2013-195 - Alberta Utilities Commission
2013-195 - Alberta Utilities Commission
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