N. Border Files Rate Settlement
Northern Border Pipeline filed a stipulation and agreement with
the FERC that settles its pending rate case. The settlement was
reached between the pipeline company, the majority of its customers
and 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,
operator of Northern Border.
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. 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, an $839 million, 700 MMcf/d expansion and
extension of the Northern Border Pipeline system to Chicago from
Harper, IA. Northern Border's annual depreciation rate will be set
at 2.25%. Both Northern Border and its existing customers will have
a moratorium on seeking rate changes until Nov. 1, 2005.
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