Prepared Direct Testimony of Erik G Wetmore on behalf of ExxonMobil Pipeline Co re BP Pipelines (Alaska) Inc, Conocophillips Transportation Alaska Inc et al under IS05-82 et al.

Jnofflclal FERC-Generated PDF of 20051214-0254 Received by FERC OSEC 12/07/2005 in Docket#: IS05-82-002 ao Exhibit No. EM-I 1 UNITED STATES OF AMERICA BEFORE THE FEDERAL ENERGY REGULATORY COMMISSION BP Pipelines (Alaska) Inc. Docket No. IS05-82-002 ConocoPhillips Tramlx)rtation Alaska Inc. Docket No. IS05-80-002 ExxonMobil Pipeline Company Docket No. IS05-72-002 Koch Alaska Pipeline Company LLC Docket No. IS05-96-002 Unocal Pipeline Company Docket No. IS05-107-001 IID State of Alaska Docket No. OR05-2-001 V. BP Pipelines(Alaska) Inc. ExxonMobil PipelineCompany ConocoPhiIlips TransportationAlaska, Inc. Unocal PipelineCompany Koch Alaska PipelineCompany Anadarko Petroleum Corporation Docket No. OR05-3-001 V. TAPS Carriers did BP Pipelines (Alaska) Inc. Docket No. OR05- I0-000 PREPARED DIRECT T E S T I M O N Y OF ERIK G. W E T M O R E ON B E H A L F OF E X X O N M O B I L PIPELINE C O M P A N Y I d i ~- -vt ,L"'. --. ~ , , r f . ."'2 ~, "U i "~ ~ December 7, 2005 . . i r] 40 mlt Jnofflclal FERC-Generated P D F o f 20051214-0254 Received by FERC OSEC 12/07/2005 in D o c k e t # : IS05-82-002 g Exhibit No. EM-I 1 Page 3 of 9 1 Carrier-direct costs. 1 find these costs to be both reasonablc and appropriate to 2 include in a cost-of-service analysis. 3 4 Q. Please describe how your testimony is organized. 5 A. First, I will provide an overview of the ratemaking adjustments I make to 6 EMPCo's 2004 Carrier-direct expenses, explaining the concepts involved in these Q 7 adjustments. Second, I will describe and explain the actual adjustments to a 8 EMPCo's Cartier-direct expenses. Finally, I will summarize the adjusted 9 information I am providing to Mr. Van Hoecke for use in his Opinion No. 154-B -- l0 presentation. 11 g 12 I!. Ratemaklne Adlustmfnt* to EMPCo's 2004 Carrier-direct Expenses " 13 A. Backeround and Overview 14 Q* What are Carrier-direct operating expenses? 15 A. Carder-direct operating expenses refer to those costs EMPCo incurs directly in -- 16 operating its TAPS capacity, as distinguished from operating expenses that are 17 incurred initially by Alyeska Pipeline Service Company ("Alyeska"), the TAPS i 18 Carriers' agent in operaling TAPS, and then allocated to the TAPS Carriers based a 19 on their respective ownership percentages of the pipeline. Thus, the total costs 20 EMPCo incurs for its share of TAPS capacity are comprised of Carder-direct ~t 21 costs and Alyeaka costs. TAPS Carriers' witness Mr. George ...