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Who Pays for the Keystone XL Pipeline?

November 17, 2009

Goings on in Nebraska raise questions about who will pay the costs of TransCanada’s Keystone XL pipeline.

The Nebraska Public Power District (NPPD) recently approved rate increases for its customers. According to the Columbus Telegram, the increase will include costs for capital projects. One of those projects is electrical improvements needed for the Keystone XL pipeline: “Of the $348.2 million capital budget, approximately $45 million will be paid for by TransCanada as part of its Keystone XL Pipeline project.”

OK. But will TransCanada’s $45 million or so pay the full costs of the project?

Almost certainly not. A NPPD flier about the project estimated that NPPD’s system needed $49 million in upgrades for the Keystone XL pipeline.

That’s $4 million more than TransCanada will apparently pay NPPD for the upgrades. So unless someone figured out how to do the upgrades for $4 million less than NPPD estimated previously, TransCanada is not the only one that is going to be paying for them. The flier itself hints at this by saying TransCanada will pay “a majority of the costs.”

So it appears NPPD ratepayers will be paying $4 million or so for TransCanada’s Keystone XL pipeline. The flier says there will be benefits for NPPD’s wholesale customers, but the Columbus Telegram article says residential customers are getting a rate increase too.

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One Comment leave one →
  1. Marc Moshman permalink
    February 18, 2010 10:02 am

    This project reads like a classic get-rich-quick for the insiders while the not so well connected get hosed.

    Where is the long term benefit in destroying an environment in Alberta the size of Florida and helping to pay for the company to do it? Who will be getting rich off this scheme and who will be paying them their riches? Give me nuclear power with all its problems over this insanity.

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