Why, and should some pipelines be common carriers, where all shippers have equal rights of access; others are contract carriers, where shippers acquire capacity rights; and yet others are vertically integrated, where shippers own the pipeline? 

 

When and how should the price, terms of service, and quality of pipelines be regulated? 

• Why are oil pipelines within Alberta not regulated, whereas the Canada Energy Regulator exercises control over the tolls and facilities of some interprovincial pipelines? 

 

What are the advantages and disadvantages of different institutional processes to set tolls on regulated pipelines? Alternative processes include:

• Negotiation between shippers and pipelines subject to approval by the regulator.

• Tolls set by the regulator to recover the cost of service?. Which costs?

• Tolls are fixed and do not vary with costs at least in the short -run, so-called price-cap or incentive regulation.

 

Why are there so many regulators involved in permitting interprovincial pipelines, including the Canada Energy Regulator and the Impact Assessment Agency, and what will be the effect of the Building Canada Act included in Bill C-5? What is the role of environmental impacts in permitting interprovincial pipelines and how should those impacts be addressed by regulation?

 

Why does the Canadian Radio-television and Telecommunications Commission not regulate broadband services,—high-speed internet access—at retail, but does regulate the rates and terms of access for competitors to use competitors’ networks to provide service? Which competitors, which networks, at what prices? What are the costs and benefits of this kind of wholesale regulation? What are the complications associated with the regulated facility owner also providing services at retail?

 

Why is production of electricity in Alberta subject to limited price regulation, but transmission tolls are regulated? Why is there essentially free entry into production of electricity, except for renewables, but transmission facilities require regulatory approval? And unlike broadband, why are electricity producers prohibited from providing transmission?

 

What are the advantages and disadvantages of alternative regulatory institutions to control market power? Alternatives include:

• Oil pipelines are typically privately owned and controlled by a regulator.

• Water and sewage are often municipal services, provided by the local government, but not always.

• Airports and air traffic control are provided by non-profit authorities, created by legislation.

• Electricity service in some provinces is provided by crown corporations: unregulated firms owned by the government. Not just electricity service, but also ferry and postal service.

 

How does, and should, society convince firms to invest billions of dollars of capital in facilities—pipelines, transmission lines, broadband networks— that have essentially no alternative use?

• How is the risk that post-investment, regulatory and government policy will change to reduce the returns that justified the investment by either directly (regulating prices) or indirectly (e.g., by enhancing “competition”) lowering price eliminated or mitigated? 

• What happens when the price set by the government is based on affordability considerations and not the cost of supply?
   

How should pharmaceutical prices be regulated in Canada? Generic drug prices are fixed based on the number of competitors: does that mechanism deliver good results?