Proposed Rate Design Modifications

"With these proposed modifications to rate design, customers using intra-Alberta delivery service would be more directly accountable for the costs they impose on our Alberta System," explains Norm Bowman, leader of Western Pricing Design, Regulatory Strategy.

If these amendments are approved, shippers will pay an increased rate for intra-Alberta deliveries from zero to 1.6¢/mcf and will be required to increase their volume commitments for facility connection service.

The new Points-to-Point service complements our proposed changes to rate design. This service will give intra-Alberta customers the ability to transport gas from a set of receipt points designated by the customer to an intra-Alberta delivery point designated by the customer.

The Price Matching Service provides fair competition for moving gas in Alberta. The Price Matching Service would be available to Alberta System customers at Alberta System receipt points where the fuel-adjusted rate to receive gas onto the competitor's system is less than the Alberta System (NGTL) fuel-adjusted rate for Firm Transportation - Receipt (FT-R).

On February 7, 2003, TransCanada reached a settlement regarding the 2003 revenue requirement for the Alberta System. This settlement is the result of a consultative process that included many customer groups such as producers, industrial users, consumer groups, marketers and exporters.

The one-year settlement establishes the Alberta System fixed revenue requirement at $1.277 billion effective January 1, 2003 for the year 2003. This settlement, together with the proposed modifications to rate design and the new services currently before the EUB for approval, will form the basis of the Alberta System 2003 tolls.

For more information on this tariff application or the 2003 Revenue Requirement Settlement, please contact Norm Bowman at (403) 920-7186.