NEB set to hear the Gros Cacouna Receipt Point Application

    CALGARY, March 21 /CNW/ - The National Energy Board (NEB) will start a
public hearing on Monday, 16 April 2007 to consider the Gros Cacouna receipt
point application submitted by TransCanada PipeLines Limited (TransCanada). In
its application, TransCanada is seeking an order approving a new receipt point
at Gros Cacouna, Quebec, as well as a confirmation that the current method of
calculating tolls will apply to the transportation of gas from the new receipt
    This proposed new receipt point would allow the receipt of regasified
liquefied natural gas (LNG) from Gros Cacouna.
    As outlined in its application, TransCanada expects that a future
application will be filed with the NEB to deal with the pipeline facilities
required to connect the Gros Cacouna receipt point to its integrated pipeline
    The NEB wishes to clarify that the purpose of the hearing set to start
next April is not to examine the need, or the construction of pipeline
facilities that would be required to connect the Gros Cacouna receipt point to
TransCanada's integrated pipeline system.

    What is a receipt point?

    In its application, TransCanada refers to a receipt point at Gros
Cacouna. The receipt point is the proposed location where the pipeline would
receive LNG on its integrated pipeline system.

    What are tolls and tariffs?

    -  Tolls are the prices charged by a pipeline company for transportation
       and other services on its system, and can vary from year to year as
       costs and circumstances change.
    -  Tariffs describe the terms and conditions under which the services of
       a pipeline are offered or provided, including the tolls, rules,
       regulations and practices relating to specific services.

    Tolls and tariffs for major pipelines are decided either through a public
hearing process or through negotiations between pipeline companies and
shippers. All negotiated settlements must be approved by the NEB.

    How is a toll methodology determined?

    As part of the planning process to develop a new pipeline project, it is
not unusual for a company to file an application with the NEB requesting a
decision about the toll methodology. For a new pipeline, the method of tolling
can be crucial to its economic viability.
    The Gros Cacouna receipt point application is about determining the
tolling methodology prior to filing a subsequent application to seek the NEB's
approval for a new pipeline construction project.
    When examining the receipt point application, the NEB must take into
consideration toll matters including whether expansion costs should be rolled
into a single, existing cost pool and charged to all shippers (rolled-in
methodology), or kept in a separate cost pool and charged only to the shippers
utilizing the new facilities (stand-alone or incremental methodology).
    The public hearing for the current application on toll methodology will
be held at the following location:

    When: Monday, 16 April 2007, at 8:30 a.m
    Where: Hotel Universel - Forges Saint-Maurice, Room No. 2, Ste-Foy,

    N.B. The Hearing Room will be equipped with a media feed box, and a work
    area will be available for use by the media.

    What is the National Energy Board's mandate?

    The NEB is an independent federal regulatory agency. The NEB has
authority over companies operating pipelines which transport oil, natural gas,
natural gas liquids, petroleum products and other commodities across
provincial or international boundaries, and in certain Frontier areas.
    The transportation of hydrocarbons by pipeline is an essential public
service. As part of its mandate, NEB regulations are intended to protect the
public interest. With respect to tolls and tariffs, regulations include the
following measures:
    -  Tolls charged for transportation services are just and reasonable.
    -  Access to pipeline services is fair, and
    -  Pipeline transportation does not result in unjust discrimination in
       terms of charges or provision of services.

    When making its decision on a given application, the NEB must consider
information provided by a number of interested parties, namely the proponent,
registered intervenors who are either in favour or opposed, as well as other
responsible authorities such as government departments who must ensure that
the interest they represent are protected.

For further information:

For further information: For media inquiries: Carole Léger-Kubeczek,, Communications Officer, National Energy Board,
Telephone: (403) 299-2717, Toll free: 1-800-899-1265, Cell: (403) 850-8867

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