215479ORIGINAL TO CITY CLERK 2. 479
CITY OF ST. PAUL O NCIL NO. _
OFFICE OF THE CITY.CLERK
COUNCIL RESOLUTION — GENERAL FORM File No. 215479 —By Bernard T,
,nd-
.e rived, By the Council of t'ip Ci' I
PRESENTED BY � ..nt Paul, upon due rr nrl, ,- a
COMMISSIONER DATE d'Report of the Coi 3bty �: n�a,
;c Tit lilies and Co ±T.,-- . t
..h-.. W in afar
PTiQLTQttt,�y
RESOLVED, by the Council of the City of
Saint Paul,•upon due consideration of the Report of
the Commissioner of Public Utilities and Corporation.
Counsel thereon, that the Statement of Proposed Settle-
ment filed November 4, 1963, with Federal Power Com-
mission in re Northern Natural Gas Company, Docket
Nos. G- 12,153, G- 133589 G- 150351 G- 16,447 and G- 19,0953
Permian Basin Pipeline Company, Docket No. G- 15,336, and
the settlement of controversies pertaining to said matters
thereby proposed and provided to be made hereby are in all
things approved, and said Federal Power Commission hereby
is urged to approve the same and to authorize and provide
for the disposition of said controversies accordingly.
COUNCILMEN
Yeas Nays
Dalglish
Holland
Loss
Mortinson
Peterson_
Rosen
Mr. President, Vayoulis
i
10111 8-82
i
NOV 15 1663
Adopted by the Council 19—
pro
In Favor
A
gainst i � w�• w :try,
. a .
NOV 15 1663
Mayor
DUPLICATE TO PRINTER 215479
CITY OF ST. PAUL COUNCIL NO.
OFFICE OF THE CITY CLERK FILE
COUNCIL RESOLUTION — GENERAL FORM
PRESENTED BY
COMMISSIONER DATE
RESOLVED, by the Council of the City of
Saint Paul, upon due consideration of the Report of
the Commissioner of Public utilities and Corporation
Counsel thereon, that the Statement of Proposed Settle-
ment filed November 4, 1963, with Federal Power Com-
mission in re Northern Natural. Gas Company, Docket
Nos, G- 12,153, G.1 %3589 G- 150359 G- 169447 and G,190951;
Permian Basin Pipeline Company, Docket No. G- 15,336, and
the settlement of controversies pertaining to said matters
thereby proposed and provided to be made hereby are In all
things approved, and said Federal Power Commission hereby
is urged to approve the same and to authorize and provide
for the disposition of said controversies accordingly.
COUNCILMEN
Yeas Nays
Dalglish
Holland
Loss
Mortinson
Peterson
Rosen
M��sidentj
In Favor
OAgainst
t ,
NOV 15 W
Adopted by the Council 19-
NOV j. 963
Approved 19—
y•
Mayor
+i'
NORTHERN NATURAL GAS COMPANY,
2223 DODGE STREET
OMAHA 2, NEBRASKA
November 1, 1963
Federal Power Commission
441 "G" Street, N. W. '
Washington 25, D. C.
Attn: Joseph H. Gutride, Secretary
Gentlemen:
��C�IIVII&D
m nv 4 19"
C0RP0RATlUj1 (;uUNSEL
Re: . Northern Natural Gas Company,
Docket Nos. G- 12,153, G -13, 358,
G -15, 335, G- 16,447 and G -19, 095;
Permian Basin Pipeline Company,
Docket No. G -15, 336.
Enclosed for filing with the Commission in the above - captioned
proceedings, please find the original and fourteen (14) copies of "Statement
Of Proposed Settlement."
As shown by the Certificate of Service attached to the original
of the enclosed Statement, a copy thereof has this day been served by mail
upon all interested parties.
We will greatly appreciate the early consideration by the Com-
mission of the enclosed "Statement Of Proposed Settlement."
Very truly yours,
-
General Attorney
Jack C. Osborne
tvd
Encls.
cc: Alvin A. Kurtz, Esquire
A. R. Spalter, Esquire
William L. Johncox, Esquire
Robert L. Fowler, Esquire
Walter E. Gallagher, Esquire
Richard J. Connor, Esquire
In the Matters of
UNITED STATES OF AMERICA
Before The
FEDERAL POWER COMMISSION
Northern Natural Gas Company
Northern Natural Gas Company
Northern Natural Gas Company
Permian Basin Pipeline Company
( Now merged into Northern)
Northern Natural Gas Company
Northern Natural Gas Company
Docket No. G-12,153
Docket No. G-13,358
Docket No. G-15,335
Docket No. G-15,336
Docket No. G- 16,447
Docket No. G-19,095
STATEMENT OF PROPOSED SETTLEMENT
BACKGROUND
Docket No. G- 12,153
On February 5, 1957 Northern Natural Gas Company (Northern)
filed Second Revised Sheets Nos. 4, 5, 6, 9, 10, 11, 14, 15 and 16 to its
FPC Gas Tariff, First Revised Volume No. 1. These revised tariff sheets
proposed to become effective March 7, 1957 reflected an annual increase in
revenues under Northern's zoned contract demand service rate schedules of
approximately $6,500, 000 over the then effective rates. By order issued
March 6; 1957, in Docket No. G-12,153, the Commission suspended such
revised tariff sheets until August 8, 1957. The rates contained in such
revised tariff sheets were as follows:
Zone Demand Charge
1 $2.245
2 $2.555
3 $2.875
Commodity Charge
21.9p4
22.4,6
22.9
These rates became effective August 27, 1957 pursuant to Northern' s Motion
to Effectuate Suspended Rates filed August 26, 1957, and the revenues pro-
duced by such increased rates were collected subject to possible refund pur-
suant to the Commission's order issued September 6, 1957. The rates in
Docket No. G- 12,153 were superseded on November 27, 1958 by rates per-
mitted to become effective in Docket No. G-15,335.
By order issued May 21, 1958,in Docket No. G- 12,153, the Com-
mission permitted First Revised Sheet No. 34 and First Revised Sheet No. 54,
pertaining to Rate Schedule E -1 of Northern's FPC Gas Tariff First Revised
Volume No. 1, to take effect May 22, 1958. These two revised tariff sheets
pertained to service to Public Service Corporation of Texas, and such order of
May 21, 1958 provided that the Docket No. G- 12,153 proceedings "shall also
cover and include the rate provided for in First Revised Sheet No. 34 * * *."
Docket No. G -15, 335
On May 26, 1958 Northern filed Third Revised Sheets Nos. 4, 5,
6, 9, 10, 11, 14, 15 and 16 to its FPC Gas Tariff First Revised Volume No. 1.
These revised tariff sheets, proposed to become effective June 27, 1958, re-
fleeted an annual increase in revenues under Northern' s zoned contract demand
-2-
e
service rate schedules of approximately $8,100, 000 over the rates then in
effect, subject to refund, in Docket No. G- 12,153. By order issued June 25,
1958, in Docket No. G -15, 335, the Commission suspended such third revised
tariff sheets until November 27, 1958. The rates contained in such third
revised tariff sheets were as follows:
Zone Demand Charge Commodity Charge
1 $2.87 21.9¢
2 $3.18 22.4¢
3 $3.50 22.9¢
These rates in Docket No. G-15,335 became effective November 27, 1958,
superseding the rates in Docket No. G- 12,153 pursuant to Northern's Motion
to Effectuate Suspended Rates dated November 24, 1958, and the revenues
produced by such increased rates were collected, subject to possible refund,
pursuant to the Commission's order issued February 16, 1959. The rates in
Docket No. G-15,335 were superseded on December 27, 1959 by rates per-
mitted to become effective in Docket No. G-19,040. The rate increase pro-
ceedings in Docket No. G-19,040 were settled and compromised by the parties
and terminated by the Commission pursuant to Order Approving Rate Settlement
Agreement Prescribing Refunds, and Terminating Proceedings in Part, issued
December 21, 1961.
By order issued November 10, 1959 and supplemental order issued
December 22, 1959, both in Docket No. G -15, 335, the Commission allowed
-3-
to take effect Original Sheets Nos. 18 -m, 18 -n, 18 -0, 33 -k, 33 -1 and 52 -a,
52 -b, 52 -c and 52 -d to Northern's FPC Gas Tariff, First Revised Volume No. 1
comprising Rate Schedules PL -3 and PO -3, and an executed Service Agreement
initiating service to Northern Illinois Gas Company and such tariff sheets were
made subject to the same changes in rate level and the same refunds finally
ordered by the Commission in Docket No. G -15, 335 for Northern's Rate Sched-
ule CD -3.
Docket No. G -15, 336
On May 26, 1958 Permian Basin Pipeline Company (Permian) filed
Second Revised Sheet No. 5 and First Revised Sheet No. 6 to Permian' s FPC
Gas Tariff, Original Volume No. 1. These revised tariff sheets, proposed to
become effective July 1, 1958, reflected an increase in the rate of return for
Permian under its pipeline cost of service rate schedule from 6% as then
effective to 6 -1/2%. By order issued June 25, 1958, in Docket No. G -15, 336,
the Commission suspended such revised tariff sheets until December 1, 1958.
These revised tariff sheets became effective December 1, 1958, pursuant to
Permian's motion dated November 24, 1958, and the revenues produced there-
by were collected, subject to possible refund, pursuant to the Commission's
order of February 16, 1959 in Docket No. G -15, 336. The rates effective in
Docket No. G -15, 336 were superseded on January 1, 1960 by rates permitted
to become effective in Docket No. G -19, 041, and subsequently the rate in-
ME
_..� - IL
J
crease proceeding in Docket No. G-19,041 was settled and compromised by
the parties and terminated by the Commission pursuant to order of the Com-
I/
mission dated December 21, 1961 referred to above.
Pursuant to Notice of Consolidation of Proceedings and Date of
Hearing, dated September 2, 1960, the above - described proceedings in
Docket Nos. G-12,153, G -15, 335 and G -15, 336 were consolidated for hear-
ing.
Docket Nos. G -13, 358, G- 16,447 and G-19,095
On October 4, 1957, September 26, 1958 and July 29, 1959
Northern filed Applications to Render Economy Replacement Service for the
heating seasons following each filing. These applications were given Docket
Nos. G -13, 358, G- 16,447 and G -19, 095, respectively. In each docket the
Commission granted Northern temporary authorization to render the service
subject to the final determination of the contract demand rates in Docket Nos.
G- 12,153 and G -15, 335, as more particularly set forth in Commission letters
addressed to Northern in each docket dated December 13, 1957, November 13,
1958 and October 16, 1959, respectively.
On December 30, 1960 Permian and Northern were merged, with
Northern being the surviving corporation. The Commission's order
granting authorization for merger was issued on December 29, 1960.
-5-
PROCEEDINGS
Hearing on the consolidated Docket Nos. G-12,153, G-15, 335
and G -15, 336 commenced on October 25, 1960, and with necessary recesses
was concluded on March 3, 1961. After the filing of briefs and reply briefs
by interested parties and the Commission Staff, the Examiner entered his
decision on February 14, 1962. Exceptions to the Examiner's decision were
filed by Northern, several intervenors and the Commission Staff. Oral argu-
ment before the Commission was held on April 26, 1962. On July 2, 1962
the Commission issued its Order Remanding Proceedings for Further Evidence
and Directing Northern Natural Gas Company to Submit Certain Evidence,
which order remanded the proceedings to the Examiner for the limited purpose
of receiving evidence of the costs of Northern Natural Gas Producing Company,
a subsidiary of Northern, and the economic justification for the contract rates
for gas purchased by Northern from Northern Natural Gas Producing Company.
Under date of February 5, 1963 the Secretary of the Commission issued Notice
of Date of Hearirig prescribing March 25, 1963 as the date for commencement
of hearing under the July 2, 1962 order of the Commission.
On February 20, 1963 Northern filed its Motion to Vacate Orders
of February 5, 1963 and July 2, 1962 and Terminate These Remanded Proceed-
ings, and on April 2, 1963, in its Opinion No. 385, the Commission issued
its Memorandum Opinion and Order Denying Motion to Vacate. Under date
of April 29, 1963 Northern tendered for filing its Application for Rehearing,
Reconsideration and Revocation of Order Denying Motion to Vacate. By
letter dated May 21, 1963 the Secretary rejected such application on the
ground that the order issued on April 4, 1963 was not a final order within
the contemplation of Section 1.34 of the Commission's Rules of Practice
and Procedure.
After prehearing conference and further necessary postpone-
ments of hearing, hearing on the proceedings remanded to the Examiner
under the Commission's July 2, 1962 order commenced on May 7, 1963 and,
with necessary recesses, was concluded on May 21, 1963. Briefs covering
the issues in such remanded proceedings were filed by Northern, the Com-
mission Staff and by intervenor Minneapolis Gas Company, and a reply brief
was filed by Northern.
On September 24, 1963 and October 24 and 25, 1963 confer-
ences were held with representatives of the Commission Staff, Northern and
Northern's utility customers for the purpose of attempting to arrive at a settle-
ment in the proceedings in these dockets. As a result of such conferences
all parties have agreed, subject to the Commission's approval, to the settle-
ment and compromise of the above - captioned proceedings and all issues
involved' therein upon the terms, conditions and provisions hereinafter speci-
fied, and the parties have further agreed that the following proposal be sub-
mitted to the Commission, to -wit:
-7-
PROPOSED SETTLEMENT
SECTION I
COST OF SERVICE
For the purpose of this settlement, it is agreed as follows:
a. Northern's jurisdictional cost of service for
the period involved in Docket No. G-12,153 is
$122,623,571.
b. Northern's jurisdictional cost of service for the
period involved in Docket Nos. G -15, 335 and G-
15,336 is $124,440,172.
C. The development of refunds to jurisdictional cus-
tomers and adjustment of filed rates for the two
periods involved in Docket Nos. G-12,153 and G-
15, 335 are as shown on Appendix A attached hereto.
1
SECTION II
REFUNDS FOR THE 15 MONTH PERIOD
ENDED NOVEMBER 27, 1958
UNDER DOCKET NO. G-12,153
For the purposes of this settlement, it is agreed that Northern' s
effective jurisdictional rates for the 15 month period ended November 27, 1958
will be reduced by 18.73¢ per Mcf on the demand charges, resulting in a reduc-
tion in jurisdictional revenues of $3, 033, 895 for such 15 month period. Such
reduced rates shall be applied to the actual billing demand units for the 15
month period in the amount of 16, 198, 049 Mcf, as shown on Sheet 1 of Appen-
dix B attached hereto. Northern, within 20 days from November 30, 19 6 3 , or
within 20 days from the date of the Commission order approving this settle-
ment, whichever is later, agrees to refund for the 15 month period ended
November 27, 1958 a total of $3, 033, 895, together with interest computed
thereon at the rate of 6% per annum in accordance with the provisions of Sec-
tion IV, paragraph A, infra, in the amounts and to the jurisdictional customers
as shown on Sheet 1 of Appendix B attached hereto.
SECTION III
REFUNDS FOR THE 13 MONTH PERIOD
ENDED DECEMBER 27, 1959
UNDER DOCKET NOS. G-15,335 AND G-15,336
For the purposes of this settlement, it is agreed that Northern' s
effective jurisdictional rates for the 13 month period ended December 27, 1959
will be reduced by 35. 3p4 per Mcf on the demand charges, resulting in a reduc-
ME
tion in jurisdictional revenues of $5, 054, 826 for such 13 month period.
Such reduced rates shall be applied to the actual billing demand units for
the 13 month period in the amount of 14, 319, 619 Mcf, as shown on Sheet 2
of Appendix B attached hereto. Northern, within 20 days from November 30,
1963, or within 20 days from the date of the Commission order approving this
settlement, whichever is later, agrees to refund for the 13 month period ended
December 27, 1959 a total of $5, 054, 826, together with interest computed
thereon at the rate of 6% per annum in accordance with the provisions of
Section IV, paragraph A, infra, in the amounts and to the jurisdictional cus-
tomers, as shown on Sheet 2, Appendix B attached hereto.
SECTION IV
OTHER CONDITIONS AND PROVISIONS
A. Computation of Interest on Refunds Under
Sections II and III
The interest to be paid by Northern on refunds to jurisdictional
customers under the provisions of Sections II and III, supra, is shown on
Appendix B attached hereto and was computed at the rate of 6% per annum
upon the following assumptions:
(1) That the principal amount shown for each
customer, on Appendix B attached hereto,
has been paid in equal monthly amounts for
the number of months involved in each of
the periods involved;
-10-
s
(2) That such assumed monthly amount was paid
to Northern on the 20th day of the following
calendar month;
(3) That interest shall commence to run on each
S
such assumed monthly payment from the 20th
day of such calendar month in which the pay-
ment is assumed to have been received; and,
(4) That Northern shall make such refunds within
20 days from November 30, 1963; or 20 days
from the date of issuance of the Commission's
order approving the settlement, whichever is
later.
B. Cost of Purchased Gas
It is agreed that the cost of gas purchased by Northern during the
28 month period ended December 31, 1959 includes payments by Northern and
Permian to producers at rates which were being collected, subject to refund,
and which have not been disposed of and are currently the subject matter of
proceedings under Section 4 of the Natural Gas Act as listed in Appendix C
attached hereto. If, as a result of Commission decisions in such proceedings
(including final judicial review), Northern receives refunds and interest
thereon from such producers applicable to Northern's cost of gas purchased
-11-
during the 28 month period, Northern will pass on to its jurisdictional cus-
tomers 82.15% of such refunds and interest, after Northern's entitlement there-
to has been finally established. Northern shall not be required to pay interest
on refunds received from producers. The percentage of 82.15% represents the
proportion of jurisdictional sales during the 28 month period of 715, 299, 344
Mcf to the total system sales, excluding field and drilling and pumping sales,
of 870, 769, 524 Mcf. The prorata share of individual jurisdictional customers
of the portion of such future refunds attributable to jurisdictional sales shall
be based on the ratio that the actual billing demand units of each such cus-
tomer during the 28 month period bears to the total jurisdictional billing demand
units of 30,517, 668 Mcf, as particularly shown on Appendix B' attached hereto.
Northern agrees to make refunds under this Section IV B whenever Northern is
required to make refunds of amounts received from producers under Section IV A
of the Statement of Proposed Settlement Agreement entered into between Northern
and its customers in Docket Nos. G-19,040, et al. , a copy of which Statement
of Proposed Settlement is attached to the Commission's Order Approving Rate
Settlement Agreement Prescribing Refunds, and Terminating Proceedings in
Part, dated December 21, 1961, in Docket Nos. G- 19,040, et al.; but in any
event Northern agrees to make refunds under this Section IV B at least once
in each calendar year provided that the amounts received by Northern from
producers applicable to the 28 month period ended December 31, 1959 during
any such year is at least $25,000. Northern shall also make an annual report
—12-
to the Commission of the accumulated refunds which have not been distrib-
uted under this Section IV B.
C. Termination of Pending Proceedings
In view of the settlement reached herein respecting Northern's
rates, it is further agreed that this settlement will dispose of all matters
involved and issues presented in all of the proceedings listed in the initial
caption and that as a condition of this settlement the Commission will termi-
nate all of such proceedings.
With respect to the Docket Nos. G- 13,358, G- 16,447 and G-
19, 095 involving ERS service, it is further agreed that this settlement will
discharge and dispose of any remaining refund obligation in those dockets
for the 28 month period here involved.
MISCELLANEOUS PROVISIONS AND CONDITIONS
A. Acceptance by the Commission
The agreement reached by the parties and set forth in this State-
ment of Proposed Settlement is expressly conditioned on the Commission's
acceptance of all of the terms of this proposed settlement.
B. Reservations
By making this agreement, neither the Commission Staff, Northern,
any other party hereto, nor any affected person is to be considered as agreeing
with the cost of service determinations or allocations, or with any principles
underlying or supposed to underlie such cost of service determinations, allo-
-13-
zt .,
cations or refunds herein agreed upon, and neither the Commission Staff,
Northern, any other party hereto, nor any affected person is to be prejudiced
or bound thereby in any future proceeding or proceedings.
Nothing contained herein shall be construed as limiting Northern's
right to file new or amended rate schedules at any time, nor is it to be con-
sidered that by making this agreement Northern, any other party, or any af-
fected person has waived any legal right or right of action which it might have
with respect to matters other than those herein specifically agreed upon.
Of Counsel
F. Vinson Roach
Jack C. Osborne
Peter M. Andersen
2223 Dodge Street
Omaha 2, Nebraska
Richard J. Connor
Walter E. Gallagher
821 Fifteenth Street
Washington 5, D. C.
Attorneys for
Northern Natural Gas Company
Dated: November 1, 1963
Respectfully submitted,
NORTHERN NATURAL GAS COMPANY
By L
Jack C. Osborne
-14-
NORTHERN NATURAL GAS COMPANY
APPENDIX A
Development of Refunds to Jurisdictional Customers and
Adjustment of Filed Rates to Reflect Settlement Agreement
Docket Nos. G- 12,153, G- 15,335 and G- 15,336
G- 15,335
G- 12,153 G- 15,336
Line, 15 Months 13 Months
No. Particulars Ended 11 -30 -58 Ended 12 -31 -59 Total
(a) (b) (c) (d)
1 Derivation of Reduction in
Jurisdictional Demand Charge
2 Jurisdictional
Cost of
Service
$ 122
623
571
$ 124
440
172 $
3 Jurisdictional
Revenues
Collected
125
657
097
129
490
859
4 Jurisdictional Revenues in Excess of
iJurisdictional Costs (L.3 - L.2) $ 3 033 526 $ 5 050 687 $8 084 213
5 Jurisdictional Billing Demand Units -
MCF at 14.73# 16 198 049 14 319 619
6 Reduction in Demand Charge (L.4 - L.5) 18.73. 35.3C
7 Refunds to Jurisdictional Customers (L.5 x L.6) $ 3 033 895 $ 5 054 826 $8 088 721
8 Rates Filed and as Revised
to Reflect Settlement Agreement
9 G- 12,153 - 15 Months Ended 11 -30 -58
10 Demand Rate
11 CD -1
12 CD -2
13 CD -3
14 Commodity Rate
15 CD -1
16 CD -2
17 CD -3
18 G- 15,335 & G- 15,336 - 13 Months Ended 12 -31 -59
19 Demand Rate
20 CD -1
21 CD -2
22 CD -3
23 PL -3
24 Commodity Rate
25
CD -1
26
CD -2
27
CD -3
28
PL -3
Settlement
Rates As Agreement
Filed Adiustment Rates
$ 2.245 $
.1873 $ 2.0577
2.555
.1873 2.3677
2.875
.1873 2.6877
.219
.219
.224
.224
.229
.229
2.87
.353
2.517
3.18
.353
2.827
3.50
.353
3.147
3.50
.353
3.147
.219
.219
.224
.224
.229
.229
.229
.229
Docket No. G- 12,153 NORTHERN NATURAL GAS COMPANY Appendix B
Sheet 1 of 2
Statement of Refunds and Interest at 6% Per Annum
To Jurisdictional Customers
Fifteen Months Ended November 30, 1958
Billing
Refunds
Line
Demand
Principal
No.
Customer
Units
Amount
Interest
Total
(a)
(b)
(c)
(d)
(e)
1
Austin Utilities 1/•
198
900
$ 37
253.97
$ 12
358.52
$ 49
612.49
2
Cedar Falls Iowa, City of
58
700
10
994.51
3
647.28
14
641.79
3
Central Natural Gas Company
176
685
33
093.10
10
978.20
44
071.30
4
Coon Rapids Iowa, Town of
10
575
1
980.70
657.07
2
637.77
5
Council Bluffs Gas Division
328
800
61
584.24
20
429.77
82
014.01
6
Elkhorn Valley Gas Company
16
075
3
010.85
998.81
4
009.66
7
Greeley Gas Company 2/
107
400
20
116.02
6
673.23
26
789.25
8
Guthrie Center Iowa, City of
16
300
3
052.99
1
012.79
4
065.78
9
Harlan Iowa, City of
27
150
5
085.20
1
686.95
6
772.15
10
Hawarden Iowa, City of
22
500
4
214.25
1
398.02
5
612.27
11
Interstate Power Company
435
900
81
644.07
27
084.36
108
728.43
12
Iowa Electric Light and Power Co.
984
575
184
410.90
61
175.92
245
586.82
13
Iowa Illinois Gas and Electric Co.
346
600
64
918.18
21
535.76
86
453.94
14
Iowa Power and Light Company
1 495
760
280
155.85
92
938.06
373
093.91
15
Iowa Public Service Company
1 440
248
269
758.45
89
488.86
359
247.31
16
Iowa Southern Utilities Company
36
190
6
778.39
2
248.64
9
027.03
17
The Kansas Power and Light Company
88
200
16
519.86
5
480.25
22
000.11
18
Minneapolis Gas Company
3 919
000
734
028.70
243
504.47
977
533.17
19
Minnesota Valley Natural Gas Company
613
078
114
829.51
38
093.20
152
922.71
20
The Nebraska Natural Gas Company
148
850
27
879.60
9
248.69
37
128.29
21
New Ulm Minnesota, Public Utilities
Commission of
75
000
14
047.50
4
660.08
18
707.58*
22
North Central Public Service Company
90
096
16
874.98
5
598.05
22
473.03
23
Northern States Power Co.- Minnesota
1 904
200
356
656.66
118
316.21
474
972.87
24
Northern States Power Co. of Wisc.
41
800
7
829.14
2
597.22
10
426.36
25
Northwestern Public Service Company
176
850
33
124.01
10
988.46
44
112.47
26
Omaha- Metropolitan Utilities
District
1 587
000
297
245.10
98
607.19
395
852.29
27
Owatonna Minn., Municipal Public
Utilities of
115
500
21
633.15
7
176.52
28
809.67
28
Pender Nebraska, Village of
12
750
2
388.07
792.21
3
180.28
29
Ponca Nebraska, City of
7
875
1
474.99
489.31
1
964.30
30
Remsen Iowa, Town of
8
625
1
615.46
535.91
2
151.37
31
Sanborn Iowa, Town of
9
450
1
769.98
587.17
2
357.15
32
Sioux Center Iowa, Town of
9
000
1
685.70
559.21
2
244.91
33
Watertown S.D., Municipal
Utilities of
33
015
6
183.71
2
051.36
8
235.07
34
Western Power & Gas Co. 3/
1 655
402
310
056.79
102
857.31
412
914.10
35
Totals 16 198
049
$ 3 033
894.58
$1 006 455.06
$4 040 349.64
1/ formerly Austin Minnesota, Board
of Water,
Electric,
Gas &
Power Commissioners
2/ successor to Minnesota Natural Gas
Company
3/ successor to Central Electric and
Gas Company
Docket No. G- 15,335 NORTHERN NATURAL GAS COMPANY Appendix B
and G- 15,336 Sheer 2 of 2
Line
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
29
30
31
32
33
34
35
Statement of Refunds and Interest at 6% Per Annum
To Jurisdictional Customers
Thirteen Months Ended December 31, 1959
Billing Refunds
Demand Principal
Customers Units Amount Interest Total
(a) (b) (c) (d) (e)
Austin Utilities l/
Cedar Falls Iowa, City of
Central Natural Gas Company
Coon Rapids Iowa, Town of
Council Bluffs Gas Division
Elkhorn Valley Gas Company
Greeley Gas Co. 2/
Guthrie Center Iowa, City of
Harlan Iowa, City of
Hawarden Iowa, City of
Interstate Power Company
Iowa Electric Light and Power Co.
Iowa Illinois Gas and Electric Co.
Iowa Power and Light Company
Iowa Public Service Company
Iowa Southern Utilities Company
The Kansas Power and Light Company
Minneapolis Gas Company
Minnesota Valley Natural Gas Co.
The Nebraska Natural Gas Company
New Ulm Minnesota, Public Utilities
Commission of
North Central Public Service Company
Northern Illinois Gas Company
Northern States Power Co.- Minnesota
Northern States Power Co. of Wisc.
Northwestern Public Service Company
Omaha- Metropolitan Utilities
District
Owatonna Minn., Municipal Public
Utilities of
Pender Nebr., Village of
Ponca Nebraska, City of
Remsen Iowa, Town of
Sanborn Iowa, Town of
Sioux Center Iowa, Town of
Watertown S.D., Municipal
Utilities of
Western Power & Gas Co. 3/
173
700
$ 61
316.10
$ 16
048.67
$ 77
364.77
55
500
19
591.50
5
127.81
24
719.31
153
849
54
308.70
14
214.57
68
523.27
9
315
3
288.20
860.64
4
148.84
288
000
101
664.00
26
609.19
128
273.19
13
975
4
933.18
1
291.19
6
224.37
94
700
33
429.10
8
749.62
42
178.72
14
400
5
083.20
1
330.46
6
413.66
23
530
8
306.09
2
174.01
10
480.10
19
500
6
883.50
1
801.66
8
685.16
378
800
133
716.40
34
998.47
168
714.87
861
475
304
100.68
79
594.27
383
694.95
301
600
106
464.80
27
865.73
134
330.53
1 333
000
470
549.00
123
159.88
593
708.88
1 272
308
449
124.72
117
552.36
566
677.08
32
330
11
412.49
2
987.07
14
399.56
74
660
26
354.98
6
898.06
33
253.04
3 447
000
1 216
791.00
318
478.70
1 535
269.70
534
000
188
502.00
49
337.87
237
839.87
130
350
46
013.55
12
043.43
58
056.98
66
000
23
298.00
6
097.94
29
395.94
68
896
24
320.29
6
365.51
30
685.80
100
000
35
300.00
9
239.30
44
539.30
1 671
800
590
145.40
154
462.63
744
608.03
37
000
13
061.00
3
418.54
16
479.54
157
210
55
495.13
14
525.10
70
020.23
1 401
000
494
553.00
129
442.61
623
995.61
100
700
35
547.10
9
303.98
44
851.08
11
050
3
900.65
1
020.94
4
921.59
6
825
2
409.22
630.58
3
039.80
7
475
2
638.68
690.64
3
329.32
8
240
2
908.72
761.32
3
670.04
7
800
2
753.40
720.67
3
474.07
28
613
10
100.38
2
643.64
12
744.02
1 435
018
506
561.35
132
585.63
639
146.98
36 Totals 14 319 619 $5 054 825.51 $1 323 032.69 $6 377 858.20
1/ formerly Austin Minnesota, Board of Water, Electric, Gas & Power Commissioners
2/ successor to Minnesota Natural Gas Company
3/ successor to Central Electric and Gas Company
T .
Docket No. G- 12,153
Docket No. G- 15,335
Docket No. G- 15,336
NORTHERN NATURAL GAS COMPANY
Proceedings Involving Payments to
Producers For Gas Purchased by
Northern at Rates Being Collected Subject to Refund
Twenty -Eight Months Ended December 31, 1959
Appendix C
F.P.C.
Line
Docket
No;
Number
Producers
(a)
(b)
1
G- 11,641
Phillips Petroleum Company (Dumas)
2
G- 11,849
Phillips Petroleum Company
3
G- 13,735
Texaco, Inc.
4
G- 14,009
Phillips Petroleum Company
5
G- 14,077
Shamrock Oil and Gas Company
6
G- 14,859
Edwin L. Cox & Skelly Oil Company
7
G- 14,931
Sunray Mid - Continent Oil Company
8
G- 15,088
Phillips Petroleum Company
9
G- 15,451
Republic Natural Gas Company
10
G- 15,538
Texaco, Inc.
11
G- 16,178
Phillips Petroleum Company (Grayco)
12
G- 16,520
George S. Hammonds
13
G- 16,521
Scott Hammonds, et. al.
14
G- 16,715
Amerada Petroleum Corp.
15
G- 16,803
Atlantic Refining Company
16
G- 16,896
Republic Natural Gas Company
17
G- 16,956
Sinclair Oil and Gas Company
18
G- 16,959
Gulf Oil Corporation
19
G- 16,959
Skelly Oil Corporation
20
G- 16,960
Gulf Oil Corporation
21
G- 17,059
Honolulu Oil Corporation, et. al.
22
G- 17,071
Phillips Petroleum Company
23
G- 17,295
Phillips Petroleum Company (Dumas)
24
G- 18,671
Dorchester Corporation
�UREAil -OF WATER �' T Y O S
LEONARD N. THOMPSON. �/
aIMMAL 14ANAGZR CdRital -of
AV ' �,. DEPART NTOF__
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of
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innesota 3 T1il
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_. •_�,,,,,,,�,,,.,�, A ;,,,,,�.. sDe mm as oner of Pabltc'UHlltiee � _� r .
November 14, 1963 j Jd/
To the Council:
Re: Statement of Proposed settlement in
Northern Natural Gas Company,
Docket Nos. G- 12,153, G- 1393583
G- 1533355 G- 16,447 and G- 19,0953
Permian Basin Pipeline Company,
Docket No. G- 15,336, before
Federgl Power Commission
Reference hereby is made to the attached counter-
part of said Statement of Proposed Settlement. The same
is directed to the accomplishment of a just and equitable
final disposition o.f the above - mentioned pending litiga-
tion before said Commission and the controversies thereby
involved concerning the Sixth and Seventh Rate Schedules of
said Northern Natural Gas Company and wherein th.e City of
Saint Paul has appeared and has been represented at per-
tinent hearings before said Commission by its Corporation
Counsel and its undersigned Commissioner of Public Utilities.
The status of the City of Saint Paul therein has been that
of an Intervener- Contestant, in the interests of its resi-
dent consumers, and its efforts therein have been directed
to the prevention of undue elevation in natural gas rates
of said Northern Natural Gas Company.
The said Sixth and Seventh Rate Schedules were
permitted, by order of said Commission, in each instance,
to become operative subject to refunds to be made by said
Northern Natural Gas Company corresponding to disallowances
of increases thereby represented, as determined by said
Commission. The said Sixth Rate Schedule was superseded
by said Seventh Rate Schedule and said Seventh Rate Schedule
was superseded by the Eighth Rate Schedule, of said Northern
Natural Gas Company. The last mentioned rate schedule, and
the cont6sted case which involved the same have been the
u
s
To the Council - 2 - November 14, 1963
subject of prior final disposition. The said pending Sixth
and Seventh Hate Schedules embrace several controversies
pertaining to fact and law and, unless now made the subject
of disposition, by settlement will necessitate for their
final determination extensive and expensive future litiga-
tion.
Conferences were held between representatives of
said Commission's staff, Northern Natural Gas Company and
public utility customers of said company, on September 24,
1963 and October 24 and 25, 19639 in an effort to provide
for the proper settlement of the pending contested Sixth
and Seventh Rate Schedule proceedings, before said Commission.
The said Statement of Proposed Settlement resulted from said
conferences and all parties to the same have agreed, subject
to said Commission's approval, to the settlement of said mat-
ters and all issues thereby involved upon the terms, condi-
tions and provisions specified in said Statement of Proposed
Settlement.
The disposition of the controversies involved_by
said pending contested rate schedule cases, pursuant to the
said Statement of Proposed Settlement would result in re-
funds, by Northern Natural Gas Company, to its Utility
Customers, including, among others, Northern States Power
Company, in the a gregate amount of 410,418,207.84, of which
aggregate amount 91,219,580.90 would become allocable to
Northern States Power Company as follows: $1,103,216.08
distributable in respect of its Saint Paul Division and
$116,364.82 in respect of its Faribault Division. The said
amount of $191039216.08 would become distributable on ac-
count of said Saint Paul Division and to the Saint Paul
customers of said company subject to the deduction there-
from as the same may be determined of the amount of an un-
determined claim thereon by said company, in the nature of
a rate adjustment in the amount of $231,172.09.
This latter distribution matter is not involved
by said Statement of Proposed Settlement and will become a
matter for secondary consideration. The Federal Power
Commission has advised, by its attached letter dated
September 6, 1963, that said Statement of Proposed Settle-
ment was filed with said Commission on November 4, 1963, and
that any comments thereon which the City of Saint Paul may
desire to make must be submitted to said Commission not
later than November 18, 1963. The undersigned consistently
i. ' ti •
To the Council
- 3 - November 14, 1963
with the advice and recommendation thereon, by the Corpora-
tion Counsel, does hereby recommend the disposition of the
subject controversies according to the provisions, terms
and conditions of said Statement of Proposed Settlement
and it is his opinion, in common with that of the Corpora-
tion Counsel, that such disposition would represent that
which is just and equitable to all concerned and in the pub-
lic interest. The undersigned respectfully requests that
your Honorable Body approve said Statement of Proposed
Settlement and such disposition of said controversies there-
under and provide for notice of such approval to said Com-
mission.
The uuD9rs
f ore its
ctor or ijaw
Respectfully submitted,
ZzAxl'._� 4E2Z4:y�
Bernard T. Holland
Commissioner of Public Utilities
'curs in the
d recommendation
ADDRESS ALL COMMUNICATIONS
TO THE SECRETARY
FEDERAL POWER COMMISSION
. WASHINGTON u.c. 20426
Northern Natural Gas Company, November 6, 1963
Docket Nos. G- 12,153, G-13,3582
G- 15,3351 G- 16,447 and G- 19,095;
Permian Basin Pipeline Company,
Docket No. G- 15,336
To the Party Addressed:
On November 4, 1963, Northern Natural'Gas Company.filed'a
"Statement of Proposed Settlement" of.the'issues in the above—
captioned dockets-for approval by-the Commi6sion._'Northern states
that it has served copies of this' "statement upon all interested
parties to these proceedings..,
Any comments you may desire to make.to this settlement
proposal should be submitted to,the Commission on or.before,*,
November 18,, 1963.
A copy of this - letter is being: sent to' all parties 'and Northern's
customers for the period of time covered by -these proceedings.
- Very truly yours
Jose ph,H. Gutride-
S e cretary. '
i
V NORTHERN NATURAL GAS COMPANY
2223 DODGE STREET
OMAHA 2. NEBRASKA
October 28, 19 6 3
Abraham R. Spalter, Esquire
William L. Johncox, Esquire
Lloyd J. Marti, Esquire
George C. Pardee, Esquire
John F. Gaston, Esquire
L. L. Oman, Esquire "'f
John W. Fieer, Esquire
William Merrill, Esquire
Gentlemen:
Re: Northern Natural Gas Company,
Docket Nos. G- 12,153, et al.
I am sending each of you a copy of a draft of "Statement Of
Proposed Settlement" which I believe conforms to the agreements reached
during the conferences of October 24 and 25, 1963. You will note that
the draft includes completed appendices.
Since we will try to mail the "Statement Of Proposed Settle-
ment" -o the Commission on Friday, would you please advise us of your
comments by telephone, collect, on Wednesday or Thursday of this week.
Please address any comments concerning the form of the draft
to me and any comments concerning the appendices to Mr. Frank C. Rivers.
Very truly yours,
0_C4 C.
General Attorney
Jack C. Osborne
tvd
Att.
UNITED STATES OF AMERICA
Before The
FEDERAL POWER COMMISSION
In the Matters of '
Northern Natural' Gas Company )
Docket No.
G-12,153
Northern Natural Gas Company
Docket No.
G- 13,'358
Northern Natural Gas Company )
Docket No.
G -15, 335
Permian Basin Pipeline Company )
Docket No.
'G -15, 336
(Now merged into Northern) )
Northern Natural Gas Company )
Docket No.
G- 16,447
Northern Natural Gas Company )
Docket No.
G-19,095
STATEMENT OF PROPOSED SETTLEMENT
Docket No. G-12,153
On February 5, 1957 Northern Natural Gas Company (Northern)
filed Second Revised Sheets Nos. 4, 5, 6, 9, 10, 11, 14, 15 and 16 to its
FPC Gas Tariff, First Revised Volume No. 1. These revised tariff sheets
proposed to become effective March 7, 1957 reflected an annual increase in
revenues under Northern' s zoned contract demand service rate schedules of
approximately $&,500,000 over the then effective rates. By order issued
March 6, 1957, in Docket No. G-12,153, the Commission suspended such
revised tariff sheets until August 8, 1957. The rates contained ;.n such
revised tariff sheets were as follows:
9
Zone Demand Charge
1 $2.245
2 $2.555
3 $2.875
Commodity Charge
21.9
22.4¢
22.9/
These rates became effective August 27, 1957 pursuant to Northern's Motion
to Effectuate Suspended Rates filed August 26, 1957, and the revenues pro-
duced by such increased rates ware collected subject to possible refund pur-
' suant to the Commission's order issued September 6, 1957. The rates in
Docket No. G-12,153 were superseded on November 27, 1958 by rates per-
mitted to become effective in Docket No. G -15, 335.
By order issued May 21, 1958,in Docket No. G-12,153, the Com-
mission permitted First Revised Sheet No. 34 and First Revised Sheet No. 54,
pertaining to Rate Schedule E -1 of Northern's FPC Gas Tariff First Revised
Volume No. 1, to•take effect May 22, 1958. These-two revised tariff sheets
pertained to service to Public Service Corporation of Texas, and such order of
May 21, 1958 provided that the Docket No. G-12,153 proceedings "shall also
cover and include the rate provided for in First Revised.Sheet No. 34 * * *."
Docket No. G-15,335
On May 26,, 1958 Northern filed Third Revised Sheets Nos. 4, 5,
6, 9, 10, 11, 14, 15 and 16 to its FPC Gas Tariff First Revised Volume No. 1.
These revised tariff sheets, proposed to become effective June 27, 1958, re-
flected an annual increase in revenues under Northern's zoned contract demand
-2-
service rate schedules of approximately $8, 100, 000 over the rates then in
effect, subject to refund, in Docket No. G-12,153. By order issued June 25,
1958, in Docket No. 'G-15,335, the Commission suspended such third revised
tariff sheets until November 27, 1958. The rates contained in such third
revised tariff sheets were as follows:
Zone Demand Charge Commoditv Charge
1 , $2.87
21.9,1
2 $3.18
22.4jZ
3 $3.50
22.9
These rates in Docket No. G -15, 335 became effective November 27, 1958,
superseding the rates in Docket No. G -12, 153 pursuant to Northern's Motion
to Effectuate Suspended Rates. dated November 24, 1958, and the revenues
produced by such increased rates were collected, subject to possible refund,
pursuant to the Commission's order issued February 16, 1959. The rates in
Docket No. G -15, 335 were superseded on December 27, 1959 by rates per-
mitted to become effective in Docket No. G -19, 040. The rate increase pro-
ceedings in Docket No. G-19,040 were settled and compromised by the parties
and terminated by the Commission pursuant to Order Approving Rate Settlement
Agreement Prescribing Refunds, and Terminating Proceedings in Part, issued
December 21, 1961.
By order issued November 10, 1959 and supplemental order issued
December 22, 1959', both in Docket No. G -15, 335, the Commission allowed
-3-
to take effect Original Sheets Nos. 18 -m, 18 -n, 18 -0, 33 -k, 33 -1 and 52 -a,
52 -b, 52 -c and 52 -d to Northern's FPC Gas Tariff, First Revised Volume No. 1
comprising Rate Schedui -es PL -3 and PO -3, and an executed Service Agreement
initiating service to Northern Illinois Gas Company and such tariff sheets were
made subject to the same changes in rate level and the same refunds finally
ordered by the Commission in Docket No. G -15, 335 for Northern's Rate Sched-
ule CD -3.
Docket No. G-15,336
On May 26, 1958 Permian Basin Pipeline Company (Permian) filed
Second Revised Sheet No. 5 and First Revised Sheet No. 6 to Permian' s FPC
Gas Tariff, Original Volume No. 1. These revised tariff sheets, proposed to
become effective July 1, 1958, reflected an increase in the rate of return for
Permian under its pipeline cost of service rate schedule from 6% as then
effective to 6 -1/2 %. By order issued June 25, 1958, in Docket No. G- 15,336,
the Commis.sion suspended such revised tariff sheets until December 1, 1958.
These revised tariff sheets became effective December 1, 1958, pursuant to
Permian's motion dated November 24, 1958, and the revenues produced there-
by were collected, subject to possible refund, pursuant to the Commission'-s
order of February 16, 1959 in Docket No. G -15, 336. The rates effective in
Docket No. G- 15,336 were superseded on January 1, 1960 by rates permitted
to become effective in Docket No. G -19, 041, and subsequently the rate in-
MAC
crease proceeding in Docket No. G -19, 041 wa.s settled and compromised by
the parties and terminated by the Commission pursuant to order of the Com-
mission darted December 21, 1961 referred to above.
Pursuant to Notice of Consolidation of Proceedings and Date of
Hearing, dated September 2, 1960, the above - described proceedings in
P
Docket Nos. G -12, 153, G -15, 335 and G- 15,336 were consolidated for hear-
ing.
Docket Nos. G -13, 358, G- 16,447 and G -19, 095
On October 4, 1957, September 26, 1958 and July 29, 1959
Northern filed Applications to Render Economy Replacement Service for the
heating seasons following•each filing. These applications were given Docket
Nos. G -13, 358, G- 16,447 and G -19, 095, respectively. In each docket the
Commission granted Northern temporary authorization to render the service
subject to the final determination of the contract demand rates in Docket Nos.
G-12,153 and G -15, 335, as more particularly set forth in Commission letters
addressed to Northern in each docket dated December 13, 1957, November 13,
1958 and October 16, 1959, respectively.
On December 30, 1960 Permian and Northern were merged, with
Northern being the surviving corporation. The Commission's order
granting authorization for merger was issued on December 29, 1960.
-5-
PROCEEDINGS
Hearing on the consolidated Docket Nos. G-12,153, G -15, 335
and G -15, 336 commenced on October 25, 1960, and with necessary recesses
was concluded on March 3, 1961. After the filing of briefs and reply briefs
by interested parties and the Commission Staff, the Examiner entered his
decision on February 14, 1962. Exceptions to the Examiner's decision were
filed by Northern, several intervenors and the Commission Staff. Oral argu-
ment before the Commission was held on April 26, 1962. On July 2, 1962
the Commission issued its Order Remanding Proceedings for Further Evidence
and Directing Northern Natural Gas Company to Submit Certain Evidence,
which order remanded the proceedings to the Examiner for the limited purpose
o
of receiving evidence of the costs of Northern Natural Gas Producing Company,
a subsidiary of Northern, and the economic justification for the contract rates
for gas purchased by Northern from Northern Natural Gas Producing Company.
'Under date of February 5, 1963 the Secretary of the Commission issued Notice
of Date of Hearing prescribing March 25, 1963 as the date for commencement
of hearing under the July 2, 1962 order of the Commission.
On February 18, 1963 Northern filed its Motion to Vacate Orders
of February 5, 1963 and July 2, 1962 and Terminate These Remanded Proceed-
ings, and on April 2,. 1963, in its Opinion No. 385, the Commission issued
its Memorandum Opinion and Order Denying Motion to Vacate. Under date
of April 29, 1963 Northern tendered for filing its Application for Rehearing,
We
Reconsideration and Revocation of Order Denying Motion to Vacate. By
letter dated May 21, 1963 the Secretary rejected such application on the
ground that the order issued on April 4, 1963 was not a final order within
the contemplation of Section 1.34 of the Commission's Rules of Practice
and Procedure.
After prehearing conference and further necessary postpone-
ments of hearing, hearing on the proceedings remanded to the Examiner under
the Commission's July 2, 1962 order commenced on May 7, 1963 and, with
necessary recesses, was concluded on May 21, 1963. Briefs covering the
issues in such remanded proceedings were filed by Northern, the Commission
Staff and by intervenor Minneapolis Gas Company, and a reply brief was
filed by Northern.
On September 24, 1963 and October 24 and 25, 1963 conferences
were held with representatives of the Commission Staff, Northern and North-
ern' s utility customers for the purpose of attempting to arrive at a settlement
in the proceedings in these dockets. As a -result of such conferences all
parties have agreed, subject to the Commission's approval, to the settlement
and compromise of the above - captioned proceedings and all issues involved
r
therein' pon the teams, conditions and provisions herein -
after specified, and the parties have further agreed that the following pro-
posal be submitted to the Commission, to -wit:
r
-7-
SECTION I
COST OF SERVICE'
For the purposes of this settlement, it is agreed as follows:
a. 'Northern' s total cost of service consisting of the
cost of service of Peoples Natural Gas Division and
Pipeline Division for the two periods involved in
Docket Nos. G -12, 1S3 and G -1S, 335 is shown on
Sheet 1 of Appendix A attached hereto.
b. Permian' s cost of service for the two periods involved
hn Docket Nos. G-12,153 and G-15,336 is shown on
Sheet 2 of Appendix A attached hereto.
C. Northern' s pipeline cost of service allocated as between
jurisdictional and nonjurisdictional sales and a com-
parison of jurisdictional cost with revenues collected
during the two periods involved in Docket Nos. G-12,153
and G -15, 335 are shown on Appendix B attached hereto.
d. The jurisdictional rates for the two periods involved in
Docket Nos. G-12,153 and G -15, 335,as developed from
Appendices A and B and agreed upon by the parties for
purposes of this settlement, are shown on Appendix C
attached hereto.
SECTION II
REFUNDS FOR THE 15 MONTH PERIOD
ENDED NOVEMBER 27, 1958
UNDER DOCKET NO. G-12,153
For the purposes of this settlement, it is agreed that Northern's
effective jurisdictional rates for the 15 month period ended November 27, 1958
will be reduced by 18.73 per Mcf on the demand charges, resulting in a reduc-
tion in jurisdictional revenues of $3, 033, 895 for such 15 month period. Such
reduced rates shall be applied to the actual billing demand units for the 15
month period in the amount of 16,198, 049 Mcf, as shown on Sheet 1 of Appen-
dix D attached hereto. Northern, within 20 days from November 30, 1963, or
within 20 days from the date of the Commission order approving this settle-
ment, whichever is later, agrees to refund for the 15 month period ended
November 27, 1958 a total of $3, 033, 895, together with interest computed
thereon at the rate of 6% per annum in accordance with the provisions of Sec-
tion IV, paragraph A, infra, in the amounts and to the jurisdictional customers
as shown on Sheet 1 of Appendix D attached hereto.
SECTION III
REFUNDS FOR THE 13 MONTH PERIOD
ENDED DECEMBER 27, 1959
UNDER DOCKET NOS. G -15, 335 AND G -15, 336
For the purposes of this settlement, it is agreed that Northern' s
effective jurisdictional.rates for the 13 month period ended December 27, 1959
will be, reduced by 35.3jZ per Mcf on the demand charges, resulting in a reduc-
tion in jurisdictional revenues of $5,054,826 for such 13 month period.
Such reduced rates shall be applied to the actual billing demand units for
the 13 month period in the amount of 14, 319, 619 Mcf, as shown on Sheet 2
of Appendix D attached hereto. Northern, within 20 days from 'November 30,
1963, or within, 20 days from the date of the Commission order approving this
settlement, whichever is later, agrees to refund for the 13 month period ended
December 27, 1959 a total of $5, 054, 826, together with interest computed
thereon at 'the rate of 6% per annum in accordance with the provisions of
Section IV, paragraph A, infra, in the amounts and to the jurisdictional cus-
tomers, as shown on Sheet 2, Appendix D attached hereto.
SECTION IV
OTHER CONDITIONS AND PROVISIONS
A. Computation of Interest on Refunds Under
Sections II and III
The interest to be paid by Northern on refunds to jurisdictional
customers under the provisions of Sections II and III, supra is shown on
Appendix D attached, hereto and was computed at the rate of 6% per annum
upon the following assumptions:
(1) That the principal amount shown for each
customer, on Appendix D attached hereto,
has been paid in equal monthly amounts for
the number of months involved in each of
the periods involved;
-10-
(2) That such assumed monthly amount was paid
to Northern on the 20th day of the following
calends : month;
(3) That in-'.arest shall commence to run on each
such assumed monthly payment from the 20th
day of such calendar month, in which .the pay-
ment is assumed to have been.received; and,
(4) That all interest payable by Northern pursuant
to this settlement shall terminate on November 30,
1963; provided, that Northern shall.make such
refunds within 20 days from November 30, 1963;
or 20 days from the date of issuance of the Com-
mission's order approving the settlement, which-
ever is later.
B. Cost of Purchased Gas
It is agreed that the cost of gas purchased by Northern during. the
28 month period ended December 31, 1959 'includes payments by Northern and
Permian to producers at rates which were being collected, subject to refund,
and which haven'ot been disposed of and are currently the subject matter of
proceedings under Section 4 of the Natural Gas Act as listed in Appendix E
attached hereto. If, as a result of Commission decisions in such proceedings
(including final judicial review), Northern receives refunds and interest
thereon from such producers applicable to Northern's cost of gas purchased
-11-
during the 28 month period, Northern will pass on :a its jurisdictional cus-
tomers 82. 15.% of such refunds and interest, after Northern's entitlement there-
to has been finally established. Northern shall not be required to pay interest
on refunds received from producers. The percentage of 82. 15% represents the
proportion of jurisdictional sales during the 28 month period of 715, 299, 344
Mcf to the total system sales, excluding field and drilling and pumping sales,
of 87.0, 769, 524 Mcf. The prorata share of individual jurisdictional customers
of the portion of such future refunds attributable to jurisdictional sales. shall
be based on the ratio that the actual billing demand units of each such cus-
tomer during the 28 month period bears, to the total jurisdictional billing demand
units of 30, 517, 868 Mcf, as particularly shown on Appendix D attached hereto.
Northern agrees to make refunds under this Section IV B whenever Northern is
required to make refunds of amounts received from producers under Section IV A
C
of the Statement of Proposed Settlement Agreement entered into between Northern
and its customers. in Docket Nos. G -19, 040, et al. , a copy of which Statement
of Proposed Settlement is attached to the Commission's Order Approving Rate
Settlement Agreement Prescribing Refunds, and,Terminating Proceedings in
Part, dated December 21, 1961, in Docket Nos. G- 19,040, et al.; but in any
o
event Northern agrees to make refunds under this Section IV B at least once
in each calendar year provided that the amounts received by Northern from
producers applicable to the 28 month period ended December 31, 1959 during
any such year is at least $25,000.. Northern, shall also make an annual report
-12-
to the Commission of the accumulated refunds which have not been distributed
under this Section IV B. -
C. Termination of Pending Proceedings
In view of the settlement reached herein respecting Northern's
rates, it is further agreed that this settlement will dispose of all matters
involved and issues presented in the above - captioned proceedings and that
as a condition of this settlement the Commission- will terminate all of the
above - captioned proceedings.
With respect to the Docket Nos. G- 13,358, G- 16,447 and G-
19, 095 involving ERS service, it is further agreed that this settlement will
discharge and dispose of any remaining refund obligation in those dockets for
the 28 month period here involved.
MISCELLANEOUS PROVISIONS AND CONDITIONS
A. Acceptance by the Commission
The agreement reached by the parties and set forth in this State-
ment of Proposed Settlement is expressly conditioned on the Commission's
acceptance of all of the terms of this proposed settlement.
B. Reservations
By making this agreement, neither the Commission Staff, Northern,
any other party hereto, nor any affected person is to be considered as agreeing
with the cost of service determinations or allocations, or with any principles
underlying or supposed to underlie such cost of service determinations, allo-
-13-
cations or refunds herein agreed upon, and neither the Commission Staff,
Northern, any other party hereto, nor any affected person is to be prejudiced
or bound thereby in any future proceeding or proceedings.
Nothing contained herein shall be construed as limiting Northern's
right to file new or amended rate schedules at any time, nor is it to be con-
sidered that by making this agreement Northern, any other party, or any af-
fected person has waived any legal right or right of action which it might have
with respect to matters other than those herein specifically agreed upon.
Respectfully submitted,
NORTHERN NATURAL GAS COMPANY
Of Counsel
F. Vinson Roach
Jack C. Osborne
Peter M. Andersen
2223 Dodge Street
Omaha 2, Nebraska
Richard J. Connor
Walter E. Gallagher
821 Fifteenth Street
Washington 5, D. C.
Attorneys for
Northern Natural Gas Company
Dat :d: November 1, 1963
-14-
Jack C. Osborne
l/ Includes gas purchased from Permian Basin Pipeline Company on a cost of service
basis - see Sheet 2.
NORTHERN NATURAL
GAS COMPANY
APPENDIX A
•
Sheet 1
of 2
Summary of Cost
of Service
Docket Nos. G- 12,153, G- 15,335 and G- 15,336
Peoples
Line
To.tal
Natural
Gas
Pipeline
No.
Particulars
Company
Division
Division
(a)
(b)
(c)
(d)
1
Cost of Service - Docket No. G- 12,153
Fifteen Months ended 11-30 -58
2
Gas Purchased
$ 68 132
326
$
$ 68 132
326 1/
3
Operation and Maintenance Expenses
27 550
415
2 836
520
24 713
895
4
Depreciation and Amortization
16 028
050
724
250
15 303
800
5
Taxes - Federal Income
15 049
121
685
509
14 363
612 4-
6
Taxes - State Income
388
767
17
710
371
057
7
Taxes - Other
6 079
346
541
081
5 538
265
8
Return at 6.1% per Annum
20 971
269
1 010
389
19 960
880
9
Deduct - Other Gas Revenues
( 1 138
053)
( 5
806)
( 1 132
247)
10
Total Cost of Service
$ 153 061.E
$ 5 809 653
$ 147 251 588
11
Cost of Service - Docket No. G- 15,335
Thirteen Months ended 12 -31 -59
12
Gas Purchased
$ 74 114
475
$
$ 74 114
475'1/
13
Operation and Maintenance Expenses
27 262
334
2 901
787
24 351
547
14
Depreciation and Amortization
15 107
950
746
750
14 361
200
15
Taxes - Federal •Income
15 352
557
823
880
14 528
677`
16
Taxes - State Income
470
343
25
240
445
103
17
Taxes - Other
5 975
193
577
216
5 397
977
18
Return at 6.2% per Annum
19 808
613
1 008
856
18 799
757
19
Deduct - Other Gas Revenues
( 1 660
939)
(
5)
( 1 660
934)
20
Total Cost of Service
526
S 6 092
724
$ 150 337 802
$ 156 430
l/ Includes gas purchased from Permian Basin Pipeline Company on a cost of service
basis - see Sheet 2.
Line
No.
1
2
3
4
5
6
7
8
9
10
PERMIAN BASIN PIPELINE COMPANY
Summary of Cost of Service
Docket Nos. G- 12,153 and G- 15,336
Particulars
(a)
Cost of Service
Operating Expenses
Depreciation and Amortization
Taxes - Federal Income
Taxes - State Income
Taxes - Other
Return - 6.0% (15 Month Period)
- 6.2% (13 Month Period)
Deduct - Other Gas Revenues
Total Cost of Service
G- 12,153
15 Month
Period
(b)
$ 31 281
431
3 611
800
2 260
055
12
248'
426
965
4 435 460
(12 979 259)
$ 29 048 700
APPENDIX A
Sheet 2 of 2
G- 15,336
13 Month
Period
(c)
$ 29 201 648
3 510 500
2 619 725
14 666
655 555
4 353 064
( 7 337 147)
$ 33 018 011
o
NORTHERN NATURAL GAS COMPANY
Summary of Allocated Pipeline Costs of Service
And Comparison of Jurisdictional Costs with Revenues Collected
Docket Nos. G- 12,153, G- 15,335 and G- 15,336
7 Total Revenues Collected 125 657 097
8 Revenues in Excess of Costs $ 3 033 526
9 Docket No, G- 15,335 and G- 15,336
Thirteen Months ended 12 -31 -59
10 Production Costs
11 Non Mileage Costs
12 Mileage Costs
13 Delivery Cost
14 Total
15 Total Revenues Collected
16 Revenues in Excess of Costs
$ 77 075 224 $
7 505 647
64 535 363
1 221 568
61 846
539 $
6 276
520
Non
142
798
Line
Total
Jurisdictional
Jurisdictional
Reconciliation
No.
Particulars
Costs
Costs
Costs
Items
(a)
(b)
(c)
(d)
(e)
1
Docket No. G-12,153
Fifteen Months ended 11 -30 -58
2
Production Costs
$ 71 516 359
$ 57 986 694
$ 12 636
989
$ 892 676
3
Non Mileage Costs
7 543.177
6 307 188
1 235
989
4
Mileage Costs
66 841 433
57 451 787•
9 389
646
5
Delivery Cost
1 350 619
877 902
472
717
6
Total Cost of Service
$ 892 676
$147 251 588
$ 122 623 571
23 735
341
7 Total Revenues Collected 125 657 097
8 Revenues in Excess of Costs $ 3 033 526
9 Docket No, G- 15,335 and G- 15,336
Thirteen Months ended 12 -31 -59
10 Production Costs
11 Non Mileage Costs
12 Mileage Costs
13 Delivery Cost
14 Total
15 Total Revenues Collected
16 Revenues in Excess of Costs
$ 77 075 224 $
7 505 647
64 535 363
1 221 568
61 846
539 $
6 276
520
55 518
142
798
971
$150 337 802 $ 124 440 172
$ 129 490 859
$ 5 050 687
12 953 662 $
1 229 127
9 017 221
422 597
2 275 023
23 622 607 $ 2 275 023
Line
No.
NORTHERN NATURAL GAS COMPANY APPENDIX
Development of Jurisidictional Rates in Accordance with Settlement Agreemen -t
Docket.Nos, G- 12,153, G- 15,335 and G- 15,336
Particulars
(a)
1 Derivation of Reduction in
Jurisdictional Demand Charge
2 Jurisdictional Revenues in Excess of
Allocated Costs (Appendix B)
3 Jurisdictional Billing Demand' Units -
MCF at 14,73#
4 Reduction in Demand Charge (Line 2 = Line 3)
5 Refunds to Jurisdictional Customers
(Line 3 X Line 4)
G- 15,335
G- 12,153 G- 15,336
15 Months 13 Months
Ended 11 -30 -58 Ended 12 -31 -59 Total
(b) (c) (d)
$ 3 033 526 $ 5 050 687 $8 084 213
16 198 049
18.73
14 319 619
35.3C
$ 3 033 895 $ 5 054 826 $8 088 721
Settlement
Rates As
Agreement
Filed
Adjustment
Rates
6
Rates Filed and as Revised
to Reflect.Settlement Agreement
7
G- 12,153 - 15 Months Ended 11 -30 -58
8
Demand Rate
9
CD -1
$ 2.245
$ .1873
$ 2.0577
10
CD -2
2.555
.1873
2.3677
11
CD -3
2.875
.1873
2.6877
12
Commodity Rate
13
CD -1
.219
.219
14
CD -2
•.224
.224
15
CD -3 0
.229
.229
16
G- 15,335 & G- 15,336 - 13 Months Ended 12 -31 -59
17
Demand Rate
18
CD -1 •
2.87
.353
2.517
19
CD -2
3.18
.353
2.827
20
CD -3
3.50
.353
3.147
21
PL -3
3.50
.353
3.147
22
Commodity Rate
23
CD -1
.219
,219
24
CD -2
.224
.224
25
CD -3
.229
.229
26
PL -3
.229
.229
'Docket No. G- 12,153 NORTHERN NATURAL GAS COMPANY
I A
d �
en
l pP ''
Sheet 1 of 2
1/ formerly
2/ successor
3/ successor
Austin Minnesota, Board of Water, Electric, Gas & Power Commissioners
to Minnesota Natural Gas Company
to Central Electric and Gas Company
° "`°
s ,�
Statement of Refunds and Interest at 6% Per Annum
To Jurisdictional
Customers
Fifteen Months
Ended
November 30,
1958
�`�`�
�� �' e)
Billing
Refunds
Line'
Demand
Principal
No_.
Customer
Units,
Amount
Interest
Total
(a)
(b)
(c)
(d)
(e)
1
Austin Utilities l/
198
900
$ 37
253.97
$ 12
358.52
$ 49
612.49
2
Cedar Falls Iowa, City of
'58
700
10
994.51
3
647.28
14
641.79
3
Central Natural Gas Company
176
685
33
093.10
10
978.20
44
071.30
4
Coon Rapids Iowa, Town of,
110
575
1
980.70
657.07
2
637.77
5
Council Bluffs Gas Division
328
800
61
584.24
20
429.77
82
014.01
6
Elkhorn Valley Gas Company
16
075
3
010.85
998.81
4
009.66
7
Greeley Gas Company 2/
107
400
20
116.02
6
673.23
26
789.25
8
Guthrie Center Iowa, City of
16
300
3
052.99
1
012.79
4
065.78
9
Harlan Iowa, City of
27'150
5
085.20
1
686.95
6
772.15
10
Hawarden Iowa, City of
22
500
4
214.25
1
398.02
5
612.27
11
Interstate Power Company
435
900
81
644.07
27
084.36
108
728.43
12
Iowa Electric Light and Power Co.
984
575
184
410.90
61
175.92
245
586.82
13
Iowa Illinois Gas and Electric Co.
346
600
64
918.18
21
535.76
86
453.94
14
Iowa Power and Light Company
1 495
760
280
155.85
92
938.06
373
093.91
15
Iowa Public Service Company
1 440
248
269
758.45
89
488.86
359
247.31
16
Iowa Southern Utilities Company
36
190
6
778.39
2
248.64
- 9
027.03
17
The Kansas Poser and Light Company
88
200
16
519.86
5
480.25
22
000.11
18
Minneapolis Gas Company
3 919
000
734
028.70
•243
504.47
977
533.17
19
Minnesota Valley Natural Gas Company
613
078
114
829.51
38
093.20
152
922.71
20
The Nebraska Natural Gas Company
148
850
27
879.60
9
248.69
37
128.29
21
New Ulm Minnesota, Public Utilities
Commission of
75
000
14
047.50
4
660.08
18
707.58
22
North Central Public Service Company
90
096
/ 16
874.98
5
598.05
22
473.03
23
- Northern States Power. Co. - Minnesota• -,_
.••904.
200
356..656.66
V_ M 118
316.21 •-�``
474
972
24
Northern States Power Co. of Wisc.
41
800
7
829.14
2
597.22
'10
426.36
25
Northwestern Public Service Company -
176
850
33
124.01
10
988.46
44
112.47
26
Omaha - Metropolitan Utilities
District
1 587
000
297
245.10
98
607.19
395
852.2
27
Owatonna Minn., Municipal Public
Utilities of
115
500
21
633.15
7
176.52
28
809.6,
28
Pender Nebraska, Village of
12
750
2
388.07
792.21
�3
180.2
29
Ponca Nebraska, City of
7
875
1
474.99
489.31
',l
964.3
30
Remsen Iowa, Town of
8
625
1
615.46
535.91
2
151.37
31
Sanborn'Iowa, Town of
9
450
1
769.98
587.17
2
357: 5
32
Sioux Center Iowa, Town of
9
000
1
685.70
559.21
2
244. 1
33
Watertown S.D., Municipal
Utilities of
33
015
6
183.71
2
051.36
8
235. 7
34
Western Power & Gas Co. 3/
1 655
402
/310
056.79
102
857..31
412
914. 0
35
Totals
16 198
049
$4 040
349.164
�$1 006 455.06
$ 3 033 894.58
1/ formerly
2/ successor
3/ successor
Austin Minnesota, Board of Water, Electric, Gas & Power Commissioners
to Minnesota Natural Gas Company
to Central Electric and Gas Company
° "`°
s ,�
Docket No. G- 15,335
and G- 15,336
NORTHERN NATURAL GAS COMPANY
Ii , * � 0/0- . ,
' 7"-000�
Statement of Refunds and Interest at 6% Per Ann
To Jurisdictional Customers
Thirteen Months Ended December 31, 1959
Line
No. Customers
(a)
1 Austin Utilities l/
2 Cedar Falls Iowa, City of
3 Central Natural Gas Company
4 Coon Rapids Iowa, Town of
5 Council Bluffs Gas Division
6 Elkhorn Valley Gas Company
7 Greeley Gas Co. 2/
8 Guthrie Center Iowa, City of
9 Harlan Iowa, City of
10 Hawarden Iowa, City of
11 Interstate Powcar Company
12 Iowa Electric Light and Power Co.
13 Iowa Illinois Gas and Electric Co.
14 Iowa Power and Light Company
15 Iowa Public Service Company
16 Iowa Southern Utilities Company
17 The Kansas Power and Light Company
18 Minneapolis Gas Company
19 Minnesota Valley Natural Gas Co.
20 The Nebraska Natural Gas Company
21 New Ulm Minnesota, Public Utilities
Commission of
22 North Central Public Service Company
23 Northern Illinois Gas Company
24 _Northern States Power Co.- Minnesota
25 Northern States Power Co. of Wisc.
26 Northwestern Public Service Company
27 Omaha- Metropolitan Utilities
District
28 Owatonna Minn., Municipal Public
Utilities of
29 Pender Nebr., Village of
30 Ponca Nebraska, City of
31 Remsen Iowa, Town of
32 Sanborn Iowa, Town of
33 Sioux Center Iowa, Town of
34 Watertown S.D., Municipal
Utilities of
35 Western Power
36 Totals
1/ formerly
2/ successor
3/ successor
Appendix $
Sheer 2 of 2
Billing
Refunds
Demand
Principal
Units
Amount
Interest
Total
(b)
(c)
(d)
(e)
173
700
$ 61
316.10
$ 16
048.67
$ 77
364.77
55
500
19
591.50
5
127.81
24
719.31
153
849
54
308.70
14
214.57
68
523.27
9
315
3
288.20
860.64
4
148.84
288
000
101
664.00
26
609.19
128
273.19
13
975
4
933.18
1
291.19
6
224.37
94
700
33
429.10
8
749.62
42
178.72
14
400
5
083.20
1
330.46
6
413.66
23
530
8
306.09
2
174.01•
10
480.10
19
500
6
883.50
1
801.66
8
685.16
378
800
133
716.40
34
998.47
168
714.87
861
475
304
100.68
79
594.27
383
694.95
•301
600
106
464.80
27
865.73
134
330.53
1 333
000
470
549.00
123
159.88
593
708.88
1 272'308
449
124.72
117
552.36
566
677.08
32
330
11
412.49
2
987.07
14
399.56
74
660
26
354.98
6
898.06
33
253.04
3 447
000
1 216
791.00
318
478.70
1 535
269.70
534
000
188
502.00
49
337.87
237
839.87
130
350
46
013.55
12
043.43
58
056.9E
66
000
23
298.00
6
097.94
29
395.94
68
896
24
320.29
6
365.51
30
685:80
100
000
/ 35
300.00
9
239.30
°, 44
539.30•
1 671
800✓
590
145.40
154
462.63
:� 744 608.03
37
000
13
061.00
3
418.54
16
479.54
157
210
55
495.13
14
525.10
70
020.23
1 401
000
494
553.00
129
442.61
623
995.61
100
700
35
547.10
9
303.98
44
851.08
11
050
3
900.65
1
020.94
4
921.59
6
825
2
409.22
630.58
3
039.80
.7
475
2
638.68
690.64
3
329.32
8
240
2
908.72
761.32
3
670.04
7
800
2
753.40
720.67
3
474.07
28 613 10 100.38
& Gas Co. 3/ 1 435 018 506 561.35
14'319 619 _054 825 .51
kustin Minnesota, Board of Water, Electric, Gas
to Minnesota Natural Gas Company
to Central Electric and Gas Company
2 643.64 • 12 744.02
132 585.63 639 146.98
$1 323 032.69 $6 377 858.20
& Power Commissioners
Docket No. G- 12,153 NORTFERN NATURAL G=.S COMIPAWv
Docket No. G- 15,335
Docket No. G- 15,336
Proceedings Involving Payments to
Producers For Gas Purchased by
Northern at Rates Being Collected Subject to Refund
Twenty -Eight Months Ended December 31, 1959
L—,
Appendix ,o'i'
F.P.C.
Line
Docket
No.
Number
Producers
(a)
(b)
1
G- 11,641
Phillips Petroleum Company (Dumas)
2
G- 11,849
Phillips Petroleum Company
3
G- 13,735
Texaco, Inc.
4
G- 14,009
Phillips Petroleum.Company
5
G- 14,077
Shamrock Oil and Gas Company
6
G- 14,859
Edwin L. Cox & Skelly Oil - Company
7
G- 14,931
Sunray Mid - Continent Oil Company
8
G- 15,088
Phillips Petroleum Company
9
G- 15,451
Republic Natural Gas Company
10
G- 15,538
Texaco, Inc.
11
G- 16,178
Phillips Petroleum Company (Grayco)
12
G- 16,520
George S. Hammonds
13
G- 16,521
Scott Hammonds, et. al.
14
G- 16,715
Amerada Petroleum Corp.
15
G- 16,803
Atlantic Refining Company
16
G- 16,896
Republic Natural Gas Company
17
G- 16,956
Sinclair Oil and Gas Company
18
G- 16,959
Gulf Oil Corporation
19
G- 16,959
Skelly Oil Corporation
20
G- 16,960
Gulf Oil Corporation
21
G- 17,059
Honolulu Oil Corporation, et. al.
22
G- 17,071
Phillips Petroleum Company
23
G- 17,295
Phillips Petroleum Company (Dumas)
24
G- 18,671
Dorchester Corporation
a
Northern States Power Company
St. Paul Division
DISPOSITION OF REFUNDS TO BE RECEIVED•FROM NORTBERN NATURAL GAS COMPANY
AS THE RESULT OF SETTLEMENT OF FPC RATE DOCKETS G -12153 AND G -15335
Sixth Rate Increase
FPC Docket G- 12153
(a )Aug. 27,--1957 to Feb. 2, 1958.
Period NSP compensated for in-
crease in purchase cost of gas
from previous- refund
(b) Feb - . 3, 1958 to-Oct. 7, 1958
Period NSP paid full increase
in town border rates
(c) Oct. 8,'1958 to Nov. 26, 1958
Remaining period of Sixth Rate
Increase. NSP allowed increase
in retail rates
Seventh Rate Increase
FPC Docket G -15335
Nov. 27, 195 to Dec. 26, 1959
Summary of refunds to St. Paul Customers:
Attributable Portion of Refund
(principal and interest)
Passed on to Retained
Customer by NSP
$ 152,, o4o.76
46,214.87
673,788.36
'$-872,o43-99
By reduction in purchased gas
adjustment in 1964 152,040.76
By check (under District Court's Order) 720,003.23
Total $ 872,043.99
L- L. Oman
11 -1 -63
$231,172.09`
$231,172.09
Northern States Power Company (Minn)
St. Paul Division - Gas Utility
SCHEDULE SHOWING ASSIGNMENT OF INCREASED COST OF GAS DUE TO 6TH AND 7TH
RATE INCREASES ASSUMING 1000 MONTHLY ASSIGNMENT OF PAST REFUND AMOUNT
6th Rate Increase
8 -27 -57 - 9 -26 -57
9 -27 -57 - 10 -26 -57
10 -27 -57 - 11 -26 -57
11 -27 -57 - •12 -26 -57
12 -27 -57 - 1 -26 -58
1 -27 -58 - 2- 2 -58
Total
2- 3 -58
- 2 -26 -58
2 -27 -58
- 3 -26 -58
3 -27 -58
- 4 -26 -58
4 -27 -58
- 5 -26 -58
5 -27 -58
- 6 -26 -58
6 -27 -58
- 7 -26 -58
7 -27 -58
- 8 -26 -58
8 -27 -58
- 9 -26 -58
9 -27 -58
- 10- 7 -58
(11
days)
Total
St. Paul Div. Increased Increased
Contract Billing Cost of Gas Cost of Gas
Demand -Mcf @-51.50/Mcf Borne by Customer
Increased
Cost of Gas
Borne by NSP
114
600
$ 59
019
$ 59
019
$ 96
-
114
600
59
019
59
019
-
114
800
59
122
59
122
-
114
800
59
122
59
122
-
114
800
59
122
59
122
-
24
916.2(1)
12
832
12
832
-
598
516.2
$3o8
236
$3o8
236(2)
0
'89
883.8
46
290
-
46
290
114
800
59
122
-
59
122
114
800
59
122
-
59
122
114
800
59
122
-
59
122
114
800
59
122
-
59
122
114
800
59
122
-
59
122
114.800
59-122
-
59
122
114
800
59
122
-
59
122
42
093
21
678
-
21
678
935
576.8
$481
822
$481
822
Cumulative Total 1 534 093
10- 8 -58 - 10 -26 -58
(19 days)
10 -27 -58 - 11 -26 -58
Total
TOTAL
6th Rate Increase
7th Rate Increase
11 -26 -58 - 12 -26 -59
$790 058 $308 236 $481/822
72 707
114 800
37
59
444
122
37.444
59
122
187 507
$ 96
566
$ 96
566
1 721 600 $886 624 $404 802 $481 822
@ 62.5'Mcf
1 512 800 $945 500 $945 500
P '
(1) Baser- on 21.704% of a month.
(2) $308,236.24, refundable to customers due to the settlement of the 5th Rate
Increase, was used to offset increased cost of gas in the 6th Rate Increase.
W. D. Musolf
11/1/63