Vector Pipeline Remission Order
Vector Pipeline Limited Partnership Remission Order: SI/2021-13
The government approved a remission order returning $1,241,925 to Vector Pipeline Limited Partnership because the energy regulator collected more in 2019 cost-recovery charges than the company ultimately owed. The payment, made under the Financial Administration Act, is issued as a lump sum because Vector’s reclassification to an intermediate pipeline company would have spread the credit across small levies for about 122 years.
- Published
- April 14, 2021
- Department
- Unavailable
- Section
- Vector Pipeline Limited Partnership Remission Order
- Comment deadline
- Unavailable
- Effective date
- March 26, 2021
- Publication part
- Part II
Summary
Summary#
The federal government approved the Vector Pipeline Limited Partnership Remission Order: SI/2021-13 on March 26, 2021 (published April 14, 2021). It returns $1,241,925 to Vector Pipeline Limited Partnership because the energy regulator collected more in 2019 cost-recovery charges than the company ultimately owed.
What it does#
- Remits $1,241,925 to Vector Pipeline Limited Partnership as a lump-sum payment.
- Uses authority under the Financial Administration Act to provide the payment instead of leaving the amount as a future credit.
- Explains this is needed because the National Energy Board Cost Recovery Regulations normally convert such adjustments into credits applied against future bills under subsection 17(3.1).
- Notes that after Vector was reclassified from a large to an intermediate pipeline company, the remaining credit would have been spread out against small annual levies of $10,222, taking about 122 years to use up — so a lump sum was considered reasonable.
Who's affected#
- Vector Pipeline Limited Partnership — the direct recipient of the remission and the company that overpaid in 2019.
- Canadian Energy Regulator (CER) (formerly the National Energy Board (NEB)) — the regulator that collected the fees and handled the crediting process.
- Other regulated pipeline companies in the same commodity group — they were involved in the earlier decision-making and could be indirectly affected by how cost-recovery adjustments are allocated, but the order itself returns money only to Vector.
Why it matters#
- Vector gets immediate access to $1,241,925 instead of very small annual reductions that would have taken about 122 years to use. That is a practical, near-term benefit for the company.
- The order corrects a surplus collection and returns public funds that the regulator had held as a credit. This is a limited, technical fix rather than a broad policy change.
- For the general public, the direct impact is small — the item mainly affects how a specific regulator account is settled and how one company is paid back.
Key topics
Source: Canada Gazette