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NORTHERN BORDER RECEIVES CHICAGO PROJECT AND RATE CASE APPROVALS
FOR IMMEDIATE RELEASE: Wednesday, July 30, 1997
OMAHA - Northern Border Pipeline Company announced that the Federal Energy Regulatory Commission (FERC) voted in today's meeting to approve the construction of Northern Border's Chicago Project, finding the project to be "in the public convenience and necessity." In a separate action, the FERC also approved the provisions of the settlement agreement for Northern Border's most recent rate case.
The Chicago Project, an $837 million expansion and extension of the Northern Border system, will bring an additional 700 million cubic feet (MMcf/d) of Canadian natural gas into United States markets. The project involves the construction by Northern Border of approximately 390 miles of 30- and 36-inch diameter pipe and the addition of 303,500 horsepower of compression.
Larry L. DeRoin, President of the operator of Northern Border said the Company is reviewing provisions of the draft orders. "We are very pleased with FERC's approval of The Chicago Project which will advance the strategic interests of Northern Border and its customers. The completion of this project will deliver substantial incremental volumes of competitively priced gas to both local distribution companies and the interstate pipeline grid. Additionally, it will allow Northern Border's shippers to have direct access to larger retail markets," DeRoin noted.
"We will now be moving ahead with all phases of The Chicago Project. We have recently concluded financing arrangements and are scheduling construction activities to meet the November 1998 in-service date," DeRoin said.
Commenting on the rate case settlement, DeRoin noted that Northern Border filed for FERC approval of the settlement agreement in October 1996. "The settlement, achieved with the support of Northern Border's customers, resolves several complex issues and provides additional rate certainty and the economic underpinning for The Chicago Project, " DeRoin added.
Northern Border Pipeline Company is a general partnership which owns and operates a 969-mile interstate pipeline system that transports about 20 percent of all Canadian gas imported into the U.S. In 1996, the Northern Border Pipeline system delivered an average of 1,764 MMcf/d. Northern Border Partners, L.P. through a subsidiary limited partnership, owns a 70 percent general partner interest in Northern Border Pipeline. Northern Border Partners, L.P. is listed on the New York Stock Exchange under the symbol "NBP". The remaining 30 percent interest in Northern Border Pipeline is owned by subsidiaries of TransCanada PipeLines Limited.
For additional information please contact:
Elaine Thomas
(713)853-6814
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