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

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border accommodation electricity exporter[Repealed, SOR/2009-307, s. 1]

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equichange transfer[Repealed, SOR/2009-307, s. 1]

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)

inadvertent flow

inadvertent flow means the difference between the actual power flow and the scheduled power flow between two control areas that is caused by imperfect generation control or by an error in frequency bias; (flux involontaire)

intermediate commodity pipeline company

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

intermediate electricity exporter

intermediate electricity exporter[Repealed, SOR/2009-307, s. 1]

intermediate gas pipeline company

intermediate gas pipeline company means a person or company that is authorized under the Act to construct or operate one or more gas pipelines, the combined annual cost of service of which 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 person or company that is authorized under the Act to construct or operate one or more oil pipelines, the combined annual cost of service of which 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 person or company that is authorized under the Act to construct or operate one or more commodity pipelines, the combined annual cost of service of which is $10,000,000 or more; (compagnie de productoduc de grande importance)

large electricity exporter

large electricity exporter[Repealed, SOR/2009-307, s. 1]

large gas pipeline company

large gas pipeline company means a person or company that is authorized under the Act to construct or operate one or more gas pipelines, the combined annual cost of service of which is $10,000,000 or more; (compagnie de gazoduc de grande importance)

large oil pipeline company

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

large power line company

large power line company means a person or company that is authorized under the Act to construct or operate an international or interprovincial power line and that annually transmits 50,000 megawatt hours or more of electricity, excluding any transmissions that are inadvertent flow or loop flow; (compagnie de transport d’électricité de grande importance)

loop flow

loop flow means an unscheduled power flow on an electric system’s transmission facilities that is caused by parallel flows that result from scheduled electric power transfers between two other electric systems; (flux de bouclage)

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[Repealed, SOR/2009-307, s. 1]

small commodity pipeline company

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

small electricity exporter

small electricity exporter[Repealed, SOR/2009-307, s. 1]

small gas pipeline company

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

small oil pipeline company

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

small power line company

small power line company means a person or company that is authorized under the Act to construct or operate an international or interprovincial power line and that annually transmits less than 50,000 megawatt hours of electricity, excluding any transmissions that are inadvertent flow or loop flow; (compagnie de transport d’électricité de faible importance)

year

year means a calendar year. (année)

3 [Repealed, SOR/2009-307, s. 2]

Payment of Charges and Levies

• 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 power line company 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 levy of $50,000.

• (5) However, a company is not required to pay, for a year or any portion of a year, a cost recovery charge or administration levy payable under this section if the company pays a levy under section 5.2 or 5.3 in that year.

• 4.1 (1) A large oil pipeline company, large gas pipeline company or large commodity pipeline company is not required to pay the portion of a cost recovery charge or administration levy payable under section 4 that exceeds 2% of the estimate of the cost of service in respect of the company for the year in question if

  • (a) in the case of a large oil pipeline company or a large gas pipeline company, the company files a request for relief with the Board within 30 days after the day on which the Board notifies the company of the cost recovery charge payable by the company in that year;

  • (b) in the case of a large commodity pipeline company, the company files a request for relief with the Board within 30 days after the date of the Board’s invoice to the company for the administration levy payable in that year; and

  • (c) the request for relief includes the company’s estimated cost of service for that year.

• (2) After consultation with the company that filed the request, the Board may, by December 15 in the year in which the request is filed, adjust the company’s estimated cost of service 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 calculation of the estimate.

• (3) to (5) [Repealed, SOR/2009-307, s. 5]

• (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 [Repealed, SOR/2009-307, s. 6]

• 5.1 (1) Each intermediate oil pipeline company, intermediate gas pipeline company and intermediate commodity pipeline company shall, every year, pay to the Board an administration levy of $10,000.

• (2) Each small oil pipeline company, small gas pipeline company and small commodity pipeline company and each small power line company that transmits 0.5 megawatt hours or more of electricity per year shall, every year, pay to the Board an administration levy of $500.

• (3) However, a company is not required to pay, for a year or any portion of a year, a levy payable under subsection (1) or (2) if

  • (a) after June 30 in that year, the company obtains an exemption order under section 58 of the Act or a certificate; or

  • (b) in that year, the company pays a levy under section 5.2 or 5.3.

• (4) An administration levy of $500 for the issuance of a certificate or the making of an exemption order authorizing the construction or operation of a border accommodation pipeline or a border accommodation commodity pipeline is payable to the Board by the authorized company.

• 5.2 (1) Subject to subsections (3) and (4), any company that obtains an exemption order under section 58 of the Act in respect of, or a certificate authorizing, the construction 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 shall be paid to the Board within 90 days after the date of the Board’s invoice to the company for the levy.

• (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.

• 5.3 (1) A company that obtains a permit or certificate under Part III.1 of the Act that authorizes the construction of an international or interprovincial power line shall pay to the Board a levy equal to 0.2% of the estimated cost of construction of the power line, as estimated by the Board in its decision to issue the permit or certificate.

• (2) However, the levy is not payable if

  • (a) the company has previously obtained a permit or certificate that continues to be in force; or

  • (b) the company filed an application for the permit or certificate before the coming into force of this section.

• (3) The levy shall be paid to the Board within 90 days after the date of the Board’s invoice to the company for the levy.

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 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).

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 power line company,

• (a) the amount, if any, by which the cost recovery charge paid by that company for the preceding year exceeds the revised cost recovery charge of that company; or

• (b) the amount, if any, by which the revised cost recovery charge of that company exceeds the cost recovery charge paid by that company for the preceding year.

19 Every year the Board shall adjust the cost recovery charge for the following year of each large oil pipeline company, large gas pipeline company and large power line company by deducting from it the amount calculated under paragraph 18(a) for that company, if any, or by adding to it the amount calculated under paragraph 18(b) for that company, if any.

Invoicing and Interest

• 20 (1) On June 30 in every year, the Board shall issue to each company that is required to pay an administration levy under subsection 4(4) or section 5.1 an invoice for the amount of the levy.

• (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 power line company an invoice for 25% of the cost recovery charge payable by that company for that year, as adjusted under section 19.

• (3) Except for a levy that is required to be paid under subsection 5.2(1) or 5.3(1), the amount of any levy or charge that is payable to the Board shall be paid within 30 days after the date of the Board’s invoice for the amount.

• (4) If a company fails to pay any amount invoiced by the Board within the period required by these Regulations, the company 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 under subsection (3), on the 31st day after the date of the Board’s invoice; and

  • (b) in the case of levies payable under subsections 5.2(2) and 5.3(2), on the 91st day after the date of the Board’s invoice.

21 [Repealed, SOR/98-267, s. 7]