500-1777 Victoria Avenue
Regina, Saskatchewan
S4P 4K5
T: (306) 777-9595
F: (306) 525-3422
dbrown@transgas.com

www.transgas.com

May 22, 2008

To:  All TransGas Customers

TransGas Transportation Service Rate Adjustment – June 01, 2008
 

TransGas Limited (TransGas) wishes to announce changes to its rates for transportation services that are effective June 01, 2008. TransGas will be increasing its transportation rates by 4.2 percent. The rate adjustment is caused primarily by a reduction in transportation flows on the TransGas transmission system.

Since the summer of 2007, TransGas has seen a decrease in the transportation flows on its system. While Saskatchewan receipts are down approximately 13 percent from a year ago, TransGas was able to reduce the full impact of the declining throughput on the system and defer the implementation of the rate adjustment through a number of cost reductions. Even with the new rate adjustments, TransGas will continue to offer one of the most competitive transmission rates in the country

TransGas last adjusted its transportation and storage service rates with an average 2.0 percent rate increase on January 01, 2007. This rate adjustment was also primarily due to lower flows on the TransGas transmission system.

The specific transportation and storage rates are attached to this letter in Appendix 1. Both the existing and the new rates are shown on this table.

If you have any questions with respect to how the rate adjustment will affect you, please contact your Key Account Manager, Wendy Uytterhagen at (306) 777-9687 or Darlene Exner at (306) 777-9501. If you have more general questions regarding the change, please contact our Policies, Rates and Regulations Department: Gary Johannsson, Manager, Rates and Revenue at (306) 777-9560, Scott Joyce, Manager, TransGas Commercial Solutions at (306) 777-9985 or Vern Gorr, Director, at (306) 777-9556.

Yours truly,

TRANSGAS LIMITED

Debbie Brown,
Vice President,
TransGas Market Services and System Management