SEARCH NEWS
ENERGY: NEB approves TransCanada’s five-year settlement with stakeholders for main gas pipeline

            (AlbertaIndex, June 8, Friday) --- TransCanada Corp said its wholly owned subsidiary, TransCanada PipeLines Limited, has received approval from the National Energy Board (NEB) for a five-year settlement with stakeholders regarding 20 seven tolls and costs for years 2008 to 2011 on its main natural gas transmission system. The terms of this settlement are effective January 1, 2007 to December 31, 2011. 

        The settlement reflects a cost of capital based on the rate of return on common equity determined by the NEB return-on-equity formula, on a deemed common equity ratio of 40%, an increase from 36%.
       
The remaining capital structure will con ist of senior debt following the redemption of the US$460 million 8.25% preferred securities currently in the Canadian mainline’s rate base.
        As a result of this settlement, TransCanada PipeLines Limited will exercise its rights to redeem all of the outstanding 8.25% preferred securities, which are listed on the NYSE under the symbol TCAPr. The redemption date will be July 5, 2007 and holders will be entitled to US$25.02865 per US$25 principal amount of the preferred securities, which includes accrued and unpaid interest to the redemption date.
        The settlement also allows for performance-based incentive arrangements that will provide mutual benefit to both TransCanada PipeLines Limited and its customers. As well, the NEB approved the company’s request that interim tolls be made final tolls for 2007.
        With more than 50 years experience, TransCanada is a leader in the development and operation of North American energy infrastructure including natural gas pipelines, power generation, gas storage facilities, and projects related to il pipelines and LNG facilities.
        The company’s network of wholly owned pipelines extends more than 59,000 kilometres, tapping into virtually all major gas supply basins in North America.
        TransCanada is also one of the continent’s largest providers of gas storage and related services with approximately 360 billion cubic feet of storage capacity. A growing independent power producer, TransCanada owns, or has interests in, approximately 7,700 megawatts of power generation in Canada and the US.

Did you enjoy this article? Please share it!
Reddit!Del.icio.us!Google!Netscape!StumbleUpon!Newsvine!Furl!Yahoo!