The Changing Face Of Energy Regulation In Canada

Article By James H. Smellie and Marie C. Rounding GOWLING LAFLEUR HENDERSON LLP¹

Introduction

At one time, energy regulatory counsel could often predict the decision of an energy regulator - whether in respect of utility rates or new pipeline or transmission facilities - with a degree of accuracy. This was not so much because the regulator's thinking was overly transparent, but rather that the parameters of economic cost of service regulation were quite predictable, and the primary criteria for approval of such facilities were also focused primarily on well-known concepts of need and economic feasibility.

Energy regulators continue to approve rates and projects that are in the "public interest"; that overriding criterion has not changed. But as the energy sector has evolved into a more competitive, market-driven industry, so too have decision-makers evolved to oversee markets rather than just entities, and to make their decisions with a view to accommodating a