(The Board Or NEB) Application for a Blanket Electricity Export Permit
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National Energy Board (the Board or NEB) Application for a Blanket Electricity Export Permit Pursuant to s.119.03 of the National Energy Board Act and s.9 of the National Energy Board Electricity Regulations Version Date: November 2007 This application form is appropriate only for applicants who can agree to all the following: declarations in section I and conditions in section II. If an applicant is unable to check every box in both sections I and II, this application form is not an acceptable or appropriate means for submitting an application for an electricity export permit. SECTION I - DECLARATIONS The applicant declares the following information to be true: True This application is for a blanket1 electricity export permit which allows the applicant to apply for a permit without having specific export sales arrangements or contracts in place. Neither the applicant, nor any of its affiliates, own, operate or have an interest in electrical facilities including generation, transmission or distribution within Canada. No new facilities, modifications to existing facilities, or changes to the operation of existing facilities will be necessary to effect the applicant’s proposed exportation of electric energy. This application is for an electricity export permit that authorizes exports over any of the international power lines in Canada, for which the Board has issued, or will issue, a Certificate of Public Convenience and Necessity, or a Permit. The applicant intends to export electric energy that will be generated by third parties and transmitted using NEB approved transmission lines. The applicant is not aware of any adverse effects that the proposed exports will have on the operation of any power system in the provinces neighbouring the province from which the exports will take place. 1 The Board also issues contract specific electricity export permits where an applicant has an export contract in place and seeks an electricity export permit to specifically address the proposed export. - 2 - SECTION II - STANDARD PERMIT CONDITIONS The applicant agrees to the following electricity export permit conditions: The Board’s practice is to limit blanket electricity export permits to a ten year term or less. The Board is of the view that, in addition to being consistent with other blanket permit authorizations, the standard ten- year term grants applicants the ability to participate in the evolving electricity markets, while providing the Board the ability to respond sooner to any issues that may emerge in the evolving North American electricity markets. The applicant accepts an electricity export permit with a term of 10 years or less. The Board’s practice in issuing blanket export permits is to place a condition that limits the duration of any single export contract, or series of export contracts to the same customer, to five years. The Board is of the view that a contract of five years or less is not sufficient to support the construction of new facilities or modifications to existing facilities, to serve the demands of an export contract, therefore, adverse environmental effects are unlikely to occur as a result of granting these types of permits. The applicant accepts the condition on any electricity export permit issued to it limiting the duration of any single export contract, or series of contracts to the same customer, to five years. The Board’s practice includes placing standard conditions on all electricity export permits to ensure Canadians are provided with fair market access (FMA) to electricity available for export. The Board does not specify what procedures should be utilized to ensure FMA, which allows exporters and prospective Canadian purchasers to bargain in good faith and determine mutually acceptable and appropriate FMA procedures. If the applicant is requesting authorization for sales transfers, the applicant accepts the following standard FMA conditions. 1. The applicant shall not export power and energy as a sale transfer hereunder without first: i. informing those who have declared an interest in buying electricity for consumption in Canada of the quantities and classes available for sale; and ii. giving an opportunity to purchase electricity on terms and conditions as favourable as the terms and conditions which apply to the proposed exports, to those who, within a reasonable time after being so informed, demonstrate an intention to buy electricity for consumption in Canada. 2. For sale transfers, the applicant shall: i. for exports of less than one month duration, subsequent to the commencement of an export, inform all accessible Canadian purchasers, upon request, of the terms and conditions under which a particular export was made, and, upon request, file the terms and conditions with the Board; and ii. for exports of one month or more in duration, or a series of similar consecutive exports of less than one month in duration to the same customer that together exceed one month or more in duration, file with the Board, within fifteen consecutive days of execution, a copy of any specific contractual arrangements associated with an export and, upon request, serve a copy thereof on requesting accessible Canadian purchasers. - 3 - If the applicant is requesting authorization for any other transfer class such as equichange, carrier, storage or adjustment transfers, the applicant accepts the following standard FMA conditions. 1. The applicant is directed to maintain a file, for Board inspection, of all the contracts entered into under this permit for equichange, carrier, storage or adjustment transfers. (This condition will include only those transfer classes applied for and authorized). 2. The applicant shall maintain the file referred to in the above condition until one year past the permit expiration date. SECTION III - INFORMATION NOT REQUIRED Given that this application is for a blanket electricity export permit by an applicant2: • that does not own, operate or have an interest in electrical facilities; that declares that no new facilities, modifications to existing facilities, or changes to the operation of existing facilities will be necessary to effect the proposed export; • that will export over international power lines for which the Board has issued or will issue a certificate or permit; and • that has agreed to the conditions identified in section II of this application form, additional information related to sections 9 (f), (g), (h), (i), (j), (k), (l), (m), (q) and (r) of the National Energy Board Electricity Regulations and Appendix III of the Electricity Memorandum of Guidance is not required at this time. Should the Board require additional information to complete its assessment of the application, it will be requested pursuant to s.119.05 of the National Energy Board Act. SECTION IV - APPLICATION INFORMATION (1) Application Date: 03 06 2008 (2) Applicant Information: (a) Application Contact Information: Applicant's Legal Name Sempra Energy Trading (Calgary) ULC Authorized Representative(s) Ted Chila Brad Grant of the Applicant Representative's Title Manager - Indirect Tax Counsel for the applicant Organization Name Sempra Energy Trading (Calgary) Stikeman Elliott LLP ULC Mailing Address Sempra Energy Trading (Calgary) 4300 Bankers Hall West ULC 888 - 3rd Street S.W. c/o Sempra Energy Trading LLC Calgary, AB T2P 5C5 58 Commerce Road 2 Neither the applicant, nor any of its affiliates, own, operate or have an interest in electrical facilities including generation, transmission or distribution within Canada. - 4 - Stamford, CT 06902 Telephone Number (203) 355-5651 (403) 266-9008 Fax Number (203) 355-5001 (403) 266-7809 Email Address [email protected] [email protected] (b) Export and Import Reporting Contact Information: Export permit holders are required to report export and import activities monthly in accordance with s.8 of the National Energy Board Export and Import Reporting Regulations3. The Board requires company contact information identifying who will be responsible for the reporting of export and import statistics. Name Ted Chila Title Manager - Indirect Tax Organization Name Sempra Energy Trading (Calgary) ULC Mailing Address Sempra Energy Trading (Calgary) ULC c/o Sempra Energy Trading LLC 58 Commerce Road Stamford, CT 06902 Telephone Number (203) 355-5651 Fax Number (203) 355-5001 Email Address [email protected] (c) Cost Recovery Contact Information: While there is no application fee for filing an electricity export application, in accordance with the National Energy Board Cost Recovery Regulations, the Board recovers a portion of its annual operating costs from the companies it regulates4. The Board requires company contact information identifying who will be responsible for the annual invoices relating to cost recovery. Name Ted Chila Title Manager - Indirect Tax Organization Name Sempra Energy Trading (Calgary) ULC Mailing Address Sempra Energy Trading (Calgary) ULC c/o Sempra Energy Trading LLC 58 Commerce Road Stamford, CT 069022 Telephone Number (203) 355-5651 Fax Number (203) 355-5001 Email Address [email protected] 3 A copy of these Regulations are available at: http://laws.justice.gc.ca/en/N-7/SOR-95-563/index.html 4 See Appendix II for more information on cost recovery. - 5 - (d) Briefly describe the business of the applicant including applicant's activities in the electricity sector and attach a copy of the applicant©s latest annual report5. Identify the company website address if applicable. The applicant is a private company which is wholly-owned by Sempra Energy Trading Holdings SARL, a private holding company incorporated under the laws of Switzerland and owned by Sempra Energy. Sempra Energy is a global energy services company whose common shares are publicly traded on the New York Stock Exchange under the symbol "SRE". A copy of Sempra Energy©s most recent annual report is attached. (e) Legal Status of Applicant Applicants must be persons. The Interpretation Act, R.S., c. I-21, provides that the definition of person includes a company. The definition does not include limited partnerships. Limited partnerships are persons only when given this capacity by law.