RETURN ON EQUITY POLICIES FOR CANADA'S NATURAL GAS DISTRIBUTION COMPANIES ARE OUTDATED,AND GAP BETWEEN ALLOWED RETURNS OF CANADIAN COMPANIES VERSUS U.S.COMPANIES IS GROWING,THE CANADIAN GAS ASSOCIATION SAYS

摘要

The formulaic approach to determine fair returns for Canada's natural gas distribution companies,which was adopted 14 years ago,is no longer "producing the appropriate results," and has a "systemic downward bias" of fewer returns,the Canadian Gas Association (CGA) concluded in a recent report entitled,Natural Gas Utility Return Determination in Canada:Time for a New Approach.Furthermore,a "significant gap" has emerged between Canadian and U.S.company returns.