TC Energy reaches long-term toll settlement with customers on the Canadian Mainline
December 20 2019 - 7:59AM
News Release -- TC Energy Corporation (TSX:TRP) (NYSE:TRP) (TC
Energy) announced today that its wholly owned subsidiary,
TransCanada PipeLines Limited, has filed an application with the
Canada Energy Regulator (CER) for approval of a six-year negotiated
and unanimously supported settlement with its customers and other
interested parties on Canadian Mainline tolls. TransCanada
PipeLines Limited has requested timely approval of the unanimous
settlement to ensure certainty before terms come into effect in
January 2021.
The Canadian Mainline is comprised of approximately
14,100 kilometres (8,761 miles) of pipeline and associated
facilities and primarily transports Western Canadian Sedimentary
Basin (WCSB) natural gas for delivery across the Prairie provinces
and to markets in Eastern Canada and the United States.
“This settlement is the product of a comprehensive collaborative
process of engagement and negotiation with our Canadian Mainline
customers. It enhances competitiveness and provides toll certainty
for our customers while maintaining stable revenue for TC Energy,”
said Russ Girling, TC Energy’s President and Chief Executive
Officer. “The settlement highlights the continued importance of the
Canadian Mainline and we appreciate the efforts of industry to work
with us to create innovative solutions that utilize this critical
transportation link to enhance the long-term success of the
WCSB.”
The settlement is designed to facilitate cost-effective
transportation of natural gas from the WCSB. The
agreement:
- encompasses a six-year term from January 2021 through December
2026;
- sets an equity return of 10.1 per cent on 40 per cent deemed
common equity, subject to variance depending on actual operating
costs and natural gas throughput;
- sets tolls for the term for separate segments of the Canadian
Mainline, including a 20 per cent reduction from existing tolls on
the western portion of the system that includes the path from
Empress to Emerson;
- includes a sharing mechanism incenting TC Energy to achieve
cost efficiencies and increased revenues; and
- affirms TC Energy’s pricing flexibility and allows new
market-driven services to enhance flexibility to respond to
changing market conditions.
The full application is available for viewing on the CER
website.
TC Energy and its affiliates deliver the energy millions of
people rely on every day to power their lives and fuel industry.
Focused on what we do and how we do it, we are guided by core
values of safety, responsibility, collaboration and integrity. Our
more than 7,000 people are committed to sustainably developing and
operating pipeline, power generation and energy storage facilities
across Canada, the U.S. and Mexico. TC Energy’s common shares trade
on the Toronto (TSX) and New York (NYSE) stock exchanges under the
symbol TRP. Visit TCEnergy.com and connect with us on social media
to learn more.
FORWARD-LOOKING INFORMATION
This release 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", "believe", "may", "will", "should",
"estimate", "intend" or other similar words). Forward-looking
statements in this document are intended to provide TC Energy
security holders and potential investors with information regarding
TC Energy and its subsidiaries, including management's assessment
of TC Energy's and its subsidiaries' future plans and financial
outlook. All forward-looking statements reflect TC Energy's beliefs
and assumptions based on information available at the time the
statements were made and as such are not guarantees of future
performance. As actual results could vary significantly from the
forward-looking information, you should not put undue reliance on
forward-looking information and should not use future-oriented
information or financial outlooks for anything other than their
intended purpose. We do not update our forward-looking information
due to new information or future events, unless we are required to
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 the Quarterly Report to
Shareholders dated October 31, 2019 and the 2018 Annual Report
filed under TC Energy's profile on SEDAR at www.sedar.com and with
the U.S. Securities and Exchange Commission at www.sec.gov.
Media Enquiries:Jaimie Harding / Kelly Matthews
403.920.7859 or 800.608.7859
Investor & Analyst Enquiries:David Moneta /
Duane Alexander403.920.7911 or 800.361.6522
PDF
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