INDEX APPLICATION
INDEX
ABBREVIATIONS
PART A EXECUTIVE SUMMARY
1.0 Introduction and Executive Summary
1.1 The Application
1.2 Background to the Application
1.3 Changes in the Business Environment 1.4 Development of the Restructuring Proposal 1.5 The Restructuring Proposal
1.6 Public Interest
1.7 Just and Reasonable Tolls
1.8 2012 and 2013 Revenue Requirements
1.9 Conclusion
Schedule 1.0 Revenue Requirement1 Schedule 2.0 Average Rate Base2 Schedule 3.0 Rate of Return 1 Schedule 4.0 OM&A Costs2
Schedule 5.0 Proposed Tolls (2012 and 2013)2
PART B BACKGROUND
2.0 The TransCanada Pipeline Systems
2.1 Introduction
2.2 TransCanada Mainline
2.3 TransCanada Alberta System 2.4 TransCanada Foothills System
3.0 Business Environment
3.1 Introduction
3.2 Western Supply and Demand
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Illustrative Information. The information will be revised as part of the October Supplement.
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3.3 Competing Supply and Infrastructure
3.4 Forecast Demand Growth
3.5 Gas Prices and Basis Differentials
3.6 Impacts on Contracting, Throughput and Tolls
3.7 Summary
4.0 Regulatory Standards
4.1 Introduction
4.2 Public Interest Standard
4.3 Regulatory Compact
4.4 Economic Efficiency
4.5 Part IV Requirements
4.6 Cost of Service Toll Methodology
4.7 Fair Return Standard
4.8 Depreciation Principles
4.9 Used and Useful 4.10 Rate Design Principles
4.11 Summary
Appendix B1 Maps of the TransCanada Pipeline Systems
PART C BUSINESS AND SERVICES RESTRUCTURING PROPOSAL
5.0 Depreciation
5.1 Introduction
5.2 Historical Approach to Mainline Depreciation
5.3 Depreciation Proposal
5.4 Impacts of Proposal
5.5 Justification
6.0 Alberta System Extension
6.1 Introduction
6.2 Background of the TransCanada Pipeline Systems
6.3 Commercial Arrangements
6.4 Toll Design and Service Implications 6.5 Changes to Fuel Requirements 6.6 Impacts on Transportation Costs 6.7 Impact on Gas Prices
6.8 Tariff Amendments
6.10 Justification
7.0 Toll Design Proposals
7.1 Introduction
7.2 Elimination of Toll Zones 7.3 Cost Allocation
7.4 TQM TBO Cost Allocation 7.5 Delivery Pressure Tolls
7.6 Toll Design Simplifications 7.7 Adjustment Accounts 7.8 Tariff Amendments 7.9 Implementation of Proposals
Attachment 7.1 Mainline Revenue Requirement and Functional Distribution: Comparison of Existing and Proposed Cost Allocation Methodology
Attachment 7.2 Rationale for Proposed Cost Allocation Methods
8.0 Mainline Service and Pricing Proposals
8.1 Introduction
8.2 Pricing of Interruptible Transportation, Short Term Firm Transportation and Short Term Short Notice Services
8.3 Elimination of RAM
8.4 Multi-Year Fixed Price Service
8.5 Pricing of Firm Transportation Short Notice Service for 2012 and 2013 8.6 Elimination of Services
8.7 Tariff Amendments
8.8 Implementation of Proposals
9.0 Impacts of the Restructuring Proposal
9.1 Introduction
9.2 Tolls Impacts of the Restructuring Proposal
9.3 Impacts of the Restructuring Proposal on Throughput
Attachment 9.1 Total Transportation Cost Comparison—2012 Illustrative Status Quo vs. Restructuring Proposal
Attachment 9.2 Toll Impact of Major Components of the Restructuring Proposal
10.0 Overall Justification for Restructuring Proposal
10.2 Impact of the Restructuring Proposal
10.3 The Restructuring Proposal is in the Public Interest
10.4 The Restructuring Proposal Will Result in Just and Reasonable Tolls 10.5 The Status Quo
10.6 Conclusion
Appendix C1 Mainline Throughput Study
Appendix C2 Canadian Mainline Depreciation Study (Gannett Fleming, Inc.)
Appendix C3 Prepared Direct Testimony of Barry E. Sullivan (Brown, Williams,
Moorhead & Quinn, Inc)
Appendix C4 Direct Evidence of John J. Reed (Concentric Energy Advisors, Inc.)
Appendix C5 Written Evidence of Robert W. Fleck (Wood Mackenzie Inc.)
Appendix C6 Mainline Tariff Revisions
Appendix C7 Alberta System Tariff Revisions
PART D FAIR RETURN
11.0 Fair Return for 2012-2013
11.1 Introduction
11.2 Fair Return Request
11.3 Application of the Fair Return Standard to the Mainline
11.4 Business Risks
11.5 Cost of Debt
11.6 Conclusion
Appendix D1 Written Evidence of Paul R. Carpenter (The Brattle Group)
Appendix D2 Written Evidence of Aaron M. Engen (BMO Nesbitt Burns)
Appendix D3 Written Evidence of A. Lawrence Kolbe (The Brattle Group)
Part E: MAINLINE 2012-2013 REVENUE REQUIREMENT
12.0 2012-2013 Revenue Requirement3
PART F: NEB FILING MANUAL REQUIREMENTS
13.0 NEB Filing Manual Summary Tables
13.1 NEB Filing Manual Chapter 3 Table 13.2 NEB Filing Manual Guide P Table
Attachment 13.1 Filing Manual Information not Otherwise Addressed in the Application4
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Revenue Requirement, Rate of Return and Toll Design Explanatories and associated schedules to be filed as part of the October Supplement.
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