TransCanada’s GTN system files uncontested settlement of its general rate case with FERC
CALGARY, Alberta –November 1, 2007 – TransCanada Corporation (TSX, NYSE: TRP) (TransCanada) today announced that Gas Transmission Northwest (GTN) has filed a Stipulation and Agreement with the Federal Energy Regulatory Commission that comprises an uncontested Settlement of all aspects of its 2006 General Rate Case.
If the Settlement is approved by the FERC, the full-haul (Kingsgate-to-Malin) rate on GTN’s mileage-based system will be US$0.33 per Dekatherm, up from the US$0.263 per Dekatherm full-haul rate approved in the 1996 Settlement of GTN’s last rate case. The new rate would be effective retroactive to January 1, 2007, pending approval by the FERC.
Under terms of the Settlement, GTN’s rates are subject to a rate moratorium and may not be changed until January 1, 2012. GTN is required to file a rate case with new rates effective no later than January 1, 2014.
The parties further agreed to a depreciation rate of 2.0 per cent for all transmission plant on the GTN mainline.
“TransCanada is very pleased to negotiate a mutually agreeable settlement with its GTN customers,” says Hal Kvisle, TransCanada president and chief executive officer. “TransCanada is focused on working with its customers to find innovative solutions to meet their ever-changing needs.”
GTN anticipates FERC will issue an order early in the first quarter of 2008.
GTN is a dual pipeline that begins at an interconnect with TransCanada's Foothills System near Kingsgate on the Idaho-British Columbia border and traverses the states of Idaho, Washington, and Oregon before ending at interconnects with Tuscarora Gas Transmission Company and Pacific Gas & Electric Company at the Oregon-California border. GTN can deliver up to 2.2 billion cubic feet of gas per day into those interconnects.
With more than 50 years experience, TransCanada is a leader in the responsible development and reliable operation of North American energy infrastructure including natural gas pipelines, power generation, gas storage facilities, and projects related to oil pipelines and LNG facilities. TransCanada’s network of wholly owned pipelines extends more than 59,000 kilometres (36,500 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 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 United States. TransCanada’s common shares trade on the Toronto and New York stock exchanges under the symbol TRP.
This news release may contain certain information that is forward looking and is subject to important risks and uncertainties. The words "anticipate", "expect", "may", "should", "estimate", "project", "outlook", "forecast" or other similar words are used to identify such forward looking information. All forward-looking statements are based on TransCanada’s beliefs and assumptions based on information available at the time such statements were made. The results or events predicted in this information may differ from actual results or events. Factors which could cause actual results or events to differ materially from current expectations include, among other things, the ability of TransCanada to successfully implement its strategic initiatives and whether such strategic initiatives will yield the expected benefits, the availability and price of energy commodities, regulatory decisions, changes in environmental and other laws and regulations, competitive factors in the pipeline and energy industry sectors, construction and completion of capital projects, access to capital markets, interest and currency exchange rates, technological developments and the current economic conditions in North America. By its nature, such forward‑looking information is subject to various risks and uncertainties which could cause TransCanada's actual results and experience to differ materially from the anticipated results or other expectations expressed. For additional information on these and other factors, see the reports filed by TransCanada with Canadian securities regulators and with the U.S. Securities and Exchange Commission. Readers are cautioned not to place undue reliance on this forward‑looking information, which is given as of the date it is expressed in this news release or otherwise, and TransCanada undertakes no obligation to update publicly or revise any forward‑looking information, whether as a result of new information, future events or otherwise, except as required by law.
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