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NOVA CORP. OF ALBERTA ANNOUNCES A SERIES OF ADJUSTMENTS TO ITS RATE OF RETURN FOR THE ALBERTA GAS TRANSMISSION DIVISION

 NOVA CORP. OF ALBERTA ANNOUNCES A SERIES OF ADJUSTMENTS
 TO ITS RATE OF RETURN FOR THE ALBERTA GAS TRANSMISSION DIVISION
 CALGARY, Alberta, Dec. 20 /PRNewswire/ -- NOVA Corp. of Alberta (NYSE, Toronto, Montreal, Calgary: NVA) announced today a series of adjustments to its rate of return for the Alberta Gas Transmission Division (AGTD), 100 percent owned. These changes recognize reductions in the cost of capital used to finance the natural gas pipeline system.
 Effective Jan. 1, 1992, the rate of return on rate base for AGTD is reduced to 11.62 percent from 11.78 percent. The rate adjustment also incorporates a reduction in NOVA's return on common equity to 13.50 percent from 13.75 percent. At the same time, the deemed common equity component is increased to 35 percent from 32 percent.
 AGTD President and Chief Operating Officer B. W. Simpson said other changes to long-term debt, short-term debt and preferred equity were made to reflect current and forecast trends in interest rates and the capital structures of comparable regulated companies.
 "These adjustments were made after extensive negotiations with our customers. Unfortunately, it was not possible to reach a concensus that was acceptable to all groups within the required timeframe. As a result, NOVA anticipates these adjustments may be reviewed by the Alberta Public Utilities Board. NOVA welcomes the opportunity for a review, which we expect will resolve this issue to the satisfaction of all customers," he said.
 NOVA is a widely held company operating internationally from headquarters in Calgary, Alberta, Canada. NOVA builds its future on pipelines, and the manufacturing and marketing of chemicals processed primarily from Alberta natural resources.
 -0- 12/20/91
 /CONTACT: B. W. Simpson of NOVA Corp. of Alberta, 403-290-7640/
 (NVA.) CO: NOVA Corp. of Alberta ST: Alberta IN: OIL SU:


AL -- LA013 -- 4463 12/20/91 15:23 EST
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Publication:PR Newswire
Date:Dec 20, 1991
Words:306
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