Enbridge Gas New Brunswick Limited Partnership et al. v. New Brunswick (Attorney General),

Enbridge Gas v. N.B. (A.G.) (2012), 392 N.B.R.(2d) 363 (TD);

      392 R.N.-B.(2e) 363; 1016 A.P.R. 363

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[French language version follows English language version]

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Temp. Cite: [2012] N.B.R.(2d) TBEd. SE.008

Renvoi temp.: [2012] N.B.R.(2d) TBEd. SE.008

Enbridge Gas New Brunswick Limited Partnership, Enbridge Energy Distribution Inc. and Enbridge Inc. (applicants/moving parties) v. The Attorney General in and for the Province of New Brunswick (respondent)

(F-M-22-12; 2012 NBQB 267; 2012 NBBR 267)

Indexed As: Enbridge Gas New Brunswick Limited Partnership et al. v. New Brunswick (Attorney General)

Répertorié: Enbridge Gas New Brunswick Limited Partnership et al. v. New Brunswick (Attorney General)

New Brunswick Court of Queen's Bench

Trial Division

Judicial District of Fredericton

Garnett, J.

August 23, 2012.

Summary:

Résumé:

Enbridge Gas et al. (the applicants) applied for a declaration that s. 4(1) of Regulation 2012-49 under the Gas Distribution Act, 1999 (N.B.) was invalid as being ultra vires.

The New Brunswick Court of Queen's Bench, Trial Division, dismissed the application. Section 4(1) of Regulation 2012-49 under the Gas Distribution Act, 1999 (N.B.) was intra vires.

Statutes - Topic 5367

Operation and effect - Delegated legislation - Regulations - Validity of - Ultra vires - Whether purpose authorized by empowering statute - Section 52(5) of the Gas Distribution Act (N.B.), provided that, in approving or fixing just and reasonable rates and tariffs, the Energy and Utilities Board (N.B.) "shall adopt the methods or techniques prescribed by regulation" - Section 95(1) empowered the Lieutenant-Governor in Council to make regulations "(m.2) prescribing the methods or techniques the Board shall adopt when approving or fixing rates and tariffs and the methods or techniques may vary for different prescribed classes of customers; ... (m.6) respecting the transition from a market based method or technique of approving or fixing just and reasonable rates and tariffs to a method or technique based strictly upon cost of service" - Section 4(1) of Regulation 2012-49 under the Act instructed the Board to "adopt the cost of service method or technique with a revenue to cost ratio not exceeding 1.2:1..." - Enbridge Gas challenged s. 4(1) of Regulation 2012-49 as being ultra vires the Act - The New Brunswick Court of Queen's Bench, Trial Division, dismissed the challenge - The "only question for the Court" was whether the regulation fell within the scope of the authorizing statute and whether it was consistent with its general purposes - The court found that ss. 52 and 95 of the Act were broad enough to authorize s. 4(1) of the Regulation - See paragraphs 1 to 27.

Législation - Cote 5367

Application et effet - Législation déléguée - Règlements - Validité - Ultra vires - Le but du règlement est-il autorisé par la loi habilitante? - [Voir Statutes - Topic 5367 ].

Cases Noticed:

Northwestern Utilities Ltd. v. Edmonton (City), [1929] S.C.R. 186, consd. [para. 12].

TransCanada Pipelines Ltd. v. National Energy Board et al. (2004), 319 N.R. 171; 2004 FCA 149 (F.C.A.), consd. [para. 13].

ATCO Gas and Pipelines Ltd. v. Energy and Utilities Board (Alta.), [2006] 1 S.C.R. 140; 344 N.R. 293; 380 A.R. 1; 363 W.A.C. 1; 2006 SCC 4, consd. [para. 4].

FortisBC Inc. v. Shaw Cablesystems Ltd. et al. (2010), 297 B.C.A.C. 154; 504 W.A.C. 154 (C.A.), consd. [para. 16].

Energy Association of New York States et al. v. Public Service Commission of the State of New York et al. (1996), 169 Misc. 2d 924; 653 N.Y.S. 2d 502; 1996 N.Y. Misc. Lexis 507, consd. [para. 17].

New York (Attorney General) v. Public Service Commission of the State of New York (1986), 67 N.Y.2d 205; 492 N.E.2d. 1193, refd to. [para. 18].

Pacificorp v. Public Service Commission of Wyoming et al., 103 P.3d. 862; 2004 WY 164, refd to. [para. 18].

Irving Oil Ltd., Canaport Ltd., Kent Lines Ltd. and Thorne's Hardware Ltd. v. National Harbours Board, [1983] 1 S.C.R. 106; 46 N.R. 91, consd. [para. 22].

Statutes Noticed:

Gas Distribution Act, S.N.B. 1999, c. G-2.11, sect. 52(5) [para. 3]; sect. 67(2), sect. 67(3) [para. 5]; sect. 95(1)(m.2), sect. 95(1)(m.6), sect. 95(1)(m.7) [para. 6].

Gas Distribution Act Regulations (N.B.), Rates and Tariffs Regulation, Reg. 2012-49, sect. 4(1) [para. 7].

Rates and Tariffs Regulation - see Gas Distribution Act Regulations (N.B.).

Authors and Works Noticed:

Brown, Donald J.M., Evans, John M., and Deacon, Christine E., Judicial Review of Administrative Action in Canada, #15:3262 [para. 21].

Counsel:

Avocats:

David Duncan Young, for the applicants/moving parties;

Kenneth McCullogh, Q.C., and Catherine Lahey, for the respondent.

This application was heard on July 24, 2012, by Garnett, J., of the New Brunswick Court of Queen's Bench, Trial Division, Judicial District of Fredericton, who delivered the following decision on August 23, 2012.