The appellants and respondent TransCanada entered into a contract for the sale and delivery of gas at a fixed price.
TransCanada applied to the National Energy Board to fix just and reasonable rates or tolls for transportation services.
The Board ordered that the Imputed Alberta Border Price be substituted for the contractual sale price of the gas.
The appellants appealed, arguing the Board exceeded its jurisdiction.
The Supreme Court of Canada allowed the appeal, holding that the Board's authority under the National Energy Board Act to fix transportation tolls did not include the power to alter the contract price for the sale of gas as a commodity.
