TC Energy reaches five-year revenue requirement settlement with NGTL System customers
April 24 2020 - 7:30AM
– News Release – TC Energy Corporation (TSX, NYSE: TRP) (TC
Energy) announced today that its wholly-owned subsidiary, NOVA Gas
Transmission Ltd. (NGTL), has reached a five-year negotiated
revenue requirement settlement with its customers and other
interested parties that extends from 2020 to 2024.
“This settlement is the result of a collaborative engagement
with our customers and is responsive to the needs of both the
industry and our business,” said Russ Girling, TC Energy President
and Chief Executive Officer. “Recognizing it is a challenging time
for a number of our customers, this innovative settlement includes
incentives to keep tolls competitive while providing a stable
return to TC Energy as we execute in excess of $14 billion of
pipeline projects to enhance the connectivity of Western Canadian
Sedimentary Basin (WCSB) natural gas supply to all markets.”
The settlement is designed to facilitate the cost-effective
transportation of natural gas from the WCSB to key North American
demand centers. The agreement:
- encompasses a five-year term from January 1, 2020 through
December 31, 2024;
- fixes the equity return at 10.1 per cent on 40 per cent deemed
common equity;
- provides NGTL with the opportunity to increase depreciation
rates should tolls fall below projected levels;
- includes an incentive-mechanism for certain operating costs
where variances from projected amounts are shared between NGTL and
its customers; and
- includes a mechanism to review the settlement should tolls
exceed a pre-determined level, without affecting the equity
return.
NGTL expects to file an application with the Canada Energy
Regulator (CER) for approval of the five-year negotiated revenue
requirement settlement in the second quarter.
About
TC Energy We are a vital part of everyday life —
delivering the energy millions of people rely on to power their
lives in a sustainable way. Thanks to a safe, reliable network
of natural gas and crude oil pipelines, along with power generation
and storage facilities, wherever life happens — we’re there. Guided
by our core values of safety, responsibility, collaboration and
integrity, our more than 7,300 people make a positive difference in
the communities where we operate across Canada, the U.S. and
Mexico.
TC Energy’s common shares trade on the Toronto (TSX) and New
York (NYSE) stock exchanges under the symbol TRP. To learn more,
visit us at TCEnergy.com.
FORWARD-LOOKING INFORMATIONThis release
contains certain information that is forward-looking and is subject
to important risks and uncertainties (such statements are usually
accompanied by words such as "anticipate", "expect", "believe",
"may", "will", "should", "estimate", "intend" or other similar
words). Forward-looking statements in this document are intended to
provide TC Energy security holders and potential investors with
information regarding TC Energy and its subsidiaries, including
management's assessment of TC Energy's and its subsidiaries' future
plans and financial outlook. All forward-looking statements reflect
TC Energy's beliefs and assumptions based on information available
at the time the statements were made and as such are not guarantees
of future performance. As actual results could vary significantly
from the forward-looking information, you should not put undue
reliance on forward-looking information and should not use
future-oriented information or financial outlooks for anything
other than their intended purpose. We do not update our
forward-looking information due to new information or future
events, unless we are required to by law. For additional
information on the assumptions made, and the risks and
uncertainties which could cause actual results to differ from the
anticipated results, refer to the Fourth Quarter 2019 Financial
Highlights release and the 2019 Annual Report filed under TC
Energy's profile on SEDAR at www.sedar.com and with the U.S.
Securities and Exchange Commission at www.sec.gov.
-30-
Media Inquiries:Kelly Matthews / Jaimie Harding
403.920.7859 or 800.608.7859
Investor & Analyst Inquiries:David Moneta /
Hunter Mau403.920.7911 or 800.361.6522
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