) has announced its plan to repay $151 million principal
outstanding under the $161 million loan to the U.S. Department of
Energy's unit called Western Area Power Administration ("WAPA"). In
2009, the company took this loan from the WAPA under the
Transmission Infrastructure Program ("TIP") to launch its
Montana-Alberta Tie-Line ("MATL") Project.
The 345-kilometer (215-mile), 230-kilovolt ("KV") electrical
transmission line permits to transport power between Great Falls,
Montana and Lethbridge, Alberta in Canada. Enbridge expects MATL to
be online in fourth-quarter 2012, subject to certain regulatory
The TIP deals with a number of project and program rules to offer
guidance to the WAPA for borrowing up to $3.25 billion from the
U.S. Treasury to fund the partnerships for developing transmission
infrastructure. Subsequently, these lines will deliver renewable
energy to market across the region.
As we know that Northern Montana and southern Alberta are renowned
for the best wind energy sources in North America. The MATL line
will support ongoing development of wind-powered generation
resources and allow much-needed energy to flow in both directions.
This project is expected to ensure more reliable supplies of
electricity into the U.S. Northwest and Alberta.
Currently, the U.S. Environmental Protection Agency continues to
roll out new rules and regulations related to the supply of clean
energy to all consumers across the sectors. We believe this
transmission line will indirectly help the clean energy providers
to supply power to the end users. This will also enable Enbridge to
improve its financial results.
As of June 30, 2012, Enbridge Inc. had cash and cash equivalents of
$650.7 million (Canadian $667 million) compared with $708.9 million
(Canadian $723 million) as of December 31, 2011. On top of its
financial strength, the company comfortably continues with its
transmission line expansion as well as other infrastructure
In addition, the company also issued debts and commercial
papers, and utilized its credit facility to retire its existing
debts including the outstanding WAPA loan and fulfill its capital
ENBRIDGE INC (ENB): Free Stock Analysis Report
OILTANKING PTNR (OILT): Free Stock Analysis
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We view Enbridge, Inc. as an organization with presence in
diversified activities in crude oil and natural gas transportation
activities. In addition, the company has strong participation in
natural gas gathering, transmission and midstream businesses, and
an increasing association with power transmission.
Enbridge Inc. currently holds a Zacks #2 Rank, which translates
into a short-term Buy rating.
Calgary, Canada-based Enbridge Inc. is a renowned Canadian
organization primarily deals with energy delivery in North America.
The company operates both in the U.S. and Canada with crude oil and
liquids transportation system. The company's peer is
Oiltanking Partners, L.P.