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TransCanada Appeals NEB Mainline Restructuring Decision
TransCanada Corp. has applied to Canada’s National Energy Board (NEB) for review and variance of the board’s late March decision on the pipeline company’s 2012-2013 restructuring proposal for tolls and service on its Canadian Mainline.
Although the NEB approved all of TransCanada’s 2012-2013 costs and some of its proposed changes to services, the 257-page decision has created a new model for the Mainline’s tolls that is a departure from what the operator applied for and from the regulatory framework that has been in place for decades, the pipeline said (see Daily GPI, April 1).
The new model establishes fixed firm service tolls until the end of 2017, grants TransCanada pricing discretion for short-term and interruptible services, and defers significant costs until the end of the fixed tolls period, the company said. “While TransCanada does not accept many of the statements made by the NEB in its decision, it will work within the board model, subject to NEB approval of certain changes,” the company said.
TransCanada has asked NEB to:
TransCanada said it believes that an increase in the long-haul Empress to Dawn toll is within the competitive range of tolls, and it avoids large deferrals of cost collection beyond the five-year fixed toll period. The requested tolls would be a significant reduction from the tolls that have been charged since 2011.
TransCanada has also requested that the NEB decision be implemented Nov. 1 because the intent of the NEB decision would be best met by allowing the new tolls and pricing flexibility to go into effect concurrently at the start of the gas year.
“Although we don’t agree with the decision, we are trying to work within it,” said TransCanada CEO Russ Girling, echoing comments he made during a recent earnings conference call (see Daily GPI, April 29). “Our review and variance application will seek change of certain elements that will allow us to work within the decision rather than trying to undo the decision.”
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