NOVA Gas Transmission Ltd. – Application for the reaffirmation of the North Montney Mainline tolling methodology

Project Background

What is a pipeline toll?

Transcript:

• What is a pipeline toll?
• Pipeline Toll: the price charged by a pipeline company to use their pipeline
• Who decides what price is fair?
• That’s the job of CER’s Commission
• The pipeline company proposes how much they would like to charge for the use of the pipeline
• The parties that want to use the pipeline tell us what they are willing to pay
• Then the Commission listens to everyone’s ideas
• and makes a decision that is fair for everyone
• Our goal is to protect the interests of Canadians
• And keep the companies we regulate competitive
• To learn more visit our website

Our Role

In addition to ensuring that pipelines are safe for people and the environment, the Canada Energy Regulator (CER) also regulates pipeline tolls and tariffs. Tolls are the price a pipeline company charges its customers to ship products, such as oil or natural gas, on its pipeline. The pipeline company uses toll revenues to pay for maintenance, earn back the money spent to build the pipeline and provide a return to its investors. Tolls also allow pipeline companies to operate and maintain pipelines safely.

A company can only charge a toll for pipeline services if it is included in a tariff filed with the CER or approved by a CER order. Pipeline tariffs specify the procedures by which shippers are to submit nominations for transportation service, including the form and timing of nominations. Sounds simple enough, but for some pipelines, a tariff could fill a large three-ring binder.

The Canadian Energy Regulator Act says tolls must be ‘ just and reasonable’  and not unjustly discriminatory. Additionally, the Act does not allow unjust discrimination in service, which generally means all shippers must be treated fairly.

Application

The Commission received an application submitted by NGTL on 23 May 2023 for approval of the reaffirmation of North Montney Mainline (NMML) tolling methodology, filed in compliance with condition 2 of CER Order TG-002-2020 [Filing C24574] (Application). The Application was submitted pursuant to Parts 1 and 3 of the Canadian Energy Regulator Act.

In its Application, NGTL submitted additional information for the Commission to reconsider its decision in RH-001-2021 [Document C18261-1] where the Commission indicated that it had insufficient information at that time to determine whether the existing NMML tolling methodology would continue to be appropriate upon commencement of gas deliveries at the Willow Valley Interconnect delivery point. As a result, in the RH-001-2021 decision, the Commission denied NGTL’ s request to have the Commission affirm that the tolling methodology approved in the RH-001-2019 [Document C05448-1] decision will be maintained for existing system services that utilize the NMML.

In its Application, NGTL invited comments on the Application and process from interested parties. The Commission of the Canada Energy Regulator received comments from seven parties and NGTL provided reply comments on 14 June 2023 [Filing C24876].

On 23 June 2023, the Commission issued a letter asking any interested party that wishes to participate in additional process steps established to consider the Application to register as an intervenor. The letter also sought comments on the issues raised in the Application and potential process steps [Filing C25089]. Between 27 June 2023 and 7 July 2023, 16 interested parties requested intervenor status and provided comments on the issues and process. NGTL filed reply comments on 13 July 2023 [C25518].

On 31 August 2023, the Commission issued Process Letter No. 2 which included its decision on participation, list of issues and the timetable of events [Filing C26021].

Timeline and Documents

Project Map

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