Compliance Filing – Modifications to Tariff
This letter decision follows from the NEB’s RH-002-2014 Reasons for Decision (“RH-002-2014”) which required Alliance Pipeline Ltd. (“Alliance”) to report on Interruptible and Seasonal Bid Mechanics by October 7, 2015. As part of Alliance’s filing on Interruptible and Seasonal Bid Mechanics, Alliance attached the Alliance Transportation Access Policy (“ATAP”) setting out the processes to administer requests for services effective December 1, 2015.
In total, Alliance proposed 15 changes to its tolls and tariffs on the Alliane pipeline system. Alliance submitted that five of the changes reflect the NEB’s directions in RH-002-2014 which it submitted did not require NEB approval. Alliance requested approval for the remaining 10 changes to its tariff, among which were clarifications, minor amendments, and new wording related to a ranking distinction between non-liquids and liquids receipt points. Alliance requested that these changes become effective December 1, 2015.
Tenaska Marketing Canada (“Tenaska”) also applied for changes to Alliance’s tariff, pursuant to section 59 of the National Energy Board Act. Tenaska requested changes to the scheduling and ranking of receipt point diversions and measures to prevent the use of non-public information in marketing capacity on the Alliance pipeline.
BP Canada Energy Group ULC (“BP”) supported Tenaska’s application, but expressed concern that the changes proposed by Alliance were material, and had not been put to Alliance’s shipper task forces. BP requested that the NEB direct broader consultation processes by Alliance in order to avoid what it called “piecemeal review of the Tariff”.
BP requested that the NEB approve the non-contentious tariff amendments, as well as the modifications requested by Tenaska, on an interim basis in order to provide Alliance with time to consult further with shippers.
Alliance replied stating that shippers should be entitled to rely on the terms and conditions in its tariff on a permanent basis, that it had already been actively working with its new shippers and industry stakeholders, and that the NEB need not direct any consultation.
In response to Tenaska’s application, Alliance submitted that the NEB had already ruled on these matters in RH-002-2014, and that it should have been properly filed as a review and variance of the RH-002-2014 decision. Therefore Alliance requested that the NEB dismiss Tenaska’s application in its entirety.
The NEB held that it would approve Alliance’s tariff application and ATAP, with the exception of its proposed changes to awarding interruptible capacity, on an interim basis. The NEB noted that the application was open, via an NEB-initiated process for stakeholder comments, and only received opposing comments in respect of awarding interruptible capacity. The remaining comments were requests for clarification, which was provided by Alliance.
The NEB held that it would not approve Tenaska’s application on the basis that the amendments proposed by Tenaska, such as reducing the maximum notification period for awarding new capacity to one day, were not feasible.
The NEB expressed the view that the issues raised in this application, in respect of the ATAP, the tariff, and the remaining issues for Alliance’s compliance with RH-002-2014 be best addressed through consultation and negotiation between Alliance and its shippers. Accordingly, the NEB declined to rule on these issues on a final basis.
The NEB held that Alliance’s consultation on its compliance filing for RH-002-2014, including the ATAP and its tariff, to be unsatisfactory. The NEB noted that the New Services Offering approved in RH-002-2014 could have unanticipated impacts, and that open consultations were of paramount importance.
Accordingly, the NEB directed Alliance to conduct consultations and negotiations with its shippers and stakeholders on a specific list of issues set out in Appendix 1 to the decision. Although it declined Tenaska’s application, the NEB did include Tenaska’s proposals as part of the list of issues in Appendix 1 for consultations.
Following consultations, the NEB directed Alliance to:
(a) Refile its Tariff and its compliance filing to RH-002-2014;
(b) Indicate whether it has the full support of its shippers; and
(c) Indicate where there are outstanding issues.
The NEB directed Alliance to re-file these matters on or before noon on February 1, 2016.
Accordingly, the NEB directed Alliance to file an interim tariff and interim ATAP to reflect this decision as soon as possible.
