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February 17, 2012
Canada’s National Energy Board Cites Evidence of Brattle Principal Matthew O’Loughlin in Enbridge Southern Lights Decision

The National Energy Board (Board) recently announced that is has approved the tariffs for service on the Southern Lights Pipeline filed by Enbridge Southern Lights GP Inc. (ESL). In announcing its findings, the Board concluded that the tolls for committed (long-term) and uncommitted service were just and reasonable and that the uncommitted toll is neither an impediment to access nor unjustly discriminatory. In developing its findings, the Board cited the evidence provided by Brattle principal Matthew O’Loughlin. It pointed to his analysis as support for the reasonableness of the committed–to–uncommitted toll design, stating that Mr. O’Loughlin’s evidence illustrated the relative value of committed versus uncommitted service for a shipper making its contracting decision. The Board also agreed with Mr. O’Loughlin’s evidence that the demand for diluent in Alberta is a derived demand and that the market demand for diluent transportation on the Southern Lights Pipeline has not yet fully materialized. Brattle principal Steve Levine, senior consultant Oliver Grawe, and associate Kris Ter-Ghazaryan assisted Mr. O’Loughlin in the preparation of his evidence.