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ATCO Gas and Pipelines Ltd. Application for a Pipeline Licence Transfer from NGTL to ATCO Pipelines, AUC Decision 26461-D01-2021

Link to Decision Summarized

Gas – Facilities

In this decision, the AUC approved the application from ATCO Gas and Pipelines (“ATCO Pipelines”) to transfer the Coaldale Lateral Pipeline (the “Pipeline”) from NOVA Gas Transmission Ltd. (“NGTL”) to ATCO Pipelines.

Introduction and Background

In its application to transfer the 4.9 kilometer long pipeline, ATCO Pipelines submitted that the pipeline delivers gas to ATCO Pipelines’ downstream customers and that it has no direct connection to NGTL’s pipelines. The pipeline is located within ATCO Pipelines’ footprint as defined in the Integration Agreement between ATCO Pipelines and NGTL.

The proposed transfer would require no additional upgrades and have no impact on the existing pipeline system’s continued operation. ATCO Pipelines agreed to purchase the Coaldale Lateral Pipeline for $222,661, which was based on the net book value and is subject to minor adjustments at the time of closing and transfer.

The CER granted conditional approval for NGTL to sell the Pipeline to ATCO Pipelines in Order MO-004-2021. ATCO Pipelines submitted that, at the time of the application, there were no issues or objections outstanding from the completed consultation with potentially affected landowners and occupants.

AUC Findings

The AUC agreed that, as the Pipeline is connected only to ATCO Pipelines’ facilities and the license transfer would allow single-party operation and maintenance for the subsystem, the applied-for license transfer would eliminate inefficiencies for ATCO Pipelines and NGTL. The AUC further found that the transfer is consistent with the geographic service area concept. ATCO Pipelines had sufficiently established the need for the pipeline transfer.

The AUC determined that the proposed pipeline transfer would be in the public interest. It further noted that in this decision, it did not assess the prudence of this addition to the rate base or the impact on the rates of ATCO Pipelines. These matters may be examined in ATCO Pipelines’ next general rate application. The AUC approved the applied-for pipeline license transfer.

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