2025–26 Annual Report of the Commission of the Canada Energy Regulator - Roles and Work of the Commission

A Court of Record

The Commission is an independent, quasi-judicial decision-maker. The Commission makes decisions and recommendations pursuant to its mandate as set out in the CER Act and other legislation.

Under the CER Act, the Commission functions as a court of record and possesses all the powers, rights, and privileges granted of a superior court concerning matters under its jurisdiction. Its jurisdiction to make decisions and carry out inquiries is broad, enabling it to consider matters related to compliance with the CER Act, which arise through incoming filings, applications, or through a Commission decision to act on its own initiative.

The Commission similarly has the authority to make decisions on oil and natural gas exploration and production projects in the north pursuant to the COGOA, the CPRA, and the Northwest Territories’ (NWT) Oil and Gas Operations Act, and offshore renewable energy projects and offshore power lines under CER jurisdiction.

All Commissioners are appointed by the Governor in Council (GIC). In 2025-26, the Commission was composed of seven full-time Commissioners including the Lead Commissioner and Deputy Lead Commissioner. Further information on the Commissioners is provided in Appendix A – Commissioner Biographies.

How the Commission Conducts Its Work

The Commission is an expert tribunal, supported by skilled CER technical staff. The Commission applies the factors and considerations outlined in the CER Act to make decisions and recommendations in the Canadian public interest. The Commission conducts hearings that are open to rightsholders, stakeholders, industry, and members of the Canadian public. Decisions and recommendations are based on evidence, which includes scientific and technical evidence and data, Indigenous knowledge, and information and arguments received through written and oral proceedings.

The Commission considers Indigenous perspectives and values as part of its adjudicative processes, consistent with its commitment to Reconciliation.

Beyond this work, the Commission maintains working relationships with provincial and federal regulators on matters of common interest, enabling the exchange of information on innovation, efficiency, and developments in the energy sector.

Lifecycle Regulation

Under the CER Act, the CER is a lifecycle regulator, ensuring oversight of federally regulated pipelines and power lines from the earliest planning stages through construction, operation, decommissioning, and their eventual abandonment.

Following the approval of an infrastructure application, companies must comply with conditions set by the Commission throughout project execution. These conditions require companies to construct and operate their facilities safely, minimize risks, prevent damage, and report appropriately to the CER. The conditions of project approvals enable the CER and Commission to take action related to compliance and enforcement when appropriate. Oversight under the CER Act also extends through the decommissioning and abandonment of regulated facilities.

Economic Regulation

The Commission is responsible for the economic regulation of pipelines throughout their lifespan. This includes reviewing toll and tariff applications and considering complaints from shippers. Tolls are the charges pipeline companies impose for transportation service; a tariff is the schedule of tolls, conditions, classifications, and rules under which a pipeline company provides service.

Under the CER Act, tolls must be just and reasonable and must not result in unjust discrimination. In reviewing toll and tariff applications, the Commission considers whether tolls generate sufficient revenue for pipeline companies to recover costs and earn a reasonable return, and whether shippers have access to pipeline infrastructure at a reasonable cost.

The Commission also requires pipeline companies to maintain adequate financial resources for future pipeline abandonment activities.

Where parties choose to negotiate toll and tariff outcomes commercially, the Commission's Guidelines for Negotiated Settlements of Traffic, Tolls and Tariffs provides a framework for assessing the resulting applications.

Compensation and Cost Apportionment Hearings

Under the CER Act, the Commission has the authority to determine compensation for the use of land or for damage that results from the construction or operation of a pipeline. The CER Act also gives the Commission the mandate of deciding on the apportionment of costs directly incurred as a result of the construction or disturbance authorized by the Commission.

Working with Indigenous Peoples

The Commission receives Indigenous knowledge, including oral knowledge within local communities, to inform its decisions. Whether acting as a final decision-maker or making a recommendation to the federal cabinet, the Commission is responsible for ensuring the Crown’s duty to consult and accommodate is fulfilled and continues to work to ensure proponents and affected Indigenous peoples receive clarity on the Commission’s role in this regard.

With respect to recent major facilities applications, in 2025-26, 68 Indigenous communities shared oral Indigenous knowledge and participated in two section 183 hearings over a total of 28 days, with some communities participating in both proceedings. Independent of the Commission, the CER administers a Participant Funding Program (PFP) to support Indigenous participation in its hearing processes.

Regulatory Efficiency

In 2025, the CER completed a Red Tape Review identifying areas for efficiency improvements, several of which are now underway through the Regulatory Optimization Project. This was a CER-wide initiative launched in April 2025 to improve the timeliness and predictability of regulatory and adjudicative processes through streamlined internal and external procedures and refined guidance documents.

As part of these efficiency improvements, assessment time for smaller facilities (section 214) applications has been reduced to an average of 98 days in 2025-26, down from 127 days in 2023-24. This represents an improvement of nearly 30 percent.

On 28 January 2026, the Commission issued updated Streamlining and Decommissioning Exemption Orders, clarifying and expanding criteria for negligible-risk projects that may proceed without a formal application. The updated Orders were informed by engagement with Indigenous communities, industry and other stakeholders from July to October 2024.

For larger facilities (section 183) applications, the Commission revised and published its approach to early hearing steps in March 2026, with the intent of reducing the completeness assessment period from an average of 175 days to under 60 days.

The CER Portal was launched externally in February 2026, and it enables companies and stakeholders to submit and manage regulatory filings in a single online location, reducing manual processing times from days to minutes and providing greater clarity on timelines.

A four-phase review of the National Energy Board (NEB) Rules of Practice and Procedure, 1995 is underway to align them with the CER Act and formalize modernized hearing procedures, with final publication anticipated between late 2026 and the first half of 2027.

The Filing Manual and Electricity Filing Manual are also being updated to provide greater clarity on filing requirements, including measures to reflect Indigenous rights and interests in project applications.

By enabling parties to reach mutually agreeable resolutions without proceeding to a formal hearing, CER alternative dispute resolution (ADR) services, such as mediation, reduce the time and resources required of all parties involved, contributing to overall regulatory efficiency.

Legislated Time Limits and Internal Service Standards

The CER Act establishes legislated time limits within which the Commission must complete assessments and issue decisions or recommendations for certain types of applications. For section 183 applications, the Commission has up to 450-day time limit from the start of its assessment to submit a recommendation report to the Minister.

For section 214 applications, the maximum legislated time limit is 300 days. Within that limit, the Commission applies shorter internal service standards based on application complexity. Applications are assigned to one of three categories - Category A, B, and C – with legislated time limits of 130, 210 and 300 days respectively, and internal service standards of 40, 90 and 120 days respectively to complete reviews.

For hearing-based proceedings, the CER has a service standard of 12 weeks to release a decision following the close of the hearing record. For applications not subject to a legislated time limit or a specific service standard, efficient and expeditious reviews are the goal of the Commission.

Table 1: Performance Against Legislated Time Limits and Service Standards

Date modified:

2026-08-13