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TransCanada Files Interim Toll Hike

TransCanada Files Interim Toll Hike

TransCanada PipeLines filed applications with the National Energy Board and the Alberta Energy and Utilities Board last week for significant interim toll hikes on its Canadian Mainline and Alberta natural gas transmission systems. The requested tolls would go into effect Jan. 1, 2001.

"These are interim tolls only," said TransCanada CEO Doug Baldwin. "We continue to negotiate with shippers and customers on new tolls and services and toward a new regulatory framework. We remain diligent in our negotiations."

Firm transportation service from the Alberta border to TransCanada's Eastern Zone is commonly used as the benchmark for tolls on the Canadian Mainline. TransCanada applied for an interim firm transportation toll of $1.132 per gigajoule from the Alberta border to the Eastern Zone, compared to the current toll of $1.009 per gigajoule. For its Alberta System, the company applied for an interim firm transportation toll of $0.327/Mcf to the company's provincial export points, compared to the current toll of $0.310/Mcf. Firm transportation service to the company's Alberta export points is commonly used as the benchmark for tolls on the Alberta System.

The pipeline lost a significant amount of long-term firm customers to the Alliance Pipeline, which went into services this month with 1.325 Bcf/d of new firm transportation capacity to the Chicago Hub from northern British Columbia and Alberta. TransCanada transports the majority of western Canada's gas production, with 60% of total volume delivered to the United States.

Rocco Canonica

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