UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): NOVEMBER 1, 2005
NORTHERN BORDER PARTNERS, L.P.
(Exact name of registrant as specified in its charter)
DELAWARE 1-12202 93-1120873
(State or other jurisdiction of (Commission (IRS Employer
incorporation) File Number) Identification No.)
13710 FNB PARKWAY
OMAHA, NEBRASKA 68154-5200
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (402) 492-7300
[NOT APPLICABLE]
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
ITEM 8.01 OTHER EVENTS
As required by the provisions of the settlement of Northern Border
Pipeline Company's last rate case, on November 1, 2005, Northern Border Pipeline
filed a rate case with the Federal Energy Regulatory Commission (FERC). The rate
case filing proposes an increase to its rates; a change to its rate design
approach with a supply zone and market area utilizing a fixed rate and a
dekatherm-mile rate, respectively; a compressor usage surcharge primarily to
recover costs related to powering electric compressors; and implementation of a
short-term, firm-service rate structure on a prospective basis. Northern Border
Pipeline has proposed an increase in overall revenues of 7.8 percent.
The filing incorporates an overall cost of capital of 10.56 percent
based on a rate of return on equity of 14.2 percent; an increase in the
depreciation rate for transmission plant from 2.25 percent to 2.84 percent and
the institution of a negative salvage rate of 0.59 percent and a decrease in the
billing determinants. Also included in the filing is the continuation of the
inclusion of income taxes in the calculation of its rates.
While we cannot predict the FERC and intervening parties' positions on
the proposed changes, we anticipate opposition and that by early December 2005,
the FERC will issue an order which will identify the issues raised in the
proceeding and accept the proposed rates but suspend their effectiveness until
May 1, 2006, at which time the new rates would be collected subject to refund
until final resolution of the rate case. We expect the FERC will set issues for
hearing and unless Northern Border Pipeline is able to reach a settlement with
the FERC staff and Northern Border Pipeline's customers, final resolution of
this matter may not occur until 2007.
FORWARD-LOOKING STATEMENT
The statements above that are not historical information are forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Although we believe that our
expectations regarding future events are based on reasonable assumptions within
the bounds of our knowledge of our business, we can give no assurance that our
goals will be achieved or that our expectations regarding future developments
will be realized. Important factors that could cause actual results to differ
materially from those in the forward-looking statements herein include:
o Northern Border Pipeline's ability to successfully advocate their position
before the FERC or reach a reasonable settlement with the FERC staff and
opposing parties;
o the ability to recover operating costs, costs of property, plant and
equipment and regulatory assets in Northern Border Pipeline's rates.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
NORTHERN BORDER PARTNERS, L.P.
Date: November 1, 2005 By: /s/ Jerry L. Peters
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Name: Jerry L. Peters
Title: Chief Financial and
Accounting Officer
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