ARCHIVED - Cost Recovery Workshops - 1 and 3 February 2010

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Monday, 1 February 2010, 9:00 a.m.-1:00 p.m. (MST)
National Energy Board, Calgary, Alberta

Attendees:

  • Dan Philips, CA, Senior Financial Advisor - NEB
  • Marcella Matzeit, Technical Specialist, Electricity Regulation - NEB
  • Susan W. Allen, CA, Business Leader, Corporate and Information Solutions and Chief Financial Officer - NEB
  • Amélie Fortier, Financial Analyst - NEB

Participants (via teleconferencing):

  • Chantal St-Pierre, Director, Regulatory and Environmental Affairs - New Brunswick Power Transmission Corporation
  • Darwin Bender, Power Contracts Administrator - Saskatchewan Power Corporation
  • David Barr, Senior Regulatory Analyst - Ontario Power Generation Inc.
  • Lynda Gamble, Supervisor, Transmission Services - Saskatchewan Power Corporation
  • Mélanie Émond, CA - Hydro-Québec TransÉnergie
  • Ron Mikkelsen, Senior Regulatory Advisor - Montana Alberta Tie Ltd.
  • Sandra M. Jones, Manager, Regulatory Strategy & Research Finance & Corporate Resources - BC Hydro and Power Authority
  • Yves Dallaire, Commercial Strategies Advisor - Hydro-Québec TransÉnergie

Wednesday, 3 February 2010, 9:00 a.m.-1:00 p.m. (EST)
Offices of the Ontario Energy Board, Toronto, Ontario

Attendees:

  • Dan Philips, CA, Senior Financial Advisor - NEB
  • Marcella Matzeit, Technical Specialist, Electricity Regulation - NEB
  • Amélie Fortier, Financial Analyst - NEB

Participants :

  • Angus Orford, Vice President Operations - Canadian Niagara Power Inc. (a FortisOntario Company)
  • Anne-Marie Reilly, Senior Regulatory Coordinator - Hydro One Networks Inc.
  • Blaine Poff, Manager, Transmission Services Department - Manitoba Hydro
  • Jo-Anne Ross, Tariff Administration Officer - Manitoba Hydro
  • Philip Poon, Regulatory Affairs - Hydro One Networks Inc.

1. Two presentations were made, the first reviewed the basics of cost recovery in general and the second reviewed the specific changes and transitional provisions arising from the recent amendments to the Regulations.

2. Additional notes to the presentations:

  • It is important that every company keeps its corporate information up-to-date as the NEB will be in touch with each company on a regular basis.
  • There are no penalties for companies that submit "wrong" data - the NEB asks companies to provide data with the best knowledge they have at the time of request.

3. Questions and Answers

Calgary Workshop

  • Lynda Gamble:
    When should companies provide actual data for 2010 to the NEB?

    Actual data for 2010 will have to be provided in the summer of 2011.
  • Yves Dallaire:
    How should Hydro-Québec report the power that is generated in Québec then transmitted into Ontario for eventual delivery to Hydro-Québec's U.S. customers?

    For the monthly reporting by export permit or license holders, the requirement is that exporters report the export of electricity by province of energy origination (in this case, Québec). For IPL owners, for cost recovery purposes, companies are required to report all exports and imports of electricity that are transmitted via their facilities. In the example above, the Ontario IPL owner will be required to report the export regardless of where the electricity originates.
  • Yves Dallaire:
    Will the monthly reports still have to be submitted?

    Actual data for importers and exporters will still have to be submitted on or before the 15th of each month.
  • Ron Mikkelsen:
    Would it be possible to have estimates of the levies per unit charge (MW.h)?

    The NEB doesn't have any estimates at this point but the total that will be recovered from the IPL companies is about $5 million. The NEB can take a look at last year's numbers and prepare a forecast. However, keep in mind that the objective of the new Regulations was not to come up with a rate per MW.h but to align the electricity industry with the other commodities.
  • Yves Dallaire:
    On the request for Information sent in January, the French version of Appendix 1 states that companies should list the “Instruments réglementaires” (Regulatory Instruments), what does that mean?

    The NEB is requesting that companies provide a list of the Regulatory Instrument(s) that approve the construction and/or the operation of international and interprovincial power lines issued by the NEB.

    For more information

    For more detailed information:

Toronto Workshop

  • All attendees:
    All attendees would like to get clarification on the information to be provided for cost recovery purposes as it differs from the information reported on a monthly basis. All attendees agreed that the footnote on Appendix 1 was helpful, but would like to get further clarification from the NEB.

    Once data from all companies is received (by 15 February 2010), the NEB will look closely at the submissions and will ensure each one of them is according to NEB's requirements.
  • Blaine Poff:
    Mr. Poff has offered to draft some language which could be used to define the NEB's reporting requirements more clearly.
  • Philip Poon:
    Further to Blaine's offer, it would be helpful, in particular, to clarify whether the actual data provided by power line companies should be:
    • net or gross of imports and exports?
    • calculated based on contracted flows or actual activity (such as loop flows)?

      The NEB will circulate the draft language to attendees for comment and discussion for the purpose of informing the NEB's decision process. It is critical that the reporting requirements are as clear as possible to ensure that they are applied consistently by all power line companies in a fair and equitable manner.
  • Once finalized, the suggested language will be considered in future communications with power line companies.

Cost Recovery, Financial Governance & Control Analyst
National Energy Board
E-mail: Cost.Recovery@neb-one.gc.ca
Telephone (toll free): 1-800-899-1265
Facsimile: 403-292-5503
Facsimile (toll free): 1-877-288-8803
TTY (Teletype): 1-800-632-1663

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