Key pipeline is getting more expensive

Article Excerpt

TRANSCANADA CORP. $48 (Toronto symbol TRP; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 709.0 million; Market cap: $34.0 billion; Price-to-sales ratio: 3.2; Dividend yield: 4.3%; TSINetwork Rating: Above Average; www.transcanada.com) wants to build the Energy East pipeline, which would pump oil from Alberta to Eastern Canadian refineries. In response to environmental concerns and political opposition, TransCanada has adjusted the route and scrapped plans to build an export terminal in Quebec. These moves will certainly increase Energy East’s $12-billion cost; the company has already spent $700 million on the project. If regulators approve, the new pipeline could begin operating in 2020. TransCanada is a buy. buy…