PIPELINES / Westcoast - Centra - Manitoba ruling
Westcoast Subsidiary Centra Gas Manitoba Receives
Manitoba Public Utilities Board Decision
VANCOUVER, BRITISH COLUMBIA--Westcoast Energy Inc. (Westcoast)
today received the results of the decision by the Manitoba Public
Utilities Board (MPUB) on the 1998 General Rate Application by
Westcoast's subsidiary Centra Gas Manitoba (Centra).ÿ
In particular, Westcoast responded to the portion of the decision
related to the recovery of natural gas costs.ÿ Centra's
application requested recovery of approximately $46 million
related to increased gas costs for the period of November and
December 1997 and for 1998.ÿ The MPUB approved the recovery of
$18.5 million of the amount requested.ÿ The affect of the decision
on Westcoast's 1998 earnings, on an after-tax basis, is expected
to be approximately $15 million.ÿ The implications of the decision
on future capital expenditures in Manitoba and legal redress are
still under consideration.
The MPUB has expressed the view that Centra's actions in regards
to price management were imprudent.ÿ In response, Westcoast has
indicated that Centra has operated a technical natural gas trading
program since 1995.ÿ In 1996, the program, the trading team, the
management team, and the checks and balances in place delivered
lower gas costs to consumers.ÿ In 1997, the same program, the same
trading team, and the same processes were subject to an
unprecedented volatile natural gas pricing market which lead to a
significant increase in Centra's gas costs.
Centra Gas Manitoba is a wholly-owned subsidiary of Westcoast
Energy Inc.ÿ It is the gas distribution utility serving
approximately 240,000 customers in the province of Manitoba.ÿ
Westcoast Energy Inc., (TSE:W; NYSE:WE) headquartered in
Vancouver, British Columbia, has assets of approximately $10
billion.ÿ The company's interests include natural gas gathering
and processing facilities, gas transportation and storage
facilities, gas distribution companies as well as power
generation, international and energy services businesses.
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
Westcoast Energy Inc.
Art Willms
President
(604) 488-8004
or
Westcoast Energy Inc.
Tom Merinsky
Investor Relations
(604) 488-8021
or
Westcoast Energy Inc.
Paul Clark
Corporate Communications
(604) 488-8093 |
