Bill-18-e.htm

BILL 18

An Act to Amend the Gas Distribution Act, 1999

Her Majesty, by and with the advice and consent of the Legislative Assembly of New Brunswick, enacts as follows:

1 Section 1 of the Gas Distribution Act, 1999, chapter G-2.11 of the Acts of New Brunswick, 1999, is amended

(a) in the definition “distribute” by striking out “by any means whatsoever” and substituting “by means of a gas distribution system”;

(b) by repealing the definition “alternative form of regulation”;

“regulatory deferral account” means the deferral account established by the Board in its order dated June 23, 2000; (compte de report réglementaire)

2 Subsection 9(2) of the Act is amended

(a) by repealing paragraph (d) and substituting the following:

(d) permit a person to perform the term or condition of the franchise agreement that the gas distributor has breached and permit the person to use the gas distribution system of the gas distributor who is a party to the franchise agreement;

(b) by repealing paragraph (e) and substituting the following:

(e) revoke the franchise agreement and grant the franchise to a person and permit the person to use the gas distribution system of the gas distributor with compensation payable by the person to be determined by proceedings under Part II of the Expropriation Act, agreement or otherwise by law;

3 Section 52 of the Act is amended

(a) in subsection (3) by striking out “may charge” and substituting “shall charge to the classes of customers prescribed by regulation”;

(b) by repealing subsection (5) and substituting the following:

52(5) In approving or fixing just and reasonable rates and tariffs, the Board

(a) shall adopt the methods or techniques prescribed by regulation,

(b) shall not recognize or consider the regulatory deferral account as part of the regulated assets of the gas distributor who was granted a general franchise, except in the circumstances and in the manner prescribed by regulation,

(c) shall not permit the gas distributor who was granted a general franchise to depreciate, amortize, earn a return on or otherwise consider the regulatory deferral account, except in the circumstances and in the manner prescribed by regulation, and

(d) shall not permit the gas distributor who was granted a general franchise to create or establish any additional similar revenue shortfall deferral accounts, except in the circumstances and in the manner prescribed by regulation.

4 The Act is amended by adding after section 52 the following:

Rates and tariffs freeze

52.1(1) Subject to section 52.3 and subsection (2), the rates and tariffs approved or fixed by the Board in its order dated July 14, 2011, other than the rates and tariffs approved or fixed for the Contract Large General Service Heavy Fuel Oil class, shall be subject to a rates and tariffs freeze and shall remain in effect until the Board makes an order under section 52.4.

52.1(2) The rates and tariffs approved or fixed by the Board for the Contract Large General Service Heavy Fuel Oil class in an order made in accordance with its order dated December 7, 2011, shall be subject to a rates and tariffs freeze and shall remain in effect until the Board makes an order under section 52.4.

Application re rates and tariffs on or before May 31, 2012

52.2 A gas distributor who has been granted a general franchise shall file with the Board an application regarding the approval or fixing of rates and tariffs in accordance with section 52

(a) on or before May 31, 2012, or

(b) if the Board directs the gas distributor to file an application on or before a date that is earlier than May 31, 2012, on or before that date.

Temporary combination of two classes of customers

52.3 The Board shall, on or before March 1, 2012, take such measures it considers necessary to combine the Small General Service Residential Electric Class and the Small General Service Residential Oil Class into a new class of customers, and the rates and tariffs approved or fixed by the Board for the Small General Service Residential Electric Class in its order dated July 14, 2011, shall apply to the new class and shall remain in effect until the Board makes an order under section 52.4.

Order made on or before September 30, 2012

52.4 The Board shall, on or before September 30, 2012, make an order approving or fixing rates and tariffs in accordance with section 52 and the order shall take effect on or before September 30, 2012.

Prohibited actions and proceedings

52.5(1) No cause of action arises and no action or other proceeding for compensation, damages or otherwise lies or shall be instituted against the Minister, the Crown in right of the Province or any employee, corporation or agency of the Crown as a direct or indirect result of the amendments to this Act enacted in 2011 or any regulations, Orders in Council, Board orders or Ministerial orders or directives made under the authority of the amendments to this Act enacted in 2011.

52.5(2) An action or any other proceeding that was commenced before the commencement of this section and that is directly or indirectly based on or related to the amendments to this Act enacted in 2011 or any regulations, Orders in Council, Board orders or Ministerial orders or directives made under the authority of the amendments to this Act enacted in 2011 is deemed to be discontinued or abandoned without costs.

52.5(3) This section shall be deemed to have come into force on December 9, 2011.

5 Section 58 of the Act is amended

(a) by repealing subsection (1) and substituting the following:

58(1) Subject to subsection (1.1), no person shall, unless the person holds a certificate, do any of the following:

(a) sell gas or offer to sell gas to a customer;

(b) act as the agent or broker for a seller of gas to a customer;

(d) arrange for pipeline capacity on a transmission line or a pipeline regulated by the United States Federal Energy Regulatory Commission for a customer.

(b) by adding after subsection (1) the following:

58(1.1) The following persons are exempt from the requirement to hold a certificate:

(a) a person who sells gas or offers to sell gas that is delivered to customers by any means other than by a pipeline or gas distribution system;

(b) an agent or broker for a person who sells gas that is delivered to customers by any means other than by a pipeline or gas distribution system; and

(c) a person who acts or offers to act as the agent or broker of a customer in purchasing gas that is delivered to customers by any means other than by a pipeline or gas distribution system.

6 Subsection 71(1) of the Act is amended in the portion preceding paragraph (a) by striking out “gas marketers and customers” and substituting “gas marketers, customers of gas distributors”.

7 Subsection 85(2) of the Act is amended by striking out “rates” and substituting “rates, tariffs”.

8 Subsection 95(1) of the Act is amended by adding after paragraph (m) the following:

(m.1) prescribing classes of customers for the purposes of section 52;

(m.2) prescribing the methods or techniques the Board shall adopt when approving or fixing rates and tariffs and the methods or techniques may vary for different prescribed classes of customers;

(m.3) prescribing the circumstances and the manner in which the Board may recognize or consider the regulatory deferral account as part of the regulated assets of the gas distributor who was granted a general franchise;

(m.4) prescribing the circumstances and the manner in which the Board may permit the gas distributor who was granted a general franchise to depreciate, amortize, earn a return on or otherwise consider the regulatory deferral account;

(m.5) prescribing the circumstances and in the manner in which the Board may permit the gas distributor who was granted a general franchise to create or establish any additional similar revenue shortfall deferral accounts;

(m.6) respecting the transition from a market based method or technique of approving or fixing just and reasonable rates and tariffs to a method or technique based strictly upon cost of service;

(m.7) defining any word or expression used but not defined in this Act;

CONSEQUENTIAL AMENDMENTS

Energy and Utilities Board Act

9(1) Section 53 of the Energy and Utilities Board Act, chapter E-9.18 of the Acts of New Brunswick, 2006, is amended

(a) by repealing the definition “public utility” and substituting the following:

“public utility” means (entreprise de service public)

(a) a person who owns, operates, manages or controls any plant or equipment for the transmission, distribution, delivery or furnishing of water, or that provides such other service as may be prescribed by regulation, either directly or indirectly, to or for the public,

(b) a person who owns, operates, manages or controls any plant or equipment for the transmission, distribution, delivery or furnishing of natural gas by means of a pipeline or gas distribution system, or that provides such other service as may be prescribed by regulation, either directly or indirectly, to or for the public,

(c) when specified by regulation, any municipality or rural community that owns, operates, manages or controls any plant or equipment for the transmission, distribution, delivery or furnishing of water, either directly or indirectly, to any person outside its own limits,

(d) when specified by regulation, any municipality or rural community that owns, operates, manages or controls any plant or equipment for the transmission, distribution, delivery or furnishing of natural gas by means of a pipeline or gas distribution system, either directly or indirectly, to any person outside its own limits, and

(e) when specified by regulation, a municipal distribution utility as defined in the Electricity Act that generates or distributes electricity.

(b) by adding the following definition in alphabetical order:

“gas distribution system” means a gas distribution system as defined in the Gas Distribution Act, 1999. (système de distribution de gaz)

9(2) Section 67 of the Act is amended

(a) by repealing subsection (2) and substituting the following:

67(2) In approving or fixing just and reasonable tolls and tariffs for water and electricity, the Board may adopt any method or technique that it considers appropriate, including an alternative form of regulation.

(b) by adding after subsection (2) the following:

67(3) In approving or fixing just and reasonable tolls and tariffs for the transmission, distribution, delivery or furnishing of natural gas by means of a pipeline or gas distribution system, the Board shall adopt the methods or techniques prescribed in the relevant regulation made under the Gas Distribution Act, 1999.

COMMENCEMENT

10 This Act or any provision of it comes into force on a day or days to be fixed by proclamation.