Calgary: The National Energy Board announced its decision October 10 on TransCanada PipeLines Limited’s application for approval of tariff amendments, with reasons to follow.
On June 17, 2013, TransCanada filed an application seeking Board approval to amend its Canadian Mainline Gas Transportation Tariff as follows: to modify provisions applicable to Diversions and Alternate Receipt Points (ARPs); to eliminate the overrun feature of Storage Transportation Service (STS); to eliminate provisions that establish requirements for the timing and duration of open seasons for Short-Term Firm Transportation (STFT) service and Short-Term Short Notice (ST-SN) service; and to modify renewal provisions for Firm Mainline Services.
The Board has denied some elements of the application and amended others. Reasons for the Decision will be published at a later date.
Diversions and ARPs: The Board has decided to deny the proposed amendments to the Tariff in respect of alternate receipt points and diversions.
STS Overrun: The Board has decided to deny the proposed amendments to eliminate the overrun feature of STS service.
STFT and ST-SN Open Season Requirements: The Board has decided to maintain the current timing of the open seasons for STFT and ST-SN. However, the Board has decided to amend the Tariff provisions so that the minimum duration TransCanada is required to hold these open seasons is reduced to 48 hours.
Renewal Provisions: The Board has decided to amend renewal provisions for Firm Mainline Services to require contract holders to provide TransCanada with two years’ notice of their intention to renew (instead of the six month renewal notice provision in existence prior to this decision), and to require a renewal term to be one or more full years.
Renewal Notice Transition Mechanism: The Amended Renewal Provisions are in effect immediately with one exception. The Board has established a Renewal Notice transition mechanism to provide Firm Mainline Service contract holders with at least 90 days’ notice to decide whether to renew their Existing Contracts and maintain the option of retaining their renewal rights. The transition mechanism is in effect immediately until January 31.