National Energy Board Cost Recovery Regulations for the Electricity Industry

1
National Energy Board Cost Recovery
Regulationsfor the Electricity Industry

• Regulation Process
• 2 June 2005Hotel Queen Elizabeth, Montreal

2
OVERVIEW OF THEFEDERAL REGULATION PROCESS

• Legal considerations when drafting Regulations
• The Regulation Process
• Brief overview of the new User Fees Act
• Consultation Process
• Timeline

3
Legal Considerations

• The Constitution Act, 1867
• Statutory Instrument Act, ss. 19.1
• Statutory Instruments Regulations
• Official Languages Act
• Financial Administration Act, Chap. F-11
• User Fees Act, 2004, Chap. 6
• National Energy Board Act, R.S.C. 1985, Chap.
  N-7, s. 24.1
• National Energy Board Cost Recovery Regulations,
  SOR/91-7
• International Agreements
• The Government of Canada Regulatory Policy
• The Policy on Service Standards for External
  Fees,
• 29 Nov. 2004. replace the External Charging
  Policy
• Etc.

4
Regulation Process
I M P L E M E N T A T I O N
Phase 1
Phase 2
Phase 3
Phase 5
Phase 4
Phase 6
Examination by DOJ and PCO
Pre- Publication Canada Gazette, Part I
Conception and Development
Drafting Regulations
Canada Gazette, Part II
Submission Final to DOJ, PCO and TB

Consultation Interactive process
Legal drafting
Ministerial and TB approvals
Comment Period

Phases for Stakeholders Consultations
SJC
User Fees Act (UFA)
5
Regulation Process UFA Phases
I M P L E M E N T A T I O N
Phase 1 Phase 2
Phase 3
Phase 4 to Phase 6
Notification Fees Proposal

• Consultation
• with
• stakeholders,
• TB / PCO

Parliamentary Tabling 2 Houses - Resolution
Canada Gazette I with Comment Period
Canada Gazette Part II
NEB Tables User Fees in Parliament
Input from stakeholders
Establish standards Comparable with other
countries
NEB submits User Fees Proposal to TB for
approval
Proposal
No complaint
complaint
Conduct Impact Assessment/ relevant factors for
decision to amend the user fees
Independent Panel review of Complaint
Stakeholders provided with Panel Recommendation
NEB considers Panel Recommendation
SJC
6
Consultation Process
draft regulations
Board Item(approve regs. to send to Justice)
send package to Justice and PCO for legal review
and blue-stamping
prepare User Fee submission and package for
Minister (background information)
blue-stamped copies received
Board Item(approve submission backgrounder for
Minister)
send package to Minister
Minister tables User Fee submission proposal
comments and/or recommendations from the Houses
no comments and/or recommendations
revise User Fee submission to address comments
and/or recommendations
Board Item(approve revised submission)
if further comments and/or recommendations, back
to
request Minister to retable User Fee submission
prepare Treasury Board submission (includes
finalized User Fee submission) and package for
pre-publication
Board Item(approve package to be sent to
Minister for signature and then on to Treasury
Board for approval and pre-publication)
send package to Minister for signature
Treasury Board grants approval
pre-publication in Part I
no comments, request new blue-stamped copies from
Justice
comments received
revise regulations to address any comments if
necessary
Board Item(approve revised regulations to be
sent to Justice for legal examination and
blue-stamping)
new blue-stamped copies received
Board Item(make regulations and seek approval to
send for promulgation 6 days for registration of
regs once Board Resolution is signed)
send package for Part II publication and
promulgation

• The importance of the Consultation Process
• to identify concerns
• to disclose to stakeholders information relevant
  to the amendment and management of an external
  charge
• to allow stakeholders an opportunity to provide
  their input and to receive timely and considered
  feedback from the NEB.

7
Regulation Process - Timeline

• The duration of the regulation process can vary.
• The process may be delayed if
• the regulation is complex
• the issue is controversial
• the magnitude of potential impact is high
• etc.

8
Regulation Process - Summary

• Consultation
• Drafting
• Notification of the Fees Proposal
• Parliamentary Tabling
• Forward to Justice and PCO for approval
• Treasury Board approval
• Pre-publication
• Promulgation

9
The Regulation Process

• Conclusion
• You will be consulted during the first 4 phases
  of the process
• It is a lengthy process
• For the benefit of all the industry and all
  Canadians

10
National Energy Board Cost Recovery
Regulationsfor the Electricity Industry

• Thank you !
• 2 June 2005Hotel Queen Elizabeth, Montreal