Short Title

1 These Regulations may be cited as the National Energy Board Cost Recovery Regulations.

Interpretation

2 In these Regulations,

Act

Act means the National Energy Board Act; (Loi)

border accommodation commodity pipeline

border accommodation commodity pipeline means a commodity pipeline, constructed primarily for the transportation of a commodity other than oil or natural gas across the border between Canada and the United States, that

• (a) has an outside diameter of less than 100 mm,

• (b) carries the commodity at pressures of 700 kPa or less, and

• (c) has a capacity of less than 500 m³ per day; (productoduc destiné à un service frontalier)

border accommodation electricity exporter

border accommodation electricity exporter means a person who transfers power or energy for the purpose of providing electricity to

• (a) a person in the United States who lacks ready access to services from a power system in that country,

• (b) a work that is located in part in Canada and in part in the United States, or

• (c) a person in the United States who has lost service from a power system in that country as a result of an emergency; (exportateur d’électricité offrant un service frontalier)

border accommodation pipeline

border accommodation pipeline means a pipeline, constructed for the transportation of natural gas across a border, that

• (a) has an outside diameter of less than 100 mm,

• (b) carries gas at pressures of not more than 700 kPa, and

• (c) has a capacity of less than 500 m³ per day; (pipeline destiné à un service frontalier)

commodity pipeline

commodity pipeline means a pipeline used primarily for the transportation of a commodity other than oil or natural gas; (productoduc)

cost of service

cost of service means the total cost of providing service, including operating and maintenance expenses, depreciation, amortization, taxes and return on rate base; (coût de service)

delivery

delivery means a delivery of natural gas, oil, oil products, natural gas liquids or liquefied petroleum gas; (livraison)

equichange transfer

equichange transfer means an interchange of equal quantities of power or energy within a stated period; (transfert d’équivalents)

fiscal year

fiscal year, in respect of a company regulated by the Board, means the regular fiscal year of the company; (exercice)

gas pipeline

gas pipeline means a pipeline used for the transmission of natural gas; (gazoduc)

intermediate commodity pipeline company

intermediate commodity pipeline company means a company that is authorized under the Act to operate one or more commodity pipelines whose annual cost of service in respect of all those pipelines is $1,000,000 or more but less than $10,000,000; (compagnie de productoduc de moyenne importance)

intermediate electricity exporter

intermediate electricity exporter means a person authorized to export, in any period of 12 consecutive months, a quantity of energy not less than 50,000 megawatt hours but less than 250,000 megawatt hours; (exportateur d’électricité de moyenne importance)

intermediate gas pipeline company

intermediate gas pipeline company means a company that is authorized under the Act to operate one or more gas pipelines whose annual cost of service in respect of all those pipelines is $1,000,000 or more but less than $10,000,000; (compagnie de gazoduc de moyenne importance)

intermediate oil pipeline company

intermediate oil pipeline company means a company that is authorized under the Act to operate one or more oil pipelines whose annual cost of service in respect of all those pipelines is $1,000,000 or more but less than $10,000,000; (compagnie d’oléoduc de moyenne importance)

large commodity pipeline company

large commodity pipeline company means a company that is authorized under the Act to operate one or more commodity pipelines whose annual cost of service in respect of all those pipelines is $10,000,000 or more; (compagnie de productoduc de grande importance)

large electricity exporter

large electricity exporter means a person authorized to export, in any period of 12 consecutive months, a quantity of energy not less than 250,000 megawatt hours; (exportateur d’électricité de grande importance)

large gas pipeline company

large gas pipeline company means a company that is authorized under the Act to operate one or more gas pipelines whose annual cost of service in respect of all those pipelines is $10,000,000 or more; (compagnie de gazoduc de grande importance)

large oil pipeline company

large oil pipeline company means a company that is authorized under the Act to operate one or more oil pipelines whose annual cost of service in respect of all those pipelines is $10,000,000 or more; (compagnie d’oléoduc de grande importance)

oil pipeline

oil pipeline means a pipeline used for the transmission of oil, oil products, natural gas liquids and liquefied petroleum gas; (oléoduc)

program costs

program costs means the costs that are attributable to an activity for the achievement of an objective of the Board in relation to its responsibilities under the Act or any other Act of Parliament; (coût du programme)

sale transfer

sale transfer means a transfer of power or energy under a contract of sale; (transfert relatif à la vente)

small commodity pipeline company

small commodity pipeline company means a company that is authorized under the Act to operate one or more commodity pipelines whose annual cost of service in respect of all those pipelines is less than $1,000,000, and excludes a company that is only authorized under the Act to operate one or more border accommodation commodity pipelines; (compagnie de productoduc de faible importance)

small electricity exporter

small electricity exporter means a person authorized to export, in any period of 12 consecutive months, a quantity of energy less than 50,000 megawatt hours, other than a person authorized only to make border accommodation transfers; (exportateur d’électricité de faible importance)

small gas pipeline company

small gas pipeline company means a company that is authorized under the Act to operate one or more gas pipelines whose annual cost of service in respect of all those pipelines is less than $1,000,000, and excludes a company that is only authorized under the Act to operate one or more border accommodation pipelines; (compagnie de gazoduc de faible importance)

small oil pipeline company

small oil pipeline company means a company that is authorized under the Act to operate one or more oil pipelines whose annual cost of service in respect of all those pipelines is less than $1,000,000; (compagnie d’oléoduc de faible importance)

year

year means a calendar year. (année)

Application

3 These Regulations apply to

• (a) each company that is authorized under the Act to operate one or more oil pipelines;

• (b) each company that is authorized under the Act to operate one or more gas pipelines;

• (c) each company that is authorized under the Act to operate one or more commodity pipelines; and

• (d) each person or company that is an exporter of electricity.

Payment of Charges and Fees

• 4 (1) Each large oil pipeline company shall, every year, pay to the Board a cost recovery charge calculated in the manner set out in subsection 14(1).

• (2) Each large gas pipeline company shall, every year, pay to the Board a cost recovery charge calculated in the manner set out in subsection 14(2).

• (3) Each large electricity exporter shall, every year, pay to the Board a cost recovery charge calculated in the manner set out in subsection 14(3).

• (4) Each large commodity pipeline company shall, every year, pay to the Board an administration fee of $50,000.

• (5) Despite any other provision of these Regulations, no company is liable to pay, for a year or any portion of a year, any cost recovery charge or administration fee payable under this section if, in that year, the company pays a levy under section 5.2.

• 4.1 (1) Subject to subsection (2) but despite any other provision of these Regulations, no large oil pipeline company, large gas pipeline company or large commodity pipeline company is liable to pay the portion of a cost recovery charge or administration fee payable by the company under section 4 that exceeds 2% of the estimate of the cost of service in respect of the company for the year in question.

• (2) Any company referred to in subsection (1) may request the relief from payment referred to in that subsection by filing with the Board a request for relief, which must be filed within the following times:

  • (a) in the case of a large oil pipeline company or a large gas pipeline company,

    • (i) for relief in respect of the year 2001, within 30 days after the day on which this section comes into force in respect of those companies, and

    • (ii) for relief in respect of the year 2002 and subsequent years, within 30 days after the day on which the Board notifies the company of the cost recovery charge to be paid by the company in that year; and

  • (b) in the case of a large commodity pipeline company, for relief in respect of the year 2002 and subsequent years, within 30 days after the day on which the Board issues an invoice to the company for the administration fee payable in that year.

• (3) The company shall include in its request an estimate of the cost of service in respect of the company for the year in respect of which relief is claimed.

• (4) Subject to subsection (5), the Board may, after consultation with the company that filed the request, adjust the estimate of the cost of service referred to in subsection (3) if

  • (a) the actual circumstances of the company are different in a material respect from the circumstances reported by the company in its request; or

  • (b) there is an error or omission in the company’s calculation of that estimate.

• (5) Any adjustment in accordance with subsection (4) must be made by the Board

  • (a) by March 15, 2001, in the case of a request filed under subparagraph (2)(a)(i); and

  • (b) in all other cases, by December 15 in the year in which the request is filed.

• (6) Any company that obtains relief under this section shall provide to the Board, on or before August 31 of the following year, its actual cost of service for the year in respect of which the relief is obtained.

• (7) If, in respect of any year, relief is obtained under this section by one or more large oil pipeline companies, the Board shall, on or before September 30 of the following year, determine the revised amount of relief for each of those companies, which amount shall be the portion of the revised and adjusted cost recovery charge calculated in accordance with section 17 that exceeds 2% of the actual cost of service for the company for the year in respect of which the relief is obtained.

• (8) If, in respect of any year, relief is obtained under this section by one or more large gas pipeline companies, the Board shall, on or before September 30 of the following year, determine the revised amount of relief for each of those companies, which amount shall be the portion of the revised and adjusted cost recovery charge calculated in accordance with section 17 that exceeds 2% of the actual cost of service for the company for the year in respect of which the relief is obtained.

5 In sections 5.1 and 5.2, certificate means a certificate of public convenience and necessity issued under section 52 of the Act.

• 5.1 (1) Subject to subsection (5), each intermediate oil pipeline company, intermediate gas pipeline company, intermediate commodity pipeline company and intermediate electricity exporter shall, every year, pay to the Board an administration fee of $10,000.

• (2) Subject to subsection (5), each small oil pipeline company, small gas pipeline company, small commodity pipeline company and small electricity exporter shall, every year, pay to the Board an administration fee of $500.

• (3) An administration fee of $500 is payable to the Board by a border accommodation electricity exporter for the issuance of a permit or licence authorizing a border accommodation transfer.

• (4) An administration fee of $500 is payable to the Board for the issuance of a certificate or the making of an order authorizing the construction or operation, or both, of a border accommodation pipeline or a border accommodation commodity pipeline.

• (5) Despite any other provision of these Regulations, no company is liable to pay, for a year or any portion of a year, any fee payable under subsection (1) or (2) if

  • (a) after June 30 in that year, the company obtains a certificate, or a licence or permit under Division II of Part VI of the Act, or an order under section 58 of the Act; or

  • (b) in that year, the company pays a levy under section 5.2.

• 5.2 (1) Subject to subsections (3) and (4), any company that obtains a certificate or an exemption order under section 58 of the Act permitting the construction and operation of a pipeline shall pay to the Board a levy equal to 0.2% of the estimated cost of construction of the pipeline, as estimated by the Board in its decision issuing the certificate or making the order.

• (2) The levy is payable to the Board within 90 days after the issuance by the Board of an invoice for the levy to the company.

• (3) No levy is payable by a company in respect of the obtaining of the certificate or the exemption order if the company previously obtained a certificate that continues to be in force or an exemption order that continues to apply.

• (4) This section applies to companies that file an application for a certificate or an exemption order after the coming into force of this section.

Determination of Board Costs

6 For the purposes of calculating cost recovery charges in accordance with these Regulations, the total costs attributable for a year to the responsibilities of the Board under the Act or any other Act of Parliament are 95 per cent of the aggregate of

• (a) one fourth of the estimated program costs of the Board including the costs of goods and services provided to the Board by other federal departments or agencies, as set out in the Expenditure Plan published in the Estimates of the Government of Canada for the Board’s fiscal year ending in that year, and

• (b) three fourths of the forecasted program costs of the Board including the costs of goods and services provided to the Board by other federal departments or agencies, as prepared for the Expenditure Plan to be published in the Estimates of the Government of Canada for the Board’s fiscal year beginning during that year.

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 fees received under subsections 4(4) and 5.1(1) and (2) from large commodity pipeline companies, intermediate commodity pipeline companies or small commodity pipeline companies, and under subsection 5.1(4) in respect of border accommodation commodity pipelines.

9 [Repealed, SOR/95-540, s. 1]

Forecasts of Deliveries and Exports and Cost of Service Evaluations

• 10 (1) On or before August 31 in every year,

  • (a) each large oil pipeline company and large gas pipeline company shall provide the Board with a forecast of deliveries, in cubic metres, for the following year; and

  • (b) each large electricity exporter shall provide the Board with a forecast of its firm and interruptible sale transfers and equichange transfers of electricity, in megawatt hours, for the following year.

• (2) An intermediate oil pipeline company, intermediate gas pipeline company, small oil pipeline company or small gas pipeline company shall, at the Board’s request, provide the Board with

  • (a) an estimate of the cost of service for the operations of the company that are subject to the jurisdiction of the Board, for the company’s current fiscal year; or

  • (b) the actual cost of service for the operations of the company that are subject to the jurisdiction of the Board, for the company’s two preceding fiscal years.

• (3) [Repealed, SOR/2002-375, s. 4]

Notification

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

  • (a) each large electricity exporter of the cost recovery charge that will be payable by that exporter 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 power lines under the jurisdiction of the Board and the exportation of electricity

  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 in accordance with section 6, adjusted in accordance with section 8 for that year; and

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

    • (i) the total of the administration fees 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 in accordance with section 6, adjusted in accordance with section 8 for that year; and

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

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

  • (a) multiplying the percentage determined under paragraph 12(1)(c) by the total costs determined in accordance with section 6, adjusted in accordance with section 8 for that year; and

  • (b) deducting from the product determined under paragraph (a), the total of the administration fees to be paid during that year under section 5.1 by intermediate electricity exporters, small electricity exporters and border accommodation electricity exporters.

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 electricity exporter is the greater of $500 and the amount determined by the formula

  A x (B+C)/(D+E)

   where

  A

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

  B

  is the aggregate of the actual or estimated firm and interruptible sale transfers and equichange transfers of electricity as determined by the Board from its export database, in megawatt hours, of that exporter for the current year and the two preceding years;

  C

  is the forecast, in megawatt hours, of the firm and interruptible sale transfer of electricity of that exporter for the year following the current year provided to the Board pursuant to paragraph 10(1)(b);

  D

  is the aggregate of the actual or estimated firm and interruptible sale transfers and equichange transfers of electricity as determined by the Board from its export database, in megawatt hours, of all the large electricity exporters for the current year and the two preceding years; and

  E

  is the aggregate of the forecasts, in megawatt hours, of the firm and interruptible sale transfers of electricity of all the large electricity exporters for the year following the current year provided to the Board pursuant to paragraph 10(1)(b).

• (4) For the purpose of calculating the actual firm and interruptible sale transfers and equichange transfers referred to in the descriptions of B and D in subsection (3), any exports of firm or interruptible energy that are made pursuant to an equichange export contract shall be adjusted from time to time by the Board, by subtracting the quantity of energy imported into Canada from the quantity of energy exported from Canada pursuant to that contract.

• 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 On or before August 31 in every year, the Board shall determine, for the preceding year, the actual deliveries, in cubic metres, of each large oil pipeline company and each large gas pipeline company and the actual firm and interruptible export sales of electricity, in megawatt hours, of each large electricity exporter.

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) for the current year by the total costs determined in accordance with section 6 and adjusted in accordance with section 8 for that preceding year;

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

• (c) the revised total amount of costs recoverable from all large electricity exporters, by multiplying the percentage determined under paragraph 12(1)(c) for the current year by the total costs determined in accordance with section 6 and adjusted in accordance with section 8 for that preceding year.

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, for the purpose of adjusting the cost recovery charge for each large oil pipeline company, large gas pipeline company and large electricity exporter, calculate a revised cost recovery charge for each of those companies or exporters for the preceding year.

• (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, as determined by the Board pursuant to section 15; and

  C

  is the aggregate of the actual deliveries, in cubic metres, for that preceding year, of all the large oil pipeline companies, as determined by the Board pursuant to section 15.

• (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, as determined by the Board pursuant to section 15; and

  C

  is the aggregate of the actual deliveries, in cubic metres, for that preceding year, of all the large gas pipeline companies, as determined by the Board pursuant to section 15.

• (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 electricity exporter is the greater of $500 and 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(c);

  B

  is the aggregate of the actual firm and interruptible sale transfers and equichange transfers of electricity, in megawatt hours, of that exporter for the four years preceding the current year, as determined by the Board from its export database and pursuant to section 15; and

  C

  is the aggregate of the actual firm and interruptible sale transfers and equichange transfers of electricity, in megawatt hours, of all the large electricity exporters for the four years preceding the current year, as determined by the Board from its export database and pursuant to section 15.

18 On or before September 30 in every year, the Board shall calculate, for each large oil pipeline company, large gas pipeline company and large electricity exporter,

• (a) the amount, if any, by which the cost recovery charge paid by that company or exporter for the preceding year exceeds the revised cost recovery charge of that company or exporter, calculated in accordance with section 17; or

• (b) the amount, if any, by which the revised cost recovery charge of that company or exporter that is calculated in accordance with section 17 exceeds the cost recovery charge paid by that company or exporter for the preceding year.

19 The Board shall, in every year, adjust for the following year the cost recovery charge of each large oil pipeline company, large gas pipeline company and large electricity exporter, as calculated in accordance with section 14, by deducting therefrom the amount calculated pursuant to paragraph 18(a) for that company or exporter, if any, or by adding thereto the amount calculated pursuant to paragraph 18(b) for that company or exporter, if any.

Invoicing and Interest

• 20 (1) On June 30 in every year, the Board shall issue an invoice for the fee, if any, payable under subsection 4(4) or section 5.1, as applicable, to each

  • (a) intermediate oil pipeline company and small oil pipeline company;

  • (b) intermediate gas pipeline company and small gas pipeline company;

  • (c) large commodity pipeline company, intermediate commodity pipeline company and small commodity pipeline company;

  • (d) intermediate electricity exporter and small electricity exporter;

  • (e) company operating a border accommodation pipeline or border accommodation commodity pipeline; and

  • (f) border accommodation electricity exporter.

• (2) On March 31, June 30, September 30 and December 31 in every year, the Board shall issue to each large oil pipeline company, large gas pipeline company and large electricity exporter an invoice for 25 per cent of the cost recovery charge of that company or exporter for that year, as calculated in accordance with section 14 and as adjusted in accordance with section 19.

• (3) Subject to subsection 5.2(2), any amount payable under these Regulations shall be paid to the Board within 30 days after the date of issuance of the invoice.

• (4) If a company or an exporter fails to pay any amount invoiced by the Board, the company or exporter shall pay interest on the outstanding amount at a rate of 1.5% per month, compounded monthly, beginning

  • (a) in the case of amounts payable in accordance with subsection (3), on the 31st day after the date of issuance of the invoice; and

  • (b) in the case of levies payable in accordance with subsection 5.2(2), on the 91st day after the date of issuance of the invoice.

21 [Repealed, SOR/98-267, s. 7]