Reasons for decision in the matter of Alliance Pipeline Ltd. : facilities and toll methodology

In February 2007, Alliance Pipeline Ltd. applied to the National Energy Board for approval to construct a new 5.7 MW compressor station at its existing Taylor Junction valve and pig trap site in northeastern British Columbia. The project requires 22. ha of permanent footprint for the proposed compressor site and 1.8 ha of temporary construction workspace. The expansion would increase firm receipt capacity from the area by 4.25 million cubic metres per day. The planned in-service date for the new station is November 2008. Alliance also applied for approval for certain amendments to its transportation tariff, such as the introduction of a new receipt only services (ROS) with regard to the incremental capacity from the new installation. Alliance also proposed an ROS secondary receipt point toll to promote high use of the available ROS capacity. The company proposed that the generated revenues be treated as a credit to its total revenue requirements and that the associated capital costs be treated as part of its rate base. This document described the hearing process that addressed the need for the proposed facilities; consultation, socio-economic and safety issues; existing tariff and founding compact; open seas and industry consultation; and, impact on existing services. Arguments from the Canadian Association of Petroleum Producers were presented on all issues. The views of the Parties and the Board were also presented with regards to capital and operating costs to shippers, fuel costs, and impacts on existing services. Upon review of the environmental screening report, the Board considered that the proposed facility would not likely cause significant adverse environmental effects. The Board approved the applied-for facilities as well as the amendments to its transportation tariff. 1 fig., 2 appendices