Trans Mountain Pipeline ULC Application for Interim Tolls

Project Background

What is a pipeline toll?

Transcript:

• What is a pipeline toll?
• Pipeline Toll: the price charged by a pipeline company to use their pipeline
• Who decides what price is fair?
• That’s the job of CER’s Commission
• The pipeline company proposes how much they would like to charge for the use of the pipeline
• The parties that want to use the pipeline tell us what they are willing to pay
• Then the Commission listens to everyone’s ideas
• and makes a decision that is fair for everyone
• Our goal is to protect the interests of Canadians
• And keep the companies we regulate competitive
• To learn more visit our website

Our role

In addition to ensuring that pipelines are safe for people and the environment, the Canada Energy Regulator (CER) also regulates pipeline tolls and tariffs. Tolls are the fees a pipeline company charges its customers to ship products, such as oil or natural gas, on its pipeline. The pipeline company uses toll revenues to pay for maintenance, earn back the money spent to build the pipeline and provide a return to its investors. Tolls also allow pipeline companies to operate and maintain pipelines safely.

A company can only charge a toll for pipeline services if it is included in a tariff filed with the CER or approved by a CER order. Pipeline tariffs specify the procedures by which shippers are to submit nominations for transportation service, including the form and timing of nominations. Sounds simple enough, but for some pipelines, a tariff could fill a large three-ring binder.

The Canadian Energy Regulator Act says tolls must be ‘just and reasonable’ and not unjustly discriminatory. Additionally, the Act does not allow unjust discrimination in service, which generally means all shippers must be treated fairly.

Application

Trans Mountain Pipeline ULC (Trans Mountain) applied on June 1, 2023, for approval of interim commencement date tolls and other related matters associated with the transportation of petroleum on the Trans Mountain Expanded System (Filing C24695) (Application).

To balance the need for efficiency and fair process, on August 1, 2023, the Commission of the Canada Energy Regulator issued Process Letter No. 2 (C25730) dividing the Application in two phases: a Preliminary Decision and a Final Interim Tolls decision.

The Commission issued the Preliminary Decision in November 2023 and granted approval for interim tolls to be charged when the Expanded System began operations in May 2024. Interim tolls allow Trans Mountain to charge shippers to use the pipeline until Trans Mountain is ready to apply for and receive approval of final tolls. Interim tolls can be changed retroactively.

Currently, Trans Mountain charges these interim tolls which, in Trans Mountain’s view, use the toll methodology outlined in the agreements with committed shippers and received National Energy Board approval in 2013 [Folder 828580]. These tolls are based on the estimated costs to complete the Trans Mountain Expansion Project.

On July 7, 2026, Trans Mountain filed an application with the CER seeking approval of a negotiated settlement which it reached with seven of the eight current Firm Service Shippers on the Trans Mountain Pipeline System (Filing C40141). The proposed settlement covers pipeline tolls, transportation services, and related rules, as well as certain matters related to the 2026 Firm Contracting Open Season.

The proposed settlement is intended to resolve certain issues currently before the Commission in Proceeding RH-002-2023 and establish a new framework for tolls, tariffs, and transportation services on the system. Consistent with the Commission's March 2026 direction, Trans Mountain filed its settlement application prior to the July 13, 2026 deadline.

The CER Commission has issued two letters in response to Trans Mountain’s July 7, 2026 application. One letter sets out a comment process for interested persons [Filing C40186], with comments due by noon on July 22, 2026, and Trans Mountain’s response due by noon on July 29, 2026. The other keeps the existing Trans Mountain tolls proceeding, RH-002-2023, paused while the Commission reviews the settlement application [Filing C40184].

The CER Commission had previously approved Trans Mountain's request to pause the Interim Tolls proceeding while settlement discussions were ongoing.

Project Map

Participate

Interested parties must register, and be confirmed by the Commission, as an intervenor to participate in additional process steps [Filing C24789].

Choosing Your Participation Level in the Hearing Process

The level of participation in the hearing process should be based on how much it will impact your interests. A person’s involvement should correspond to the degree to which the application may affect you.

• Intervenors
• Intervenors must explain how an application impacts their interests and why Intervenor status is required. Being an Intervenor requires a time commitment and may involve costs to prepare and submit evidence. This includes submitting written evidence, asking questions about evidence, submitting and responding to motions, and making a final argument.
• Commenters
• Commenters are allowed to file one letter of comment that will be placed on the public record and considered by the Commission. However, commenters can’t ask questions about the evidence or present it in person at a hearing. Commenters are not required to register, but are encouraged to sign up for email notifications through the Participation Portal.

Details regarding the hearing process will be determined and communicated at a later date.