The NGTL System is governed according to regulations outlined by the National Energy Board (NEB).
On June 25, 2018, TransCanada Corporation announced that its wholly-owned subsidiary, NOVA Gas Transmission Ltd. (NGTL), had received National Energy Board (NEB) approval for its 2018-2019 Revenue Requirement Settlement, which establishes the annual costs required to operate the NGTL System.
"We are pleased that the NEB approved the components of the settlement as filed. We worked diligently with our stakeholders through a collaborative process to reach this consensus that will provide greater certainty and stability to our operating costs and tolls through the end of 2019."
Tracy Robinson, Senior Vice-President and General Manager, Canadian Gas Pipelines
The settlement covers all NGTL System operating costs for the two-year term, including return on equity and depreciation. It also includes a mechanism that incentivizes NGTL to remain strongly focused on cost management as well as operating efficiencies and system reliability. The agreement:
- encompasses a two-year period from January 1, 2018 to December 31, 2019;
- fixes the equity return at 10.1 per cent on 40 per cent deemed common equity;
- establishes depreciation at a forecast composite rate of 3.45 per cent;
- fixes operating, maintenance and administration (OM&A) costs at $225 million for 2018 and $230 million for 2019, and includes a sharing mechanism that incents NGTL to achieve cost efficiencies; and,
- provides for flow-through treatment of all other costs including pipeline integrity expenses and emissions costs.