Trans Mountain claims it will assume 70% of the project's cost overruns. As a result of this overrun, the Crown corporation believes it will generate only modest returns during the first years of operation of the expanded pipeline.
Trans Mountain says lower tolls could impact its ability to meet its financial obligations.
In a file separate regulatory filing last week, Trans Mountain resubmitted a new application to modify its pipeline, after its request had previously been denied. The company wants to change the size of the pipe for a section of the project in British Columbia, due to soil characteristics in that segment that make construction conditions difficult.
If the exemption is not granted, the company fears that the completion of the project could be delayed by two years.