c
2003 Tolls and Tariff ApplicationSchedule 6.1 Sheet 1 of 1SCHEDULE OF FLOW-THROUGH INCOME TAXES FOR THE BASE YEAR ENDED DECEMBER 31, 2001 ($000)
LINE SCHEDULE
NO. PARTICULARS AMOUNT REFERENCE
(a) (b) (c)
1 Return On Rate Base 841,446 5.1
2 Equity Component: ( 3.17 * 841,446 ) 290,249
9.19 Add:
3 Depreciation 341,038 7.1
4 Large Corporation Tax 20,431 6.1.7
5 Non-allowed Provincial Capital Tax 911 6.1.3
6 Non-allowed Amortization of Debt Discount & Expense 3,813 6.1.2
7 Other Expenses (523) 6.1.3
8 Sub-total 365,670
Deduct:
9 Capital Cost Allowance 482,773 6.1.4
10 Benefits Capitalized 2,069
11 Eligible Capital Expenses 739 6.1.3
12 Interest AFUDC 988 6.1.5
13 Issue Costs 6,986 6.1.3
14 Sub-total 493,555
15 Total Taxable Income 162,364
16 Taxes thereon at 0.41523 / 0.58477 115,290 6.1.1
17 Add: Non-allowed Provincial Capital Tax 911 6.1.3
18 Recovery of Large Corporation Tax 20,431 6.1.7
c
2003 Tolls and Tariff Application
Schedule 6.1.1
Sheet 1 of 1
CALCULATION OF CURRENT INCOME TAX RAT
E
FOR THE BASE YEAR ENDED DECEMBER 31, 2001
LINE
NO.
PARTICULARS
1
Allocation of taxable income to
provinces based on com
posite
avera
ge of salaries
paid within each
province an
d
kilometers of
pi
pe located within each
province a
pp
lied to th
e
current
provincial statutor
y income tax rate.
COMPOSITE
INCOME
EFFECTIVE
SALARIES
KILOMETERS
AVERAGE
TAX RATE
RATE
2
PROVINCE
($000
)
P
ERCENTAG
E
OF PIPELINE
PERCENTAG
E
%%
%
(a
)
(b
)
(c
)
(d
)
(e
)
(f
)
(g)
(h
)
3
British Columbia
2,458
1.039
307.00
1.98
1.50
16.500
0.248
4
Alberta
188,611
79.753
1.78 0.01
39.88
13.999
5.583
5
Saskatchewan
8,890
3.759
3,766.13 24.284
14.02
17.000
2.383
6
Manitoba
6,640
2.808
2,805.64 18.09
10.45
17.000
1.777
7
Ontario
26,828
11.344
8,029.42 51.77
31.56
13.622
4.299
8
Quebe
c
3,068
1.297
598.41 3.86
2.58
9.042
0.233
9
Total
236,495
100
15,508.38
100
100
10
Com
posite Provincial Tax Rat
e
14.523
11
Federal Tax Rat
e
27.000
12
Income Tax Rate for the Base Year Ended December 31
c
2003 Tolls and Tariff Application
Schedule 6.1.2
Sheet 1 of 1
CALCULATION OF NON-ALLOWED
DEBT DISCOUNT AND EXPENSE
FOR THE BASE YEAR ENDED DECEMBER 31, 2001
($000)
LINE
NO. PARTICULARS
AMOUNT
(a)
(b)
1
Amortization of Debt, Discount and Expense - Debt
Rate of Return Schedule 2.1.2
3,177
2
Amortization of Debt, Discount and Expense - Junior Subordinated Debentures
Rate of Return Schedule 3.1.2
636
3
Total
3,813
c
2003 Tolls and Tariff Application
Schedule 6.1.3
Sheet 1 of 1
INCOME TAX EXPENSE SCHEDULE
FOR THE BASE YEAR ENDED DECEMBER 31, 2001 ($000)
LINE
NO. PARTICULARS AMOUNT
(a) (b)
A. CALCULATION OF ELIGIBLE CAPITAL EXPENSES
1 Unamortized Balance at January 1, 2001 10,560
2 Additions - Land Rights (@75%) 0
3 Balance at December 31, 2001 10,560
4 Amount Available for Tax Deduction at 7% of Line 3 739 5 Unamortized Balance at January 1, 2002 9,821
B. CALCULATION OF OTHER EXPENSES
6 50% Meal and Entertainment - Expenses non-deductible 1,115
7 Non Funded Pension Expense (3,284)
8 Post Employment Benefits 1,646
9 Total Non-Allowed Expenses (523)
C. CALCULATION OF FINANCING COSTS
10 Medium Term Notes 2,542
11 Preferred Securities 4,444
12 Proposed Debt 0
13 Total Financing Costs 6,986
D. CALCULATION OF ALBERTA ADDITIONAL NON-ALLOWED EXPENSES 14 Non-allowed Provincial Capital Tax
c
2003 Tolls and Tariff Application
Schedule 6.1.4
Sheet 1 of 1
SCHEDULE OF CAPITAL COST ALLOWANCE FOR THE BASE YEAR ENDED DECEMBER 31, 2001 ($000)
UNDEPRECIATED BALANCE
LINE CAPITAL COST ADDITIONS BEFORE MAXIMUM CLOSING
NO. CLASS OPENING BALANC (NET) CLAIM CLAIM BALANCE
(a) (b) (c) (d) (e) (f) 1 Class 1 - Full (4%) 4,484,185 4,484,185 179,367 4,339,554 2 - Half Year 35,445 35,445 709 3 Class 2 - Full (6%) 593,999 593,999 35,640 558,359 4 Class 3 - Full (5%) 30,102 30,102 1,505 28,597 5 Class 8 - Full (20%) 1,184,106 0 1,184,106 236,821 974,073 6 - Half Year 29,764 29,764 2,976 7 Class 9 - Full (25%) 0 0 0 0 8 - Half Year 0 0 0 9 Class 10 - Full (30%) 63,668 63,668 19,100 70,218 10 - Half Year 30,177 30,177 4,527 11 Class 13 - Full (S/L) 9,603 9,603 1,822 13,605 12 - Half Year 6,130 6,130 307 13 Total 6,365,663 101,516 6,467,179 482,773 5,984,406
CAPITAL COST ALLOWANCE RECONCILIATION
LINE
NO. PARTICULARS AMOUNT
(a) (b)
1 Transfers to GPIS in 2001 62,180
2 Regulated General Plant Additions in 2001 42,330
Adjustments
3 Net Removal Costs > Salvage Proceeds (1,615)
4 Materials & Supplies (3,487)
5 Contributions in Aid of Construction (945)
6 Land (509)
7 Other 3,562
8 Total Adjustments (2,994)
