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ENERGY

The face of regulation in the energy sector is increasingly market-driven. Whether before the National Energy Board or its provincial counterparts, the complexities of permitting energy projects — be they pipelines, transmission facilities, gas or power plants —  and the economic regulation of such entities in the public interest requires experienced, skilful and strategic counsel. Gowlings professionals represent clients in both natural gas and electricity proceedings. In addition to traditional issues respecting need and economic feasibility, the permitting and licensing of energy projects includes:

  • Greater emphasis on environmental issues
  • Questions involving First Nations
  • The participation of a greater variety of non-governmental organizations including ad-hoc landowner and other groups
  • The growing influence of government policies

In the area of economic regulation, there continues to be growing emphasis on capturing efficient conduct by utilities, combined with innovative approaches to rate-making. All of this is set against concerns of investors and project sponsors about uncertain timelines and delays in securing necessary regulatory approvals. The regulatory practitioners of Gowlings' Energy Group bring an ideal combination of expertise, seniority and strategic thinking to the effective resolution of regulatory problems in the energy sector. Our professionals have been involved in the following types of rate-making proceedings:

  • General rate-making (tolling) applications
  • Electricity System Supply Plans
  • The inclusion or exclusion of particular assets in rate base
  • Cost allocation principles
  • Compliance with the affiliate code requirements
  • Regulatory treatment of deferred taxes
  • Capitalization policies
  • Development of the QRAM (quarterly rate adjustment mechanism) for the sale of utility gas
  • The development of Performance Based Regulation regimes
  • Facilities proceedings
  • The terms under which ancillary businesses can be supported by, or separated from, the regulated utility
  • Credits to the cost of services generated by transactional businesses using utility assets
  • Changes in depreciation schedules
  • Prudency review of justifiable expenditures
  • Recovery of charges from the ratepayers for management fees
  • Acceptability of utility hedging programs for gas commodity purchase

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