Re-Filing of Direct and Reply Testimony with Errata of Anadarko Petroleum Corporation and Tesoro Alaska Company, under Docket Nos. IS09-34, et al.

Docket Nos. IS09-348-004, et al.; RCA Docket Nos. P-08-9, et al. Barry E. Sullivan Exhibit No. AT-1 TABLE OF CONTENTS PAGE I. INTRODUCTION ...................................................................................................1 II. PURPOSE OF TESTIMONY ..................................................................................2 III. EXHIBIT LIST ........................................................................................................3 IV. SUMMARY OF MAJOR CONCLUSIONS ...........................................................4 V. COMMENTS ON PRUDENCE OF THE SR PROJECT .......................................7 A. The Prudence Standard ................................................................................7 B. Comments on the States Prudence Case .....................................................9 C. TAPS Integrated Economics and Impacts on SR Decisionmaking ........13 1. The TAPS Carriers Are Components of Vertically- Integrated Enterprises ....................................................................13 2. The Markets for ANS Oil Transportation and the Ownership of ANS Production Are Highly Concentrated .............20 3. Consequences of TAPS Integrated Economics..............................23 4. Impacts of TAPS Integrated Economics on SR Decisionmaking .............................................................................25 VI. CONCLUSION ......................................................................................................32 i Docket Nos. IS09-348-004, et al.; RCA Docket Nos. P-08-9, et al. Barry E. Sullivan Exhibit No. AT-1 SUMMARY OF PREPARED DIRECT TESTIMONY OF BARRY E. SULLIVAN ON BEHALF OF ANADARKO PETROLEUM CORPORATION, TESORO CORPORATION, AND TESORO ALASKA COMPANY 1 Barry E. Sullivan has a B.A. degree in Economics from the University of 2 Massachusetts at Boston. He also attended the University of York, England, in 3 connection with graduate work in economics. Mr. Sullivan is the President of 4 Brown, Williams, Moorhead & Quinn, Inc., an energy consulting firm that 5 provides comprehensive energy-related services to hundreds of clients, including 6 electric, natural gas and oil pipeline companies, local gas distribution companies, 7 gas producers, marketers, shippers, cogeneration developers, trade associations, 8 and federal and state agencies. 9 Prior to his employment with Brown, Williams, Moorhead & Quinn, Inc., 10 Mr. Sullivan was employed at the Federal Energy Regulatory Commission 11 (FERC or Commission) for over 26 years, beginning in March 1979 and 12 ending in September 2005. He worked in the litigation section, at first in the 13 Office of Pipeline and Producer Regulation and later in the Office of 14 Administrative Litigation. Mr. Sullivans last position with the FERC was as a 15 supervisor in the Division of Technical Analysis in the Office of Administrative 16 Litigation where he supervised, directed, and sponsored testimony in a significant 17 number of o