Transportation news briefs, Sept. 29

Maritimes & Northeast Pipeline � Northern Border Pipeline � Alliance Pipeline


The Canadian National Energy Board has decided on the tolls Maritimes & Northeast Pipeline (M&NP) LP can charge gas transportation on its pipeline in the 10-month period from Dec. 1, 1999, through September 2000. The board authorized M&NP a revenue requirement of $95.9 million for the period, which is $2.2 million less than the amount for which the company applied. It also approved a rate base of $716.9 million, which is $11.6 million less than the company's request. The rate of return on rate base is 8.596%.

Northern Border Pipeline Co. said it has filed a stipulation and agreement to document the settlement of its pending rate case with the Federal Energy Regulatory Commission. 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. Both Northern Border and its existing customers will have a moratorium on seeking further rate changes until Nov. 1, 2005. Northern Border Pipeline owns a 1,214-mile interstate pipeline that transports approximately 23% of all Canadian gas imported into the United States, said Northern Border.

Alliance Pipeline Ltd. said it has received notice from both the National Energy Board and the Federal Energy Regulatory Commission that its respective Canadian and US tariffs have been accepted as filed. The tariffs outline the applicable charges for service on the pipeline system and all of the relevant terms and conditions of this service. The tariff covering the Canadian portion becomes effective Oct. 30. FERC said Alliance Pipeline LP's FERC Gas Tariff No. 1 is to be effective on the later of Oct. 2, 2000 or its actual in-service date. Alliance also says more than 99% of the total pipeline system has been installed.

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