Spectra Energy Corp. has approval from the National Energy Board (NEB) to enact a new three-year negotiated toll settlement that defines the economic factors and provisions for establishing tolls and maintains service standards for its British Columbia (BC) Pipeline system in Western Canada.
The gas pipeline is the main gas transmission system in the province with capacity to transport more than 2.3 Bcf/d. The system, 1,800 miles long, stretches from Fort Nelson, BC, and Gordondale at the BC/Alberta border, to the southernmost point at the BC/U.S. border at Huntington/Sumas.
The toll settlement by NEB "is a win-win for our customers and our company," said Rob Whitwham, vice president, pipeline of Spectra Energy Transmission West. "Through the active participation and cooperation of our customers, we have achieved a settlement which provides a stable and predictable process for establishing pipeline tolls for the next three years, and the framework for Spectra Energy to continue to expand our infrastructure network to meet the growing needs of our customers and become their supplier of choice."
The settlement governs mainline transmission tolls for services offered through Spectra's Zone 3 (Transmission North) and Zone 4 (Transmission South) BC Pipeline facilities in British Columbia and Alberta beginning Jan. 1, 2011 through Dec. 13, 2013. The allowed rate of return on common equity is fixed at 9.7% on a 40% common equity ratio for the term of the settlement.
"The successful completion of this settlement demonstrates our continued commitment to collaborative relationships and achieving outcomes which benefit all parties," said Whitwham. "It also enhances the viability and competitiveness of British Columbia's natural gas resources."
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