NORTHERN BORDER PIPELINE COMPANY FILES RATE CASE SETTLEMENT
FOR IMMEDIATE RELEASE: Tuesday, September 26, 2000
OMAHA, Neb. -- Northern Border Pipeline Company (Northern Border) announced today that it has filed a stipulation and agreement which documents the settlement in its pending rate case with the Federal Energy Regulatory Commission (FERC). The settlement was reached between Northern Border, the majority of its customers and the FERC staff.
“The proposed rate settlement provides rate certainty to customers and allows us to remain competitive in the market place,” said Larry DeRoin, president of Northern Plains Natural Gas Company, operator of Northern Border.
The settlement will become effective upon approval by the FERC, which is anticipated in first quarter 2001. Among the key provisions of the settlement is the conversion of Northern Border’s form of tariff from cost of service to stated rates based on a straight fixed variable rate design.
Northern Border, which provides transportation services to natural gas markets in the Midwestern United States, will continue to apply its rate of approximately $0.037 per 100 dekatherm miles on a uniform, system-wide mileage basis. This would result in a rate of $0.30 per million British Thermal Units (MMBtu) for transportation from Monchy, Saskatchewan to Ventura, Iowa; and a rate of approximately $0.45 per MMBtu for transportation from Monchy to Chicago.
The stipulation and agreement further provides for the incorporation into the company’s rate base of all of the construction costs of The Chicago Project. Northern Border’s annual depreciation rate will be set at 2.25 percent. Both Northern Border and its existing customers will have a moratorium on seeking rate changes until Nov. 1, 2005.
Northern Border Pipeline Company is a general partnership which owns a 1,214-mile interstate pipeline that transports approximately 23 percent of all Canadian gas imported into the United States. Northern Border Partners, L.P. (NYSE:NBP) owns a 70 percent general partner interest in Northern Border. The remaining 30 percent interest in Northern Border is owned by TC PipeLines, LP (NASDAQ:TCLPZ).
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. Although Northern Border Pipeline Company believes that its expectations are based on reasonable assumptions, it can give no assurance that such expectations will be achieved. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, competitive factors in Midwestern natural gas markets and regulatory approvals and proceedings.
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For additional information please contact:
Public Relations Contact:
Beth Jensen
(402) 398-7806
Investor Relations Contact:
Ellen Konsdorf
(402) 398-7840
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