Prepared Supplemental Testimony of David C. Parcell on Behalf of the Canadian Association of Petroleum Producers under RP10-729.

BETTS (k, HOLT LLP COUNSELLORS AT LAW 1333 H STREET, NW WEST TOWER 10TH FLOOR WASHINGTON, DC 20005 TELEPHON E 202.530.3380 FAX 202.530.3389 March 24, 2011 The Honorable Kimberly D. Bose Secretary Federal Energy Regulatory Commission 888 First Street, N.E. Washington, DC 20426 FILED ELECTRONICALLY Re: Portland Natural Gas Transmission System Docket No. RPIO-729 Dear Secretary Bose: Enclosed for filing in the captioned proceeding is the Prepared Supplemental Testimony of David C. Parcell. This testimony is sponsored by the Canadian Association of Petroleum Producers, an intervenor. Copies ofthis testimony are being served on all participants to this proceeding and furnished to the Presiding Administrative Law Judge, The Hon. Edward M. Silverstein. Thank you for your disposition of this filing. Respectfully submitted, r,,,. ~ ,\"\ (] ___ ( \ \ ~-J\.~~ , James]-I. Holt \ BettsjG, Holt LLP ~nsel to the Canadian Association Of Petroleum Producers Enclosure Exhibit No. ___ (CAP-17) 1 UNITED STATES OF AMERICA 2 BEFORE THE 3 FEDERAL ENERGY REGULATORY COMMISSION 4 5 IN THE MATTER OF 6 PORTLAND NATURAL GAS TRANSMISSION SYSTEM 7 DOCKET NO. RP10-729-000 8 9 PREPARED SUPPLEMENTAL 10 TESTIMONY OF DAVID C. PARCELL 11 ON BEHALF OF 12 THE CANADIAN ASSOCIATION OF PETROLEUM PRODUCERS 13 14 I. INTRODUCTION 15 16 17 Q. PLEASE STATE YOUR NAME, OCCUPATION, AND BUSINESS ADDRESS. 18 A. My name is David C. Parcell. I am President and Senior Economist of Technical 19 Associates, Inc. My business address is Suite 580, 9030 Stony Point Parkway, 20 Richmond, Virginia 23235. 21 22 Q. ARE YOU THE SAME DAVID C. PARCELL WHO FILED PREPARED 23 ANSWERING TESTIMONY IN THIS DOCKET ON BEHALF OF THE 24 CANADIAN ASSOCIATION OF PETROLEUM PRODUCERS? 25 A. Yes, I am. That testimony was identified as Exhibit No.___(CAP-9) with accompanying 26 exhibits identified as Exhibit No.___(CAP-10) through Exhibit No.___(CAP-16). 27 28 Q. WHAT IS THE PURPOSE OF YOUR SUPPLEMENTAL TESTIMONY IN THIS 29 PROCEEDING? 30 A. The purpose of my Supplemental Testimony is to amend my previously filed testimony 31 to comport with Opinion No. 510, issued on February 17, 2011. That opinion represents 32 the Commissions findings and rulings in Docket No. RP08-306-000, the previous 33 Section 4 rate proceeding of Portland Natural Gas Transmission System (PNGTS). 34 Opinion No. 510 includes additional insights into the Commissions policy and practices 35 as they pertain to the derivation of an appropriate return on equity allowance, and thus 36 has implications regarding my methodologies and conclusions in the current proceeding 37 addressing the same issues. Prepared Supplemental Testimony of David C. Parcell RP10-729 Exhibit No._____(CAP-17) Page 2 of 8 1 Q. WHAT ASPECTS OF OPINION NO. 510 ARE YOU ADDRESSING IN THIS 2 SUPPLEMENTAL TESTIMONY? 3 A. There are two primary issues in Opinion No. 510 that I ...