ARCHIVED - NEB Approves Trans Mountain Toll Methodology for Proposed Expanded System
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For immediate release
May 16, 2013
NEB Approves Trans Mountain Toll Methodology for Proposed Expanded System
CALGARY - The National Energy Board (NEB or Board) today approved the application by Trans Mountain Pipeline ULC (Trans Mountain) under Part IV of the NEB Act for the toll methodology that would be implemented on the proposed Trans Mountain expanded system, if the system is eventually expanded.
After considering the entirety of the record, the Board finds, on balance, that the toll methodology as proposed by Trans Mountain will produce tolls that will be just, reasonable and not unjustly discriminatory, pursuant to Part IV of the National Energy Board Act (NEB Act). The Board’s reasons can be found in its Reasons for Decision at www.neb-one.gc.ca.
Among the reasons for its decision, the Board finds that the Open Season and negotiation process conducted by Trans Mountain was fair and transparent. The Board’s view is that the appropriateness of the Open Season, the presence of alternate sources of transportation, and the Board’s mandatory review of the toll methodology mitigated concerns of parties related to Trans Mountain’s potential dominant position in toll negotiations with shippers.
The Board's of the view that the proposed allocation of capacity between firm service and uncommitted service, and the proposed allocation of uncommitted capacity between dock and land destinations, are appropriate. As a result, the Board finds that Trans Mountain would satisfy its common carrier obligations.
The Board noted in its decision that it expects regulated companies to invest the resources required for safe operations, environmental protection and full regulatory compliance at all times. Trans Mountain is expected to provide sufficient planning and resources to deliver on its pipeline safety commitments now and during the operation of any expanded system.
The Toll Order and specified relief is contingent on the expanded system being approved under Part III of the NEB Act and will come into effect if and when this expanded system is placed into service.
This application did not seek Board approval to construct the expanded system. The NEB does not currently have a Part III facilities expansion application before it from Trans Mountain regarding the future planned expansion of the Trans Mountain pipeline system.
The National Energy Board is an independent federal regulator of several parts of Canada's energy industry with the safety of Canadians and protection of the environment as its top priority. Its purpose is to regulate pipelines, energy development and trade in the Canadian public interest. For more information on the NEB and its mandate, please visit the National Energy Board website.
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For further information:
Media Relations Team
Canada Energy Regulator
Email: media@cer-rec.gc.ca
Telephone (toll free): 1-800-899-1265
Related documents:
- Reasons for Decision RH-001-2012 [Filing A51913]
- 2012-06-29 - Application for Approval of the Transportation Service and Toll Methodology for the Expanded Trans Mountain Pipeline System (RH-001-2012) [Folder 828580]
For a printed copy of Reasons for Decision RH-001-2012:
Canada Energy Regulator Library
Canada Energy Regulator
210-517 10 Ave SW
Calgary AB T2R 0A8
Email: info@cer-rec.gc.ca
Telephone: 403-299-3561
Telephone (toll free): 1-800-899-1265
Facsimile: 403-292-5503
Facsimile (toll free): 1-877-288-8803
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