National Energy Board approves Coral Energy Canada Inc.'s application to modify the Firm Transportation Risk Alleviation Mechanism for the TransCanada26 February 2006
The National Energy Board (NEB) has approved an application by Coral Energy Canada Inc. (Coral) to modify the Firm Transportation Risk Alleviation Mechanism (FT-RAM) for the TransCanada PipeLines Limited (TransCanada) Mainline. The NEB further directed TransCanada to modify its Mainline Transportation Tariff to reflect this decision.
FT-RAM is a service enhancement being provided on a pilot basis to TransCanada's long-haul firm transportation (FT) shippers since 1 November 2004. The FT-RAM pilot program allows long-haul FT shippers to apply unutilized FT demand charges against their cost of interruptible transportation (IT) service.
Coral's 30 September 2005 application proposed that the FT-RAM pilot program be extended to short-haul FT contracts in situations where a shipper holds a short-haul contract whose receipt point is also the delivery point of a long-haul FT contract held by the same shipper.
The NEB issued Hearing Order RHW-2-2005 on 8 November 2005 and considered Coral's application through a written public hearing followed by oral argument.
In its decision, the NEB determined that Coral's proposal is conceptually consistent with the FT-RAM pilot project's goal of motivating the retention and new contracting of FT transportation. The NEB noted that it did not receive any compelling evidence that Coral's proposal would have a significant negative impact on any individual shipper or on the system as a whole. The approved modification to the existing FT-RAM pilot project will go into effect on 1 April 2006 and terminate on 31 October 2006.
The NEB is an independent federal agency that regulates several aspects of Canada's energy industry. Its purpose is to promote safety and security, environmental protection and economic efficiency in the Canadian public interest within the mandate set by Parliament in the regulation of pipelines, energy development and trade.
This news release is also available on the Board's Internet site at
www.neb-one.gc.ca under What's New!
For a copy of Reasons for National Energy Board
Decision RHW-2-2005, contact: Publications Office
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Source: newswire
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