National Energy Board Cost Recovery Regulations (SOR/91-7)

7 The Board shall, on or before September 30 in every year, calculate

• (a) the amount, if any, by which the total program costs determined in accordance with section 6 for the preceding year exceed the actual expenditures of the Board during that preceding year; or

• (b) the amount, if any, by which the actual expenditures of the Board during the preceding year exceed the total determined in accordance with section 6 for that preceding year.

8 The Board shall, in every year, adjust the total costs determined in accordance with section 6 by

• (a) deducting therefrom the amount calculated under paragraph 7(a), if any, or by adding thereto the amount calculated under paragraph 7(b), if any;

• (b) deducting therefrom any costs that are recovered under any other Act of Parliament; and

• (c) deducting from those total costs the total of all administration levies received under subsection 4(4) from large commodity pipeline companies, under subsection 5.1(1) from intermediate commodity pipeline companies, under subsection 5.1(2) from small commodity pipeline companies and in respect of border accommodation commodity pipelines under subsection 5.1(4).

9 [Repealed, SOR/95-540, s. 1]

Deliveries, Transmissions and Cost of Service

• 10 (1) On or before August 31 in every year, each large oil pipeline company and large gas pipeline company shall provide the Board with the following information:

  • (a) a forecast of its deliveries, in cubic metres, for the following year; and

  • (b) its actual deliveries, in cubic metres, for the previous year.

• (2) On or before August 31 in every year, each large power line company and small power line company shall provide the Board with the following information:

  • (a) a forecast of its electricity transmissions, in megawatt hours, for the following year; and

  • (b) its actual electricity transmissions, in megawatt hours, for the previous year.

• (3) On or before August 31 in every year, each intermediate oil pipeline company, intermediate gas pipeline company, small oil pipeline company and small gas pipeline company shall provide the Board with the following information:

  • (a) an estimate of the cost of service of its operations for the current year that are subject to the jurisdiction of the Board; and

  • (b) the actual cost of service for the preceding year of its operations that are subject to the jurisdiction of the Board.

Notification

• 11 (1) On or before September 30 in every year, the Board shall notify

  • (a) each large power line company of the cost recovery charge that will be payable by that company during the following year; and

  • (b) each large oil pipeline company and large gas pipeline company of the cost recovery charge that will, subject to subsection (2), be payable by each of those companies during the following year.

• (2) On or before December 31 in every year, the Board shall notify

  • (a) each large oil pipeline company that obtained relief under section 4.1 in respect of the following year of the cost recovery charge reduction determined under paragraph 14.1(1)(a);

  • (b) each large oil pipeline company that did not obtain relief under section 4.1 in respect of the following year of the cost recovery charge increase determined under paragraph 14.1(1)(b);

  • (c) each large gas pipeline company that obtained relief under section 4.1 in respect of the following year of the cost recovery charge reduction determined under paragraph 14.1(2)(a); and

  • (d) each large gas pipeline company that did not obtain relief under section 4.1 in respect of the following year of the cost recovery charge increase determined under paragraph 14.1(2)(b).

Allocation of Board Time

• 12 (1) On or before September 30 in every year, the Board shall determine for the immediately preceding fiscal year of the Board, on the basis of information provided by its management information systems, the percentage that each of

  • (a) the time spent by officers and employees of the Board on activities directly related to the responsibilities of the Board in respect of oil, oil pipelines, oil products, natural gas liquids and liquefied petroleum gas,

  • (b) the time spent by officers and employees of the Board on activities directly related to the responsibilities of the Board in respect of gas pipelines and natural gas, and

  • (c) the time spent by officers and employees of the Board on activities directly related to the responsibilities of the Board in respect of electricity and international and interprovincial power lines

  is to the total time spent by officers and employees of the Board during that immediately preceding fiscal year on activities related to the responsibilities of the Board under the Act or any other Act of Parliament in respect of which costs are attributed in accordance with section 6.

• (2) For the purpose of subsection (1), the time spent by officers and employees of the Board on activities directly related to the administration of the Board and on activities indirectly related to the responsibilities of the Board referred to in paragraphs (1)(a), (b) and (c) shall be apportioned among each of the amounts of time referred to in those paragraphs, respectively, in the same proportion as each amount of time is to the total time spent by officers and employees of the Board on activities directly related to those responsibilities.

Allocation of Costs

• 13 (1) The Board shall, each year, determine the total amount of costs to be recovered for the following year from large oil pipeline companies by

  • (a) multiplying the percentage determined under paragraph 12(1)(a) by the total costs determined under section 6 and adjusted under section 8; and

  • (b) deducting from the product determined under paragraph (a)

    • (i) the total of the administration levies to be paid during that year under section 5.1 by intermediate oil pipeline companies and small oil pipeline companies, and

    • (ii) the total of the levies to be paid during that year under section 5.2 by large oil pipeline companies, intermediate oil pipeline companies and small oil pipeline companies.

• (2) The Board shall, each year, determine the total amount of costs to be recovered for the following year from large gas pipeline companies by

  • (a) multiplying the percentage determined under paragraph 12(1)(b) by the total costs determined under section 6 and adjusted under section 8; and

  • (b) deducting from the product determined under paragraph (a)

    • (i) the total of the administration levies to be paid during that year under section 5.1 by intermediate gas pipeline companies, small gas pipeline companies and persons or companies operating border accommodation pipelines, and

    • (ii) the total of the levies to be paid during that year under section 5.2 by large gas pipeline companies, intermediate gas pipeline companies and small gas pipeline companies.

• (3) The Board shall, each year, determine the total amount of costs to be recovered for the following year from large power line companies by

  • (a) multiplying the percentage determined under paragraph 12(1)(c) by the total costs determined under section 6 and adjusted under section 8; and

  • (b) deducting from the product determined under paragraph (a)

    • (i) the total of the administration levies to be paid during that year under subsection 5.1(2) by small power line companies, and

    • (ii) the total of the levies to be paid during that year under section 5.3.

Calculation of Cost Recovery Charges

• 14 (1) The cost recovery charge payable by a large oil pipeline company is equal to the amount determined by the formula

  A x B/C

   where

  A

  is the total amount of costs determined in accordance with subsection 13(1);

  B

  is the forecast of deliveries, in cubic metres, of that company for the following year provided to the Board pursuant to paragraph 10(1)(a); and

  C

  is the aggregate of the forecasts of deliveries, in cubic metres, for the following year, of all the large oil pipeline companies, provided to the Board pursuant to paragraph 10(1)(a).

• (2) The cost recovery charge payable by a large gas pipeline company is equal to the amount determined by the formula

  A x B/C

   where

  A

  is the total amount of costs determined in accordance with subsection 13(2);

  B

  is the forecast of deliveries, in cubic metres, of that company for the following year provided to the Board pursuant to paragraph 10(1)(a); and

  C

  is the aggregate of the forecasts of deliveries, in cubic metres, for the following year, of all the large gas pipeline companies, provided to the Board pursuant to paragraph 10(1)(a).

• (3) The cost recovery charge payable by a large power line company is equal to the amount determined by the formula

  A × B/C

   where

  A

  is the total amount of costs determined in accordance with subsection 13(3);

  B

  is the forecast of electricity transmissions, in megawatt hours, of that company for the following year, provided to the Board under paragraph 10(2)(a); and

  C

  is the aggregate of the forecasts of electricity transmissions, in megawatt hours, of all the large power line companies for the following year, provided to the Board under paragraph 10(2)(a).

• (4) [Repealed, SOR/2009-307, s. 14]

• 14.1 (1) If one or more large oil pipeline companies is relieved under section 4.1 from paying a portion of the cost recovery charge in respect of the following year, the cost recovery charge in respect of that year shall be reduced or increased as follows:

  • (a) for each large oil pipeline company that obtains relief, the cost recovery charge shall be reduced by the amount of the relief obtained; and

  • (b) for each large oil pipeline company that does not obtain relief, the cost recovery charge shall be increased by the amount determined by the formula

    A × B/C

    where, in respect of that year,

    A

    is the total amount of relief obtained by large oil pipeline companies under section 4.1,

    B

    is the forecast of deliveries, in cubic metres, of the company, provided to the Board pursuant to paragraph 10(1)(a), and

    C

    is the aggregate of the forecasts of deliveries, in cubic metres, of the large oil pipeline companies that did not obtain relief, provided to the Board pursuant to paragraph 10(1)(a).

• (2) If one or more large gas pipeline companies is relieved under section 4.1 from paying a portion of the cost recovery charge in respect of the following year, the cost recovery charge in respect of that year shall be reduced or increased as follows:

  • (a) for each large gas pipeline company that obtains relief, the cost recovery charge shall be reduced by the amount of the relief obtained; and

  • (b) for each large gas pipeline company that does not obtain relief, the cost recovery charge shall be increased by the amount determined by the formula

    A × B/C

    where, in respect of that year,

    A

    is the total amount of relief obtained by large gas pipeline companies under section 4.1,

    B

    is the forecast of deliveries, in cubic metres, of the company, provided to the Board pursuant to paragraph 10(1)(a), and

    C

    is the aggregate of the forecasts of deliveries, in cubic metres, of the large gas pipeline companies that did not obtain relief, provided to the Board pursuant to paragraph 10(1)(a).

Annual Adjustment

15 [Repealed, SOR/2009-307, s. 15]

16 On or before September 30 in every year, the Board shall determine, for the preceding year,

• (a) the revised total amount of costs recoverable from all large oil pipeline companies, by multiplying the percentage determined under paragraph 12(1)(a) by the total costs determined under section 6 and adjusted under section 8;

• (b) the revised total amount of costs recoverable from all large gas pipeline companies, by multiplying the percentage determined under paragraph 12(1)(b) by the total costs determined under section 6 and adjusted under section 8; and

• (c) the revised total amount of costs recoverable from all large power line companies, by multiplying the percentage determined under paragraph 12(1)(c) by the total costs determined under section 6 and adjusted under section 8.

16.1 If, in respect of any year, relief is obtained under section 4.1 by one or more large oil pipeline companies, the Board shall, on or before September 30 of the following year, determine for each large oil pipeline company that did not obtain relief the revised cost recovery charge increase for the year in respect of which relief is obtained, which increase shall be determined by the formula

16.2 If, in respect of any year, relief is obtained under section 4.1 by one or more large gas pipeline companies, the Board shall, on or before September 30 of the following year, determine for each large gas pipeline company that did not obtain relief the revised cost recovery charge increase for the year in respect of which relief is obtained, which increase shall be determined by the formula

• 17 (1) On or before September 30 in every year, the Board shall calculate a revised cost recovery charge, for the preceding year, for each large oil pipeline company, large gas pipeline company and large power line company.

• (2) Subject to subsection (2.1), the revised cost recovery charge of a large oil pipeline company for the year preceding the current year is equal to the amount determined by the formula

  A x B/C

   where

  A

  is the revised total amount of costs determined in accordance with paragraph 16(a);

  B

  is the actual deliveries, in cubic metres, of that company for that preceding year, provided to the Board under paragraph 10(1)(b); and

  C

  is the aggregate of the actual deliveries, in cubic metres, for that preceding year, of all the large oil pipeline companies, provided to the Board under paragraph 10(1)(b).

• (2.1) The revised cost recovery charge of a large oil pipeline company determined under subsection (2) shall be adjusted as follows:

  • (a) in the case of a large oil pipeline company that obtained relief under section 4.1 in respect of the year preceding the current year,

    • (i) if the revised amount of relief determined by the Board in accordance with subsection 4.1(7) is greater than the amount of relief obtained, the revised cost recovery charge shall be reduced by the difference between the revised amount of relief and the amount of relief obtained, and

    • (ii) if the revised amount of relief determined by the Board in accordance with subsection 4.1(7) is less than the amount of relief obtained, the revised cost recovery charge shall be increased by the difference between the amount of relief obtained and the revised amount of relief; and

  • (b) in the case of a large oil pipeline company that did not obtain relief under section 4.1 in respect of the year preceding the current year,

    • (i) if the revised cost recovery charge increase determined by the Board under section 16.1 is less than the increase determined under paragraph 14.1(1)(b), the revised cost recovery charge shall be reduced by the difference between the increase and the revised increase, and

    • (ii) if the revised cost recovery charge increase determined by the Board under section 16.1 is greater than the increase determined under paragraph 14.1(1)(b), the revised cost recovery charge shall be increased by the difference between the revised increase and the increase.

• (3) Subject to subsection (3.1), the revised cost recovery charge of a large gas pipeline company for the year preceding the current year is equal to the amount determined by the formula

  A x B/C

   where

  A

  is the revised total amount of costs determined in accordance with paragraph 16(b);

  B

  is the actual deliveries, in cubic metres, of that company for that preceding year, provided to the Board under paragraph 10(1)(b); and

  C

  is the aggregate of the actual deliveries, in cubic metres, for that preceding year, of all the large gas pipeline companies, provided to the Board under paragraph 10(1)(b).

• (3.1) The revised cost recovery charge of a large gas pipeline company determined under subsection (3) shall be adjusted as follows:

  • (a) in the case of a large gas pipeline company that obtained relief under section 4.1 in respect of the year preceding the current year,

    • (i) if the revised amount of relief determined by the Board in accordance with subsection 4.1(8) is greater than the amount of relief obtained, the revised cost recovery charge shall be reduced by the difference between the revised amount of relief and the amount of relief obtained, and

    • (ii) if the revised amount of relief determined by the Board in accordance with subsection 4.1(8) is less than the amount of relief obtained, the revised cost recovery charge shall be increased by the difference between the amount of relief obtained and the revised amount of relief; and

  • (b) in the case of a large gas pipeline company that did not obtain relief under section 4.1 in respect of the year preceding the current year,

    • (i) if the revised cost recovery charge increase determined by the Board under section 16.2 is less than the increase determined under paragraph 14.1(2)(b), the revised cost recovery charge shall be reduced by the difference between the increase and the revised increase, and

    • (ii) if the revised cost recovery charge increase determined by the Board under section 16.2 is greater than the increase determined under paragraph 14.1(2)(b), the revised cost recovery charge shall be increased by the difference between the revised increase and the increase.

• (4) The revised cost recovery charge of a large power line company for the preceding year is equal to the amount determined by the formula

  A × B/C

   where

  A

  is the revised total amount of costs determined in accordance with paragraph 16(c);

  B

  is the actual electricity transmissions, in megawatt hours, of that company for the preceding year, provided to the Board under paragraph 10(2)(b); and

  C

  is the aggregate of the electricity transmissions, in megawatt hours, of all the large power line companies for the preceding year, provided to the Board under paragraph 10(2)(b).