Electricity Filing Manual – Chapter 7 – Economics

Table of Contents

Economic and financial information is advised in an application when the applied-for facilities would result in one or more of the following:

  • the construction of a new transmission line; or
  • an increase in the capacity of an existing NEB regulated transmission line.

7.1 Economics

Goal

The application provides sufficient economic information to demonstrate that the applied-for facilities will be used, will be useful, and that the project will contribute to Canadians benefiting from efficient energy infrastructure and markets.

Filing Requirements

The application could include the following economic information:

  • a description of the supply, demand and load conditions of the markets at the origin and terminus points of the proposed IPL and any other markets that the proposed IPL would service.

The NEB must be satisfied that there is, or will be, an adequate supply and markets available to the IPL that the applied-for facilities could be expected to be used at a reasonable level over their economic life and would contribute to Canadians benefiting from efficient energy infrastructure and markets. Information should include demonstration that the capacity of the applied-for facilities is appropriate for the volumes that would be transported on the IPL.

7.2 Finance

Goals

The application provides sufficient financial information to demonstrate that the applicant has the capability to finance the project.

Filing Requirements

The application could include the following financial information:

  • an overview of the company and a description of its financial strength;
  • a copy of the most recent annual report or financial statements of the owner and the operator of the international power line;
  • a description of the intended methods and sources of financing for the proposed facilities; and
  • any changes to the financial risk of the company associated with its intended methods of financing the facilities.

7.3 Level of Detail

The application could include the following financial information:

  • an overview of the company and a description of its financial strength;
  • a copy of the most recent annual report or financial statements of the owner and the operator of the international power line;
  • a description of the intended methods and sources of financing for the proposed facilities; and
  • any changes to the financial risk of the company associated with its intended methods of financing the facilities.

FYI - Example...

For comparison, a project such as the replacement of an existing power line by a long-established utility might only require the submission of an annual report. In contrast, a project by a new consortium, and for which significant public interest in the project has been identified, may require more information and detail about its economics and financing.

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