Consumers' Gas Co. v. Canada ( National Energy Board )
A-777-95
Hugessen J.A.
13/3/96
7 pp.
Appeal from National Energy Board decision declaring Ottawa East Line of Consumers' Gas Co. Ottawa Distribution System subject to federal regulatory jurisdiction as integral part of interprovincial pipeline owned by Niagara Gas Transmission Ltd. (Niagara)-Consumers' distributing gas in Ottawa area-Receiving gas from TransCanada Pipelines Ltd. (TCPL) at Ottawa Gate Station whence distributed to consumers through three distribution lines: Ottawa East, Ottawa North and Ottawa South lines-Niagara Line feeds off Ottawa East Line (OEL), crosses Ottawa River and connects to retail distribution system of Gazifère Inc. in Gatineau, Québec-Consumers', Niagara and Gazifère all affiliated companies with common ownership-Consumers' and Gazifère, as intraprovincial distribution systems, have heretofore been regulated by Ontario Energy Board and Régie du Gaz naturel respectively-No dispute Niagara, as interprovincial carrier of gas, subject to regulation by Board-Board unanimously held OEL not itself interprovincial work or undertaking but held it to be vital, essential and integral to Niagara Line because latter dependent on many services provided by former-Appeal allowed-(1) No ground for Board's finding OEL constituting separate undertaking for constitutional purposes-Wholly within limits of Ontario and simple fact of physical connection to interprovincial work not giving it federal character-OEL has always been part of Consumers' Ottawa distribution system and constitutionally impermissible to break it into its constituent parts whose existence as independent undertakings wholly notional-(2) Board's finding Niagara Line dependent upon OEL fundamentally flawed-Niagara, solely transportation entity, has no need of heating, odourant, regulation and load balancing facilities provided by Consumers' at Ottawa Gate Station for its own distribution system, and therefore cannot be said to be dependent upon them-Commercial arrangements with consumers not dependency in constitutional sense-(3) Final error committed by Board lying in its refusal to consider relatively minor part of Consumers' undertaking (13%) operated for benefit of federal Niagara Line-Clearly not enough if provincial undertaking's involvement in federal undertaking only minor in extent or casual in nature.