TransCanada requests 30-day suspension of Energy East Pipeline, Eastern Mainline Project applications

TransCanada Corporation recently filed a letter with the National Energy Board (NEB) seeking a 30-day suspension of applications for the Energy East Pipeline and Eastern Mainline Project to allow the company
to review changes to the regulatory process.

The NEB recently announced changes regarding the list of issues and environmental assessment factors of
the projects. The company plans to review how these alterations will impact the projects’ costs, schedules, and feasibility.

TransCanada will stop recording Allowance for Funds Used During Construction (AFUDC) on the projects effective Aug. 23, the date that the NEB announced the changes to the terms of the assessment.

TransCanada said in a press release that if it chooses to discontinue the projects, the carrying value of its investment in the projects and its ability to recover development costs incurred to date would be negatively affected.

“Apart from Energy East, we will continue to advance our $24 billion near-term capital program in addition to our longer-term opportunities,” Russ Girling, TransCanada president and CEO, said. “Our portfolio of high-quality projects is expected to generate growth in earnings and cash flow to support an expected annual dividend growth rate at the upper end of an eight to 10 per cent range through 2020.”