Sectors We Serve
Electric power is a unique resource. Energy cannot be stored and has no shelf life. We support companies in all areas of the energy sector ranging from distribution and transmission lines moving electricity to the plants that generate the power. We provide a variety of services to our clients to ensure fair assessments and taxation. This includes working with assessors to prepare initial cost analysis and capital spending reviews to assist in the determination of assessable costs. New large projects that are replacing aging existing plants, ongoing capital maintenance and life achievement work, annual compliance reporting and assessment and tax management services represent some of the services we provide the energy sector . Our partnership and support of our clients assists them to better meet the changing assessment regulatory environment and ensures taxes are mitigated wherever possible.
Case Study 1: Powerplant Assessment with Antiquated Cost Information
AEC is retained to review and advise on the property assessment of a large generation asset. The main challenge includes determining the fairness and correctness of the assessment decades after the original cost records used to prepare the initial assessment are lost.
The assessing authorities and the ratepayer cannot easily analyze the basis for the assessment. Over many decades the rules for assessment have changed and the original capital reports used to determine the assessments both for buildings and equipment are lost. In addition, recent changes varying tax rates between asset classes require a review and analysis in order to isolate errors or opportunities in the re allocation of the original capital spending.
AEC has a reputation for detailed machinery and equipment and building analysis. AEC also has expertise in detailed insurance valuations that are well suited to determine the various components of the facilities to properly allocate assets between recently changed tax classifications.
AEC’s detailed isolation of the various components of the complex generation asset results in a favourable re allocation of the buildings and equipment to more favourable tax classifications.
Case Study 2: Increasing Demands on Energy Clients
AEC’s Energy clients constantly have to deal with changes in legislation and a higher demand for meticulous data associated with the various components of their business.
The ATM process for an Energy client is an intricate one. It includes review of assessment data, verification of tax levies, and identification of anomalies and opportunities for reductions as well as allocation of cost centers to wells, pipelines, surface equipment, and electric power systems.
This means that AEC’s Energy team is constantly challenged to keep up with the overwhelming amount of information and the short requirements for its turn-around time, without increasing the cost to manage to the Energy clients.
A key contributor to the 2012 success was AEC’s exclusive Canadian rights to the ONESOURCE Property Tax™ (OPT) software system. Using OPT allowed the ATM team not only to efficiently process the immense volume of taxes, but to also provide detailed reporting to our clients on their tax liability. Where requested, taxes were uploaded directly into our client’s payable system – a practise that is becoming more popular as companies move to online payment approvals. These improvements have allowed us to provide our clients with the most advanced customized reporting in the area of property taxation allowing them to be paid on time, avoiding costly penalties.
Ai. After all the numbers were crunched, AEC’s Calgary-based Assessment & Tax Management (ATM) team proved that 2012 was a productive year. It was one marked by increased efficiency and unprecedented delivery of our Energy clients’ requirements. The final 2012 tax payment approval reports have been tallied; they have processed more than $165M in taxes for our Energy clients – in more than 450 jurisdictions in Western Canada and the Northern US!