NEB approves the 2008 benchmark Return on Common Equity of 8.71%

    CALGARY, Dec. 5 /CNW/ - On 29 November 2007, the National Energy Board
set the 2008 benchmark Return on Common Equity (ROE) for certain Group 1
pipeline companies.
    The Board approved the 8.71 percent 2008 benchmark ROE pursuant to the
adjustment mechanism, or formula, established in the Multi-Pipeline Cost of
Capital Decision (RH-2-94), and revised on 14 March 1997 to eliminate
rounding. The RH-2-94 Decision established a mechanism to adjust the rate for
1996 and beyond without having to go to a public hearing process.
    The adjustment mechanism is designed to take into account the
year-to-year change in forecast long term (30 year) Government of Canada bond
yields. The forecast yield for 30 year Government of Canada bonds for 2007 is
4.55 percent, and is 33 basis points higher than the yield forecasted for
2007, which was 4.22 percent. The 33 basis point increase is multiplied by 75
percent to generate a 25 basis point increase of the benchmark ROE to 8.71
percent in 2008 from 8.46 percent for 2007.

    The NEB is an independent federal agency that regulates several parts of
Canada's energy industry. Its purpose is to promote safety and security,
environmental protection, and efficient energy infrastructure and markets in
the Canadian public interest, within the mandate set by Parliament in the
regulation of pipelines, energy development and trade.

    This news release is available on the NEB's Internet site at under What's New!

For further information:

For further information: Stacey Squires (,
Communications Officer, Telephone: (403) 299-3122, TTY (teletype):

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