Canadian Utilities’ ATCO Pipelines subsidiary and TransCanada Corp.’s NOVA Gas Transmission Ltd. (NGTL) unit said Monday they have reached an agreement to provide seamless natural gas transmission service to customers in Alberta. The gas transmission model will utilize a single suite of services to provide integrated gas transmission service, which the companies expect to add value for customers as a result of seamless efficient service throughout the province.

Both ATCO Pipelines and NGTL said they have been encouraged by their regulators and customers to explore collaborative concepts designed to streamline the provision of natural gas transmission service across Alberta and to address competitive pipeline issues. “The seamless gas transmission model is the result of this process,” the companies said.

If approved by the regulator, the arrangement will see the two companies combine physical assets under a single rates and services structure with a single commercial interface for customers but with each company separately managing assets within distinct operating territories in the province. It is expected that the model will end duplicative tolling and operational activities and will result in more efficient regulatory processes.

The Alberta Utilities Commission said it concurs with the two companies meeting with representatives of the various customer groups. The objective of the discussions is to evaluate the long-term benefits and to determine rate and system design principles with the various groups for ultimate approval by the regulators.

ATCO Pipelines provides natural gas transmission services to producers in the Western Canada Sedimentary Basin, marketers, industrial customers and gas distribution companies in Alberta. NGTL owns and operates the 23,570-kilometer Alberta System, which gathers natural gas for use within the province and delivers it to provincial boundary points for connection with export pipelines.

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