Vol. 143, No. 32 — August 8, 2009

Regulations Amending the National Energy Board Cost Recovery Regulations

Statutory authority

National Energy Board Act

Sponsoring agency

National Energy Board

REGULATORY IMPACT
ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Issue and objectives

Pursuant to the National Energy Board Act, the National Energy Board (NEB) may make regulations to recover certain costs attributable to its responsibilities. The National Energy Board Cost Recovery Regulations (Regulations) set out the manner in which the NEB determines its recoverable costs and the process for recovering those costs from the entities it regulates.

The proposed amendments would require that recoverable costs currently allocated to electricity exporters be allocated to owners and operators of power lines (power line companies) that transport electricity internationally and inter-provincially.

These amendments would result in a more equitable attribution of the costs of NEB regulation of the electrical industry, which reflects a separation of export and transmission functions that has occurred in the electricity industry.

Additional amendments include changes to definitions and transitional provisions.

Description and rationale

The proposed amendments arose from a request from Hydro-Québec Production, Branscan Power, Manitoba Power, Ontario Power Generation Inc. and Powerex Corporation for a review of the cost recovery methodology for the electrical industry. Changes in the structure of the Canadian electricity industry had resulted in a separation of the transmission function from generation, distribution and marketing, including exporting.

The Regulations allocate recoverable costs attributable to regulation of the electricity industry to electricity exporters. The proposed amendments would instead recover NEB costs attributable to regulation of the electricity industry from power line companies, thus resulting in a more equitable cost recovery structure while retaining the existing attribution and recovery mechanisms.

Persons or companies that are authorized by the NEB to construct or operate power lines to transmit electricity internationally or inter-provincially would now be included in the cost recovery mechanism and therefore be allocated costs which they do not presently incur. In any given year, the amount to be paid by regulated companies changes as it depends on variables that have different annual values; however, the methodology to calculate the amount to be recovered from the electricity commodity remains consistent between years.

Power line companies regulated by the NEB would now be allocated costs based on the amount of actual, planned transmissions (exports and imports) on their lines. In addition, newly regulated power line companies would incur a one-time levy of two tenths of one percent of the estimated cost of the power line facilities approved by the NEB. This levy would reflect the substantial one-time costs incurred by the NEB in the regulatory approval process for a new entrant to the electricity industry. The levy would not apply to power line companies which are currently regulated by the NEB.

The proposed amendments contain minor revisions to the existing definitions related to pipeline companies. Administrative in nature, the definitions better mirror the wording in the National Energy Board Act and now include a reference to both construction and operation. These changes would not affect the administration of the Regulations nor the application or amount of cost recovery from pipeline companies.

The NEB conducted extensive research on cost recovery in other jurisdictions and considered several possible alternative ways to achieve equitable attribution of costs to regulated electricity companies.

These alternatives included the status quo, the use of levies based on pre-determined ratios and implementation of application fees and annual set fees for maintaining individual company authorizations.

The proposed amendments represent the approach that best met the criteria of achieving equity with respect to the incidence of cost recovery, consistency with underlying principles of cost recovery as they are presently applied to other commodities, validity with regard to power line utilization and the availability and reliability of operating data for use in the cost recovery process.

Consultation

The NEB has a well-developed consultation process with those who are subject to cost recovery through a joint NEB-industry committee, namely the Cost Recovery Liaison Committee, established in 1990. Committee members include representatives from regulated companies as well as industry associations.

The NEB provided information about the issue, alternatives, the preferred alternative and proposed amendments through industry information workshops and updates to the Cost Recovery Liaison Committee. Proposed amendments were also sent to all regulated companies subject to cost recovery and an opportunity to comment was provided.

Support for the proposal was received. One issue was raised with respect to unplanned transmissions of electricity. In response, the proposal was modified to exclude unplanned transmissions (loop flows and inadvertent flows) from the reporting of data for purposes of calculating cost recovery levies.

Benefits to Canadians

The Regulations ensure that NEB costs attributable to the regulation of the electricity and oil and gas industry are recovered from the users. The proposed changes would ensure a more equitable allocation of costs for recovery from the electrical industry and improve the clarity and effectiveness of the regulatory system.

Implementation, enforcement and service standards

The NEB would update its administrative processes for cost recovery and would not require additional financial or human resources to implement the proposed amendments. Timelines are part of the existing Regulations and are maintained in the proposed amendments.

The proposed amendments contain transitional provisions to provide for the conclusion of dealings with electricity exporters and the commencement of dealings with power line companies. A final determination of accounts would be made with electricity exporters and in the event that an exporter has overpaid their obligation, a remission order would be generated to refund the amount of overpayment. Underpayments would be calculated in accordance with the transitional provisions and invoiced in 2010.

No changes are necessary in relation to enforcement. The NEB ensures that an external and independent audit is carried out annually with respect to the annual financial results used for cost recovery. The amounts subject to cost recovery are a debt due to Her Majesty the Queen and may be recovered in any court of competent jurisdiction.

Contact

Jim Fox
Team Leader
Regulatory Development Team
National Energy Board
444 Seventh Avenue SW
Calgary, Alberta
T2P 0X8
Telephone: 403-299-3628
Fax: 403-299-3664
Toll free: 1-800-899-1265
Email: jim.fox@neb-one.gc.ca

PROPOSED REGULATORY TEXT

Notice is hereby given that the National Energy Board, pursuant to section 24.1 (see footnote a) and subsection 129(1) (see footnote b) of the National Energy Board Act (see footnote c), proposes to make the annexed Regulations Amending the National Energy Board Cost Recovery Regulations.

Interested persons may make representations concerning the proposed Regulations within 30 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to Jim Fox, Team Leader, Regulatory Development, National Energy Board, 444 Seventh Avenue SW, Calgary, Alberta T2P 0X8 (tel.: 403-299-3628; fax: 403-292-5503; e-mail: costrecoveryregs@neb-one.gc.ca).

Ottawa, July 31, 2009

JURICA ČAPKUN
Assistant Clerk of the Privy Council

REGULATIONS AMENDING THE NATIONAL ENERGY BOARD COST RECOVERY REGULATIONS

AMENDMENTS

1. (1) The definitions “border accommodation electricity exporter”, “intermediate electricity exporter” and “small electricity exporter” in section 2 of the National Energy Board Cost Recovery Regulations (see footnote 1) are repealed.

(2) The definitions “equichange transfer”, “large electricity exporter” and “sale transfer” in section 2 of the Regulations are repealed.

(3) The definitions “intermediate commodity pipeline company”, “intermediate gas pipeline company”, “intermediate oil pipeline company”, “large commodity pipeline company”, “large gas pipeline company”, “large oil pipeline company”, “small commodity pipeline company”, “small gas pipeline company” and “small oil pipeline company” in section 2 of the Regulations are replaced by the following:

“intermediate commodity pipeline company” means a person or company that is authorized under the Act to construct or operate one or more commodity pipelines, the combined annual cost of service of which is $1,000,000 or more but less than $10,000,000; (compagnie de productoduc de moyenne importance)

“intermediate gas pipeline company” means a person or company that is authorized under the Act to construct or operate one or more gas pipelines, the combined annual cost of service of which is $1,000,000 or more but less than $10,000,000; (compagnie de gazoduc de moyenne importance)

“intermediate oil pipeline company” means a person or company that is authorized under the Act to construct or operate one or more oil pipelines, the combined annual cost of service of which is $1,000,000 or more but less than $10,000,000; (compagnie d’oléoduc de moyenne importance)

“large commodity pipeline company” means a person or company that is authorized under the Act to construct or operate one or more commodity pipelines, the combined annual cost of service of which is $10,000,000 or more; (compagnie de productoduc de grande importance)

“large gas pipeline company” means a person or company that is authorized under the Act to construct or operate one or more gas pipelines, the combined annual cost of service of which is $10,000,000 or more; (compagnie de gazoduc de grande importance)

“large oil pipeline company” means a person or company that is authorized under the Act to construct or operate one or more oil pipelines, the combined annual cost of service of which is $10,000,000 or more; (compagnie d’oléoduc de grande importance)

“small commodity pipeline company” means a person or company that is authorized under the Act to construct or operate one or more commodity pipelines, the combined annual cost of service of which is less than $1,000,000, and excludes a person or company that is only authorized under the Act to construct or operate one or more border accommodation commodity pipelines; (compagnie de productoduc de faible importance)

“small gas pipeline company” means a person or company that is authorized under the Act to construct or operate one or more gas pipelines, the combined annual cost of service of which is less than $1,000,000, and excludes a person or company that is only authorized under the Act to construct or operate one or more border accommodation pipelines; (compagnie de gazoduc de faible importance)

“small oil pipeline company” means a person or company that is authorized under the Act to construct or operate one or more oil pipelines, the combined annual cost of service of which is less than $1,000,000; (compagnie d’oléoduc de faible importance)

(4) Section 2 of the Regulations is amended by adding the following in alphabetical order:

“inadvertent flow” means the difference between the actual power flow and the scheduled power flow between two control areas that is caused by imperfect generation control or by an error in frequency bias; (flux involontaire)

“large power line company” means a person or company that is authorized under the Act to construct or operate an international or interprovincial power line and that annually transmits 50,000 megawatt hours or more of electricity, excluding any transmissions that are inadvertent flow or loop flow; (compagnie de transport d’électricité de grande importance)

“loop flow” means an unscheduled power flow on an electric system’s transmission facilities that is caused by parallel flows that result from scheduled electric power transfers between two other electric systems; (flux de bouclage)

“small power line company” means a person or company that is authorized under the Act to construct or operate an international or interprovincial power line and that annually transmits less than 50,000 megawatt hours of electricity, excluding any transmissions that are inadvertent flow or loop flow; (compagnie de transport d’électricité de faible importance)

2. Section 3 of the Regulations and the heading before it are repealed.

3. The heading before section 4 of the English version of the Regulations is replaced by the following:

PAYMENT OF CHARGES AND LEVIES

4. Subsections 4(3) to (5) of the Regulations are replaced by the following:

(3) Each large power line company shall, every year, pay to the Board a cost recovery charge calculated in the manner set out in subsection 14(3).

(4) Each large commodity pipeline company shall, every year, pay to the Board an administration levy of $50,000.

(5) However, a company is not required to pay, for a year or any portion of a year, a cost recovery charge or administration levy payable under this section if the company pays a levy under section 5.2 or 5.3 in that year.

5. Subsections 4.1(1) to (5) of the Regulations are replaced by the following:

4.1 (1) A large oil pipeline company, large gas pipeline company or large commodity pipeline company is not required to pay the portion of a cost recovery charge or administration levy payable under section 4 that exceeds 2% of the estimate of the cost of service in respect of the company for the year in question if

(a) in the case of a large oil pipeline company or a large gas pipeline company, the company files a request for relief with the Board within 30 days after the day on which the Board notifies the company of the cost recovery charge payable by the company in that year;

(b) in the case of a large commodity pipeline company, the company files a request for relief with the Board within 30 days after the date of the Board’s invoice to the company for the administration levy payable in that year; and

(c) the request for relief includes the company’s estimated cost of service for that year.

(2) After consultation with the company that filed the request, the Board may, by December 15 in the year in which the request is filed, adjust the company’s estimated cost of service if

(a) the actual circumstances of the company are different in a material respect from the circumstances reported by the company in its request; or

(b) there is an error or omission in the calculation of the estimate.

6. Sections 5 and 5.1 of the Regulations are replaced by the following:

5.1 (1) Each intermediate oil pipeline company, intermediate gas pipeline company and intermediate commodity pipeline company shall, every year, pay to the Board an administration levy of $10,000.

(2) Each small oil pipeline company, small gas pipeline company and small commodity pipeline company and each small power line company that transmits 0.5 megawatt hours or more of electricity per year shall, every year, pay to the Board an administration levy of $500.

(3) However, a company is not required to pay, for a year or any portion of a year, a levy payable under subsection (1) or (2) if

(a) after June 30 in that year, the company obtains an exemption order under section 58 of the Act or a certificate; or

(b) in that year, the company pays a levy under section 5.2 or 5.3.

(4) An administration levy of $500 for the issuance of a certificate or the making of an exemption order authorizing the construction or operation of a border accommodation pipeline or a border accommodation commodity pipeline is payable to the Board by the authorized company.

7. (1) Subsections 5.2(1) and (2) of the Regulations are replaced by the following:

5.2 (1) Subject to subsections (3) and (4), any company that obtains an exemption order under section 58 of the Act in respect of, or a certificate authorizing, the construction of a pipeline shall pay to the Board a levy equal to 0.2% of the estimated cost of construction of the pipeline, as estimated by the Board in its decision issuing the certificate or making the order.

(2) The levy shall be paid to the Board within 90 days after the date of the Board’s invoice to the company for the levy.

(2) Subsection 5.2(3) of the French version of the Regulations is replaced by the following:

(3) La compagnie n’a pas à payer la redevance pour l’obtention du certificat ou de l’ordonnance d’exemption si elle a déjà obtenu un certificat ou une ordonnance d’exemption qui est encore en vigueur.

8. The Regulations are amended by adding the following after section 5.2:

5.3 (1) A company that obtains a permit or certificate under Part III.1 of the Act that authorizes the construction of an international or interprovincial power line shall pay to the Board a levy equal to 0.2% of the estimated cost of construction of the power line, as estimated by the Board in its decision to issue the permit or certificate.

(2) However, the levy is not payable if

(a) the company has previously obtained a permit or certificate that continues to be in force; or

(b) the company filed an application for the permit or certificate before the coming into force of this section.

(3) The levy shall be paid to the Board within 90 days after the date of the Board’s invoice to the company for the levy.

9. Paragraph 8(c) of the Regulations is replaced by the following:

(c) deducting from those total costs the total of all administration levies received under subsection 4(4) from large commodity pipeline companies, under subsection 5.1(1) from intermediate commodity pipeline companies, under subsection 5.1(2) from small commodity pipeline companies and in respect of border accommodation commodity pipelines under subsection 5.1(4).

10. Section 10 of the Regulations and the heading before it are replaced by the following:

DELIVERIES, TRANSMISSIONS AND COST OF SERVICE

10. (1) On or before August 31 in every year, each large oil pipeline company and large gas pipeline company shall provide the Board with the following information:

(a) a forecast of its deliveries, in cubic metres, for the following year; and

(b) its actual deliveries, in cubic metres, for the previous year.

(2) On or before August 31 in every year, each large power line company and small power line company shall provide the Board with the following information:

(a) a forecast of its electricity transmissions, in megawatt hours, for the following year; and

(b) its actual electricity transmissions, in megawatt hours, for the previous year.

(3) On or before August 31 in every year, each intermediate oil pipeline company, intermediate gas pipeline company, small oil pipeline company and small gas pipeline company shall provide the Board with the following information:

(a) an estimate of the cost of service of its operations for the current year that are subject to the jurisdiction of the Board; and

(b) the actual cost of service for the preceding year of its operations that are subject to the jurisdiction of the Board.

11. Paragraph 11(1)(a) of the Regulations is replaced by the following:

(a) each large power line company of the cost recovery charge that will be payable by that company during the following year; and

12. Paragraph 12(1)(c) of the Regulations is replaced by the following:

(c) the time spent by officers and employees of the Board on activities directly related to the responsibilities of the Board in respect of electricity and international and interprovincial power lines

13. (1) Paragraph 13(1)(a) of the Regulations is replaced by the following:

(a) multiplying the percentage determined under paragraph 12(1)(a) by the total costs determined under section 6 and adjusted under section 8; and

(2) Subparagraph 13(1)(b)(i) of the Regulations is replaced by the following:

(i) the total of the administration levies to be paid during that year under section 5.1 by intermediate oil pipeline companies and small oil pipeline companies, and

(3) Subparagraph 13(1)(b)(ii) of the French version of the Regulations is replaced by the following:

(ii) d’autre part, le montant total des redevances à payer pour cette année, en application de l’article 5.2, par les compagnies d’oléoduc de grande importance, les compagnies d’oléoduc de moyenne importance et les compagnies d’oléoduc de faible importance.

(4) Paragraph 13(2)(a) of the Regulations is replaced by the following:

(a) multiplying the percentage determined under paragraph 12(1)(b) by the total costs determined under section 6 and adjusted under section 8; and

(5) Subparagraph 13(2)(b)(i) of the Regulations is replaced by the following:

(i) the total of the administration levies to be paid during that year under section 5.1 by intermediate gas pipeline companies, small gas pipeline companies and persons or companies operating border accommodation pipelines, and

(6) Subparagraph 13(2)(b)(ii) of the French version of the Regulations is replaced by the following:

(ii) d’autre part, le montant total des redevances à payer pour cette année, en application de l’article 5.2, par les compagnies de gazoduc de grande importance, les compagnies de gazoduc de moyenne importance et les compagnies de gazoduc de faible importance.

(7) Subsection 13(3) of the Regulations is replaced by the following:

(3) The Board shall, each year, determine the total amount of costs to be recovered for the following year from large power line companies by

(a) multiplying the percentage determined under paragraph 12(1)(c) by the total costs determined under section 6 and adjusted under section 8; and

(b) deducting from the product determined under paragraph (a)

(i) the total of the administration levies to be paid during that year under subsection 5.1(2) by small power line companies, and

(ii) the total of the levies to be paid during that year under section 5.3.

14. Subsections 14(3) and (4) of the Regulations are replaced by the following:

(3) The cost recovery charge payable by a large power line company is equal to the amount determined by the formula

A × B/C

where

A is the total amount of costs determined in accordance with subsection 13(3);

B is the forecast of electricity transmissions, in megawatt hours, of that company for the following year, provided to the Board under paragraph 10(2)(a); and

C is the aggregate of the forecasts of electricity transmissions, in megawatt hours, of all the large power line companies for the following year, provided to the Board under paragraph 10(2)(a).

15. Sections 15 and 16 of the Regulations are replaced by the following:

16. On or before September 30 in every year, the Board shall determine, for the preceding year,

(a) the revised total amount of costs recoverable from all large oil pipeline companies, by multiplying the percentage determined under paragraph 12(1)(a) by the total costs determined under section 6 and adjusted under section 8;

(b) the revised total amount of costs recoverable from all large gas pipeline companies, by multiplying the percentage determined under paragraph 12(1)(b) by the total costs determined under section 6 and adjusted under section 8; and

(c) the revised total amount of costs recoverable from all large power line companies, by multiplying the percentage determined under paragraph 12(1)(c) by the total costs determined under section 6 and adjusted under section 8.

16. The descriptions of B and C in section 16.1 of the Regulations are replaced by the following:

B is the actual deliveries, in cubic metres, of the company provided to the Board under paragraph 10(1)(b); and

C is the aggregate of the actual deliveries, in cubic metres, of all the large oil pipeline companies that did not obtain relief, provided to the Board under paragraph 10(1)(b).

17. The descriptions of B and C in section 16.2 of the Regulations are replaced by the following:

B is the actual deliveries, in cubic metres, of the company provided to the Board under paragraph 10(1)(b); and

C is the aggregate of the actual deliveries, in cubic metres, of all the large gas pipeline companies that did not obtain relief, provided to the Board under paragraph 10(1)(b).

18. (1) Subsection 17(1) of the Regulations is replaced by the following:

17. (1) On or before September 30 in every year, the Board shall calculate a revised cost recovery charge, for the preceding year, for each large oil pipeline company, large gas pipeline company and large power line company.

(2) The descriptions of B and C in subsection 17(2) of the Regulations are replaced by the following:

B is the actual deliveries, in cubic metres, of that company for that preceding year, provided to the Board under paragraph 10(1)(b); and

C is the aggregate of the actual deliveries, in cubic metres, for that preceding year, of all the large oil pipeline companies, provided to the Board under paragraph 10(1)(b).

(3) The descriptions of B and C in subsection 17(3) of the Regulations are replaced by the following:

B is the actual deliveries, in cubic metres, of that company for that preceding year, provided to the Board under paragraph 10(1)(b); and

C is the aggregate of the actual deliveries, in cubic metres, for that preceding year, of all the large gas pipeline companies, provided to the Board under paragraph 10(1)(b).

(4) Subsection 17(4) of the Regulations is replaced by the following:

(4) The revised cost recovery charge of a large power line company for the preceding year is equal to the amount determined by the formula

A × B/C

where

A is the revised total amount of costs determined in accordance with paragraph 16(c);

B is the actual electricity transmissions, in megawatt hours, of that company for the preceding year, provided to the Board under paragraph 10(2)(b); and

C is the aggregate of the electricity transmissions, in megawatt hours, of all the large power line companies for the preceding year, provided to the Board under paragraph 10(2)(b).

19. Sections 18 and 19 of the Regulations are replaced by the following:

18. On or before September 30 in every year, the Board shall calculate, for each large oil pipeline company, large gas pipeline company and large power line company,

(a) the amount, if any, by which the cost recovery charge paid by that company for the preceding year exceeds the revised cost recovery charge of that company; or

(b) the amount, if any, by which the revised cost recovery charge of that company exceeds the cost recovery charge paid by that company for the preceding year.

19. Every year the Board shall adjust the cost recovery charge for the following year of each large oil pipeline company, large gas pipeline company and large power line company by deducting from it the amount calculated under paragraph 18(a) for that company, if any, or by adding to it the amount calculated under paragraph 18(b) for that company, if any.

20. Section 20 of the Regulations and the heading before it are replaced by the following:

INVOICING AND INTEREST

20. (1) On June 30 in every year, the Board shall issue to each company that is required to pay an administration levy under subsection 4(4) or section 5.1 an invoice for the amount of the levy.

(2) On March 31, June 30, September 30 and December 31 in every year, the Board shall issue to each large oil pipeline company, large gas pipeline company and large power line company an invoice for 25% of the cost recovery charge payable by that company for that year, as adjusted under section 19.

(3) Except for a levy that is required to be paid under subsection 5.2(1) or 5.3(1), the amount of any levy or charge that is payable to the Board shall be paid within 30 days after the date of the Board’s invoice for the amount.

(4) If a company fails to pay any amount invoiced by the Board within the period required by these Regulations, the company shall pay interest on the outstanding amount at a rate of 1.5% per month, compounded monthly, beginning

(a) in the case of amounts payable under subsection (3), on the 31st day after the date of the Board’s invoice; and

(b) in the case of levies payable under subsections 5.2(2) and 5.3(2), on the 91st day after the date of the Board’s invoice.

TRANSITIONAL PROVISIONS

LARGE ELECTRICITY EXPORTERS — ADJUSTMENT FOR PREVIOUS YEARS

21. For greater certainty, in 2010 the Board shall not make the adjustment referred to in section 19 of the Regulations, as they read before the coming into force of section 19 of these Regulations, in respect of the cost recovery charge of a large electricity exporter.

22. In 2010, the Board shall calculate a combined adjustment amount for each large electricity exporter, being the total of the amount of the adjustment made under section 19 of the Regulations, as they read before the coming into force of section 19 of these Regulations, for that exporter in 2009 and the amount calculated for that exporter under section 18 of the Regulations, as they read before the coming into force of section 19 of these Regulations, in 2010.

23. If the total amount of the cost recovery charges paid by a large electricity exporter for 2008 and 2009 is less than the revised cost recovery charges for those years, the combined adjustment amount is payable by the exporter to the Board.

24. On September 30, 2010, the Board shall issue to each large electricity exporter an invoice that sets out the combined adjustment amount calculated for the exporter under section 22 of these Regulations.

25. An amount payable under section 23 of these Regulations shall be paid by the large electricity exporter in accordance with subsection 20(3) of the Regulations and is subject to the interest requirements set out in subsection 20(4) of the Regulations.

LARGE POWER LINE COMPANIES — 2010 COST RECOVERY CHARGE

26. Each large power line company shall, on or before February 15, 2010, provide the Board with its forecasts of electricity transmissions for 2010.

27. The Board shall, on or before March 31, 2010, notify each large power line company of the cost recovery charge that will be payable by that company for 2010.

28. The Board shall determine the total amount of costs to be recovered from large power line companies for 2010 by

(a) multiplying the percentage determined under paragraph 12(1)(c) of the Regulations by the total costs determined under section 6 of the Regulations and adjusted under section 8 of the Regulations; and

(b) deducting, from that product, the total of the levies to be paid during that year under section 5.3 of the Regulations.

29. The cost recovery charge payable by a large power line company for 2010 is equal to the amount determined under subsection 14(3) of the Regulations except that

(a) the forecast of electricity transmissions referred to in the description of B in that subsection shall be that provided by the company for 2010 under section 26 of these Regulations; and

(b) the aggregate of the forecast of electricity transmissions referred to in the description of C in that subsection shall be the aggregate of those provided by all large power line companies for 2010 under section 26 of these Regulations.

30. (1) On or before March 31, 2010, the Board shall issue to each large power line company an invoice for the cost recovery charge that is payable by that company for 2010.

(2) The amount of the cost recovery charge for 2010 shall be paid by the company by May 15, 2010.

(3) If the company fails to pay the amount of the cost recovery charge by May 15, 2010, the company shall pay interest on the outstanding amount at a rate of 1.5% per month, compounded monthly, beginning on May 16, 2010.

COMING INTO FORCE

31. (1) These Regulations, other than subsection 1(2) and sections 15 to 19, come into force on January 1, 2010.

(2) Subsection 1(2) and sections 15 to 19 come into force on January 1, 2011.

[32-1-o]

Footnote a
S.C. 1990, c. 7, s. 13

Footnote b
S.C. 2004, c. 25, s. 164

Footnote c
R.S., c. N-7

Footnote 1
SOR/91-7

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