Decision 22749-D01-2017
EPCOR Distribution & Transmission Inc. Application to Dispose of Substation Property August 24, 2017
Alberta Utilities Commission
Decision 22749-D01-2017
EPCOR Distribution & Transmission Inc.
Application to Dispose of Substation Property
Proceeding 22749
August 24, 2017
Published by the:
Alberta Utilities Commission
Fifth Avenue Place, Fourth Floor, 425 First Street S.W.
Calgary, Alberta
T2P 3L8
Telephone: 403-592-8845
Fax: 403-592-4406
Website: www.auc.ab.ca
Decision 22749-D01-2017 (August 24, 2017) • i
Contents
1 Decision .................................................................................................................................. 1
2 Introduction ........................................................................................................................... 1
3 Background ........................................................................................................................... 2 3.1 The substation property .................................................................................................. 2 3.2 Property transaction history ........................................................................................... 2
4 Legislation .............................................................................................................................. 3
5 Discussion of issues ............................................................................................................... 4 5.1 Disposition of assets and the ordinary course of business ............................................. 4
5.2 Adjustment due to disposition ........................................................................................ 7
6 Order ...................................................................................................................................... 8
Appendix 1 – Proceeding participants ...................................................................................... 11
Appendix 2 – Summary of Commission directions .................................................................. 12
List of tables
Table 1. Disposition of assets outside of the ordinary course of business since the Stores Block appeal ................................................................................................................ 4
Decision 22749-D01-2017 (August 24, 2017) • 1
Alberta Utilities Commission
Calgary, Alberta
EPCOR Distribution & Transmission Inc. Decision 22749-D01-2017
Application to Dispose of Substation Property Proceeding 22749
1 Decision
1. This decision provides the Alberta Utilities Commission’s determination of an
application by EPCOR Distribution & Transmission Inc. (EPCOR) to dispose of a segment of
land. EPCOR submitted that the disposition was outside of the ordinary course of business and
required Commission approval pursuant to Section 101(2) (d) of the Public Utilities Act. For the
reasons that follow, the Commission has determined that the contemplated disposition is not
outside of the ordinary course of business. Accordingly, Commission approval of the disposition
is not required and the application is dismissed.
2 Introduction
2. On June 21, 2017, EPCOR filed an application with the Commission requesting approval
to dispose of a small segment of a larger parcel of land on which Substation No. 200 is located at
12019 102 Avenue Northwest, in Edmonton, Alberta (segment of land).
3. On June 22, 2017, the Commission issued a notice of application that required interested
parties to submit a statement of intent to participate (SIP) by July 6, 2017. The Commission did
not receive any SIPs by this date. On July 12, 2017, the Commission received a SIP from the
Office of the Utilities Consumer Advocate (UCA). In the SIP, the UCA indicated that it would
monitor the proceeding.
4. Also on July 12, 2017, the Commission issued a process letter indicating that information
requests would be issued to EPCOR on July 26, 2017, with information responses due August 9,
2017. The Commission determined that the application would be considered by way of a basic
written process as set out in Bulletin 2015-09.1
5. In subsequent correspondence dated July 21, 2017, the Commission indicated that after
reviewing the application in further detail, it determined that no further process was required.
In the letter, the Commission mistakenly noted the close of record for this proceeding as July 21,
2017. The Commission considers the record of this proceeding to have closed on July 12, 2017,
when the UCA’s SIP was filed.
6. In reaching the determinations set out within this decision, the Commission has
considered all relevant materials comprising the record of this proceeding. References in this
decision to specific parts of the record are intended to assist the reader in understanding the
Commission’s reasoning relating to a particular matter and should not be taken as an indication
that the Commission did not consider all relevant portions of the record with respect to this
matter.
1 Bulletin 2015-09, Performance standards for processing rate-related applications, March 26, 2015.
Application to Dispose of Substation Property EPCOR Distribution & Transmission Inc.
2 • Decision 22749-D01-2017 (August 24, 2017)
3 Background
3.1 The substation property
7. EPCOR is the owner of two lots at 12019 102 Avenue Northwest, Edmonton, Alberta,
legally described as Plan 4423AJ, Block 20, Lots 18 and 19 (the land)2 and a 5-kilovolt (kV)
substation located on the land, referred to as Substation No. 200 (the substation). The substation
consists of transformers, voltage regulators, breakers, switchgear and associated equipment, as
well as a small brick building to house sensitive equipment.3 EPCOR stated that the substation
will remain in use until 2018, when EPCOR intends to decommission the substation and apply
for permission to dispose of the remainder of the substation properties, including the land and
building located on the 12019 102 Avenue Northwest property.4
3.2 Property transaction history
8. In January 1996, the City of Edmonton transferred the land and substation to Edmonton
Power Inc., which was subsequently transferred to EPCOR in December 2000. The transaction
on the whole involved the transfer of 24 lots, including the land. EPCOR explained that the total
value of the 24 lots was recorded in its accounting system as $150,972. To determine a value for
each individual lot, EPCOR allocated the total value of $150,972 using the individual lot sizes,5
resulting in an initial book value of the land of $2,036.6
9. In 2016, the property and building adjacent to the substation, a former Edmonton
Telephones Corporation (and later Telus Communications) telephone exchange (the exchange
building) was purchased by Beljan Development (Beljan). According to EPCOR, Beljan intends
to convert the exchange building into a mixed-use office, retail and workshop space. As the
exchange building was built in 1913, Beljan is seeking to have it designated as a Municipal
Historic Resource by the City of Edmonton. EPCOR explained that Beljan’s Municipal Historic
Resource application is complicated by the fact that a portion of the exchange building
encroaches onto the segment of land.
10. In order to facilitate Beljan’s efforts to have the exchange building designated as a
Municipal Historic Resource by the City of Edmonton, EPCOR is seeking approval from the
Commission to sell the segment of land to Beljan. EPCOR submitted that the sale of the segment
of land to Beljan is the most efficient way to assist Beljan in preserving the historic building.7
11. The area of the land is 1,086 m2, and the area of the segment of land is approximately
66 m2. Given the land’s initial book value of $2,036, the calculated net book value of the
segment of land is $124, as shown below:8
66𝑚2
1,086𝑚2× $2,036 = $124
2 Exhibit 22749-0002, application, paragraph 8, Table 3.0-1, line 12.
3 Exhibit 22749-0002, application, paragraph 11.
4 Exhibit 22749-0002, application, paragraph 23.
5 Lots 18 and 19.
6 Exhibit 22749-0002, application, paragraphs 7-8.
7 Exhibit 22749-0002, application, paragraphs 4-5.
8 Exhibit 22749-0002, application, paragraph 9.
Application to Dispose of Substation Property EPCOR Distribution & Transmission Inc.
Decision 22749-D01-2017 (August 24, 2017) • 3
12. EPCOR estimated that the approximate value of the land, based on the tax assessment
value, is $139,000.9 This yields an estimated value of $8,447 for the segment of land, as a
proportion of the entire site’s area and tax assessment value, as shown below:10
66𝑚2
1,086𝑚2 × $139,000 = $8,447
13. EPCOR explained that pending a decision from the Commission on this application, the
actual sale price will be determined by negotiations between EPCOR and Beljan. No costs
associated with the disposition of the segment of land will be charged to EPCOR ratepayers.
Beljan has agreed to reimburse EPCOR for any environmental assessment and remediation costs,
land appraisal fees, land agent fees and legal fees associated with the disposition.11
4 Legislation
14. As a designated owner of a public utility pursuant to Section 101(1) of the Public
Utilities Act and its regulation,12 EPCOR is subject to Section 101(2) of the Public Utilities Act,
which states:
101 (2) No owner of a public utility designated under subsection (1) shall
…
(d) without the approval of the Commission,
(i) sell, lease, mortgage or otherwise dispose of or encumber its property,
franchises, privileges or rights, or any part of them, or
(ii) merge or consolidate its property, franchises, privileges or rights, or any
part of them,
and a sale, lease, mortgage, disposition, encumbrance, merger or
consolidation made in contravention of this clause is void, but nothing in
this clause shall be construed to prevent in any way the sale, lease,
mortgage, disposition, encumbrance, merger or consolidation of any of
the property of an owner of a public utility designated under
subsection (1) in the ordinary course of the owner’s business. [emphasis
added]
9 The Property is zoned as “Public Utility” and its tax roll number is 3519055, with a tax assessment value for the
Property of $139,000. 10
Exhibit 22749-0002, application, paragraph 13. 11
Exhibit 22749-0002, application, paragraph 14. 12
The Public Utilities Designation Regulation, Alta Reg 194/2006, Section 1(1)(n) provides that sections 101 and
102 of the Public Utilities Act applies to EPCOR Distribution & Transmission Inc.
Application to Dispose of Substation Property EPCOR Distribution & Transmission Inc.
4 • Decision 22749-D01-2017 (August 24, 2017)
5 Discussion of issues
5.1 Disposition of assets and the ordinary course of business
15. EPCOR submitted that its proposed disposition of the segment of land is outside of the
ordinary course of business and therefore requires the prior consent of the Commission pursuant
to Section 101(2)(d) of the Public Utilities Act.13
16. In the application, EPCOR provided the following list of its properties that were disposed
outside of the ordinary course of business since 2006:
Table 1. Disposition of assets outside of the ordinary course of business since the Stores Block appeal14
Property
A B C D E F G H I J
Original Cost
Transaction year
Land Building Total Accumulated depreciation
Net book value
Sale price
Selling costs
Net proceeds
Total gain on sale
($ million)
1 West Service Center 2006 0.25 0.27 0.51 0.15 0.36 2.26 0.10 2.17 1.80
2 Meter Hall 2006 0.11 0.08 0.18 0.05 0.14 0.27 0.01 0.25 0.12
3 West Edmonton Storage Site 2007 - - 0.01 0.00 0.01 0.10 0.01 0.09 0.08
4 Substations 300 & 360 2011 0.00 0.00 0.00 0.00 0.00 1.01 0.00 1.01 1.01
5 Substation 250 2017 0.00 0.12 0.13 0.03 0.10 0.40 0.241 0.16 0.06
6 Substation 450 2017 0.00 0.023 0.02 0.01 0.02 0.55 0.192 0.36 0.34
7 Substation 200 (Segment) 2017 0.00 - 0.00 0.00 0.00 0.01 - 0.01 0.01
1 Substation 250 selling costs shown here include $0.22 million in decommissioning costs. 2 Substation 450 selling costs shown here include $0.15 million in decommissioning costs. 3 EPCOR notes that the Substation 450 Property Disposition Application inadvertently omitted $0.02 million in costs that were associated with the
small metal-clad structure described in paragraph 13 of Exhibit 21405-X0002. These costs were recorded as building costs in EPCOR’s Asset Tracking System. Table 8.0-1 has been updated to reflect these costs.
17. EPCOR noted that in recent utility property disposition proceedings15 the Commission
considered materiality, net book value, market value, frequency and type of asset disposition, in
determining whether a disposition is inside or outside the ordinary course of business. EPCOR
provided the following details in respect of each of these factors in its consideration of the
current disposition:
Materiality – net book value and market value: The net book value of the segment of land
is approximately $124. EPCOR expects to sell the segment of land to Beljan for
approximately $0.01 million. The expected proceeds of the sale and the net book value do
not fall within the range of values in asset dispositions previously approved by the
13
Exhibit 22749-0002, application, paragraph 1. 14
Exhibit 22749-0002, application, Table 8.0-1, paragraph 20. 15
For example, see: Decision 3206-D01-2015: EPCOR Distribution & Transmission Inc., Disposition of
Substation Property, Proceeding 3206, Application 1610546-1, February 25, 2015; Decision 20271-D01-2015:
FortisAlberta Inc., Disposition of Land in High River, Proceeding 20271, August 31, 2015; Decision 20329-
D01-2015: ATCO Electric Ltd., Disposition of Land and Buildings Located in Grande Prairie and
Lloydminster, Proceeding 20329, September 16, 2015; Decision 21405-D01-2016: EPCOR Distribution &
Transmission Inc., Disposition of Substation Property, Proceeding 21405, May 11, 2016; and Decision 22055-
D01-2017: ENMAX Power Corporation, Application to Dispose of Substation Properties, Proceeding 22055,
February 15, 2017.
Application to Dispose of Substation Property EPCOR Distribution & Transmission Inc.
Decision 22749-D01-2017 (August 24, 2017) • 5
Commission as outside of the ordinary course of EPCOR’s business, and EPCOR does
not consider these amounts to be material.
Frequency: EPCOR has disposed of seven assets outside of the ordinary course of
business, including the proposed sale of the segment of land, since 2006. This yields a
frequency of approximately one asset disposition every 1.5 years over that period.
Type of asset disposition: Given the unusual nature of the transaction and because of
EPCOR’s plans to dispose of the remaining land and the substation in 2018, EPCOR
considers that Commission approval is necessary for the disposition. Past dispositions
applied for by EPCOR have been for entire properties, including land and buildings, that
were no longer used or required to be used for providing utility service. The proposed
disposition of the segment of land is the only instance where EPCOR has sought to sell a
portion of a property while the remainder remains in service. Further, in anticipation of
applying for Commission approval for the disposition of the remaining portion of the
property in 2018, EPCOR determined that it would be preferable to take a consistent
approach with all portions of the property. EPCOR is pursuing this proposed disposition
solely to accommodate Beljan’s plans to have the exchange building designated as a
Municipal Historic Resource by the City of Edmonton.16
Commission findings
18. Section 101(2) (d) of the Public Utilities Act prevents a designated owner of a public
utility from, amongst other things, disposing of any property outside of the ordinary course of
business without first obtaining Commission approval. Any disposition without such prior
approval is void.
19. Before the Commission can consider the merits of the application, it must determine
whether the proposed disposition of the segment of land is inside, or outside, the ordinary course
of EPCOR’s business. The term “ordinary course of business” has existed in law for many years
and, as noted by the Supreme Court of Canada in ATCO Gas & Pipelines Ltd. v Alberta (Energy
& Utilities Board), 2006 SCC 4 (Stores Block), public utilities have been required to obtain the
approval of the Commission’s predecessors before selling any property as far back as 1915.17
20. In Order U2001-196,18 the Alberta Energy and Utilities Board, a predecessor to the
Commission, outlined the criteria to be used in determining whether the disposition of an asset
should be treated as being outside of the ordinary course of business, as follows:
… The Board confirms that it must first determine whether the disposition of an asset is
outside the ordinary course of business for a utility. The proceeds of disposition, NBV
[net book value], frequency and type of sale would be among the factors considered by
the Board in that determination. The quantum, and materiality (in relation to the total rate
base) of the proceeds of disposition and the NBV would all be considered.19
16
Exhibit 22749-0002, application, paragraphs 21-23. 17
ATCO Gas & Pipelines Ltd. v Alberta (Energy & Utilities Board), 2006 SCC 4. 18
Alberta Energy and Utilities Board, Order U2001-196: In the Matter of the Sale of the Athabasca Maintenance
Facility, Application 2001112, File 6417-04, August 3, 2001. 19
Order U2001-196, pages 3-4.
Application to Dispose of Substation Property EPCOR Distribution & Transmission Inc.
6 • Decision 22749-D01-2017 (August 24, 2017)
21. In Decision 2013-417,20 the Commission confirmed that the factors identified in Order
U2001-196, namely proceeds of disposition, net book value, frequency and type of sale, and
quantum and materiality of the proceeds of disposition and the net book value in relation to total
rate base, remained the criteria to be applied in determining whether a disposition is inside or
outside of the ordinary course of business of a particular utility. At paragraph 321 of that
decision, the Commission stated the following:
321. The Commission considers that the criteria articulated in Order U2001-196 are
sufficient for the utility to determine whether a disposition is inside or outside the
ordinary course of business for the purpose of determining if an application for approval
of the disposition must be filed.21
22. The criteria used in determining whether a disposition is inside or outside the ordinary
course of business were also considered and affirmed in a number of recent Commission
decisions.22
23. Should the Commission decide that a disposition is outside of the ordinary course of
business, it will apply a “no-harm” test that examines the transaction in the context of both
potential financial impacts and service level impacts to customers23 in considering whether to
approve the disposition.
24. EPCOR expects to sell the segment of land to Beljan for approximately $8,500 and
submitted that the net book value of the segment of land is approximately $124. In its
application, EPCOR explained that the proceeds of the proposed disposition and the net book
value of the land segment are not material and do not fall within the range of values of asset
dispositions previously approved by the Commission as outside of the ordinary course of
EPCOR’s business. The Commission agrees with EPCOR that if the segment of land is sold to
Beljan as proposed, the net book value and the proceeds of disposition are not material in
relation to EPCOR’s total rate base. The limited value to be realized upon disposition and the
immaterial net book value of the segment of land suggest that this disposition is not of a type that
requires Commission approval.
25. EPCOR’s evidence on the frequency of dispositions is that since 2006, EPCOR has
disposed of six assets as being outside of the ordinary course of business. The proposed
disposition of the segment of land is the only instance for which EPCOR has sought to sell a
portion of a piece of property while the remainder remains in service. EPCOR’s past
dispositions, as indicated in Table 1, have been for entire properties that were no longer used or
required to be used for providing utility service. The proposed disposition is only to
accommodate Beljan’s plans to have the exchange building designated as a Municipal Historic
Resource by the City of Edmonton.
26. The Commission considers the proposed disposition to be in the nature of a minor
adjustment to the lands to correct for an unintended encroachment. EPCOR represented that this
correction will have no impact on the operations of the substation or the accompanying
equipment. Consequently, although the proposed disposition is unusual, the Commission does
20
Decision 2013-417: Utility Asset Disposition, Proceeding 20, Application 1566373-1, November 26, 2013. 21
Decision 2013-417, paragraph 321. 22
See footnote 15. 23
See Decision 20528-D01-2015, Section 4.2. See also Decision 2000-41: TransAlta Utilities Corporation, Sale of
Distribution Assets, Application 2000051, File 6404-3, July 5, 2000, pages 7-8.
Application to Dispose of Substation Property EPCOR Distribution & Transmission Inc.
Decision 22749-D01-2017 (August 24, 2017) • 7
not consider that an adjustment of this nature merits Commission scrutiny, or that the adjustment
is outside of the ordinary course of EPCOR’s business in these circumstances.
27. In weighing each of the above factors, and in consideration of the unique nature of the
proposed transaction and the immaterial amounts at issue, the Commission finds that the
proposed disposition of the segment of land to Beljan is within the ordinary course of business of
EPCOR. Accordingly, Commission approval for the disposition of the segment of land to Beljan
is not required pursuant to Section 101(2)(d) of the Public Utilities Act. In making this finding,
the Commission recognizes that it is neither practical nor efficient for EPCOR to apply to the
Commission for prior approval of every minor transaction. For these reasons, subject to the
directions of the Commission in Section 5.2, the application to dispose of the segment of land is
dismissed. EPCOR may proceed to dispose of the segment of land without Commission
approval. Given the representations of EPCOR with respect to the reasons for the disposition and
that Beljan has agreed to pay all associated costs, it is the Commission’s expectation that
EPCOR’s customers will not bear any costs associated with this transaction and the transfer of
the segment of land, including any costs associated with subdividing the land.
5.2 Adjustment due to disposition
28. In connection with the disposition of the segment of land, EPCOR explained that it does
not propose to adjust its revenue and rates due to the disposition of the segment of land because
it considered both the net book value of the segment of land (approximately $124) and the
expected proceeds from the proposed sale (in the range of $8,500 as discussed in Section 5.1
above) to be immaterial.24
Commission findings
29. The Commission has considered the timing for removal of the segment of land from rate
base by EPCOR and the impact to rates. As established by the courts and as reflected in prior
Commission decisions, EPCOR has the obligation to remove assets from rate base when they
cease to be used or required to be used in the provision of utility service.25 Once the segment of
land is subdivided from the land on which the substation is located, the segment will no longer
be part of an asset that is used or required to be used for utility service and should be removed
from rate base. In previous decisions dealing with EPCOR’s requests to dispose of substation
properties (both land and buildings) during the 2013-2017 performance-based regulation (PBR)
term, specifically in decisions 3206-D01-201526 and 21405-D01-2016,27 the Commission
generally took the approach of not requiring an adjustment to rate base and rates during the then
current PBR term. This was done to preserve the incentives of PBR, which is intended to
decouple a company’s revenues from costs for the duration of the PBR term and is consistent
with the Commission’s direction in Decision 2012-23728 that adjustments to going-in rates are
24
Exhibit 22749-0002, application, paragraph 18. 25
See, e.g., Atco Gas and Pipelines Ltd v Alberta (Utilities Commission), 2014 ABCA 28 and Calgary (City) v
Alberta (Utilities Commission), 2010 ABCA 158 as cited in Decision 20528-D01-2015: ATCO Gas and
Pipelines Ltd., CU Inc. and Canadian Utilities Limited, Disposition of the Calgary Service Centre Assets,
Proceeding 20528, September 23, 2015 and FortisAlberta Inc. v Alberta (Utilities Commission), 2015 ABCA
295, leave to appeal refused, SCC File No. 36728. 26
Decision 3206-D01-2015, paragraph 99. 27
Decision 21405-D01-2016, paragraph 52. 28
Decision 2012-237: Rate Regulation Initiative, Distribution Performance-Based Regulation, Proceeding 566,
Application 1606029-1, September 12, 2012.
Application to Dispose of Substation Property EPCOR Distribution & Transmission Inc.
8 • Decision 22749-D01-2017 (August 24, 2017)
not to be made to reflect actual events during the PBR term.29 In these two decisions, the
Commission determined that it would not require EPCOR to remove any assets being disposed
of from rate base and rates prior to the expiry of the then current PBR term in 2017.
30. Based on the record of this proceeding, it is the Commission’s expectation that EPCOR
will dispose of the segment of land by the end of 2017. In the application, EPCOR explained that
it did not intend to make an adjustment to its revenue and rates due to the disposition of the
segment of land because it considered both the net book value of the segment of land
(approximately $124) and the expected proceeds from the proposed sale (in the range of $8,500
as discussed in Section 5.1 above) to be immaterial.
31. EPCOR’s rebasing application30 to set its going-in rates for the 2018-2022 PBR plan is
currently before the Commission. Because of this, and given the direction from the courts
referred to above, the Commission finds that EPCOR should reflect the removal of the segment
of land from rate base upon disposition. At the same time, the Commission acknowledges that
the net book value of the segment of land is of such immateriality relative to its rate base that
reflecting this disposition would not, practically speaking, have any impact on EPCOR’s
rebasing application or customer rates. Accordingly, the Commission will not require EPCOR to
submit amended schedules in the rebasing proceeding but directs EPCOR to reflect the removal
of the segment of land from rate base as part of EPCOR’s next filing dealing with actual rate
base.
32. EPCOR has indicated that the remainder of the land after the subdivision and removal of
the segment of land will continue to provide utility service until 2018, at which point the
substation will be decommissioned. The Commission will consider the treatment of the net book
value of the remaining portion of the land and the substation located on it when EPCOR makes
an application to the Commission.
6 Order
33. It is hereby ordered that:
(1) The application of EPCOR Distribution & Transmission Inc. to dispose of the
segment of land located at 12019 102 Avenue Northwest, Edmonton, Alberta, is
dismissed.
29
Decision 2012-237, paragraph 88. 30
Proceeding 22394, Exhibit 22394-X0034, application.
Application to Dispose of Substation Property EPCOR Distribution & Transmission Inc.
Decision 22749-D01-2017 (August 24, 2017) • 9
Dated on August 24, 2017.
Alberta Utilities Commission
(original signed by)
Anne Michaud
Commission Member
Application to Dispose of Substation Property EPCOR Distribution & Transmission Inc.
Decision 22749-D01-2017 (August 24, 2017) • 11
Appendix 1 – Proceeding participants
Name of organization (abbreviation) Company name of counsel or representative
EPCOR Distribution & Transmission Inc. (EPCOR)
Office of the Utilities Consumer Advocate (UCA)
Alberta Utilities Commission Commission panel A. Michaud, Commission Member Commission staff
K. Kellgren (Commission counsel) P. Genderka P. Howard
Application to Dispose of Substation Property EPCOR Distribution & Transmission Inc.
12 • Decision 22749-D01-2017 (August 24, 2017)
Appendix 2 – Summary of Commission directions
This section is provided for the convenience of readers. In the event of any difference between
the directions in this section and those in the main body of the decision, the wording in the main
body of the decision shall prevail.
1. EPCOR’s rebasing application to set its going-in rates for the 2018-2022 PBR plan is
currently before the Commission. Because of this, and given the direction from the courts
referred to above, the Commission finds that EPCOR should reflect the removal of the
segment of land from rate base upon disposition. At the same time, the Commission
acknowledges that the net book value of the segment of land is of such immateriality
relative to its rate base that reflecting this disposition would not, practically speaking,
have any impact on EPCOR’s rebasing application or customer rates. Accordingly, the
Commission will not require EPCOR to submit amended schedules in the rebasing
proceeding but directs EPCOR to reflect the removal of the segment of land from rate
base as part of EPCOR’s next filing dealing with actual rate base. ................ Paragraph 31