Daily GPI / NGI All News Access

TransCanada Promises $70 Million in Savings

TransCanada Promises $70 Million in Savings

It's been a year since the completion of its C$11 billion merger with Nova Corp., but TransCanada Pipelines finally came through on promised savings yesterday. The pipeline company said it will give $70 million in merger-related savings to its pipeline customers through "targeted operating cost reductions." An agreement on the reductions was filed with Canada's National Energy Board and the Alberta Energy and Utilities Board yesterday.

Under the agreement, TransCanada will begin passing benefits on to customers in 2001 in the form of a lower operating cost component of transportation tolls. "TransCanada has a goal to reduce overall costs by $100 million by the end of 2000 as result of the merger, with $70 million coming from our regulated pipeline business," said Doug Baldwin, TransCanada's president, interim CEO and a member of the TransCanada Board of Directors. "This agreement, which provides our customers with a minimum of $35 million in savings in 2001, demonstrates our confidence that we're on track to achieve this goal."

TransCanada will pass the first $35 million of the $70 million in savings to customers through a reduction in the operating cost component of transportation tolls on its Mainline, Alberta and British Columbia pipeline systems in 2001. The remaining $35 million will be felt in 2002.

The savings announcement follows by one week the installation of a new executive management team at TransCanada and follows by two weeks the resignation of CEO George Watson (see Daily GPI July 19 and July 26).

©Copyright 1999 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.

Copyright ©2018 Natural Gas Intelligence - All Rights Reserved.
ISSN © 2577-9877 | ISSN © 1532-1231
Comments powered by Disqus