TransCanada received approval from the National Energy Board to extend the FT-RAM (Firm Transportation, Risk Alleviation Mechanism) pilot on the Canadian Mainline System for a period of two years to Oct. 31, 2009. FT-RAM is a pilot program that commenced on Nov. 1, 2004.

FT-RAM provides a credit for unutilized demand charges for certain Firm Transportation (FT) contracts, which is applied to the customer’s bill for Interruptible Transportation (IT) service. These credits are available for long-haul FT contracts which have primary receipt points originating in Alberta and Saskatchewan, or for certain short-haul FT contracts in circumstances where the same shipper holds a long-haul contract that delivers to the same location as the receipt point of the short-haul FT contract which, in effect, provides a continuous long-haul contract in two pieces or segments.

To benefit from FT-RAM, a single customer (i.e. one entity) needs to hold both IT and FT contracts (or assignments) and ensure that all IT nominations are made electronically following standard procedures. Any IT service for delivery to the customer’s own account, or for delivery to a third party, at any time during the month, on any path on TransCanada’s Canadian Mainline System is eligible for the credit. At the end of the month, if the customer has an FT-RAM credit, TransCanada will apply the credit to the customer’s bill for IT service. The IT bill will be subject to a minimum charge.

For more information on FT-RAM, contact The Pipe Line (Customer Service Call Centre) at 403.920.PIPE (7473).