Asset Modernization Report 2019
In response to customer requests, Northern has prepared an Asset Modernization Report to provide additional information on Northern’s asset modernization plans over the next 10 years. The report includes descriptions of the projects, the anticipated costs and maps identifying the locations of the modernization projects. Northern will provide annual updates to this report.
Northern Files Renewed Motion to Terminate Section 5 Proceeding
On June 10, 2019, Northern filed with the Federal Energy Regulatory Commission to renew its motion to terminate the section 5 proceeding initiated by the Commission on January 16, 2019. If the section 5 proceeding is terminated, Northern commits not to file a section 4 rate case during the period after the termination through April 30, 2020.
On January 28, 2019, Northern filed to terminate the proceeding due to a significant calculation error the Commission made in its determination that Northern’s 2018 return on equity was potentially unreasonable. The Commission erroneously included $61 million of gas sales revenue without the associated cost of the gas. Had the Commission calculated Northern’s 2018 return on equity correctly, it would have produced a 13.7% return, rather than the 17.3% rate on which the Commission based its decision to implement the section 5. No party disputed Northern’s showing with respect to this error. Over four months have passed since the original motion to terminate was filed, and the Commission has not corrected its mistake or ruled on Northern’s motion. Northern respectfully requests the Commission to rule promptly on its pending motion and bring the erroneously-initiated proceeding to an end.
Potential Interruptible Storage Allocations
Northern is anticipating a greater likelihood of storage injection allocations over the next few weeks. Please see non-critical notice 47891 for further information.
Belleville East Group Allocation
Northern allocated Belleville East Allocation Group for Gas Day June 16, 2019. Please see non-critical notice 48007 for the nomination detail for the group allocated.