TransCanada PipeLines filed applications with the NationalEnergy Board and the Alberta Energy and Utilities Board last weekfor significant interim toll hikes on its Canadian Mainline andAlberta natural gas transmission systems. The requested tolls wouldgo into effect Jan. 1, 2001.

“These are interim tolls only,” said TransCanada CEO DougBaldwin. “We continue to negotiate with shippers and customers onnew tolls and services and toward a new regulatory framework. Weremain diligent in our negotiations.”

Firm transportation service from the Alberta border toTransCanada’s Eastern Zone is commonly used as the benchmark fortolls on the Canadian Mainline. TransCanada applied for an interimfirm transportation toll of $1.132 per gigajoule from the Albertaborder to the Eastern Zone, compared to the current toll of $1.009per gigajoule. For its Alberta System, the company applied for aninterim firm transportation toll of $0.327/Mcf to the company’sprovincial export points, compared to the current toll of$0.310/Mcf. Firm transportation service to the company’s Albertaexport points is commonly used as the benchmark for tolls on theAlberta System.

The pipeline lost a significant amount of long-term firmcustomers to the Alliance Pipeline, which went into services thismonth with 1.325 Bcf/d of new firm transportation capacity to theChicago Hub from northern British Columbia and Alberta. TransCanadatransports the majority of western Canada’s gas production, with60% of total volume delivered to the United States.

Rocco Canonica

©Copyright 2000 Intelligence Press, Inc. All rightsreserved. The preceding news report may not be republished orredistributed in whole or in part without prior written consent ofIntelligence Press, Inc.