Legislative Assembly of New Brunswick
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An Act to Amend the Gas Distribution Act, 1999

Legislature :
54
Session :
5
Bill No. :
48
Member :
Hon. Jeannot Volpé
First Reading :
2003-3-25
Second Reading :
2003-3-26
Committee of the Whole :
2003-4-8
Amended :
2003-4-8
Third Reading :
2003-4-9
Royal Assent :
2003-4-11
Download PDF :
Bill 48

Text of Bill :
Her Majesty, by and with the advice and consent of the Legislative Assembly of New Brunswick, enacts as follows:



1                           Section 1 of the Gas Distribution Act, 1999, chapter G-2.11 of the Acts of New Brunswick, 1999, is amended



(a)               by repealing the definition "gas marketer" and substituting the following:



"gas marketer" means a person who holds a certificate issued by the Board under section 61;



(b)               by adding the following definitions in alphabetical order:



"northeast transmission line" means a transmission line that passes through or near the municipalities of Miramichi, the City of Bathurst, Belledune, the Town of Dalhousie and the City of Campbellton;



"northwest transmission line" means a transmission line that passes through or near the municipalities of Nackawic, Florenceville, The Town of Grand Falls and Edmundston;



2                           Section 5 of the Act is amended



(a)               in subsection (2) by striking out "The" and substituting "Subject to subsection (2.1), the";



(b)               by adding after subsection (2) the following:



5(2.1)             The Board may only grant a single end use franchise to an applicant whose industrial facility



(a)               will be located on either the northeast transmission line or the northwest transmission line, and



(b)               will purchase a sufficient volume of gas to facilitate the construction of the northeast transmission line or the northwest transmission line, when taken into consideration with any other applications for a single end use franchise on the same transmission line.



3                           Section 51 of the Act is repealed and the following is substituted:



51(1)               No gas distributor shall sell gas except in accordance with this section.



51(2)               A gas distributor who has been granted a general franchise may sell gas or offer to sell gas to a customer.



51(3)               A gas distributor who sells or offers to sell gas under subsection (2)



(a)               shall do so in accordance with the terms and conditions prescribed by regulation, and



(b)               notwithstanding section 58, may do so without a certificate issued by the Board under section 61.



51(4)               A gas distributor shall be a supplier of last resort or shall arrange for a supplier of last resort.



51(5)               A gas distributor who acquires gas for sale shall do so in accordance with the terms and conditions prescribed by regulation.



51(6)               An associate or affiliate of a gas distributor may only sell gas in accordance with section 58.



4                           Section 52 of the Act is amended



(a)               in subsection (1) by striking out "its distribution or customer services" and substituting "the distribution of gas";



(b)               by repealing subsection (3) and substituting the following:



52(3)               The Board may make an order approving or fixing just and reasonable rates and tariffs that a gas distributor may charge for the distribution of gas or for supplier of last resort services.



(c)               in subsection (6) by striking out "or provision of customer services".



5                           Section 53 of the Act is repealed.



6                           Section 54 of the Act is amended by striking out "and customer services".



7                           Section 55 of the Act is amended



(a)               in subsection (1) by striking out "its gas distribution and for the customer services it offers" and substituting "the gas distribution services that the gas distributor offers";



(b)               in subsection (2) by striking out "its gas distribution and for the customer services it offers" and substituting "the gas distribution services that the gas distributor offers".



8                           Section 56 of the Act is repealed and the following is substituted:



56                        A gas distributor shall not make any change to its rates or tariffs for the distribution of gas except with the approval of the Board, after a proceeding determined by the Board, and any approved change shall be plainly indicated on new schedules that shall be filed with the Board before the change comes into effect.



9                           Section 59 of the Act is repealed and the following is substituted:



59                        The Board may make an order regulating the price charged by a gas marketer or a gas distributor for gas or a customer service if the Board is of the opinion that the price is not subject to effective competition sufficient to protect the interests of customers.



10                        Section 60 of the Act is repealed and the following is substituted:



60(1)               A contract for the sale of gas between a low volume consumer and a person who is not in compliance with section 58 may not be enforced against the consumer.



60(2)               Subsection (1) does not apply to a gas distributor who sells gas under subsection 51(2).



11                        Paragraph 69(m) of the Act is amended by striking out "customer, any agent of such a customer or potential gas marketer;" and substituting "customer or any agent of such a customer or potential gas marketer, unless authorized or required by regulation to disclose the information;".



12                        Subsection 95(1) of the Act is amended by adding after paragraph (n) the following:



(n.1)          prescribing, for the purposes of paragraph 51(3)(a), the terms and conditions under which a gas distributor may sell gas;



(n.2)          prescribing, for the purposes of subsection 51(5), the terms and conditions under which a gas distributor may acquire gas for sale;



13                        Paragraph 1(a) and sections 3 to 12 come into force on a day or days to be fixed by proclamation.



EXPLANATORY NOTES



Section 1



(a)               The existing definition is as follows:



"gas marketer" means a person who



(a)               sells or offers to sell gas to a customer,



(b)               acts as the agent or broker for a seller of gas to a customer,



(c)                acts or offers to act as the agent or broker of a customer in purchasing gas, or



(d)               arranges for pipeline capacity on a transmission line or a pipeline regulated by the United States Federal Energy Regulatory Commission for a customer,



and "gas marketing" has a corresponding meaning;



(b)               New definitions.



Section 2



(a)               Consequential amendment.



(b)               New provision.



Section 3



The existing provision is as follows:



51(1)               No gas distributor shall sell gas except as a supplier of last resort but; subject to section 58, an associate or affiliate of a gas distributor may sell gas.



51(2)               A gas distributor shall either be the supplier of last resort or arrange for a supplier of last resort.



Section 4



(a)               The existing provision is as follows:



52(1)               No gas distributor shall charge for its distribution or customer services except in accordance with an order of the Board.



(b)               The existing provision is as follows:



52(3)               The Board may make orders approving or fixing just and reasonable rates and tariffs for the distribution of gas by gas distributors and for customer services, including supplier of last resort service.



(c)                The existing provision is as follows:



52(6)               An order under this section may include conditions, classifications or practices applicable to the distribution of gas or provision of customer services, including rules for calculating rates.



Section 5



The existing provision is as follows:



53(1)               The Board may require a gas distributor to publish separate rates and tariffs for each customer service according to its associated unit of measure.



53(2)               The Board may, by order, alter an associated unit of measure, if it considers that another associated unit of measure better enables customers to compare customer services offered by a gas distributor with those offered by others.



Section 6



The existing provision is as follows:



54                        In an application regarding rates and tariffs for gas distribution and customer services, the burden of proof is on the gas distributor.



Section 7



(a)               The existing provision is as follows:



55(1)               A gas distributor shall file with the Board schedules, which shall be open to public inspection, showing all rates and tariffs that the Board has approved for its gas distribution and for the customer services it offers or proposes to offer within the Province.



(b)               The existing provision is as follows:



55(2)               A gas distributor shall maintain at convenient locations in the Province, keep available for public inspection and make available to a member of the public who requests one, a copy of all rates and tariffs that the Board has approved for its gas distribution and for the customer services it offers or proposes to offer within the Province.



Section 8



The existing provision is as follows:



56                        A gas distributor shall make no change in any of its rates or tariffs except with the approval of the Board, after a proceeding determined by the Board, and any change shall be plainly indicated upon new schedules to be filed before they are to take effect but, upon application by a gas distributor, the Board may prescribe a time within which a reduction may be made, or within which additions may be made, to such schedules regarding customer services for which no rates or charges are there provided.



Section 9



The existing provision is as follows:



59                        The Board may make orders regulating the price of gas, or of a customer service charged by a gas marketer, when it finds that the price is not subject to effective competition sufficient to protect customers' interests.



Section 10



The existing provision is as follows:



60                        A gas marketing contract between a low volume consumer and a person who is not in compliance with section 58 may not be enforced against that consumer.



Section 11



The existing provision is as follows:



69                        A gas distributor shall ...



(m)               not knowingly disclose to any gas marketer any confidential information obtained in connection with providing services to any other gas marketer or customer, a potential gas marketer or customer, any agent of such a customer or potential gas marketer;



Section 12



New regulation-making authority.



Section 13



Commencement provision.

 

Amendment : Section 1
Strike out paragraph (b).

Section 2
Strike out section 2.

Section 13
Strike out "Paragraph 1(a) and sections 3 to 12 come" and substitute "This
Act or any provision of it comes".


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