2023–24 Annual Report of the Commission of the Canada Energy Regulator
2023–24 Annual Report of the Commission of the Canada Energy Regulator [PDF 1186 KB]
Copyright/Permission to Reproduce
ISSN 2563-3171
Table of Contents
- 2023-24 Message from the Lead Commissioner
- Role of the Commission
- 2023-24 Work of the Commission
- 2024-25 Look Ahead
- Appendix A: Commissioner Biographies
- Appendix B: Application Activity
- Appendix C: Summary of Released Commission Decisions, Recommendations and In Progress Hearing Applications
- Appendix D: Time Limits
- Appendix E: Leave to Open Orders Issued
- Appendix F: Commission Safety and Environment Oversight Orders and Directions
- Appendix G: Post-Approval Condition Compliance Filings
- Appendix H: Compensation Applications
- Appendix I: Abandonment Funding
- Appendix J: Financial Resources Requirements
- Appendix K: Abbreviations
2023-24 Message from the Lead Commissioner
On behalf of the Commission of the Canada Energy Regulator (CER), I am pleased to submit to the Honourable Jonathan Wilkinson, Minister of Energy and Natural Resources, and to Canadians, the Commission’s 2023-24 Annual Report.
The Canadian Energy Regulator Act (CER Act) establishes the Commission and defines its mandate. The Commission exercises its adjudicative functions in an independent manner, consistent with its status as a quasi-judicial tribunal, and in accordance with the CER’s governance structure. This report is a full year account of the Commission’s 2023-24 activities in fulfilling its mandate under the CER Act, as well as other legislation including the Canada Oil and Gas Operations Act and the Canada Petroleum Resources Act.
The Commission reached its full complement of seven Commissioners with the appointment of Commissioner Sandor Sajnovics on 1 May 2023. Commissioner Sajnovics brings a wealth of knowledge to the Commission including 15 years of experience as a lawyer and accountant in government and industry.
The CER will soon mark its fifth anniversary of replacing the National Energy Board. In keeping with the objectives set out in the CER Act’s preamble, the Commission continues to make its adjudicative processes more inclusive and accommodating for Indigenous Peoples, stakeholders and the public, while simultaneously striving to meet the Act’s legislated time limits to ensure predictable and timely decision-making. I am pleased to report that in 2023-24 the Commission met 100% of its legislated time limits.
As described more fully in the Report that follows, the Commission released 618 decisions this past year, covering a broad range of matters - from large energy infrastructure decisions, to tolls and tariffs, lands matters, routine trade permits and compliance verification decisions. The Commission continues to seek and implement improvements to its decision-making processes to make them more efficient, transparent and accessible, while assuring adjudicative fairness.
Occupying a significant portion of the Commission's work were decisions stemming from the final construction phases of the Trans Mountain Expansion Project, including numerous condition compliance filings, variances, lands matters, and orders granting leave to open segments of the pipeline.
The Commission also published its recommendation report with respect to the largest pipeline project application received to date under the CER Act, the NorthRiver Midstream NEBC Connector Project. On 18 October 2023, the Commission recommended to the Minister that the project be approved, subject to 49 conditions. The Governor in Council accepted the Commission’s recommendation without any changes, and released its decision on 21 December 2023, within the legislated time limit.
This reporting year was noteworthy for the high volume of Commission work related to the regulation of tolls and tariffs. Whether processing applications, complaints, or proposed settlements, we had a busy year in our role as an economic regulator. The Commission issued decisions on Trans-Northern Pipelines Inc.’s Incentive Tolls Settlement Agreement, set preliminary interim tolls on the Trans Mountain Expansion System, and approved NOVA Gas Transmission Ltd.’s North Montney Mainline tolling methodology. The Commission also approved Enbridge's application for the Mainline Tolling Settlement, which was the subject of lengthy negotiations between the applicant and shippers. The settlement will apply through to December 2028.
The Commission conducted its first hearing process under the Northwest Territories’ Oil and Gas Operations Act (OGOA) and associated regulations since the CER's establishment. The Commission issued five decisions in relation to the Inuvialuit Energy Security Project. Additionally, two applications related to Imperial Oil’s Norman Wells Operations are in progress.
I anticipate a busy 2024-25. The Commission expects at least two applications for large-scale pipeline projects and a steady stream of applications for smaller infrastructure. The Commission is currently seized with several major tolls and tariffs matters, including setting Trans Mountain’s final interim tolls on its expanded pipeline system, and the ongoing review of TransCanada Keystone’s proposed allocation of certain costs to shippers on its Keystone pipeline system.
I am proud of the work my colleagues undertook in 2023-24, which this report sets out in greater detail. We are committed to delivering decisions in the public interest on a fair and timely basis. In closing, I would note that we could not achieve these results without the important insights, knowledge, and critical support that CER staff provide us daily.
Original signed by Mark Watton
Mark Watton, Lead Commissioner
Canada Energy Regulator
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