The National Energy Board (NEB) has approved Alliance Pipeline’s new services and their associated terms and conditions as well as the proposed firm tolls.
In May 2014, Alliance applied to the NEB requesting approval to implement new services and related tolls and tariffs to commence in December 2015. These new services included fixed tolls for medium- and long-term services as well as flexibility for shippers to choose services specific to their needs.
The NEB regulates pipeline tolls and tariffs under its jurisdiction to ensure they are just and reasonable and that there is no unjust discrimination in tolls, tariffs or services.
Through a public hearing process, the NEB considered the appropriateness of the proposed toll and surcharge methodologies for service, the process that Alliance adopted for shippers to express interest in using the pipeline, the impact of Alliance’s proposal on customers with existing contracts, and whether the proposal supports a safe and economically viable pipeline.
The NEB has approved the proposed firm tolls.
The NEB did not grant the company’s request for unlimited pricing discretion for discretionary services. Alliance is granted the ability to establish bid floors for these services but only within a certain range as determined by the Board.
The NEB has also imposed increased reporting requirements to more closely monitor the company’s performance over time.
Tags: Alliance Pipeline, Canada, NEB, Pipeline Regulations