ARCHIVED - Process for Amending the Cost Recovery Regulations
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The National Energy Board (NEB) has completed the process for amending the National Energy Board Cost Recovery Regulations as they relate to the allocation of costs within the electricity industry.
The amendments arose from a 2004 request from several members of the electricity industry for a review of the cost recovery methodology for the electricity industry. Changes in the structure of the Canadian electricity industry had resulted in a separation of the transmission function from generation, distribution and marketing, including exporting. The existing Regulations allocated recoverable costs attributable to regulation of the electricity industry to electricity exporters. The amended Regulations instead recover NEB costs attributable to regulation of the electricity industry from power line companies, thus resulting in a more equitable cost recovery structure while retaining the existing attribution and recovery mechanisms
Starting in 2005, the NEB engaged regulated companies, industry associations and potentially interested parties about the issue, options, criteria for evaluation of options and proposed amendments. Engagement activities have included letters, workshops and meetings and opportunities to provide comment on the proposed amendments. Below is all public information related to the process.
- Presentation - Notice of Service Enhancement for Remittances to the National Energy Board
- Cost Recovery Liaison Committee
- NEB Letter - Requested Amendment to the National Energy Board Cost Recovery Regulations - 3 August 2011
- Canadian Association of Petroleum Producers - Requested Amendment to the National Energy Board Cost Recovery Regulations - 27 May 2011
- NEB Letter - Requested Amendment to the National Energy Board Cost Recovery Regulations - 18 March 2011
- Cost Recovery Workshops - 1 and 3 February 2010
- Presentation - Review of Amendments to the National Energy Board Cost Recovery - 1 January 2010
December 2009. Publication: Canada Gazette, Part II
The Regulations Amending the National Energy Board Cost Recovery Regulations were published in the 9 December 2009 Canada Gazette, Part II, and come into force on 1 January 2010. The substantive changes in the amended Regulations affect regulated electricity companies only. They require that costs currently recovered from electricity exporters be instead recovered from NEB-regulated power line companies that transport electricity. Each company is allocated a levy based on the amount of energy that it transmits. There will also be a levy on newly approved power line companies equal to 0.2% of the capital cost to construct the applied-for facilities.
- NEB letter: Regulations Amending the National Energy Board Cost Recovery Regulations SOR/2009-307 will come into force on 1 January 2010 with changes affecting NEB-regulated electricity companies - 9 December 2009
- Cost Recovery - Questions and Answers - 28 April 2010
August 2009. Pre-publication: Canada Gazette, Part I
The draft of the Regulations Amending the National Energy Board Cost Recovery Regulations was pre-published in Part I of the Canada Gazette on 8 August 2009 with a one month review period to 8 September 2009. Following are the written comments submitted during the Canada Gazette, Part I, review period.
- Hydro One Networks Inc. - 4 September 2009 [PDF 34 KB]
- Montana Alberta Tie Ltd. - 4 September 2009 [PDF 11 KB]
- Nalcor Energy - 4 September 2009 [PDF 40 KB]
- Powerex Corp. - 3 September 2009 [PDF 211 KB]
A discussion of the comments received is available in the Regulatory Impact Assessment Statement published on the Canada Gazette Website, Part II: Official Regulations, Wednesday, December 9, 2010, Vol. 143, No. 25.
- NEB letter concerning Project to amend the National Energy Board Cost Recovery Regulations - 17 August 2009
Electricity Cost Recovery Concept Development and Review (2005-2006)
The Board has received the following comments in relation to the Electricity Cost Recovery Concept:
- British Columbia Transmission Corporation (BCTC) - 20 February 2006 [PDF 155 KB]
- Brookfield Power - 6 February 2006 [PDF 100 KB]
- Hydro-Québec TransÉnergie - 20 February 2006 [French only: PDF 19 KB]
- Independent Electricity System Operator (IESO) - 20 February 2005 [PDF 52 KB]
- Manitoba Hydro - 15 February 2006 [PDF 128 KB]
- New Brunswick Power Transmission Corporation - 20 February 2006 [PDF 311 KB]
- Powerex Corp.- 27 February 2006 [PDF 59 KB]
- Coral Energy Inc. - 13 February 2006 [PDF 32 KB]
The Board is pleased to present the proposed cost recovery concept for the electricity sector. Written comments on the concept shall be filed with the Secretary of the Board by 20 February 2006.
- Electricity Cost Recovery: Proposed amendments to the National Energy Board Cost Recovery Regulations - 19 January 2006
Information Session 19 January 2006
- Hydro One Networks Inc.'s Comments on the June 2005 Summary Report - 7 September 2005 [PDF 84 KB]
- Ontario Independent Electricity System Operator's (IESO) Comments - 2 August 2005
- Hydro-Québec TransÉnergie's Comments dated 2 August 2005
Note: The Board was unable to include the comments received from Hydro-Québec TransÉnergie, a participant at the workshop in Montréal in June 2005, in the original document before release to the public. These comments should be referred to when reading the Summary of Workshop Discussion - 2 June 2005.
- Views of Manitoba Hydro on the Impact Assessment of Potential Cost Recovery Changes and Options Discussed at the Workshop - 22 July 2005
Electricity Cost Recovery Alternatives
The NEB engaged Chymko Consulting Ltd. as a cost recovery consultant to provide assistance in a review of the NEB's electricity cost recovery regulations. As part of the project, Chymko Consulting was asked to research electricity cost recovery methodologies of other countries and Canadian jurisdictions and provide a written report to that effect. The report is titled Electricity Cost Recovery Alternatives [PDF 515 KB].
2 June 2005 Workshop Presentations and Documents
- Regulation Proces
- De-mystifying Cost Recovery Fees (It’s easy as A B C)
- Supplementary notes on cost recovery
- Overview of Electricity Program
- List of Proposed Electricity Cost Recovery Options
- Proposed Criteria to Evaluate the Cost Recovery Options
- National Energy Board Electricity Cost Recovery Workshop - Summary of Workshop Discussion - Revision 1 - 9 December 2004 [PDF 435 KB]
- NEB Response to Hydro-Québec - 14 July 2004
- Request for Review of the National Energy Board Cost Recovery Regulations - Electricity - 31 March 2004 [PDF 131 KB]
- National Energy Board Act
- National Energy Board Cost Recovery Regulations - SOR/91-7
- Policy on Service Standards for External Fees
- User Fees Act
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