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Northern Border Downsizes Indiana Extension

Northern Border Downsizes Indiana Extension

With two of its shippers taking released capacity instead of new space, Northern Border has filed a request with FERC to downsize its proposed Indiana extension project, Project 2000, and reduce the expected costs by $64 million. The reduction would mean a smaller rate increase, under rolled-in rate design, than would have occurred in the original project plan - a 2.06% rise versus 2.39%.

Northern Border said El Paso Energy and Minnesota Corn Processors have obtained firm capacity via capacity releases. El Paso has signed an agreement for 51 MMcf/d from the Montana-Saskatchewan border near Port of Morgan to Ventura, IA, and 10 MMcf/d from Ventura to Harper, IA. Minnesota Corn Processors also found released capacity between Port of Morgan and Ventura.

The company filed a request to amend its application for a certificate (Docket No. CP99-21) and reduce the amount of proposed new compression by about 30,500 hp from the original 53,000 hp. The 34-mile, 36-inch diameter extension to a connection with NIPSCO at North Hayden, IN, from Manhattan, IL, is still required, and the scheduled in-service date of the facilities remains November 2000. But the capacity of the system will be 1,484 MMcf/d between Ventura and Harper, 844 MMcf/d between Harper and Manhattan and 544 MMcf/d on the Indiana extension.

The revised shipper list, with purchased capacity to North Hayden, includes El Paso (52.1 MMcf/d), Bethlehem Steel (30 MMcf/d), NIPSCO (165 MMcf/d), Peoples Energy (101.2 MMcf/d) and Peoples Gas Light &amp Coke (200 MMcf/d).

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