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First Report of the Select Committee on Energy
Natural Gas For New Brunswick

TABLE OF CONTENTS

EXECUTIVE SUMMARY

Map of Pipeline Route and Proposed Laterals
Chart Showing Current Energy Use in New Brunswick

INTRODUCTION

TOWARDS A NATURAL GAS INDUSTRY IN NEW BRUNSWICK

Historical Perspective

The Natural Gas Industry Participants and their Interests

The Government of New Brunswick
The Sable Island Producers
The Owners of the Maritimes & Northeast Pipeline
Potential New Brunswick Customers for Natural Gas
Northeastern U.S. Customers for Natural Gas
The Government of Canada
The Potential Developers of Local Gas Distribution Companies

Economic Considerations in Pipeline and LDC Operations

Concerns Relating to the Recovery of Fixed Costs
Basic Business Risk of the LDC

OBJECTIVES

Maximum Availability of Natural Gas
Timely Development of a Natural Gas Infrastructure
Development of an Effective Regulatory Framework for the Gas
Distribution Business

Increased Competition in the Energy Market
Access for Indigenous Natural Gas Supply
Regional Price Equity
Maximizing Economic Benefits in New Brunswick

DEVELOPMENT OF SABLE ISLAND GAS

KEY ISSUES

Lateral Policy and Pipeline Access

Establishing Franchises
Types of Franchises

Future Laterals and Lateral Expansions

Regulation

Cost of Service and Incentive Regulation
Bundled and Unbundled Services
Market Power
Revenue Cycle Services
Supplier of Last Resort
Load Balancing
Incentives for Distribution System Expansions

Franchises

Local Gas Production

Municipal Involvement in Gas Development

Impact of Gas Industry Development on Electric Restructuring

 

OTHER ISSUES

Environmental Benefits of Natural Gas

Required Changes to Legislation

Centre for Excellence

 

CONCLUSIONS AND RECOMMENDATIONS

Summary of Key Issues

Lateral Policy and Pipeline Access
Future Laterals and Lateral Expansions
Regulation
Franchises
Local Gas Production
Municipal Involvement in Gas Development
Impact of Gas Industry Development on Electric Restructuring

Summary of Other Issues

Environmental Benefits of Natural Gas
Required Changes to Legislation
Centre for Excellence

 

Recommendations for Stage II Process

Term of Franchise
Number of Distributors
Development Plans

 

APPENDICES

Appendix A Schedule of Public Hearings

Appendix B Briefs submitted to Committee


GLOSSARY




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