TransCanada Seeks Change to NEB Mainline Tolls Decision

TransCanada Seeks Change to NEB Mainline Tolls Decision 
CALGARY, ALBERTA -- (Marketwired) -- 05/01/13 -- TransCanada
Corporation (TSX:TRP) (NYSE:TRP) (TransCanada) today filed an
application with the National Energy Board (NEB) for review and
variance of the NEB's decision released March 27, 2013 related to
TransCanada's 2012-2013 restructuring proposal for tolls and service
on the Canadian Mainline.  
Although the NEB approved all of TransCanada's 2012/13 costs and some
of TransCanada's proposed changes to its services, the 257-page
decision has created a new model for the Mainline's tolls that is a
departure from what TransCanada applied for and from the regulatory
framework that has been in place for decades.  
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. 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. As a result,
TransCanada has today filed with the NEB an application to review and
vary the decision. 
Specifically, TransCanada asks the NEB to change a number of
components of the decision including: 


 
--  Adjust the five-year Empress to Dawn toll from $1.42/GJ to $1.52/GJ as
    well as the other tolls that are derived from the long-haul toll 
--  Approve tariff revisions required for implementation of the decision
    model  
--  Establish a surcharge methodology for recovery of future new costs that
    may be imposed during the five-year fixed toll period 
--  Change the implementation date of the decision from July 1, 2013 to
    November 1, 2013 

 
TransCanada believes that an increase in the long-haul Empress to
Dawn toll of $1.52/GJ is within the competitive range of tolls and
avoids large deferrals of cost collection beyond the five-year fixed
toll period. The requested tolls will be a significant reduction from
the tolls that have been charged since 2011. 
TransCanada has also requested that the NEB decision be implemented
November 1, 2013 rather than July 1, 2013 as the intent of the NEB
decision is best met by allowing the new tolls and pricing
flexibility to go into effect concurrently at the start of the gas
year. For 2013, marketing opportunities for the winter season have
now come and gone. Lowering tolls this July would lower firm revenues
while limiting the company's ability to generate offsetting 2013
discretionary revenues prior to the start of the new gas year.  
"Although we don't agree with the decision, we are trying to work
within it," said Russ Girling, TransCanada's president and chief
executive officer. "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." 
With more than 60 years' experience, TransCanada is a leader in the
responsible development and reliable operation of North American
energy infrastructure including natural gas and oil pipelines, power
generation and gas storage facilities. TransCanada operates a network
of natural gas pipelines that extends more than 68,500 kilometres
(42,500 miles), tapping into virtually all major gas supply basins in
North America. TransCanada is one of the continent's largest
providers of gas storage and related services with more than 400
billion cubic feet of storage capacity. A growing independent power
producer, TransCanada owns or has interests in over 11,800 megawatts
of power generation in Canada and the United States. TransCanada is
developing one of North America's largest oil delivery systems.
TransCanada's common shares trade on the Toronto and New York stock
exchanges under the symbol TRP. For more information visit:
www.transcanada.com or check us out on Twitter @TransCanada or
http://blog.transcanada.com.  
FORWARD LOOKING INFORMATION This publication contains certain
information that is forward-looking and is subject to important risks
and uncertainties (such statements are usually accompanied by words
such as "anticipate", "expect", "would", "will" or other similar
words). Forward-looking statements in this document are intended to
provide TransCanada security holders and potential investors with
information regarding TransCanada and its subsidiaries, including
management's assessment of TransCanada's and its subsidiaries' future
financial and operation plans and outlook. All forward-looking
statements reflect TransCanada's beliefs and assumptions based on
information available at the time the statements were made. Readers
are cautioned not to place undue reliance on this forward-looking
information. TransCanada undertakes no obligation to update or revise
any forward-looking information except as required by law. For
additional information on the assumptions made, and the risks and
uncertainties which could cause actual results to differ from the
anticipated results, refer to TransCanada's Quarterly Report to
Shareholders dated April 25, 2013 and 2012 Annual Report filed under
TransCanada's profile on SEDAR at www.sedar.com and with the U.S.
Securities and Exchange Commission at www.sec.gov and available on
TransCanada's website at www.transcanada.com.
Contacts:
TransCanada
Media Enquiries:
Shawn Howard/Grady Semmens
403.920.7859 or 800.608.7859 
TransCanada
Investor & Analyst Enquiries:
David Moneta/Lee Evans
403.920.7911 or 800.361.6522
www.transcanada.com
 
 
Press spacebar to pause and continue. Press esc to stop.