Long-term bond rate

The Long-term bond rate (LTBR), simple average rate and return allowance rate are available in monthly and year end files. Long-term bond rates from 1995 to 2012 are also available.

Table 1. Non-Arm’s Length

This is the Non-Arm’s Length transaction Non-Basic Pipeline chart, please note that from 2018 – 2004 the deemed corporate income tax rate type was variable. From 2003 – 1995 the corporate income tax rate type was fixed.

Year Rate of Return on Capital Deemed Corporate Income Tax
2018 7.05% 27.00% FINAL
2017 6.64% 27.00% FINAL
2016 6.88% Pg. 5 (PDF, 45 KB) See breakdown including prior year data](Note: Revised due to new information) 27.00% FINAL
2015 7.18% 27.00% FINAL
2014 7.49% 25.00% FINAL
2013 7.03% 25.00% FINAL
2012 7.10% 25.00% FINAL
2011 7.98% 26.50% FINAL
2010 8.63% 28.00% FINAL
2009 8.84% 29.00% FINAL
2008 9.07% 29.50% FINAL
2007 9.25% 32.12% FINAL
2006 9.83% 34.50% FINAL
2005 10.77% 37.62% FINAL
2004 11.36% 38.87% FINAL
2003 12.64% 45.00% fixed
2002 12.54% 45.00% fixed
2001 12.65% 45.00% fixed
2000 12.92% 45.00% fixed
1999 12.60% 45.00% fixed
1998 13.18% 45.00% fixed
1997 14.12% 45.00% fixed
1996 15.19% 45.00% fixed
1995 n/a n/a n/a

For reference Energy chart

Non-Arm’s Length Transaction Non-Basic Pipeline
Rate of Return on Capital (RORC) Deemed Corporate Income Tax
7.05% 27.00% FINAL
6.64% 27.00% FINAL
6.88% Pg. 5 [see breakdown including prior year data] (Note: Revised due to new information) 27.00% FINAL
7.18% 27.00% FINAL
7.49% 25.00% FINAL
7.03% 25.00% FINAL

Learn more

Refer to these pages for more help:

More on rates of return

Return allowance

All pre-payout projects are allowed a return allowance on the excess of cumulative costs, less cumulative revenue.

For post-payout projects, a return allowance may be claimed if a project has a net loss for the year.

In the case of pre-payout projects, the amount is calculated monthly. In the case of post-payout projects, the amount is calculated annually.

The rate of the return allowance is tied to the long-term bond rate, set by the Bank of Canada. The legislative authority for the return allowance is provided by Section 2 of the Oil Sands Allowed Costs (Ministerial) Regulation.

Non-arm’s length (NAL) pipeline return rate

Pipelines used to transport bitumen or bitumen blend to market are not allowed as project assets. As a result, only a per-unit charge is allowed based on volumes actually transported.

In the case of NAL pipelines, the amount charged is calculated by a formula. It includes a return-on-capital component, which is tied to the return allowed by the National Energy Board for multi-rate pipelines.

More information on this cost-of-service formula can be found in Section 5.3 of the Oil Sands Royalty Guidelines, 2012 (PDF, 206 KB).


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