Canadian Utilities's indirectly owned subsidiary, Atco Pipelines and TransCanada's wholly owned subsidiary, Nova Gas Transmission, have reached a proposed agreement to provide seamless natural gas transmission service to customers.

The gas transmission model will utilize a single suite of services to provide integrated gas transmission service which is expected to add value for customers as a result of seamless efficient service throughout the province of Alberta, Canada.

Both Atco Pipeline and Nova Gas Transmission (NGTL) have been encouraged by their regulator and by customers to explore collaborative concepts designed to streamline the provision of natural gas transmission service across Alberta and to address competitive pipeline issues. The seamless gas transmission model is the result of this process.

If approved by the regulator, the arrangement will see the two companies combine physical assets under a single rates and services structure with a single commercial interface with customers but with each company separately managing assets within distinct operating territories in the province.

It is expected that the model will end duplicative tolling and operational activities and will result in more efficient regulatory processes.