NNG - Tariff - Fifth Revised Sheet No. 213
Northern Natural Gas Company Fifth Revised Sheet No. 213
FERC Gas Tariff Superseding
Fifth Revised Volume No. 1 Fourth Revised Sheet No. 213
GENERAL TERMS AND CONDITIONS
4. FACILITIES
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Northern shall not be required to provide any requested service under
any Rate Schedules which would require the construction or
acquisition by Northern of any new facilities. Northern may
condition any such construction, acquisition, or expansion on
Shipper/Purchaser agreeing to reimburse Northern for all costs
incurred, including any taxes incurred by Northern as a result of
such reimbursement. An economic feasibility test will be performed
to determine when Northern may charge Shipper/Purchaser such costs.
Such test shall reflect the cost of the facility to be constructed,
the incremental cost related to such facilities and the revenues
which Northern estimates to be generated attributable to the
facilities, all of which will be based on a discounted cash flow rate
of return methodology. All new facilities (whether built by
Shipper/Purchaser or Northern) shall be in conformance with the
regulations set forth in 49 CFR Part 192 and shall be subject to
inspection and prior approval by Northern. Nothing in this Section 4
shall require Northern to file an application for a certificate of
public convenience and necessity under Section 7(c) of the Natural
Gas Act, nor prevent Northern from contesting an application for
service filed pursuant to Section 7(a) of the Natural Gas Act.
Northern reserves the right to seek a waiver of the policy set forth
in this Section 4 for good cause shown, during any proceeding before
the Commission instituted under Section 7 of the Natural Gas Act.
In order to maintain and expand firm entitlement and utilization of
Northern's system, Northern may negotiate firm transportation or storage
contracts with shippers whereby Northern could make a contribution in aid of
construction (CIAC) to the shipper. The shipper would use such funds to
assist in the development of natural gas facilities. Such
contributions must pass an economic feasibility test similar to the one
described in the preceding paragraph. For any newly agreed to CIAC,
Northern will post on its website for a period of thirty (30) days (1) the
amount of the CIAC, (2) the name of the customer receiving the CIAC, and (3)
the economic feasibility of the CIAC. Such CIAC's are includible in
Northern's jurisdictional rate base and amortizable to cost of service
ratably over the term of the related contract. All CIACs entered into
pursuant to this provision shall be subject to review and challenge by the
Commission and all parties in a general rate case requesting inclusion of
such costs.
5. TAX REIMBURSEMENT
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To the extent that any reimbursement to Northern by Shipper/Purchaser
is deemed taxable income to Northern pursuant to Section 824 of the
Tax Reform Act of 1986, P.L. 99-514, or any successor thereto,
Shipper/Purchaser shall reimburse Northern for the tax impact as
part of the actual costs incurred.
Issued by: Mary Kay Miller, V.P. Regulatory & Government Affairs
Issued on: March 17, 2010 Effective: April 17, 2010
