Comments of J Antonio requesting FERC to allow more time to familiarize themselves with Weaver's Cove's 1000+ page report under CP04-36.

Jnofflclal FERC-Generated PDF of 20040224-0269 Received by FERC OSEC 02/20/2004 in D o c k e t # : R P 0 3 - 3 9 8 - 0 0 0 ? PUgLIC Northern NaluraJGas Company PreparedRebutta!Testfmony DocketNo. RP03-398 February20, 2004 Volume2 of 2 :KI~i J Jnofflclal FERC-Generated PDF of 20040224-0269 Received by FERC OSEC 02/20/2004 in D o c k e t # : R P 0 3 - 3 9 8 - 0 0 0 (0 Deferred Taxes. Mr. Lille disagrees with Mr. Nutter's attempt to calculate the impact of the IRC Section 338(hX10) election on Nortbem's annual cost of service. Mr. Lillo discusses the taxable event that occurred at the time of the IRC Section 338(hX10) election and its effect on Northern's deferred taxes. (D) O&M Expenses. Mr. Lille explains his disagreement with the Staff's rationale for rejection of Northern's pension expense and details Northem's pcriodic pension expense calculation pursuant to FAS 87. (E) Asset Impairments. Mr. Lille details the accounting treatment for asset impairment losses for the Black Marlin line and the Westem Oklahoma line. CO MUD CIAC Economics. Mr. Lille disagrees with Coalition Witness Wamock's claim that the MUD CIAC does not pass the economic feasibility test. Mr. LiUo explains the cconomic fcasibility analysis of the MUD CIAC performed by Northem, attached as Exhibit No. NNG-76, which shows that it was economically beneficial to Northern and itsratepayers. 4.. .~ 2 Jnofflclal FERC-Generated P D F o f 20040224-0269 Received by FERC OSEC 02/20/2004 in D o c k e t # : RP03-398-000 Exhibit No. NNG- 72 UNITED STATES OF AMERICA BEFORE THE FEDERAL ENERGY REGULATORY COMMISSION Northern Natural Gas Company Docket No. RP03-398-000 REBUTTAL TESTIMONY OF JOSEPH M. LILLO l Q. Please statc your name and business address. 2 A. Joseph M. Lillo, i 111 South 103rd Street, Omaha, Nebraska. I am the Vice President 3 of Finance for Northern Natural Gas Company ("Northern"). 4 Q. Are you the same Joseph M. Lillo who sponsored Direct Testimony on bchalf of 5 Northern in this proceeding'? 6 A. Ycs, I am. 7 Q. What is the purpose of your Rebuttal Testimony7 8 A. My testimony will: (1) update the capital sgucture of Northern through September 30, 9 2003; (2) discuss the impact of Financial Accounting Standard (FAS) 143 and 10 negative salvage on Nor~em's offshore and onshore facilities; (3) discuss various 11 aspects of deferred taxes; (4) discuss certain aspects ofNorthern's O&M expense; (5) 12 discuss Northern's asset impairments recorded during the test period; and (6) discuss 13 the economics performed on the MUD CIAC. Jnofflclal FERC-Generated P D F o f 20040224-0269 Received by FERC OSEC 02/20/2004 in D o c ...