Spectra Energy expects $30 million charge in 4Q

Spectra Energy to take $30 million fourth-quarter charge as some revenue is reclassified

Associated Press

NEW YORK (AP) -- Pipeline operator Spectra Energy Corp. said Tuesday that it will take a charge of about $30 million in the fourth quarter because some of its revenue must be returned to gas customers.

Some revenue for Spectra's Union Gas subsidiary is being reclassified because of a decision by the Ontario Energy Board. The board decided that some revenue from the optimization of upstream transportation contracts should be considered gas supply costs. That means 90 percent of that has to be returned to customers.

Spectra said the decision is "highly irregular" and affects revenue from 2011 and 2012.

Shares of Spectra Energy lost 8 cents to close at $27.70.

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