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

• 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15 [Repealed, SOR/2009-307, s. 15]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]