TransCanada Applies to the National Energy Board to Establish Jurisdiction Over the Alberta System
CALGARY, ALBERTA--(Marketwire - June 17, 2008) - TransCanada Corporation (TSX:TRP) (NYSE:TRP) (TransCanada) today announced that TransCanada PipeLines Limited filed an application with the National Energy Board (NEB) to establish federal regulation for TransCanada's Alberta System. The application is for a certificate of public convenience and necessity (CPCN) and related approvals to recognize that TransCanada's Alberta System is within Canadian federal jurisdiction and its operation is subject to regulation by the NEB.
Currently, the provincial regulation of the Alberta System precludes TransCanada from acquiring, constructing or operating facilities that transport gas across Alberta provincial borders. Federal regulation would enable the Alberta System to extend across provincial borders, thereby providing integrated service to customers who want to transport gas from locations outside Alberta and allowing for attractive service offerings to Alberta, British Columbia and Northern gas producers.
"Changing to federal jurisdiction will enhance the Alberta System's ability to provide integrated service and more competitive transportation rates to natural gas customers outside of Alberta," says Hal Kvisle, president and chief executive officer. "The ability to attract gas produced in British Columbia and the North, including the Territories and Alaska, is important as it will enhance the competitiveness of the Alberta System."
Increased throughput associated with production from locations outside Alberta will benefit Alberta by:
- increasing the physical and commercial flow of gas within and from the Alberta Hub, making it a more transparent and liquid environment for natural gas buyers and sellers and
- increasing natural gas liquids supply to straddle plants and petro-chemical infrastructure located in Alberta.
The requested approvals are required for the operation of the TransCanada Alberta System under NEB regulation.
"We anticipate business as usual for the Alberta System during and following the regulatory approvals process. This includes the continued processing of significant Alberta System matters by the Alberta Utilities Commission while the jurisdiction application is considered by the National Energy Board," says Mr. Kvisle.
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 355 billion cubic feet of storage capacity. A growing independent power producer, TransCanada owns, controls or is developing approximately 8,300 megawatts of power generation. TransCanada's common shares trade on the Toronto and New York stock exchanges under the symbol TRP.
Note: All financial figures are in Canadian dollars unless noted otherwise.
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 reflect TransCanada's beliefs and assumptions based on information available at the time the statements were made. Actual results or events may differ from those predicted in these forward-looking statements. 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 operating performance of the Company's pipeline and energy assets, the availability and price of energy commodities, regulatory processes and decisions, changes in environmental and other laws and regulations, competitive factors in the pipeline and energy industry sectors, construction and completion of capital projects, labour, equipment and material costs, 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 expectations expressed. Additional information on these and other factors is available in 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 to not use future-oriented information or financial outlooks for anything other than their intended purpose. 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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