CALGARY—The National Energy Board approved a new toll plan for TransCanada’s Mainline that will help the natural gas pipeline compete.
The board set the firm transportation toll from Empress, Alta., to Dawn, Ont., at $1.42/GJ, compared with a 2013 toll of $2.58/GJ.
“The board approved multi-year fixed tolls that are competitive and provide TransCanada with a reasonable opportunity to recover its Mainline costs, given the increase in Mainline throughput that is forecast,” the board said in a statement.
The tolls are expected to remain in effect through 2017.
In approving the toll, the regulator also set the pipeline’s return on equity at 11.5 per cent on a 40 per cent equity ratio and an incentive mechanism that would increase profits if annual net revenues are higher than forecast.
The NEB also approved several changes sought by TransCanada including proposed changes to the Mainline’s cost allocation, eliminating toll zones and cutting the risk alleviation mechanism.
However, the regulator also denied a number of other proposals by the company, citing “inappropriate cost shifting,” though TransCanada viewed them fundamental.
“This is a long and complex decision and we will need time to complete a full analysis before we can comment any further on how this decision will impact TransCanada,” the company said in a statement.