TransCanada in deal with shippers on NGTL gas system revenues
CALGARY, Alberta Aug 12 (Reuters) - Pipeline company TransCanada Corp said on Monday it has reached a settlement on revenue requirements for 2013 and 2014 with shippers on its 24,000-kilometer NGTL gas system in Western Canada.
The new agreement, filed with Canada's National Energy Board, fixes equity return at 10.1 percent, versus 9.7 percent in 2012, on an equity component of 40 percent.
Operating, maintenance and administration costs will be fixed at $190 million for 2013 and $198 million for 2014, and NGTL system depreciation is forecast at a rate of 3.05 percent in 2013 and 3.12 percent for 2014.
In a note to clients, RBC Capital Markets analyst Robert Kwan said the settlement should be seen as a mild positive for TransCanada's stock given the slightly higher return on equity.
TransCanada shares were last up 4 Canadian cents at C$46.69 on the Toronto Stock Exchange.
© Thomson Reuters 2016 All rights reserved.