2024-25 Annual Report of the Commission of the Canada Energy Regulator - 2024-25 Work of the Commission

Overview of Commission Decisions

While the larger applications discussed below tend to be more in the public eye, a significant amount of the Commission’s time is devoted to adjudicating various smaller infrastructure applications and matters.

During 2024-25, the Commission released 606 decisions on applications related to infrastructure, tolls and tariffs, export licences and orders, frontier exploration and production, Leave to Open orders and other matters that spanned the energy infrastructure lifecycle. Below is the 2024-25 summary of Commission decisions and recommendations.

Overall, the number of decisions this year (606) was similar to 2023-24 (618), with slightly fewer Infrastructure and Tolls and Tariff decisions. However, there were significant changes in the types of decisions issued, as compared to the previous year. The biggest change was a decrease in Exploration and Production decisions (25 in 2024-25 versus 38 the previous year), Leave to Open Orders (17 versus 34), and Other (16 versus 28). The decrease in Leave to Open Orders is due to the reduction in Leave to Open applications for the TMEP, as the project was in the final stages of construction in 2024-25. As well, the number of Export decisions increased from the previous year (487 versus 447), due in part to higher numbers of short-term gas applications.

The Commission considered a variety of applications and matters in 2024-25, varying in size and complexity, and met all legislated time limits during this reporting period. The following section provides a synopsis of the larger decisions and proceedings that were in front of the Commission during the fiscal year.

Completed Processes

Trans Mountain Expansion Project Leave to Open

On 1 May 2024, the final pipeline Leave to Open Order for the TMEP was issued by the Commission. The opening of the 1,150 km pipeline tripled the pipeline’s transportation capacity and expanded access of crude oil and refined petroleum to international markets. While the construction of the pipeline is now complete, there are other aspects of its operation that the Commission will be heavily involved with in the future, namely the Trans Mountain Interim Tolls application, which is discussed below in the ongoing Processes section.

Westcoast Pointed Mountain Abandonment

On 5 December 2024, the Commission approved Westcoast Energy Inc.’s application to abandon the 56 km Pointed Mountain Pipeline, which crosses the Northwest Territories, Yukon, and BC borders. Through this decision, the Commission considered the CER Act, the Mackenzie Valley Resource Management Act (MVRMA) and the Yukon Environmental and Socio-economic Assessment Act (YESAA). The Commission also took into account potential impacts of the abandonment on the rights and interests of Indigenous Peoples.

South Bow Drag Reducing Agent (DRA) Tolling Compliance Filing

On 14 December 2022, the Commission directed TransCanada Keystone Pipeline GP Ltd. to recalculate and refile tolls for the years 2020 and 2021 to remove certain DRA expenses from its tolls, where DRA had been used to expand the system’s nominal capacity. In response, Keystone submitted a compliance filing proposing a new methodology to allocate DRA expenses, which was opposed by Phillips 66 Canada Ltd and Cenovus Energy Inc. The Commission established a process to consider this new methodology and held an oral hearing in the fall of 2024. In its decision of March 2025, the Commission found that South Bow’s proposed DRA allocation methodology, with one modification, would result in just and reasonable tolls for 2020 and 2021.

Abandonment Cost Estimates and Set-Aside and Collection Mechanisms

The Commission conducts periodic reviews to consider the amount of funds companies must set aside to pay for the future abandonment of their regulated pipeline systems, known as abandonment cost estimates. These reviews are typically done every five years. In the most recent review, the Commission issued updated estimates calculated with a new GIS-based methodology and directed companies that use a letter of credit or surety bond for its set-aside mechanism, to amend or replace its financial instruments using the new estimates by 31 May 2024. On 22 July 2024, the Commission issued non-compliance orders to 16 companies that did not meet those filing requirements. Companies using trusts were required to file updated information on how funds would be set aside over time. The Commission issued its decisions on those filings on 24 May and 30 August 2024.

Ongoing Processes

Westcoast Energy Sunrise Expansion

Westcoast’s Sunrise Expansion Program proposes to build 11 pipeline looping segments totaling over 137 km, as well as additional infrastructure (including 2 powerline sections and compressor units) on the existing T-South gas pipeline in central and southern BC. The project will supply domestic and international markets with natural gas. Approximately 95 per cent of the total length of the pipeline is routed adjacent to existing linear disturbances, such as pipeline and multi-utility corridors or powerline rights-of-way. Broad interest has been expressed in this project by rights holders and members of the public and business community. There are 61 intervenors, including 38 First Nation and Métis communities. Oral Indigenous knowledge sessions were held in Prince George, BC, with further sessions and other hearing steps to take place through 2025.

Pouce Coupé Taylor to Gordondale

Pouce Coupé’s Taylor to Gordondale application proposes to enhance existing capacity for the transportation of natural gas liquids and crude oil production into Alberta from the northeastern Montney formation in BC through the construction of an approximately 89 km pipeline and upgrades to existing facilities. Construction will parallel existing or approved linear disturbances for about 96 per cent of the route. There are 34 intervenors registered in the hearing, including 24 Indigenous communities. Twelve Indigenous communities provided oral Indigenous knowledge in Grande Prairie, Alberta in March 2025, and further hearing steps are scheduled over the spring and summer months of 2025.

Trans Mountain Interim Tolls

On 1 June 2023, Trans Mountain applied for approval of interim tolls for transportation of petroleum on the expanded Trans Mountain pipeline system. The interim tolls would be applied on the post-expansion Trans Mountain pipeline system and come into effect as of May 2024, the commencement date of the expanded system. The application, and in particular the toll levels, have been disputed by several of Trans Mountain’s shippers, among other parties. On 30 November 2023, the Commission issued a preliminary decision on a narrower set of issues including the approval of the preliminary interim tolls. This allows Trans Mountain to charge tolls on the expanded system, but the preliminary interim tolls are subject to change pending the current Commission process for Final Interim Tolls (FIT). The current phase of the process is considering more detailed submissions and a broader range of issues related to establishing the FIT. Oral proceedings for the Commission’s more detailed assessment to determine Trans Mountain’s FIT are expected to begin in November 2025.

Imperial Oil Resources N.W.T. Ltd. Applications regarding Operations Authorization (OA) 1210-001 and Line 490

Imperial Oil Resources N.W.T. Ltd., pursuant to COGOA, requested to extend its Norman Wells OA for ten years and to replace flowlines within the Line 490 corridor using a horizontal drilling method. In May 2024, the Commission held in-person oral Indigenous knowledge sessions in the community of Fort Good Hope, Northwest Territories (NT) where it heard from over 40 presenters. The sessions were simultaneously interpreted into Dene Xǝdǝ, the K’ahsho Got’ine dialect of the Dene language. The Commission also held a virtual oral Indigenous knowledge session where it heard from over 15 community members of Tulita, NT. In addition, intervenors provided written evidence, asked and responded to information requests, commented on conditions, and filed final argument. Interested members of the public submitted letters of comment, and the Commission issued information requests to Imperial. Shortly after the Commission received final argument from parties, in October 2024, the Sahtu Secretariat Incorporated referred the applications, which are also being considered by the Sahtu Land and Water Board, to the Mackenzie Valley Environmental Impact Review Board (MVEIRB) for environmental assessment under the MVRMA. As required by relevant legislation, the Commission paused its process while the MVEIRB assessment proceeds and will resume its assessment of the application and issue its decisions after receiving MVEIRB’s report.

Compensation and Cost Apportionment

The Commission is responsible for the adjudication of land-related compensation applications. In 2024-2025, one application was dismissed, two were withdrawn (essentially cancelling the application) before the hearing process commenced, two were withdrawn while the hearing process was underway, two were placed in abeyance, and one was adjourned. Seven applicants noted that they are engaging in negotiations or alternative dispute resolution with the respondent [company] and did not want the Commission to schedule a hearing at this time.

For this reporting period, while there have been process steps for various compensation hearings, no oral hearings have been held or hearing decisions issued for compensation applications. For information on the status of all compensation applications, please see Appendix H.

Under the CER Act, the Commission is also authorized to give direction on the apportionment of costs directly incurred as a result of construction or disturbance near CER-regulated pipelines. Two cost apportionment applications were before the Commission in 2024-25. One was withdrawn due to a successful dispute resolution process, and one is currently underway.

Abandonment Cost Estimates and Set-Aside and Collection Mechanisms

The Commission periodically reviews the amount of funds companies must set aside to pay for the future abandonment of their regulated pipeline systems. The Commission recently concluded a review in which it developed a GIS-based methodology for calculating abandonment costs and issued updated abandonment cost estimates to all companies. The Commission also issued directions to companies that use trusts as the mechanism to set-aside funds for abandonment. After the Commission issued its decisions with the updated abandonment cost estimates, three companies applied for a review and variance of their respective abandonment cost estimate and set-aside and collection mechanism. The Commission’s assessment of those applications continues in 2025-26.

Other

Comment Process Regarding Alliance Tolls and Provision of Information

Major pipeline system operators must regularly file financial information with the CER. This information typically includes the return on equity earned by the company operating the pipeline system. The CER also conducts annual surveys to get feedback from shippers on the CER’s oversight of tolls and about the quality of service provided on CER-regulated pipelines. The Commission may, on its own initiative, inquire into whether tolls on a regulated pipeline system are just and reasonable.

Noting shipper concerns raised in survey responses about Alliance’s return on equity, in May 2024, the Commission initiated a comment process regarding the tolls charged on the Alliance Pipeline and the adequacy of the financial information filed by Alliance. In November 2024, after considering comments from Alliance and its shippers, the Commission placed Alliance on interim tolls and ordered it to file a new toll methodology or a detailed toll application in support of its existing methodology. The Commission subsequently approved Alliance’s request for additional time to negotiate with its shippers before filing any application. Alliance is continuing to negotiate with shippers about both its toll methodology, and information sharing and is required to file a toll application by 30 June 2025, or request an extension.

Withdrawn Applications

There were numerous applications that did not require a final decision from the Commission this past year, as parties were able to reach settlements or return to negotiations, separate from the hearing process. Along with numerous toll settlements and compensation claims, there were two larger applications in this category.

In July 2024, NorthRiver Midstream NEBC Connector GP Inc. filed a Notice of Motion and Constitutional Question, seeking an exemption from certain provincial approvals for the NEBC Connector Project due to alleged permitting delays by the BC Energy Regulator. In January 2025, the Commission granted NorthRiver’s request to terminate the hearing because the BC Energy Regulator issued the relevant provincial approvals and the relief sought was no longer required.

In November 2023, NorthPoint Energy Solutions Inc. filed a complaint against the Manitoba Hydro-Electric Board, arguing that Manitoba Hydro did not meet its fair market access obligations, as required by Electricity Export Permit EPE-404. The Commission dismissed the complaint after NorthPoint stated that it had made satisfactory progress regarding the matters at issue with Manitoba Hydro and requested the matter be closed.

Date modified:

2025-08-19