On August 10th, 2020, the Young Pipeliners Association of Canada (YPAC) Edmonton Chapter hosted Vincent Light, an Associate with the law firm Stikeman Elliott, for a great webinar titled, “Pipeline Contracts 101”. During the webinar, Vincent presented an overview of regulations and revenues applicable to transmission pipelines.
Some highlighted event learnings are noted below:
- Inter-provincial or international pipelines are regulated by the Canada Energy Regulator where interprovincial pipelines are regulated by the respective provincial regulator (e.g. Alberta Energy Regulator, British Columbia Oil and Gas Commission). Rate setting functions are normally carried out to a jurisdiction’s utilities commission.
- Some federally regulated oil pipelines are “common carriers”, meaning they have an obligation to provide adequate facilities and service to shippers without contracts. Federally regulated gas pipelines are considered “contract carriers”, meaning the service is governed by contract.
- Rates are generally set in two discrete phases. In phase one, the total revenue requirement sets how much will be collected from ratepayers and in phase two, the allocation of the revenue requirement amongst ratepayer types is established.
- Type of services are divided into firm service and interruptible service. Firm service is typical for contract carriage pipelines and longer term take-or-pay where interruptible service is generally much shorter service term (e.g. month-to-month) and typical for common carriage pipelines.
- Federally regulated oil pipelines have a “common carrier” obligation to transport and deliver all oil offered for transmission. Gas pipelines can also be ordered to provide similar service by the regulator.
Thank you to Vincent Light and the webinar participants for joining the event!
About the Speaker:
Vincent Light, Associate at Stikeman Elliott
- Vincent Light is an associate in the Energy – Oil & Gas and Energy – Power Groups. His practice focuses on oil and gas, electricity and utility rate regulation. Vincent has acted for both applicants and interveners before the AUC (Alberta Utilities Commission), CER (Canada Energy Regulator (formerly the National Energy Board)) and AER (Alberta Energy Regulator) in respect of tolls and tariff matters, market rules objections, facilities applications and amendments, as well as enforcement matters. He has appeared before the AUC, CER, Surface Rights Board, and AER, and the Alberta Court of Appeal in regulatory matters.
About Stikeman Elliott:
- Stikeman Elliott is a global leader in Canadian business law. A top choice for business leaders working in and with Canada, our offices are located in Montréal, Toronto, Ottawa, Calgary, Vancouver, New York, London and Sydney. We provide clients with legal services, and creative, workable solutions with dedication and passion. Clients benefit from firm members working collaboratively using the diversity of cultures, perspectives and experiences spread across our firm. Practice areas include mergers and acquisitions, securities, business litigation, banking and finance, competition and foreign investment, tax, restructuring, energy, real estate, project development, employment and labour, and pensions.