NRG export permit and charity revocations

Summary#

• The Canada Energy Regulator published an application from NRG Power Marketing LLC to export up to 2 000 000 MW.h of firm energy and 1 000 000 MW.h of interruptible energy per year for 10 years and asked for public comment.
• The Canada Revenue Agency published a notice of intention to revoke the registration of a long list of charities for failing to meet filing requirements, with the revocations effective on the date of publication (November 7, 2020).

What it does#

• For the electricity export application:
  • Asks for public views on the NRG Power Marketing LLC export request made under the Canadian Energy Regulator Act.
  • Makes the full application publicly available and invites written submissions by 7 December 2020.
  • Asks commenters specifically about effects on provinces other than the province of export and whether Canadian buyers were given a fair chance to buy the electricity.
  • Allows the applicant to file responses to submissions by 22 December 2020.
• For the charity registration notices:
  • The Canada Revenue Agency published notices saying certain charities did not meet their filing obligations under the Income Tax Act.
  • The notices say the revocation of registration is effective on the date of publication (November 7, 2020).
  • The Gazette prints the names and business numbers of the organizations affected.

Who's affected#

• Electricity notice:
  • NRG Power Marketing LLC and potential buyers of exported electricity in the United States.
  • Provincial governments, utilities, grid operators and anyone involved in electricity markets who may worry about supply or price impacts.
  • Canadian parties that might have wanted to buy power domestically.
• Charity notices:
  • The individual organizations named in the list (a large number of charities across Canada).
  • Donors to those charities, who may be affected if the charities lose the ability to issue official donation receipts.
  • People who rely on services provided by those charities.

Why it matters#

• Electricity export decisions can affect domestic supply and prices in Canadian provinces and determine whether Canadian buyers get priority access to power. The regulator is asking for information so it can weigh those impacts before deciding.
• Losing registered charity status changes a group’s tax treatment and its ability to issue tax receipts. That can affect fundraising, operations, and people who receive services from those organizations.