAlberta as the primary distribution service provider within CAREA's service area.“The AUC's decision brings clarity for customers within our service territory, particularly for those customers in overlapping areas. It reinforces for customers that FortisAlberta is the primary electricity distribution service provider and that the REA is entitled to serve only those eligible consumers who voluntarily accept membership in the REA,” said Karl Smith, president and CEO of FortisAlberta.Jennifer MacGowan, director of corporate communications with FortisAlberta, said she's not sure what CAREA means when it said FortisAlberta is misrepresenting the decision.She said FortisAlberta doesn't see itself as in competition with REAs. FortisAlberta presented intervener evidence as part of the AUC hearing process.“This wasn't about us expanding our service area,” MacGowan said of their participation in the hearing.“We see it as really two different options,” MacGowan said of the difference between REAs, which are co-operatives, and the electrical distribution services Fortis provides.MacGowan said FortisAlberta is a publicly regulated utility that has its operations scrutinized to ensure they're open and transparent.Calls to Towle and Pat Bourne, general manager of CAREA, to expand on CAREA's press release were not returned by press time.
