On March 27, 2013 the National Energy Board (the
"Board") provided their ruling on
TransCanada's application to revise the toll structure for
TransCanada's mainline pipeline (the
"Mainline"). According to the
Board's decision, the new "multi-year fixed tolls are
competitive and provide TransCanada with a reasonable opportunity
to recover its mainline costs, given the increase in mainline
throughput that is forecast". In the short term, the
Board's decision has the effect of significantly decreasing the
transportation toll from Empress, Alberta, to Dawn, Ontario, to
$1.42 per gigajoule as opposed to $2.58 per gigajoule for 2013 had
the Board not made changes to the tolling structure. The tolls are
expected to remain in effect through 2017. In their decision, the
Board noted that the Mainline faces challenges but "tolls
cannot continue to increase each year in response to throughput
decline". The Board did approve some elements of
TransCanada's proposal giving TransCanada some flexibility in
allocating costs on the Mainline and increasing the rate of return
that it could earn should higher throughput on the Mainline be
Historically, the Mainline system once carried as much as 6
billion cubic feet of natural gas per day. However, increasing gas
production from the Eastern United States, from supplies such as
the Marcellus shale field in Pennsylvania, have resulted in
decreasing throughput on the Mainline resulting in increasing tolls
for shippers on the line. The decision comes more than 18 months
after TransCanada first asked the Board to reconsider the tolling
structure on the Mainline.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
Canada is a constitutional monarchy, a parliamentary democracy and a federation comprised of ten provinces and three territories. Canada's judiciary is independent of the legislative and executive branches of Government.
The Government of Alberta recently announced a number of policy changes that will impact the Alberta Electricity Market, composed of its generators, transmitters, distributors, retailers, electricity consumers and wholesale electricity market.
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).