TransCanada Corp. expects lower profitTransCanada Corp. expects lower profit after Alberta rate decision
12:40 PM EDT Jul 05
https://www.cbc.ca/cp/business/040705/b070512.html
CALGARY (CP) - TransCanada Corp. is forecasting a lower profit this year, saying its request to the Alberta Energy and Utilities Board for a "fair return" on natural gas pipeline charges was not granted.
Pending a review, "TransCanada estimates this will result in 2004 net earnings from the Alberta system of approximately $155 million, compared to net earnings of $190 million in 2003," the company (TSX:TRP) said in a release.
Calgary-based TransCanada has a network of about 39,000 kilometres of pipeline transporting most of Western Canada's natural gas production to the fastest-growing markets in Canada and the United States.
TransCanada also owns, controls or is constructing nearly 4,700 megawatts of power - an amount of power that can meet the needs of about 4.7 million average households.
The company said it received Alberta EUB rate decision Friday through its subsidiary Nova Gas Transmission Ltd.
"The decision establishes a rate of return on equity of 9.6 per cent based on deemed common equity of 35 per cent for 2004 on TransCanada's Alberta system," the firm said. "This is less than the applied for rate of 11 per cent on deemed common equity of 40 per cent, which the company considers a fair return."
© The Canadian Press, 2004