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N. Border Files Rate Settlement

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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