Regulator rejects TransCanada's review of mainline tolls
(Reuters) - Canada's National Energy Board rejected TransCanada Corp's (TRP.TO: Quote) request to review its decision to cut fixed tolls on the company's mainline, a cross-country natural gas pipeline network, the company said on Wednesday.
In March, National Energy Board (NEB) agreed to cut fixed tolls on TransCanada's mainline, which the regulator says will help keep the system competitive and profitable despite increasing supplies from U.S. shale gas producers.
The board approved new rates that will see the cost of moving gas from Empress, Alberta, to Dawn, Ontario, fall to C$1.42 per gigajoule from C$2.58 per gigajoule under the tolling structure.
In its review application filed May 1, TransCanada asked the board to adjust the five-year "Empress to Dawn" toll to $1.52 per gigajoule from $1.42 per gigajoule.
The NEB informed TransCanada on June 11 that it is dismissing the company's review and variance application in its entirety. The NEB said in its letter that it will provide its reasons for dismissing the application at a later date, according to the company.
"We are very disappointed that the NEB rejected our review and variance application without the opportunity for a full hearing and without issuing rationale for its rejection," TransCanada Chief Executive Russ Girling said in a statement.
(Reporting by Sakthi Prasad in Bangalore; Editing by Himani Sarkar)
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