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2013-195 - Alberta Utilities Commission

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Decision <strong>2013</strong>-<strong>195</strong><br />

Montana <strong>Alberta</strong> Tie Ltd. and<br />

AltaLink Management Ltd.<br />

MATL 230-Kv International Merchant Power Lines –<br />

Final Design and Time Extension for MATL Project Facilities<br />

Costs Award<br />

May 24, <strong>2013</strong>


The <strong>Alberta</strong> <strong>Utilities</strong> <strong>Commission</strong><br />

Decision <strong>2013</strong>-<strong>195</strong>: Montana <strong>Alberta</strong> Tie Ltd. and AltaLink Management Ltd.<br />

MATL 230-kV International Merchant Power Line –<br />

Final Design and Time Extension for MATL Project Facilities<br />

Costs Award<br />

Application No. 1609225<br />

Proceeding ID No. 2374<br />

May 24, <strong>2013</strong><br />

Published by<br />

<strong>Alberta</strong> <strong>Utilities</strong> <strong>Commission</strong><br />

Fifth Avenue Place, 4th Floor, 425 - First Street SW<br />

Calgary, <strong>Alberta</strong><br />

T2P 3L8<br />

Telephone: (403) 592-8845<br />

Fax: (403) 592-4406<br />

Web site: www.auc.ab.ca


Contents<br />

1 INTRODUCTION ................................................................................................................. 1<br />

2 VIEWS OF THE COMMISSION ....................................................................................... 2<br />

3 VIEWS OF THE COMMISSION - ASSESSMENT ......................................................... 2<br />

3.1 The Bishop/Bennett Group ............................................................................................ 2<br />

3.2 David Swanson .............................................................................................................. 3<br />

4 GST ......................................................................................................................................... 3<br />

5 ORDER .................................................................................................................................. 3<br />

APPENDIX A – LANDOWNERS REPRESENTED BY MY LANDMAN GROUP INC.<br />

AND BISHOP LAW OFFICE (THE BENNETT/BISHOP GROUP) ..................................... 5<br />

AUC Decision 2012-<strong>195</strong> (May 24, <strong>2013</strong>) • i


The <strong>Alberta</strong> <strong>Utilities</strong> <strong>Commission</strong><br />

Calgary, <strong>Alberta</strong><br />

Montana <strong>Alberta</strong> Tie Ltd. and AltaLink Management Ltd. Decision <strong>2013</strong>-<strong>195</strong><br />

Final Design and Time Extension for MATL Project Facilities Application No. 1609225<br />

Costs Award Proceeding ID No. 2374<br />

1 Introduction<br />

1. Montana <strong>Alberta</strong> Tie Ltd. (MATL, later Enbridge MATL) submitted Application No.<br />

1607416 to the <strong>Alberta</strong> <strong>Utilities</strong> <strong>Commission</strong> (AUC or <strong>Commission</strong>) on June 16, 2011, to amend<br />

its existing permits and licenses for its 230-kilovolt international merchant transmission line and<br />

substation to reflect design changes. Subsequently MATL and AltaLink Management Ltd.<br />

submitted related applications for a time extension to complete various aspects of the MATL<br />

project. The <strong>Commission</strong> assigned Proceeding ID No. 1301 to this application.<br />

2. A group of landowners affected by the MATL project, known as the Bennett/Bishop<br />

group objected to the amendment and time extension applications. The list of the persons<br />

represented by the Bennett/Bishop group is attached to this decision as Appendix A. The<br />

Bennett/ Bishop group was represented by Ms. Debbie Bishop of the Klimek, Buss Bishop Law<br />

Group and Mr. Daryl Bennett of My Landman Group Inc.<br />

3. On December 19, 2012, the <strong>Commission</strong> issued Decision 2012-345 1 in which it approved<br />

MATL’s proposed amendments and its requests for a time extension.<br />

4. On January 24, <strong>2013</strong>, the <strong>Commission</strong> received a costs claim from the Bennett/Bishop<br />

group. The cost claim consisted of claims for the professional fees of Ms. Bishop and Mr.<br />

Bennett and a claim for an honorarium for Mr. David Swanson. The <strong>Commission</strong> circulated a<br />

summary of costs to interested parties on February 27, <strong>2013</strong>. Parties were advised that any<br />

comments regarding the figures listed in the summary or the merits of the total costs claimed<br />

were to be filed by March 13, <strong>2013</strong>.<br />

5. On March 13, <strong>2013</strong>, Enbridge MATL submitted comments regarding the Bishop/Bennett<br />

Group’s claim. Enbridge MATL did not object to the claim submitted on behalf of Daryl<br />

Bennett/My Landman Group Inc.. However, it did object to the costs claimed for Ms. Bishop’s<br />

professional fees and the honorarium claimed on behalf of Mr. David Swanson.<br />

6. Enbridge MATL submitted that Ms. Bishop’s claim should be reduced by 50 per cent<br />

because her submissions focused exclusively on issues that were irrelevant to Proceeding ID No.<br />

1301. It observed that Mr. Swanson’s submissions were made on his behalf and on behalf of his<br />

wife and brother, Ted Swanson, who was represented by Ms. Bishop and Mr. Bennett. Enbridge<br />

MATL stated that Mr. Swanson’s submissions were short (five pages) and that the honorarium<br />

claimed was disproportionate to his preparation efforts. Enbridge MATL concluded that Mr.<br />

Swanson’s honoraria should be reduced from $2,500 to $300.<br />

1<br />

Decision <strong>2013</strong>-345: Montana <strong>Alberta</strong> Tie Ltd. and AltaLink Management Ltd. MATL 230-Kv International<br />

Merchant Power Line – Final Design and Time Extension for MATL Project Facilities, Applications No.<br />

1607416, No. 1607721, and No. 1607863, Proceeding ID No. 1301, December 19, 2012<br />

AUC Decision <strong>2013</strong>-<strong>195</strong> (May 24, <strong>2013</strong>) • 1


Final Design and Time Extension for MATL Project Facilities<br />

Costs Award<br />

Montana <strong>Alberta</strong> Tie Ltd. and AltaLink Management Ltd.<br />

7. On March 14, <strong>2013</strong>, the <strong>Commission</strong> wrote to interested parties to give them an<br />

opportunity to reply to the comments filed by Enbridge MATL and were advised that any<br />

comments regarding Enbridge MATL’s comments were to be filed by March 28, <strong>2013</strong>. The<br />

<strong>Commission</strong> did not receive any reply comments from Ms. Bishop or Mr. Swanson.<br />

Accordingly, the <strong>Commission</strong> considers the cost process to have closed on March 28, <strong>2013</strong>.<br />

2 Views of the <strong>Commission</strong><br />

8. When assessing costs claims pursuant to Section 21 of the <strong>Alberta</strong> <strong>Utilities</strong> <strong>Commission</strong><br />

Act, the <strong>Commission</strong> applies AUC Rule 009: Rules on Local Intervener Costs(Rule 009). Rule<br />

009 also prescribes a Scale of Costs applicable to costs claims.<br />

9. In exercising its discretion to award costs, the <strong>Commission</strong> will in accordance with<br />

Section 7 of Rule 009, consider whether an eligible participant acted responsibly and contributed<br />

to a better understanding of the issues before the <strong>Commission</strong>, and whether the costs claimed are<br />

reasonable and directly and necessarily related to the proceeding. The <strong>Commission</strong> considers<br />

these factors in light of the scope and nature of the issues in question.<br />

10. In the <strong>Commission</strong>’s view, the responsibility to contribute positively to the process is<br />

inherent in a proceeding. The <strong>Commission</strong> expects that those who choose to participate will<br />

prepare and present a position that is reasonable in light of the issues arising in the proceeding<br />

and necessary for the determination of those issues. To the extent reasonably possible, the<br />

<strong>Commission</strong> will be mindful of a participant’s willingness to co-operate with the <strong>Commission</strong><br />

and other participants to promote an efficient and cost-effective proceeding.<br />

11. As the costs of a utility proceeding are generally passed on to customers, it is the<br />

<strong>Commission</strong>’s duty to ensure that customers receive fair value for a party’s contribution. As<br />

such, the <strong>Commission</strong> only approves those costs that are reasonable, and directly and necessarily<br />

related to the party’s participation in the proceeding.<br />

3 Views of the <strong>Commission</strong> - assessment<br />

3.1 The Bishop/Bennett Group<br />

12. The Bishop/Bennett Group submitted costs totaling $10,813.74. The professional fees<br />

claimed on behalf of Ms. Bishop were $2,982.00 and GST of $149.10. Mr. Bennett of My<br />

Landman Group Inc. submitted consulting costs totaling $7,316.80 and GST of $365.84.<br />

13. The <strong>Commission</strong> has considered the costs submitted by the Bishop/Bennett Group. The<br />

<strong>Commission</strong> finds that the participation of Ms. Bishop and My Landman Group Inc. was of some<br />

assistance in reviewing the MATL amendment and time extension applications. The<br />

<strong>Commission</strong> recognizes that the scope of the amendment proceeding was limited and that some<br />

of the submissions prepared by Ms. Bishop addressed issues ultimately determined to be outside<br />

of the scope of the proceeding. However, in the <strong>Commission</strong>’s view, the fees claimed on behalf<br />

of Ms. Bishop are reasonable and reflective of the fact that some of her submissions were made<br />

before the <strong>Commission</strong> expressed its views on the scope of the proceeding. The <strong>Commission</strong> is<br />

also satisfied that the fees claimed on behalf of Daryl Bennett and My Landman Group Inc. were<br />

also reasonable in the circumstances.<br />

2 • AUC Decision <strong>2013</strong>-<strong>195</strong> (May 24, <strong>2013</strong>)


Final Design and Time Extension for MATL Project Facilities<br />

Costs Award<br />

Montana <strong>Alberta</strong> Tie Ltd. and AltaLink Management Ltd.<br />

14. The <strong>Commission</strong> finds that the claims for professional fees and other claims submitted on<br />

behalf of the Bennett/Bishop group were in accordance with the Scale of Costs. Accordingly, the<br />

<strong>Commission</strong> considers the Bishop/Bennett Group claims for fees, disbursements and applicable<br />

GST in the total amount of $10,813.74 to be reasonable.<br />

3.2 David Swanson<br />

15. Section 2 of Appendix A of AUC Rule 009: Rules for Local Intervener Costs states that<br />

“A local intervener who personally prepares a submission without expert help, may claim an<br />

honorarium in the range of $300.00 to $2500.00, depending upon the complexity of the submission.”<br />

16. The <strong>Commission</strong> has considered Mr. Swanson’s claim for a $2500.00 honorarium and<br />

has decided that it is disproportionate to the scope and nature of his participation in the<br />

proceeding. In the <strong>Commission</strong>’s view, a preparation honoraria of $2,500.00 represents the<br />

upper limit of the honoraria it is prepared to award in accordance with its Scale of Costs and<br />

should be reserved for exceptional circumstances. Mr. Swanson’s submissions in this<br />

proceeding were not exceptional. While his submissions conveyed the concerns he had with the<br />

MATL project and the amendment, they were relatively brief and straightforward. Having regard<br />

to the scope and nature of his submissions and their content, the <strong>Commission</strong> is of the view that a<br />

preparation honoraria of $1,000 effectively reflects the time and effort expended by Mr.<br />

Swanson in preparing his brief submissions.<br />

4 GST<br />

17. In accordance with the <strong>Commission</strong>'s treatment of the GST on cost awards, Enbridge<br />

MATL is required to pay only that portion of the GST paid by interveners that may not be<br />

recoverable through the GST credit mechanism. Accordingly where parties are eligible for a<br />

GST credit the <strong>Commission</strong> has reduced this particular portion of their claim. Eligible GST<br />

approved by the <strong>Commission</strong> amounts to $514.94. The GST allowed by the <strong>Commission</strong> may<br />

also be charged against Enbridge MATL’s Hearing Cost Reserve Account.<br />

18. The <strong>Commission</strong> emphasizes that its treatment of the GST claimed in no way relieves<br />

participants or their lawyers and consultants from their GST obligations pursuant to the Excise<br />

Tax Act, RSC 1985, c E-15.<br />

5 Order<br />

19. It is hereby ordered that:<br />

(1) Enbridge MATL shall pay intervener costs to the Bishop/Bennett Group in the<br />

amount of $10,813.74 and record the approved costs in its Hearing Costs Reserve<br />

Account.<br />

(2) Enbridge MATL shall pay intervener costs to David Swanson in the amount of<br />

$1,000.00 and record the approved costs in its Hearing Costs Reserve Account.<br />

AUC Decision <strong>2013</strong>-<strong>195</strong> (May 24, <strong>2013</strong>) • 3


Final Design and Time Extension for MATL Project Facilities<br />

Costs Award<br />

Montana <strong>Alberta</strong> Tie Ltd. and AltaLink Management Ltd.<br />

Dated on May 24, <strong>2013</strong>.<br />

The <strong>Alberta</strong> <strong>Utilities</strong> <strong>Commission</strong><br />

(original signed by)<br />

Neil Jamieson<br />

<strong>Commission</strong> Member<br />

4 • AUC Decision <strong>2013</strong>-<strong>195</strong> (May 24, <strong>2013</strong>)


Final Design and Time Extension for MATL Project Facilities<br />

Costs Award<br />

Montana <strong>Alberta</strong> Tie Ltd. and AltaLink Management Ltd.<br />

Appendix A – Landowners represented by My Landman Group Inc. and Bishop Law<br />

Office (the Bennett/Bishop Group)<br />

Landowner Name<br />

968437 AB Ltd. (Daryl Soice)<br />

Joe Baczuk<br />

Leona Baczuk<br />

Gordon Clayton<br />

Iris Clayton<br />

Beverly Cudrak<br />

Tony Cudrak<br />

Dave Van Pelt Farms Inc.<br />

Brian Friedrick<br />

Georgina Giaccheta<br />

Van Giessen Growers Inc.<br />

Wayne Van Giessen<br />

Clarence Halma<br />

Rita Halma<br />

Less Hoytos<br />

Jesco Farms Ltd.<br />

Wim Kampert<br />

Willem Kampert<br />

Rita Kampert<br />

KCL Cattle Company<br />

KERCP Farms Inc.<br />

Lois Ketchey<br />

Allen Klassen<br />

Jodi Klassen<br />

Art Van Klei<br />

Brian Lindeman<br />

Delores Lindeman<br />

Will Lindeman<br />

LaRae Lindeman<br />

John Lutz<br />

Landowner Name<br />

Brenda Lutz<br />

George Matthies<br />

John Mazutinec<br />

Sheila Mazutinec<br />

Brad Moser<br />

Darryl Moser<br />

Sue-Anne Moser<br />

Daniel Mueller<br />

Les Obbagy<br />

Ross Orcott<br />

Frank Otrahalek<br />

Marlene Otrahalek<br />

James Wiskerke Otrahalek<br />

Frank Otrhalek<br />

Joyce Owens<br />

Prairie Gem Farms<br />

Rolling Prairie Farms<br />

John Slingerland<br />

Diane Slingerland<br />

Barry Snow<br />

Barbara Snow<br />

Ted Swanson<br />

Diane Sincennes<br />

Norman Sincennes<br />

Doran Templeton<br />

Bryan Templeton<br />

Roy Tetzlaff<br />

Anne Tetzlaff<br />

Les Wall<br />

Hubrecht Wiskerke<br />

AUC Decision <strong>2013</strong>-<strong>195</strong> (May 24, <strong>2013</strong>) • 5

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