In direct response to customer feedback, TransCanada has developed changes to the Open Season Bid Deposit requirements to streamline the administrative process and improve efficiency. With these changes, existing customers of the Canadian Mainline, Foothills System and the Alberta System will no longer be required to provide a deposit with each Open Season bid for expansion or existing capacity. The deposit would be replaced by the right for TransCanada to invoice a customer who withdraws from an awarded bid or does not meet bid requirements. Customers who do not currently hold gas transportation service on the pipeline for which they are bidding will still be required to provide a deposit.

“We worked collaboratively to address this customer feedback and the result is truly a win-win solution,” says Stella Morin, Customer Service Projects. “The new process will eliminate the need for customers to prepare a wire transfer or cheque deposit for each Open Season bid for new and existing capacity. TransCanada also benefits because the administration of the deposits will be reduced.”

Background
TransCanada currently requires that each Open Season bid for expansion or existing capacity be accompanied by a deposit of the lesser of one month's demand charges or $10,000. Once capacity has been awarded, TransCanada refunds the deposits to unsuccessful bidders and credits the invoices of successful bidders. In some cases, TransCanada may retain the bid deposits (for example, if an awarded customer withdraws their bid or does not return executed transportation contracts). This process is administratively onerous for both customers and TransCanada.

Next Steps
The proposal for the Mainline System was approved by the National Energy Board (NEB) and became effective in October 2007. For the Alberta System the proposal has been filed with the Energy & Utilities Board with a proposed effective date of Jan. 1, 2008. For the Foothills System, the proposal was included as part of the Effective Rate Filing submitted to the NEB in October, with a proposed effective date of Jan. 1, 2008.

For more information on the changes to the Open Season Bid Deposit process, phone Randy Pattison at 403.920.5841.