FERC approved Northern Border Pipeline Co.’s rate settlement,which converts the pipeline’s rate design to straight-fixedvariable from cost of service and which imposes a moratorium onrate changes until Nov. 1, 2005.

“This settlement brings rate certainty to our customers for thenext five years and it allows Northern Border Pipeline theopportunity to offer new services to customers within theprovisions of the settlement,” said Bill Cordes, president ofNorthern Plains Natural Gas, operator of Northern Border.

Cordes also noted that the pipeline system continues to behighly utilized. “As expected, Northern Border Pipeline isoperating at contracted capacity even after the commencement ofoperations of Alliance Pipeline,” Cordes said.

Northern Border Pipeline will apply its rate of $0.037 per 100dekatherm miles on a uniform, system-wide mileage basis. Fullconversion of pipeline operations to the stated rate form of tariffwill be effective Feb. 1, 2001. Implementation of the new tariffwill result in estimated refunds to the customers of $30 million,the majority of which the pipeline company intends to disburseprior to Dec. 31. No earnings impact is expected as the refundswere anticipated and fully reserved.

The Northern Border pipeline extends 1,214 miles from aconnection with Foothills Pipeline at the Canadian border innortheastern Montana to Chicago.

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