Mr. Hastings: I focus on the Canadian pipeline, power and utility sectors.
TWST: Here we are with a 5 to 5.5 gas price. What has that done to the space at this point from your perspective?
Mr. Hastings: Economic circumstances reduced demand and dropped prices, and that meant a lot of gas got backed up in Alberta. Some producers have stopped or certainly slowed down drilling. As a result, TransCanada's pipeline throughput is a lot less than it used to, down maybe 1.5 Bcf/day. Most of the gas production shortfall all gets backed out of TransCanada's line, not other lines. So the situation is really magnified at TransCanada. What it could mean is a very significant rate increase, maybe 0.35 or more, which off a 1.19 base is pretty significant.
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