EXHIBIT 99.1
(NORTHERN BORDERS PARTNERS, L.P. LOGO) News 13710 FNB Parkway
Release Omaha, NE 68154-5200
For Further Information
Contact:
Media Contact:
Beth Jensen
(402) 492-3400
Investor Contact:
Ellen Konsdorf
(877) 208-7318
NORTHERN BORDER PARTNERS, L.P. ANNOUNCES ENRON'S PUHCA
HEARING AND TIMING OF PARTNERSHIP'S DISTRIBUTION
FOR IMMEDIATE RELEASE: Friday, January 16, 2004
OMAHA - Northern Border Partners, L.P. (NYSE - NBP) today announced
that a hearing date on or about February 2, 2004 has been set by the Securities
and Exchange Commission for Enron's pending application for exemption from the
Public Utility Holding Company Act of 1935 ("PUHCA"). On December 31, 2003,
Enron and other related entities filed an application under Section 3(a)(4) of
PUHCA. An applicant and its subsidiaries are entitled to a temporary exemption
pursuant to Section 3(c) of PUHCA upon the filing of an application in good
faith until the SEC has acted on the application.
As disclosed previously, if Enron does not qualify for an exemption
under PUHCA it must register as a holding company. PUHCA imposes a number of
restrictions on the operations of registered holding company systems that would
affect Enron and its subsidiaries, including Northern Plains Natural Gas Company
and Pan Border Gas Company, two of the general partners of Northern Border
Partners. Additionally, because of the voting interest held by Enron through its
general partner interests in Northern Border Partners, the Partnership and
certain of its subsidiaries would also presumptively become subsidiaries within
the Enron holding company system.
Under the Partnership's current practices, the next distribution is
expected to be declared by January 20, 2004, payable on February 13, 2004. Given
the hearing in early February, it is possible that Enron could be required to
register under PUHCA before February 13. Because of this possibility, the
Partnership does not intend to declare the distribution until Enron has been
granted its exemption. If Enron is required to register, the Partnership may
need to obtain SEC authority to declare and pay distributions. While the
Partnership cannot predict the timing or the outcome of the SEC actions, it
believes that the SEC routinely grants permission for non-utility affiliates of
a holding company (such as the Partnership) to pay distributions in the normal
course of business.
"It is important to note that, while the Partnership's Policy Committee
does not expect to declare the distribution on January 20th, the Partnership
intends to pay its full distribution for the quarter ended December 31, 2003
once any requisite SEC authority is received," said Bill Cordes, chairman and
chief executive officer of Northern Border Partners. "If the Partnership becomes
subject to PUHCA, we will make every effort to obtain any required authority as
soon as possible."
For additional information please refer to the Management's Discussion
and Analysis of Financial Condition and Results of Operations section of our
quarterly reports on Form 10-Q for the periods ended March 31, 2003, June 30,
2003 and September 30, 2003 and in our 8-Ks filed April 17, 2003 and December
31, 2003.
This press release includes 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 Northern Border Partners, L.P. believes that its
expectations are based on reasonable assumptions, it can give no assurance that
such expectations will be achieved. Important factors that could cause actual
results to differ materially from those in the forward-looking statements
include natural gas development in the Western Canadian Sedimentary Basin; the
rate of development of gas fields near the Partnership's natural gas gathering
systems in the Powder River, Wind River, and Williston Basins; regulatory
actions and receipt of expected regulatory clearances; competitive conditions in
the overall natural gas and electricity markets; performance of contractual
obligations by the shippers; prices of natural gas and natural gas liquids;
developments in the voluntary petition for bankruptcy including Enron's
formation of CrossCountry Energy, of which Northern Plains and Pan Border would
be a part; potential regulation under Public Utility Holding Company Act;
inability to or delay in obtaining requisite approvals for declaration and
payment of distributions; actions by rating agencies; our ability to renegotiate
gathering contracts with producers; our ability to control operating costs; and
conditions in the capital markets and our ability to access the capital markets.
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