Tran­sCanada An­nounces Ter­mi­na­tion of En­ergy East Pipe­line and Eastern Main­line Projects

The McLeod River Post - - The Patch -

Tran­sCanada Cor­po­ra­tion (Tran­sCanada) an­nounced to­day it will no longer be pro­ceed­ing with its pro­posed En­ergy East Pipe­line and Eastern Main­line projects.

Fol­low­ing is a state­ment from Tran­sCanada Pres­i­dent and Chief Ex­ec­u­tive Of­fi­cer Russ Gir­ling:

After care­ful re­view of changed cir­cum­stances, we will be in­form­ing the Na­tional En­ergy Board that we will no longer be pro­ceed­ing with our En­ergy East and Eastern Main­line ap­pli­ca­tions. Tran­sCanada will also no­tify Que­bec’s Min­istère du Devel­oppe­ment durable, de l’En­vi­ron­nement, et Lutte con­tre les change­ments cli­ma­tiques that it is with­draw­ing the En­ergy East project from the en­vi­ron­men­tal re­view process.

We ap­pre­ci­ate and are thank­ful for the sup­port of labour, busi­ness and man­u­fac­tur­ing or­ga­ni­za­tions, in­dus­try, our cus­tomers, Irv­ing Oil, var­i­ous gov­ern­ments, and the ap­prox­i­mately 200 mu­nic­i­pal­i­ties who passed res­o­lu­tions in favour of the projects. Most of all, we thank Cana­di­ans across the coun­try who con­trib­uted to­wards the de­vel­op­ment of these ini­tia­tives.

We will con­tinue to fo­cus on our $24 bil­lion near-term cap­i­tal pro­gram which 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.

As a re­sult of its de­ci­sion not to pro­ceed with the pro­posed projects, Tran­sCanada is re­view­ing its ap­prox­i­mate $1.3 bil­lion car­ry­ing value, in­clud­ing al­lowance for funds used dur­ing con­struc­tion (AFUDC) cap­i­tal­ized since in­cep­tion and ex­pects an es­ti­mated $1 bil­lion after-tax non-cash charge will be recorded in the com­pany’s fourth quar­ter results. Tran­sCanada stopped cap­i­tal­iz­ing AFUDC on the project ef­fec­tive Au­gust 23, 2017, as dis­closed on Septem­ber 7, 2017. In light of the project’s in­abil­ity to reach a reg­u­la­tory de­ci­sion, no re­cov­er­ies of costs from third par­ties are ex­pected.

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