BCER reworks fees, levies to be paid by major energy and LNG projects

FORT ST. JOHN, B.C. — The amount some major gas and oil projects will have to pay in BC Hydro fees, levies and securities is changing.

According to an announcement by BC Energy Regulator (BCER), an annual review of the Fee, Levy and Security Regulation has resulted in changes to four LNG projects and three pipeline permit holders. 

The Energy Resources Activities Act allows the BCER to set and collect fees, levies and securities to meet its regulatory obligations and recover expenses, which is subject to approval by its treasury board. 

The post said levies are assessed and adjusted over a project’s lifecycle to show the costs of oversight required at each stage. 

The levy calculation takes into account various factors but BCER’s oversight costs increase during pre-construction and during construction, and then decreases as the project becomes operational. 

The annual review has resulted in changes to the following LNGs and pipeline permit holders: 

• LNG Canada facility decreased from $900,000 to $600,000.
• Woodfibre LNG facility decreased from $2,500,000 to $1,400,000.
• Cedar LNG facility was established at $600,000.
• Ksi Lisims LNG facility was established at $500,000.
• Coastal GasLink pipeline decreased from $1,700/km to $420/km.
• Prince Rupert Gas Transmission pipeline increased from $200/km to $760/km.
• Eagle Mountain pipeline increased from $200/km to $2,180/km.

The levy changes do not reflect any change in BCER’s approach to regulatory oversight, which it says are fully cost-recovered.