TransCanada Files 2011 Mainline and Alberta System Interim Tolls
CALGARY, Alberta - December 9, 2010 - TransCanada Corporation (TSX, NYSE: TRP) (TransCanada) today announced the filing of an application with the National Energy Board for approval of interim tolls for its Canadian Mainline and the Alberta System, effective January 1, 2011.
The interim toll application reflects the proposals and resulting tolls put forward by TransCanada to both Mainline and Alberta System stakeholders, which are supported by the Canadian Association of Petroleum Producers (CAPP) and a number of other stakeholders.
"We are pleased with the progress we have made in our discussions with stakeholders and believe the proposed tolls will provide significant benefits," said Russ Girling, TransCanada's president and chief executive officer. "The Mainline continues to be a critical piece of infrastructure that has linked natural gas supplies to North American markets for over 50 years and will continue to do so for years to come."
Girling adds it is important for a dialogue to continue with shippers and other stakeholders to garner additional support for TransCanada's proposals and to develop a long term plan to achieve competitive tolls.
The proposed toll for long haul service from Empress, Alberta to Dawn, Ontario is $1.23 per gigajoule (GJ) - a decrease from the 2010 toll. All proposed Mainline tolls are lower than or equal to what they would otherwise be under a previously approved 2007-2011 settlement. For example, the 2011 toll from Empress to Dawn would be $2.45/GJ under the current settlement.
The proposed tolls are achieved, in part, through the following:
- A reduction in depreciation expense by approximately $150 million on the Mainline in 2011 and a combined total of approximately $200 million for the Mainline and Alberta System in each of 2012 and 2013
- An Alberta System receipt shipper contribution of $135 million in 2011 and $185 million in each of 2012 and 2013
- Deferring the recovery of approximately $300 million of under collected 2010 Mainline revenues over subsequent years
- Mainline rate design changes that result in a reallocation of costs
With more than 50 years' experience, TransCanada is a leader in the responsible development and reliable operation of North American energy infrastructure including natural gas and oil pipelines, power generation and gas storage facilities. TransCanada's network of wholly owned natural gas pipelines extends more than 60,000 kilometres (37,000 miles), tapping into virtually all major gas supply basins in North America. TransCanada is one of the continent's largest providers of gas storage and related services with approximately 380 billion cubic feet of storage capacity. A growing independent power producer, TransCanada owns, or has interests in, over 10,800 megawatts of power generation in Canada and the United States. TransCanada is developing one of North America's largest oil delivery systems. TransCanada's common shares trade on the Toronto and New York stock exchanges under the symbol TRP. For more information visit: http://www.transcanada.com/
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