Table 6: Comparison of Planned to Actual
Spending
|
Departmental Planned versus Actual Spending ($ millions)
|
| |
2002–03
Actual
|
2003–04
Actual
|
2004–2005
|
|
Main
Estimates
|
Planned
Spending
|
Total
Authorities
|
Actual
|
|
Energy Regulation and Advice
|
35.4
|
35.2
|
35.5
|
35.8
|
39.0
|
38.1
|
|
Total
|
35.4
|
35.2
|
35.5
|
35.8
|
39.0
|
38.1
|
|
Less: Non-Respendable revenue
|
(35.9)
|
(39.6)
|
(38.0)
|
(38.0)
|
(38.0)
|
(42.8)
|
|
Plus: Cost of services received without charge
|
5.3
|
5.5
|
5.4
|
5.4
|
5.4
|
5.6
|
|
Net cost of Department
|
4.8
|
1.1
|
2.9
|
3.2
|
6.4
|
0.9
|
|
Full-time Equivalents
|
287
|
295.8
|
299.6
|
Table 7: Summary of Voted Appropriation
|
Financial Requirements by Authority ($ millions)
|
|
Vote
|
Voted Appropriation
|
2004–2005
|
|
Main
Estimates
|
Planned
Spending
|
Total
Authorities
|
Actual
|
|
30
|
Program expenditures
|
30.5
|
30.8
|
34.7
|
33.9
|
|
(S)
|
Contributions to employee benefit plans
|
5.0
|
5.0
|
4.3
|
4.2
|
|
|
Total
|
35.5
|
35.8
|
39.0
|
38.1
|
Table 8: Net Cost of Department
|
Net Cost of Department 2004–2005
|
($ millions)
|
|
Total Actual Spending
|
38.1
|
|
Plus: Services Received without Charge
|
|
|
Accommodation provided by Public Works and Government Services Canada
(PWGSC)
|
3.6
|
|
Contributions covering employers’ share of employees’ insurance
premiums and expenditures paid by TBS (excluding revolving funds)
|
1.9
|
|
Worker’s compensation coverage, cost recovery audit costs and
miscellaneous costs provided by other departments
|
0.1
|
|
Less: Non-respendable Revenue
|
42.8
|
|
2004–2005 Net cost of Department
|
0.9
|
Table 9: Sources of Non-Respendable Revenue
|
Non-Respendable Revenue ($ millions)
|
| |
Actual
2002-03
|
Actual
2003-04
|
2004-2005
|
|
Main
Estimates
|
Planned
Revenue
|
Total
Authorities
|
Actual
|
|
Energy Regulation and Advice
|
35.9
|
39.6
|
38.0
|
38.0
|
38.0
|
42.8
|
|
Total Non-Respendable Revenue
|
35.9
|
39.6
|
38.0
|
38.0
|
38.0
|
42.8
|
The NEB is an independent regulatory agency, established in 1959 under theNEB
Act. The NEB Act authorizes the Board to charge those companies it regulates
costs attributable to the NEB’s operations in carrying out its related
responsibilities.
A. Energy Regulation and Advice – National Energy Board Act
|
Fee Activity
|
Description
|
Amount ($ millions)
|
|
Energy Regulation and Advice – National Energy Board Act
The NEB regulates in the public interest those areas of the oil, gas,
non-hydrocarbon and electricity industries relating to:
Construction and operation of pipelines;
Construction and operation of international and designated
interprovincial power lines;
Transportation, tolls and tariffs of pipelines; and
Exports of oil, gas and electricity and imports of oil and gas.
|
|
Fee Type
|
Regulatory
|
|
|
Fee Setting Authority
|
The NEB External Charging is in accordance with sub-section 24.1 (1) of
the NEB Act. As of 1 January 1991 under the NEB Cost Recovery
Regulations the NEB recovers the cost of operations of the companies
that it regulates. The NEB has the delegated authority to determine what
costs will be excluded from program expenditures for cost recovery
purposes.
|
|
|
Date Last Modified
|
NEB Cost Recovery Regulations last amended on November 6, 2002.
|
|
|
2004-2005 Forecast Revenue
|
Regulatory
|
41.4
|
|
2004-2005 Actual Revenue
|
Regulatory
|
42.7
|
Estimated Full Cost
|
Regulatory
a) NEB costs
34.0
b) Other
Departments’ costs 5.0
|
39.0
|
|
Forecast
Revenue
|
Sub-Total (2005-2006)
Sub-Total (2006-2007)
Sub-Total (2007-2008)
Total
|
40.5
39.0
38.0
117.5
|
|
Estimated Full Cost
|
Sub-Total (2005-2006)
Sub-Total (2006-2007)
Sub-Total (2007-2008)
Total
|
39.4
38.0
36.8
114.2
|
|
Performance Standards [8]
|
Performance Results 2004-2005
|
|
Reasons for Decision
- 80% of Reasons for Decision completed within 12 weeks
following a public hearing
|
Reasons for Decision : 3 hearings: 100% completed in 12 weeks
|
|
Export/import authorizations
- Short term export orders for oil, gas, and natural gas
liquids: 2 working days
- Natural gas import and export orders : 2 working days
- Electricity export permits :80% in 75 days
|
Export/import authorizations
Short term export orders : 206 in 2004 calendar year: all
completed in 48 hours
Natural gas import/export orders : 113 in 2004-2005: all
completed in 48 hours
Electricity export permits : 9 received: 75% in 75 days (see
section 2.3 for details)
|
|
Onshore pipeline regulation (OPR) audits
- 80% of draft OPR reports sent to the audited company in 8 weeks of
field work completion
|
Onshore pipeline regulation audits : 2 received: 100% of draft
OPR audit reports were delivered within 8 weeks
|
|
Financial audits
- 80% of draft financial reports sent to the audited company in 8
weeks of field work completion
|
Financial audits : 3 received: 100% of draft financial audit
reports were delivered within 8 weeks
|
|
Non-hearing Section 58 application cycle times
- Category A (complexity of issues considered minor): 80% of
decisions released in 40 calendar days
- Category B (complexity of issues considered moderate): 80% of
decisions released in 90 calendar days
- Category C (complexity of issues considered major): 80% of
decisions released in 120 calendar days
|
Non-hearing Section 58 applications
Category A : 31 received: 87% in 40 days
Category B : 20 received: 100% in 90 days
Category C : none received
|
B. Energy Regulation and Advice – Canada Oil
and Gas Operations Act
|
Fee Activity
|
Description
|
Amount ($ millions)
|
|
Energy Regulation and Advice – Canada Oil
and Gas Operations Act
Under the COGO Act, the NEB regulates oil and gas activities on
frontier lands not subject to a federal/provincial accord.
|
|
Fee Type
|
Regulatory
|
|
|
Fee Setting Authority
|
Canada Oil and Gas Operations Act
|
|
Date Last Modified
|
1992
|
|
2004-2005 Forecast Revenue
|
Regulatory
|
The annual revenue is less than $1000.
|
|
2004-2005 Actual Revenue
|
Regulatory
|
The annual revenue is less than $1000.
|
Estimated Full Cost
|
Regulatory
a) NEB costs
3.7
b) Other
Departments’ costs 0.5
|
4.2
|
|
Forecast Revenue
|
Sub-Total (2005-2006)
Sub-Total (2006-2007)
Sub-Total (2007-2008)
Total
|
The annual revenue is less than $1000.
|
|
Estimated Full Cost
|
Sub-Total (2005-2006)
Sub-Total (2006-2007)
Sub-Total (2007-2008)
Total
|
4.2
4.2
4.2
12.6
|
The NEB collects fees and provides services under the Access to
Information Act. Information about these fees and service standards is found
in the annual reports pursuant to Access to Information Act and Privacy
Act that are located on the NEB's Web site at
www.neb-one.gc.ca/Publications/index_e.htm.
C. Consultation and Analysis
When the NEB Cost Recovery Liaison Committee (CRLC) was established in July
1990, the composition of the committee ensured that there was representation
from each of the industry’s major associations and companies. The CRLC was
establishedfor on-going consultation and communication regarding cost recovery
methodology, regulations and new initiatives affecting cost recovery processes.
In addition, the NEB tables and discusses its financial statements and
anticipated expenditures with the CRLC. The NEB’s performance results are
presented to the CRLC at regularly scheduled meetings.
D. Dispute Management
The NEB has a Dispute Management Process, as per the Treasury Board External
Charging Policy, to ensure that disputes and issues raised by stakeholders
related to external charging are addressed and resolved fairly and efficiently.
This process is described on the NEB Web site at
www.neb-one.gc.ca/AboutUs/ExternalChargingPolicy DisputeManagementProcess_e.htm.
In this process, there are three hierarchical levels to resolve a dispute.
The first level of resolution rests with the Chair of the CRLC. If the dispute
is unresolved at the first level, the issue will be passed on to the second
level where a committee is formed. Where the first level and the second level
fail to result in a resolution, the matter will be referred to the Chairman of
the Board. Each level is given 90 days from the date of receipt of notification
or escalation to resolve the dispute.
The disputes and issues may include but shall not be limited to:
- failure to meet the agreed standard of services or products;
- negotiated charges are perceived to be unreasonable;
- issues regarding specifications and descriptions of the required services
or products;
- cancellation of the negotiated services or products; or
- failure to meet deadlines.
E. Other Information
In addition, the NEB has developed its own External Charging Policy for
external charges of a non-regulatory nature. This policy can be found at www.neb-one.gc.ca/AboutUs/ExternalChargingPolicyNonRegulatory_e.htm
.
Evaluations and reviews conducted under the auspices of the NEB Audit and
Evaluation Committee and completed in 2004-2005:
- NEB Organizational Design and Structure Review
- Evaluation of Goal-oriented Regulation
- Audit of Time Information Management (TIME) System
- Testing of TIME System for 2002-2003
- Audit of Contracting Practices
The final reports can be found at www.neb-one.gc.ca
under Publications, Internal Audit Reports.
The NEB is structured into five business units, reflecting major areas of
responsibility: Applications, Commodities, Operations, Corporate Services and
Information Management. In addition, the Executive Office includes four teams
that provide specialized services: Legal Services [9]
, Professional Leadership, Regulatory Services and
Communications. [10]
Business Unit Descriptions
Applications
The Applications Business Unit is responsible for processing and assessing
most regulatory applications submitted under the NEB Act. These fall primarily
under Parts III and IV of the NEB Act, corresponding to facilities, and tolls
and tariffs applications. It is also responsible for other matters such as the
financial surveillance and financial audits of companies under the NEB’s
jurisdiction and for addressing landowner concerns. The Business Leader of
Applications is accountable for this Unit.
Commodities
The Commodities Business Unit is responsible for energy industry and
marketplace surveillance, including the outlook for the demand and supply of
energy commodities in Canada, updating guidelines, and regulations relating to
energy exports as prescribed by Part VI of the NEB Act. It is also responsible
for assessing and processing applications for oil, natural gas and electricity
exports, and for the construction and operation of interprovincial and
international electric power lines. The Business Leader of Commodities is
accountable for this Unit.
Operations
The Operations Business Unit is accountable for safety and environmental
matters pertaining to facilities under the NEB Act, the COGO Act and the CPR
Act. It conducts safety and environmental inspections and audits, investigates
incidents, monitors emergency response procedures, regulates the exploration,
development and production of hydrocarbon resources in non-accord frontier
lands, and develops regulations and guidelines with respect to the above. The
Business Leader of Operations is accountable for this Unit.
Corporate Services
The Corporate Services Business Unit provides those services necessary to
assist the NEB in its management of human, materiel and financial resources. Its
responsibilities include corporate policy and planning activities, materiel and
facilities management, staffing, training, compensation and benefits,
procurement, inventory control, physical security and union/management
activities. The Business Leader of Corporate Services is accountable for this
Unit.
Information Management
The Information Management Business Unit is responsible for developing and
implementing an information management strategy for the NEB and distributing the
information required by internal and external stakeholders. Its responsibilities
include corporate records management, library, mail services, access to
information, document production services and computer services. The Business
Leader of Information Management is accountable for this Unit.
Executive Office
The Executive Office is responsible for the NEB’s overall capability and
readiness to meet strategic and operational requirements including internal and
external communications, legal advice for both regulatory and management
purposes, maintaining and enhancing technical expertise within the NEB in the
economic, environmental and engineering fields, and hearing administration and
regulatory support.
The reporting structure to the Chairman and CEO is as follows for 2004-2005:
Figure 18: NEB Organizational Structure
|
