TransCanada Files 2011 Mainline and Alberta System Interim TollsCALGARY, 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/
This news release may contain certain information that is forward looking and is subject to important risks and uncertainties. The words "anticipate", "expect", "believe", "may", "should", "estimate", "project", "outlook", "forecast" or other similar words are used to identify such forward-looking information. Forward-looking statements in this document are intended to provide TransCanada securityholders and potential investors with information regarding TransCanada and its subsidiaries, including management's assessment of TransCanada's and its subsidiaries' future financial and operations plans and outlook. Forward-looking statements in this document may include, among others, statements regarding the anticipated business prospects, projects and financial performance of TransCanada and its subsidiaries, expectations or projections about the future, and strategies and goals for growth and expansion. All forward-looking statements reflect TransCanada's beliefs and assumptions based on information available at the time the statements were made. Actual results or events may differ from those predicted in these forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, among others, the ability of TransCanada to successfully implement its strategic initiatives and whether such strategic initiatives will yield the expected benefits, the operating performance of TransCanada's pipeline and energy assets, the availability and price of energy commodities, capacity payments, regulatory processes and decisions, changes in environmental and other laws and regulations, competitive factors in the pipeline and energy sectors, construction and completion of capital projects, labour, equipment and material costs, access to capital markets, interest and currency exchange rates, technological developments and economic conditions in North America. By its nature, forward-looking information is subject to various risks and uncertainties, which could cause TransCanada's actual results and experience to differ materially from the anticipated results or expectations expressed. Additional information on these and other factors is available in the reports filed by TransCanada with Canadian securities regulators and with the U.S. Securities and Exchange Commission (SEC). Readers are cautioned to not place undue reliance on this forward-looking information, which is given as of the date it is expressed in this news release or otherwise, and to not use future-oriented information or financial outlooks for anything other than their intended purpose. TransCanada undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
Posted: December 9, 2010
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