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Richard D. Kinder, Chairman and Chief Executive Officer of Kinder Morgan Energy Partners LP, addresses the Reuters Energy Summit in Houston in this June 2, 2009 file photo. Kinder told investors on a conference call August 11, 2014 that Kinder Morgan Inc as a combined company will have the opportunity to make sizable acquisitions in the natural gas and crude oil pipeline and processing sector.
Richard D. Kinder, Chairman and Chief Executive Officer of Kinder Morgan Energy Partners LP, addresses the Reuters Energy Summit in Houston in this June 2, 2009 file photo. Kinder told investors on a conference call August 11, 2014 that Kinder Morgan Inc as a combined company will have the opportunity to make sizable acquisitions in the natural gas and crude oil pipeline and processing sector.
(Richard Carson/Reuters)

Will Kinder Morgan's new structure work for Canadian companies?

Kinder Morgan Inc. bills its $44-billion (U.S.) restructuring as a way to simplify its business and cut its cost of capital by putting all its subsidiaries under a single umbrella. Don’t look to Canada’s major pipeline companies to follow suit, however.

Enbridge Inc. uses its U.S. affiliate, Enbridge Energy Partners LP, as an alternative funding vehicle as it pursues about $37-billion (Canadian) of commercially secured growth projects. FirstEnergy Capital Corp. analyst Steven Paget points out that Enbridge recently restructured the 34-per-cent-owned unit to reduce its cost of capital.