-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, ESoBGL8tt+/C5zkvx53kJbzjU7ImXyWB75ObBfDl+c7ibN2SFuyeq3vtCsiyNC3d UYiKqlxt2W0TuDgPVATmXg== 0000950134-96-001954.txt : 19960514 0000950134-96-001954.hdr.sgml : 19960514 ACCESSION NUMBER: 0000950134-96-001954 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960331 FILED AS OF DATE: 19960513 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: NORTHWEST PIPELINE CORP CENTRAL INDEX KEY: 0000110019 STANDARD INDUSTRIAL CLASSIFICATION: NATURAL GAS TRANSMISSION [4922] IRS NUMBER: 870269236 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-07414 FILM NUMBER: 96561675 BUSINESS ADDRESS: STREET 1: 295 CHIPETA WAY CITY: SALT LAKE CITY STATE: UT ZIP: 84158-0900 BUSINESS PHONE: 8015838800 MAIL ADDRESS: STREET 1: 295 CHIPETA WAY CITY: SALT LAKE STATE: UT ZIP: 84158 10-Q 1 FORM 10-Q FOR QUARTER ENDED MARCH 31, 1996 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549 FORM 10-Q ----------------- [X] QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 31, 1996 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from to Commission File Number 1-7414 NORTHWEST PIPELINE CORPORATION ------------------------------------------ (Exact name of registrant as specified in its charter) DELAWARE 87-0269236 - ------------------------------- ------------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 295 Chipeta Way Salt Lake City, Utah 84108 ---------------------------------------------------- (Address of principal executive offices and Zip Code) (801) 583-8800 ---------------------------------------------------- (Registrant's telephone number, including area code) No Change ---------------------------------------------------- (Former name, former address and former fiscal year, if changed since last report) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No --- --- Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Class Outstanding at May 13, 1996 - ---------------------------------------- --------------------------- Common stock, $1 par value 1,000 shares The registrant meets the conditions set forth in General Instruction (H)(1)(a) and (b) of Form 10-Q and is therefore filing this Form 10-Q with the reduced disclosure format. 2 NORTHWEST PIPELINE CORPORATION TABLE OF CONTENTS
Page ---- PART I. FINANCIAL INFORMATION: Item 1. Financial Statements - Statement of Income, three months ended March 31, 1996 and 1995 . . . . . . . . . . . . . . . . . 1 Balance Sheet as of March 31, 1996 and December 31, 1995 . . . . . . . . . . . . . . . . . . . . . . . 2 Statement of Cash Flows, three months ended March 31, 1996 and 1995 . . . . . . . . . . . . . 4 Notes to Financial Statements . . . . . . . . . . . . . . . . . . 5 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations . . . . . . . . . . 7 PART II. OTHER INFORMATION . . . . . . . . . . . . . . . . . . . . . .10
i 3 PART I. FINANCIAL INFORMATION Item 1. Financial Statements NORTHWEST PIPELINE CORPORATION STATEMENT OF INCOME (Unaudited)
Three Months Ended March 31, ----------------------------- 1996 1995 ----------------------------- (Thousands) OPERATING REVENUES . . . . . . . . . . . . . . . . . . . . . . $ 67,584 $ 59,073 -------- -------- OPERATING EXPENSES: Operation . . . . . . . . . . . . . . . . . . . . . . . . . 20,215 19,720 Maintenance . . . . . . . . . . . . . . . . . . . . . . . . 2,118 1,780 Depreciation and amortization . . . . . . . . . . . . . . . 8,769 7,690 Taxes, other than income taxes . . . . . . . . . . . . . . . 3,994 3,476 -------- -------- 35,096 32,666 -------- -------- Operating income . . . . . . . . . . . . . . . . . . . 32,488 26,407 -------- -------- OTHER INCOME - net . . . . . . . . . . . . . . . . . . . . . . 783 839 -------- -------- INTEREST CHARGES: Interest on long-term debt . . . . . . . . . . . . . . . . . 8,608 7,333 Other interest . . . . . . . . . . . . . . . . . . . . . . . 866 1,320 Allowance for borrowed funds used during construction . . . (23) (435) -------- -------- 9,451 8,218 -------- -------- INCOME BEFORE INCOME TAXES . . . . . . . . . . . . . . . . . . 23,820 19,028 PROVISION FOR INCOME TAXES . . . . . . . . . . . . . . . . . . 8,642 6,450 -------- -------- NET INCOME . . . . . . . . . . . . . . . . . . . . . . . . . . $ 15,178 $ 12,578 ======== ======== CASH DIVIDENDS ON COMMON STOCK . . . . . . . . . . . . . . . . $ 7,000 $ - ======== ========
- ------------------------------ See accompanying notes. - 1 - 4 NORTHWEST PIPELINE CORPORATION BALANCE SHEET ASSETS
March 31, 1996 December 31, (Unaudited) 1995 ----------- ------------ (Thousands) PROPERTY, PLANT AND EQUIPMENT, at cost . . . . . . . . . . . . . $ 1,444,031 $ 1,402,437 Less - Accumulated depreciation and amortization . . . . . . . (526,531) (518,780) ----------- ----------- 917,500 883,657 Construction work in progress . . . . . . . . . . . . . . . . 4,664 31,040 ----------- ----------- 922,164 914,697 ----------- ----------- CURRENT ASSETS: Cash and cash equivalents . . . . . . . . . . . . . . . . . . 545 570 Advances to parent . . . . . . . . . . . . . . . . . . . . . . 43,987 41,215 Accounts receivable - Trade . . . . . . . . . . . . . . . . . . . . . . . . . . 34,826 36,773 Affiliated companies . . . . . . . . . . . . . . . . . . 1,194 1,234 Materials and supplies (principally at average cost) . . . . . 11,294 11,065 Exchange gas due from others . . . . . . . . . . . . . . . . . 10,712 9,390 Costs recoverable through rate adjustments . . . . . . . . . . 2,010 5,951 Income taxes receivable . . . . . . . . . . . . . . . . . . . - 4,480 Deferred income taxes . . . . . . . . . . . . . . . . . . . . 16,104 17,729 Prepayments and other . . . . . . . . . . . . . . . . . . . . 7,838 6,286 ----------- ----------- 128,510 134,693 ----------- ----------- OTHER ASSETS: Deferred charges . . . . . . . . . . . . . . . . . . . . . . . 25,182 26,177 ----------- ----------- $ 1,075,856 $ 1,075,567 =========== ===========
- ------------------------------ See accompanying notes. - 2 - 5 NORTHWEST PIPELINE CORPORATION BALANCE SHEET LIABILITIES AND STOCKHOLDER'S EQUITY
March 31, 1996 December 31, (Unaudited) 1995 ------------ ------------ (Thousands) CAPITALIZATION: Common stockholder's equity - Common stock, par value $1 per share; authorized and outstanding, 1,000 shares . . . . . . . . $ 1 $ 1 Additional paid-in capital . . . . . . . . . . . . . . . . 262,440 262,440 Retained earnings . . . . . . . . . . . . . . . . . . . . 205,197 197,019 ------------- ------------- 467,638 459,460 Long-term debt, less current maturities . . . . . . . . . . . 370,235 372,228 ------------- ------------- 837,873 831,888 ------------- ------------- CURRENT LIABILITIES: Current maturities of long-term debt . . . . . . . . . . . . . 8,591 8,591 Accounts payable - Trade . . . . . . . . . . . . . . . . . . . . . . . . . . 11,291 30,033 Affiliated companies . . . . . . . . . . . . . . . . . . . 2,584 423 Accrued liabilities - Income taxes . . . . . . . . . . . . . . . . . . . . . . . 2,129 - Taxes, other than income taxes . . . . . . . . . . . . . . 6,851 4,404 Interest . . . . . . . . . . . . . . . . . . . . . . . . . 14,589 12,752 Employee costs . . . . . . . . . . . . . . . . . . . . . . 7,713 6,873 Exchange gas due to others . . . . . . . . . . . . . . . . 12,006 14,630 Reserve for estimated rate refunds . . . . . . . . . . . . 47,097 43,883 Other . . . . . . . . . . . . . . . . . . . . . . . . . . 9,961 7,228 ------------- ------------- 122,812 128,817 ------------- ------------- DEFERRED INCOME TAXES . . . . . . . . . . . . . . . . . . . . . . 106,263 105,855 OTHER DEFERRED CREDITS. . . . . . . . . . . . . . . . . . . . . . 8,908 9,207 ------------- ------------- CONTINGENT LIABILITIES AND COMMITMENTS $ 1,075,856 $ 1, 075,567 ============= =============
- ------------------------------ See accompanying notes. - 3 - 6 NORTHWEST PIPELINE CORPORATION STATEMENT OF CASH FLOWS (Unaudited)
Three Months Ended March 31, ---------------------------------- 1996 1995 --------- --------- (Thousands) OPERATING ACTIVITIES: Net income . . . . . . . . . . . . . . . . . . . . . . . . . $ 15,178 $ 12,578 Adjustments to reconcile to cash provided by operations - Depreciation and amortization . . . . . . . . . . . . . . 8,769 7,690 Provision (credit) for deferred income taxes . . . . . . 2,033 (2,028) Amortization of deferred charges and credits . . . . . . 86 250 Allowance for equity funds used during construction . . . (29) (474) Increase (decrease) from changes in: Accounts receivable . . . . . . . . . . . . . . . . . . 5,145 6,814 Inventory . . . . . . . . . . . . . . . . . . . . . . . (229) 2,673 Other current assets . . . . . . . . . . . . . . . . . 2,389 (6,096) Other assets and deferred charges . . . . . . . . . . . 286 (30) Accounts payable . . . . . . . . . . . . . . . . . . . (7,918) 545 Other current liabilities . . . . . . . . . . . . . . . 13,200 15,058 Other deferred credits . . . . . . . . . . . . . . . . (2) 286 Other . . . . . . . . . . . . . . . . . . . . . . . . . . (12) (31) ----------- ------------ Net cash provided by operating activities . . . . . . . . . 38,896 37,235 ----------- ------------ INVESTING ACTIVITIES: Property, plant and equipment - Capital expenditures . . . . . . . . . . . . . . . . . . (15,621) (12,564) Asset removal cost . . . . . . . . . . . . . . . . . . . (307) (23) Changes in accounts payable . . . . . . . . . . . . . . . (11,554) (823) Advances to parent . . . . . . . . . . . . . . . . . . . . . (2,772) (23,354) ----------- ------------ Net cash used by investing activities. . . . . . . . . . . . (30,254) (36,764) ----------- ------------ FINANCING ACTIVITIES: Principal payments on long-term debt . . . . . . . . . . . . (1,667) (1,667) Dividends paid . . . . . . . . . . . . . . . . . . . . . . . (7,000) - ----------- ------------ Net cash used by financing activities . . . . . . . . . . . (8,667) (1,667) ----------- ------------ NET DECREASE IN CASH AND CASH EQUIVALENTS . . . . . . . . . . . (25) (1,196) CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD . . . . . . . 570 1,818 ----------- ------------ CASH AND CASH EQUIVALENTS AT END OF PERIOD . . . . . . . . . . $ 545 $ 622 =========== ============
- ------------------------------ See accompanying notes. - 4 - 7 NORTHWEST PIPELINE CORPORATION NOTES TO FINANCIAL STATEMENTS (Unaudited) (1) GENERAL The accompanying, unaudited interim financial statements of Northwest Pipeline Corporation ("Pipeline"), included herein, have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations; however, Pipeline believes that the disclosures made are adequate to make the information presented not misleading. In the opinion of Pipeline, all adjustments, which include only normal operating adjustments, have been made to present fairly the financial position of Pipeline as of March 31, 1996 and December 31, 1995, and the results of operations and cash flows for the three month periods ended March 31, 1996 and 1995. The results of operations for the periods presented are not necessarily indicative of the results for the respective complete years. It is suggested that these condensed financial statements be read in conjunction with the statements and the notes thereto included in Pipeline's 1995 Annual Report Form 10-K. Cash payments for interest were $7.3 million and $6.9 million, net of interest capitalized, in the three month periods ended March 31, 1996 and 1995, respectively. No payments were made to The Williams Companies, Inc. ("Williams") for income taxes in the three month period ended March 31, 1996. Net cash payments made were $2.1 million in the three month period ended March 31, 1995. (2) LONG-TERM DEBT AND BANKING ARRANGEMENTS Pipeline shares in a $800 million Revolving Credit Agreement with Williams and four affiliated companies. Pipeline's maximum borrowing availability, subject to prior borrowing by other affiliated companies, is $400 million, none of which was used by Pipeline at March 31, 1996. Interest rates vary with current market conditions. The agreement contains restrictions which limit, under certain circumstances, the issuance of additional debt, the attachment of liens on any assets and any change of ownership of Pipeline. Any borrowings by Pipeline using this agreement are not guaranteed by Williams and are based on Pipeline's financial need and credit worthiness. Pipeline has also arranged various uncommitted lines-of-credit at market interest rates. Pipeline's credit facilities are subject to Pipeline's continued credit worthiness. Additionally, on September 14, 1995, Pipeline filed a registration statement for issuance of up to $150 million in public debt securities; and on November 30, 1995, $85 million was issued. (3) ADOPTION OF ACCOUNTING STANDARD Effective January 1, 1996, Pipeline adopted Statement of Financial Accounting Standards No. 121, "Accounting for Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed Of." Adoption of the standard had no effect on Pipeline's financial position or results of operations. - 5 - 8 NORTHWEST PIPELINE CORPORATION NOTES TO FINANCIAL STATEMENTS (Unaudited) (4) CONTINGENT LIABILITIES AND COMMITMENTS Pending Rate Cases On April 1, 1993, Pipeline began collecting new rates, subject to refund, under the provisions of its rate case filed October 1, 1992. On May 31, 1995, Pipeline received a favorable order from the Federal Energy Regulatory Commission ("FERC") on this rate case. A number of parties have sought rehearing on the rate of return on equity and various other issues. Pipeline has adjusted its reserve accruals in the accompanying financial statements to reflect the favorable order from the FERC. On November 1, 1994, Pipeline began collecting new rates, subject to refund, under the provisions of its rate case filed April 29, 1994. This filing seeks a revenue increase for a projected deficiency caused by increased costs and the impact of a transportation contract terminated subsequent to the rate case filed on October 1, 1992. On November 14, 1995, Pipeline filed an uncontested settlement proposal with the FERC. The settlement resolves substantially all the issues in this rate case. The FERC approved the Settlement in a Letter Order dated February 14, 1996 and no rehearing petitions were filed with respect to that order. Pipeline has adjusted its reserve accruals in the accompanying financial statements to reflect the settlement. On February 1, 1996, Pipeline began collecting new rates, subject to refund, under the provisions of its rate case filed August 1, 1995. This rate case is set for hearing in the fall of 1996. The filing seeks a revenue increase for increases in rate base related primarily to the mainline expansion facilities placed into service December 1, 1995, increased operating costs primarily associated with an increase in headquarters office rent and increased depreciation expense. Significant Litigation In October 1995, Pipeline received a judge's order following a non-jury trial involving claims arising from a transportation agreement of a former customer. In the decision which was amended in January 1996, it was held that Pipeline was liable to the former customer in the amount of $5.3 million, plus interest. Although Pipeline recorded a charge to "other expenses" in the third quarter 1995, Pipeline is appealing the decision. Other Legal and Regulatory Matters In addition to the foregoing, various other proceedings are pending against Pipeline incidental to its operations. Summary of Contingent Liabilities Management believes that the ultimate resolution of the foregoing matters, after consideration of amounts accrued, insurance coverage or other indemnification arrangements, will not have a materially adverse effect upon Pipeline's future financial position, results of operations, and future cash flow requirements. - 6 - 9 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations This analysis discusses financial results of Pipeline's operations for the quarters ended March 31, 1996 and 1995. RESULTS OF OPERATIONS Quarter Ended March 31, 1996 vs. Quarter Ended March 31, 1995 Operating revenues increased $8.5 million, or 14%, due primarily to increased transportation rates effective February 1, 1996, resulting from the completion of Pipeline's mainline expansion in December of 1995. Two other items also affecting revenues were an increase of $4.1 million for the February 1996 settlement of previous rate cases offset by $3.9 million for a potential fuel refund for volumes that have been disallowed by the FERC. Variances due to changes in price and volume no longer have a significant impact on revenues, because under its straight-fixed-variable rate design methodology, the majority of Pipeline's overall cost of service is recovered through fixed demand charges in its transportation rates. Pipeline's transportation service accounted for 94% of operating revenues for both the first quarters of 1996 and 1995. Of those amounts, Pipeline's firm transportation service accounted for 99.9% and 98% in the first quarters of 1996 and 1995, respectively. The remaining .1% and 2% for each period, respectively, represented interruptible transportation service. Additionally, 4% of revenues represented gas storage service for both the first quarters of 1996 and 1995, respectively. Operating expenses increased $2.4 million, or 7%, due primarily to Pipeline's mainline expansion which increased maintenance costs, depreciation and amortization and taxes, other than income taxes by increasing property values. Operation costs increased due primarily to the increase in headquarters office rent. Operating income increased $6.1 million, or 23%, primarily due to the completion of Pipeline's mainline expansion, partially offset by the increased costs associated with that expansion and the increase in the headquarters office rent. Interest on long-term debt increased $1.3 million as the result of the issuance of $85 million in debentures during the fourth quarter of 1995. The following table summarizes year-to-date volumes and average daily volumes for the periods indicated:
Quarter Ended March 31, ------------------------------ 1996 1995 --------- ---------- Total Gas volumes throughput (TBtu) 237 208 Average Daily Transportation Volumes (TBtu) 2.6 2.3 Average Daily Firm Reserve Capacity (TBtu) 2.6 2.4
FINANCIAL CONDITION AND LIQUIDITY Pipeline anticipates 1996 capital expenditures will total approximately $79.1 million, of which $15.6 million has been expended through March 31, 1996. Funds necessary to complete capital projects are expected to come from several sources, including Pipeline's operations and the return of funds previously advanced to Williams. In addition, Pipeline expects to be able to obtain financing, when necessary, on reasonable terms. To allow flexibility in the timeing of issuance of long-term securities, financing may be provided on an iterim basis with bank debt and from sources discussed below. -7- 10 Pipeline believes that strong economies in the Pacific Northwest and the growing preference for natural gas in response to environmental concerns support future expansions of its mainline capacity, although no significant expansions are in the development stage at the present time. Pipeline shares in a $800 million Revolving Credit Agreement with Williams and four affiliated companies. Pipeline's maximum borrowing availability, subject to prior borrowing by other affiliated companies, is $400 million, none of which was used by Pipeline at March 31, 1996. Interest rates vary with current market conditions. The agreement contains restrictions which limit, under certain circumstances, the issuance of additional debt, the attachment of liens on any assets and any change of ownership of Pipeline. Any borrowings by Pipeline using this agreement are not guaranteed by Williams and are based on Pipeline's financial need and credit worthiness. Pipeline has also arranged various uncommitted lines-of-credit at market interest rates. Pipeline's credit facilities are subject to Pipeline's continued credit worthiness. Additionally, on September 14, 1995, Pipeline filed a registration statement for issuance of up to $150 million in public debt securities; and on November 30, 1995, $85 million was issued. OTHER Pipeline owns and operates an interstate natural gas pipeline system, including facilities for mainline transmission and gas storage. Pipeline's transmission and storage activities are subject to regulation by the FERC under the Natural Gas Act of 1938 and under the Natural Gas Policy Act of 1978, and, as such, its rates and charges for the transportation, the extension, enlargement or abandonment of its jurisdictional facilities, and its accounting, among other things, are subject to regulation. Pipeline is also subject to the National Environmental Policy Act and other federal and state legislation regulating the environmental aspects of its business. Management believes that Pipeline is in substantial compliance with existing environmental requirements. Pipeline believes that, with respect to any capital expenditures required to meet applicable standards and regulations, FERC would grant the requisite rate relief so that, for the most part, such expenditures and a return thereon would be permitted to be recovered. Pipeline believes that compliance with applicable environmental requirements is not likely to have a material effect upon Pipeline's earnings, cash flow or competitive position. The Financial Accounting Standards Board has issued a new accounting standard, FAS No. 123 "Accounting for Stock- Based Compensation," effective for fiscal years beginning after December 15, 1995. As provided for in the standard, Pipeline will not adopt the recognition provisions and will provide the pro forma net income and earnings-per-share disclosure required by the standard in its 1996 annual financial statements. Pipeline currently follows Accounting Principles Board Opinion No. 25 "Accounting for Stock Issued to Employees." Under this standard, because the exercise price of Williams' fixed plan common stock options equals the market price of the underlying stock on the date of the grant, no compensation expense is recognized. In November 1995, Pipeline and Transwestern Pipeline Company entered into an agreement for the sale by Pipeline to Transwestern of a 77.7% undivided ownership interest in the south end of Pipeline's transmission line from Ignacio, Colorado to Blanco, New Mexico. Transwestern will pay Pipeline at closing 77.7% of the net book value of the South End facilities estimated to be $21 million plus 77.7% of the cost of certain modifications necessary to separate the operation of the South End facilities from Pipeline's mainline estimated to be $4.9 million. The parties executed a letter of intent as of September 22, 1995, and expect to close the sale when each has received appropriate board approvals. On April 29, 1996, Pipeline did receive from the FERC an order approving the abandonment and sale of the facilities to Transwestern. Pipeline is satisfied with the order and will not seek a rehearing. Closing is expected to be during the third or fourth quarter of 1996. - 8 - 11 On April 1, 1993, Pipeline began collecting new rates, subject to refund, under the provisions of its rate case filed October 1, 1992. On May 31, 1995, Pipeline received a favorable order from FERC on this rate case. A number of parties have sought rehearing on the rate of return on equity and various other issues. Pipeline has adjusted its reserve accruals in the accompanying financial statements to reflect the favorable order from the FERC. On November 1, 1994, Pipeline began collecting new rates, subject to refund, under the provisions of its rate case filed April 29, 1994. This filing seeks a revenue increase for a projected deficiency caused by increased costs and the impact of a transportation contract terminated subsequent to the rate case filed on October 1, 1992. On November 14, 1995, Pipeline filed an uncontested settlement proposal with the FERC. The settlement resolves substantially all the issues in this rate case. The FERC approved the Settlement in a Letter Order dated February 14, 1996 and no rehearing petitions were filed with respect to that order. Pipeline has adjusted its reserve accruals in the accompanying financial statements to reflect the settlement. On February 1, 1996, Pipeline began collecting new rates, subject to refund, under the provisions of its rate case filed August 1, 1995. This rate case is set for hearing in the fall of 1996. The filing seeks a revenue increase for increases in rate base related primarily to the mainline expansion facilities placed into service December 1, 1995, increased operating costs primarily associated with an increase in headquarters office rent and increased depreciation expense. - 9 - 12 PART II. OTHER INFORMATION The information required by items in Part II is omitted because the items are inapplicable, the answer is negative or substantially the same information is included elsewhere in this report or has been previously reported by the Registrant. - 10 - 13 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. NORTHWEST PIPELINE CORPORATION ---------------------------------- Registrant By: /s/ CURTIS C. KENNEDY ---------------------------------- Curtis C. Kennedy Controller and Treasurer (Duly Authorized Officer and Chief Financial Officer) Date: May 13, 1996 - 11 - 14 EXHIBIT INDEX Exhibit ------- 27 Financial Data Schedule EX-27 2 FINANCIAL DATA SCHEDULE
5 1,000 3-MOS DEC-31-1996 MAR-31-1996 545 0 36,020 0 11,294 128,510 1,448,695 526,531 1,075,865 122,812 370,235 1 0 0 467,637 1,075,856 0 67,584 0 35,096 0 0 9,451 23,820 8,642 15,178 0 0 0 15,178 0 0
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