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NORTHERN BORDER PIPELINE COMPANY RECEIVES ROLLED-IN RATES FOR EXPANSION/EXTENSION PROJECT
FOR IMMEDIATE RELEASE: Wednesday, July 31, 1996
Omaha, NE -- Northern Border Pipeline Company announced today that the Federal Energy Regulatory Commission (FERC) has voted out a favorable draft preliminary determination in its proposed midwest expansion/extension project. The preliminary determination, an important milestone in the approval process to obtain a final Certificate of Public Convenience and Necessity, is a decision on all non-environmental issues of the project including the approval of rolled-in rate treatment.
"We are pleased that the FERC has affirmed rolled-in rates for the expansion/extension project to provide all of our shippers the lowest-cost transportation alternative into the Chicago market area," said Larry L. DeRoin, chairman of the Northern Border Pipeline Company Management Committee. "Receipt of a favorable preliminary determination leaves only environmental review as the final step in the regulatory process. The construction project is on track for a 1998 in-service date," DeRoin said, "assuming Northern Border's rate case is promptly resolved and approved by the FERC."
New gas receipts into the pipeline system will be 700 million cubic feet per day (MMcf/d) and 648 MMcf/d will be transported through the pipeline extension. Northern Border has executed precedent agreements with 21 shippers for the volumes underpinning the project. The cost is approximately $800 million (1995 dollars).
Northern Border Pipeline Company is a general partnership which owns and operates a 969-mile interstate pipeline that transports about 20 percent of all Canadian gas imported into the United States. In 1995, the Northern Border Pipeline system delivered 615 billion cubic feet of natural gas into the Midwest markets. Northern Border Partners, L.P. owns a 70 percent general partner interest in Northern Border Pipeline. The remaining 30 percent interest in Northern Border Pipeline is owned by subsidiaries of TransCanada PipeLines Limited.
For additional information please contact:
Elaine McCasland Thomas
(713)853-6814
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