The new toll for the Westspur pipeline, which carries oil from southeastern Saskatchewan to Manitoba, became effective April 1 after a complaint filed by one of the affected shippers has been withdrawn.
Enbridge estimates that the settlement agreement will reduce Westspur's annual after-tax cash flows by about $10 million, although the actual amount could vary depending on certain circumstances.
The agreement establishes a toll methodology for an initial term of five years and then renews for additional one-year terms unless the agreement is terminated
Enbridge says the tolls on the Westspur System will be fixed, but will adjusted annually for inflation and volume.
In addition, tolls will be increased should integrity, regulatory or operating costs exceed defined thresholds or if new capital projects are undertaken, Enbridge said.
"We are pleased to have implemented this collaborative agreement," said John Whelen, president of Enbridge Management Services Inc., the fund's administrator.
"The settlement will provide greater toll certainty and transparency for shippers and a strong alignment of interests, creating a foundation upon which to build longer term value for our customers and for the fund."
The Westspur system moves oil from Saskatchewan to Cromer, Man., where it connects to Enbridge Pipeline Inc.'s mainline system.
According to its latest annual information filing with Canadian regulators, Enbridge Inc. (TSX:ENB) had a 32.3 per cent ownership interest and a 67.7 per cent economic interest in the fund, either directly or through its ownership interest in Enbridge Income Funds Holdings Inc.Suggest a correction