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Canada’s Pipeline Transportation System 2016

Appendix: Company Financial Summaries

Deemed Common Equity Ratios
	2008	2009	2010	2011	2012	2013	2014	2015
Gas Pipelines
Alliance	30	30	30	30	30	30	30	30^{Note a}
Foothills	36	36	40	40	40	40	40	40
NGTL^{Note b}			40	40	40	40	40	40
TransCanada Mainline	40	40	40	40	40	40	40	40
Westcoast Transmission	36	36	36	40	40	40	40	40
Oil Pipelines
Enbridge Pipelines (NW)	55	55	50	50	50	50	50	50
Enbridge Southern Lights^{Note c}			30	30	30	30	30	30
Trans Mountain Pipelines	45	45	45	45	45	45	45	45
Note a Up to 30 November 2015. There is no ‘deemed equity ratio’ for Alliance’s NSO, which was implemented in December 2015. Alliance used a 40% equity thickness in supporting evidence for the NSO application. Return to note a referrer Note b NGTL was regulated provincially until early 2009. Return to note b referrer Note c Southern Lights was not in operation until 2010. Return to note c referrer

Achieved ROEs and the RH-2-94 Formula ROE
	2008	2009	2010	2011	2012	2013	2014	2015
*Pipelines that were subject to RH-2-94*
Foothills	8.71	8.57	9.7	9.7	9.7	10.1	10.1	10.1
TransCanada Mainline	9.91	10.42	10.2	10	11.5^{Note a}	11.88	13.06	10.86
Westcoast Transmission^{Note b}	8.76	9.08	8.78	10.01	9.36	9.54	9.89	9.01
*Other Pipelines*
Alliance	11.26	11.26	11.26	11.26	11.26	11.26	11.26	n/a
M&NP	11.35	n/a	n/a	n/a	n/a	n/a	n/a	n/a
NGTL^{Note c}		10.28	10.04	10.03	9.57	10.23	9.65	10.06
Westcoast Field Services^{Note d}	7.61	12.25	13.65	16.98	19.25	8.93	7.16	2.62

RH-2-94 Formula (no longer in effect)^{Note e}	8.71	8.57	8.52	8.08	7.58	7.23	7.93	7.64
Note a Approved ROE in the RH-003-2011 decision. TCPL's compliance filing used this approved number. Return to note a referrer Note b Excluded construction work in progress (CWIP) and, in the case of Transmission, deferrals. Return to note b referrer Note c NGTL was regulated provincially until early 2009; the 2009 ROE was calculated assuming a 35% equity ratio. Return to note c referrer Note d Excluded construction work in progress (CWIP) and, in the case of Transmission, deferrals. Return to note d referrer Note e In October 2009, the Board decided that the RH-2-94 Decision would not continue to be in effect. However, for the convenience of parties which still use it in their settlements, the Board has continued to publish the formula. Return to note e referrer

Source: NEB Surveillance Quarterly and Annual Reports.

Fixed-Charges Coverage Ratios
Fixed-Charges Coverage Ratios	2010	2011	2012	2013	2014	2015^{Note a}
Alliance L.P.	2.25	2.21	2.29	2.41	2.58	2.75
Enbridge Pipelines Inc.	2.11	2.52	2.39	1.95	2.08	1.55
Express	3.11	4.23	6.29	8.66	11.38	16.7
M&NP L.P.	3.41	2.78	2.8	3.03	3.49	3.79
NGTL	2.18	2.16	2.1	2.34	2.19	2.11
TQM	3.20	4.54	4.31	3.75	3.98	4.24
TCPL	2.01	2.39	2.18	2.39	2.59	2.7
TNPI	3.47	4.83	6.41	5.52	7.8	n/a^{Note b}
Westcoast	2.31	2.52	1.96	2.21	2.17	3.46
Note a Data for 2015 is partial year data for most of the companies. Return to note a referrer Note b DBRS has discontinued its credit rating service for TNPI. Return to note b referrer

Source: DBRS

Cash Flow-to-Total Debt and Equivalent Ratios
Cash Flow/Total Debt	2010	2011	2012	2013	2014	2015^{Note a}
Enbridge Pipelines Inc.	15.2%	11.2%	11.4%	8.8%	8.8%	8.4%
Enbridge Mainline^{Note b}	18.0%	19.6%	20.4%	16.7%	16.7%	n/a^{Note c}
Express	24.9%	34.9%	51.2%	70.3%	95.1%	139%
TNPI	14.1%	23.9%	29.7%	24.1%	37.8%	n/a^{Note d}
Alliance L.P.	16.9%	18.0%	18.5%	21.2%	22.3%	24.5%
M&NP L.P.	22.2%	23.9%	25.9%	30.2%	38.8%	42.6%
NGTL	14.3%	13.5%	12.6%	13.6%	12.6%	12.3%
TQM	16.4%	19.8%	18.8%	16.7%	17.7%	17.7%
TCPL	15.6%	16.4%	15.1%	15.5%	15.4%	14.7%
Westcoast	17.2%	15.4%	13.7%	15.1%	16.0%	20.3%
Note a Data for 2015 is partial year data for most of the companies. Return to note a referrer Note b DBRS publishes summary information for the finances of the Canadian portion of Enbridge's Mainline system, referred to as the 'Mainline', which excludes Enbridge Pipeline's investments in other entities. When consolidated, these entities tend to depress credit ratios relative to the Mainline’s credit ratios. Return to note b referrer Note b At the time of writing, this data was not available. Return to note c referrer Note b DBRS has discontinued its credit rating service for TNPI. Return to note d referrer

Photos: left: A pump jack silhouetted against the setting sun; centre: The grey valves and wheels of a pump station on clear day; right: Folded hands hold a pen on a board room table in a large meeting room.

Date modified:: 2022-01-28