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Independent regulatory commissions

Golden Spread Electric Cooperative Challenges Northern Natural Gas Company's Rate Proposal

Strategic Insights

— 2 min read

Golden Spread Electric Cooperative, a non-profit electric generation and transmission cooperative in Texas, has filed a motion to intervene and protest Northern Natural Gas Company's general rate case filed on July 1, 2025. The cooperative disputes Northern's proposed rate increases, claiming they would have a material adverse impact on Field Area shippers, including Golden Spread. The cooperative argues that Northern's proposal to implement postage stamp rates would result in dramatic rate increases, with a 149% increase in the summer season and a 269% increase during the winter season.

Key Takeaways:

  • Golden Spread Electric Cooperative has filed a motion to intervene and protest Northern Natural Gas Company's general rate case, citing concerns over proposed rate increases.
  • The cooperative claims that Northern's proposed postage stamp rates would have a material adverse impact on Field Area shippers, including a 149% increase in the summer season and a 269% increase during the winter season.
  • Golden Spread disputes Northern's proposal to eliminate zone-based rates, arguing that rates in the Field Area should be derived separately from the Market Area.
  • The cooperative requests that the Federal Energy Regulatory Commission (FERC) suspend Northern's proposed rate increases and other tariff revisions for the maximum five-month period permitted under Section 4 of the Natural Gas Act.
  • Golden Spread also requests that the Commission direct Northern to remove from its rates the costs of any plant that is not in service as of the end of the test period.
  • The cooperative's attorney, Philip W. Mone, argues that Northern's proposed rates are premised upon an equity return that far exceeds the return permitted by the Commission in recent orders.

Statistics:

  • Northern's current and proposed reservation rates in the Field Area for the firm transportation service used by Golden Spread (Rate Schedule TFX) are as follows:

+ Zoned Postage Stamp Overall Season

+ Current Proposed Increase (%) Prospective Increase (%)

+ Summer $7.485 $17.18 130% $18.660 149%

+ Winter $13.476 $30.925 129% $49.760 269%

  • Golden Spread estimates that the imposition of postage stamp rates would result in a 7.5% increase in Northern's plant costs during the nine-month adjustment period.
  • Northern proposes to increase its current onshore transmission depreciation rate from 2.49% to 3.66%, to increase its transmission negative salvage from 0.1% to 1.16%, to increase its underground storage depreciation rate from 1.25% to 3.27%, and to establish a negative salvage rate of 0.75% for underground storage.

Sources:

  • Northern Natural Gas Company, Docket No. RP25-989-000, filed July 1, 2025
  • Golden Spread Electric Cooperative, Inc., MOTION TO INTERVENE AND PROTEST, filed July 14, 2025
  • Panhandle Eastern Pipe Line Company, LP, Opinion No. 885, 181 FERC P 61,211 (2022)
  • Northern Natural Gas Co., 168 FERC P 61,069 (2019)
  • Eastern Gas Transmission and Storage, Inc., 177 FERC P 61,064 (2021)
  • Transcontinental Gas Pipe Line Company, LLC, 164 FERC P 61,236 (2018)
  • Enable Mississippi River Transmission, LLC, 164 FERC P 61,075 (2018)

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