Prepared Direct Testimony, and Exhibits of Barry E. Sullivan, Brian Troicuk, and Terry Molik on behalf of Alliance Pipeline L.P. under RP15-1022.

UNITED STATES OF AMERICA BEFORE THE FEDERAL ENERGY REGULATORY COMMISSION Alliance Pipeline L.P. ) Docket No. RP15-1022-000, et al. PREPARED DIRECT TESTIMONY OF BARRY E. SULLIVAN ON BEHALF OF ALLIANCE PIPELINE L.P. December 1, 2015 Docket No. RP15-1022-000 Exhibit No. APL-1 Page 1 of 91 SUMMARY OF PREPARED DIRECT TESTIMONY OF BARRY E. SULLIVAN ON BEHALF OF ALLIANCE PIPELINE L.P. Mr. Sullivan is employed by Brown, Williams, Moorhead & Quinn, Inc., and provides Prepared Direct Testimony in this proceeding on behalf of Alliance Pipeline L.P. (Alliance or the Company). In his Prepared Direct Testimony, Mr. Sullivan addresses Alliances discount adjustment and return on equity as filed in Alliances Cost and Revenue Study of September 14, 2015. Mr. Sullivan explains the selection of an appropriate Proxy Group used in Alliances equity return calculations, the business risk of Alliance, and compares the business risk of Alliance to the interstate pipelines included in the Proxy Group entities. Mr. Sullivan supports the return on equity calculations utilizing the Commissions preferred discounted cash flow methodology, and supports the Proxy Group companies used in the return on equity calculations. Mr. Sullivan explains and supports why these particular companies meet the Commissions Proxy Group guidelines and are appropriate natural gas pipeline company Proxy Group entities. Mr. Sullivan provides detailed information regarding the business risk of Alliance and why the selected Proxy Group companies are reasonable companies to include in an examination of the business risk of Alliance. Mr. Sullivan provides a detailed comparison of the business risk of these Proxy Group entities to Alliances business risk. Docket No. RP15-1022-000 Exhibit No. APL-1 Page 2 of 91 PREPARED DIRECT TESTIMONY OF BARRY E. SULLIVAN ON BEHALF OF ALLIANCE PIPELINE L.P. 1 I. INTRODUCTION 2 Q. Please state your name, occupation and business address. 3 A. My name is Barry E. Sullivan and my business address is 1155 15th Street, N.W., Suite 4 1004, Washington, D.C. 20005. I am Chief Executive Officer of Brown, Williams, 5 Moorhead & Quinn, Inc. (BWMQ), an energy consulting firm with offices in 6 Washington, D.C. and Houston, Texas. 7 Q. What is the nature of the work performed by your firm? 8 A. We offer technical, economic and policy assistance to the various segments of the natural 9 gas pipeline industry, oil pipeline industry and electric utility industry on business and 10 regulatory matters. 11 Q. Please briefly state your professional experience and qualifications. 12 A. My personal curriculum vitae, which is attached as Attachment ...