Canada regulators get shake-up

After close to a decade without any grand changes, the two leading energy regulatory agencies in Canada are into a rapid change in personnel and purpose.

Both the National Energy Board and the Alberta Energy and Utilities Board have seen the retirement of their chairman and the Alberta board is now heading for a fundamental shake-up.

A marriage that was never made in heaven is being forcibly ended in Alberta, with the provincial government turning back the clock 12 years to establish two separate bodies, one to watch over supply development and one to safeguard consumers.

The government said it will introduce legislation in the upcoming session to take effect Jan. 1, 2008, and re-establish the Energy Resources Conservation Board to oversee oil, natural gas and coal development.

A second agency, the Alberta Utilities Commission, will primarily be responsible for distribution and sale of electricity and natural gas to consumers through the oversight of an existing Markets Surveillance Administrator and the Alberta Electric System Operator.

Separate boards needed for timely decisions

The existing board handled about 60,000 applications for project approvals and permits in 2006, the board staff has grown 40 percent since 1998 to 880 and the annual budget has doubled to C$1.36 billion. The new utilities commission will be expanded to take charge of four agencies resulting from deregulation.

AEUB Chairman Neil McCrank retired at the end of March after nine years with the board. A new chairman is expected to be in place during the six-month transition phase once the legislation is passed.

Meanwhile, Ken Vollman said he will retire as NEB chairman when his appointment expires June 2.

He joined the federal regulator in 1973 and was named chairman in 1998.

In a letter to colleagues, Vollman said he was especially proud that there has not been a single rupture of an NEB-regulated oil or gas pipeline in four years.

A board spokesman said there is no reason why the regulatory handling of all current projects, including the Mackenzie Gas Project, should be affected by the departure of Vollman.

—Gary Park