Williams' Northwest Pipeline said Wednesday that it filed a stipulation and settlement agreement that resolves all outstanding issues in its pending rate case (RP06-416), which was filed on June 30 with the Federal Energy Regulatory Commission (FERC). The settlement between Northwest and the intervening parties in the case, including Northwest's customers, is supported by the FERC staff and is expected to be uncontested.
This was the first general rate increase sought by Northwest in 10 years and was filed to reflect an increase in revenue requirements, including recovery of the $333 million capacity replacement project in Washington (see Daily GPI, Dec. 6, 2006).
"We are pleased to have reached a settlement with our customers and FERC staff," said Williams Gas Pipelines President Phil Wright. "We believe the settlement is fair and provides rate certainty for Northwest and its customers for the next few years."
The settlement is based on an annual cost of service of $404 million and establishes that general system firm transportation (FT-1 Large) rates on the Northwest Pipeline system will increase from $0.30760 to $0.40984/Dth, effective Jan. 1, 2007.
Northwest said it anticipates that the FERC approval process will be completed by mid-2007.
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