TransCanada Corp. is re-examining its bid to shake up the way it charges companies to transport natural gas across Canada, after having an initial application slapped down by the National Energy Board.
"We're basically evaluating all of our options, but at the same time we're continuing to dialogue with all of our shippers," John Van der Put, vice-president of market development for TransCanada, said in an interview on Tuesday.
"Depending on the outcome of those discussions, we may or may not make changes to the proposal that's been put before the board."
Faced with declining throughput and soaring tolls on its Mainline system, which brings western gas to eastern markets, TransCanada has proposed a major change to the way it collects tolls. The result would be lower rates on the Mainline, but higher rates on short-haul pipeline networks that gather and distribute gas in Alberta and Ontario.
Those increases have prompted a mixed reaction. Oil-and-gas companies have been largely supportive, while some electricity generators in Ontario have warned they could be put out of business by the hike.
Mr. Van der Put argued that Ontario gas buyers will face even higher tolls if TransCanada's doesn't go through with its restructured tolls, and uses instead its previous rate calculations.
"The tolls on all paths inherent in our proposal are lower and, in some cases, substantially lower," he said. "We strongly believe that what we proposed in early December, in our 2011 interim tolls applications, is a proposal that's in the collective best interests of TransCanada and our shippers."
In a recent ruling, the National Energy Board declined to accept the interim application, citing the "significant opposition" to it. However, it left open the door to TransCanada to apply for a final toll with its restructured rate proposal. The company intends to make that final application in coming months, but must first decide whether to alter the proposal to mollify opponents - or to conclude that what it has is good enough.
"We certainly have sympathy for ensuring that our tolls are as low as possible," Mr. Van der Put said. "That's what we've been able to achieve in our proposal."
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