Option 1 Conventional arbitration that closely reflects commercial arbitration Option 2 Conventional arbitration limited to disputes regarding price Option 3 Conventional arbitration with additional procedural protections and partial transparency Option 4 Final offer arbitration, which requires the arbitrator to select one of the final offers. disputant’s Option 5 Combined arbitration, which combines elements of conventional and final offer arbitrations Arbitration Principles Pricing principles Other guiding principles Option 1 Arbitrator to have broad discretion to The other guiding principles were as follows: determine whether the price offered is reasonable having regard to the other guiding the legitimate business interests of the principles pipeline operator, and the pipeline Option 2a Pricing principles based on price payable for in the pipeline; operator’s investment comparable pipeline services (including the interests of all persons who have principles on how the prices of derivative and rights to use the service; ancillary services should be determined). the value to the provider of extensions Option 2b Pricing principles based on the cost of service including expansions of capacity and provision (including a commercial rate of expansions of geographical reach whose return). cost is borne by someone else; Separate principles used to determine how the the value to the provider of prices of derivative and ancillary services interconnections to the facility whose cost Option 3a Option 2a with further guidance in the pricing is borne by someone else; principles on how the comparison of the prices of comparable services is to be carried out. the operational and technical requirements necessary for the safe and Option 3b Option 2b with further guidance in pricing reliable operation of the facility; and principles on how the cost of service provision (including the commercial rate of return) is to the level of competition for the provision be determined. of the service and the price and other terms and conditions of any competing services.
Option 1 Conventional arbitration that closely reflects commercial arbitration Option 2 Conventional arbitration limited to disputes regarding price Option 3 Conventional arbitration with additional procedural protections and partial transparency Option 4 Final offer arbitration, which requires the arbitrator to select one of the disputant’s final offers. Option 5 Combined arbitration, which combines elements of conventional and final offer arbitrations Arbitration Principles Pricing principles Other guiding principles Option 1 Arbitrator to have broad discretion to determine whether the price offered is reasonable having regard to the other guiding principles The other guiding principles were as follows: the legitimate business interests of the pipeline operator, and the pipeline operator’s investment in the pipeline; the interests of all persons who have rights to use the service; the value to the provider of extensions including expansions of capacity and expansions of geographical reach whose cost is borne by someone else; the value to the provider of interconnections to the facility whose cost is borne by someone else; the operational and technical requirements necessary for the safe and reliable operation of the facility; and the level of competition for the provision of the service and the price and other terms and conditions of any competing services. Option 2a Pricing principles based on price payable for comparable pipeline services (including principles on how the prices of derivative and ancillary services should be determined). Option 2b Pricing principles based on the cost of service provision (including a commercial rate of return). Separate principles used to determine how the prices of derivative and ancillary services Option 3a Option 2a with further guidance in the pricing principles on how the comparison of the prices of comparable services is to be carried out. Option 3b Option 2b with further guidance in pricing principles on how the cost of service provision (including the commercial rate of return) is to be determined.