NorthWestern Energy : 2023 HPC Annual Report

YEAR ENDING 2023

ANNUAL REPORT

OF

Havre Pipeline Company, LLC

Docket 2024.01.001

TO THE

PUBLIC SERVICE COMMISSION

STATE OF MONTANA

1701 PROSPECT AVENUE

P.O. BOX 202601

HELENA, MT 59620-2601

Havre Pipeline Company, LLC Annual Report

Table of Contents
Description		Schedule
Identification		1
Board of Directors	not applicable	2
Officers		3
Corporate Structure	not applicable	4
Corporate Allocations	not applicable	5
Affiliate Transactions - To the Utility		6
Affiliate Transactions - By the Utility	not applicable	7
Montana Utility Income Statement		8
Montana Revenues		9
Montana Operation and Maintenance Expenses		10
Montana Taxes Other Than Income		11
Payments for Services		12
Political Action Committees/Political Contributions	not applicable	13
Pension Costs	not applicable	14
Other Post Employment Benefits	not applicable	15
Top Ten Montana Compensated Employees	not applicable	16
Top Five Corporate Compensated Employees	not applicable	17
Balance Sheet		18

continued on next page

Description		Schedule
Montana Plant in Service		19
Montana Depreciation Summary		20
Montana Materials and Supplies		21
Montana Regulatory Capital Structure		22
Statement of Cash Flows		23
Long Term Debt	not applicable	24
Preferred Stock	not applicable	25
Common Stock	not applicable	26
Montana Earned Rate of Return		27
Montana Composite Statistics		28
Montana Customer Information		29
Montana Employee Counts	not applicable	30
Montana Construction Budget		31
Transmission, Distribution and Storage Systems		32
Sources of Gas Supply		33
MT Conservation and Demand Side Mgmt. Programs	not applicable	34
Montana Consumption and Revenues		35
Natural Gas Universal System Benefits Programs	not applicable	36a
Montana Conservation and Demand Side Mgmt. Programs	not applicable	36b

Sch. 1	IDENTIFICATION
1
2	Legal Name of Respondent:	Havre Pipeline Company, LLC
3
4	Name Under Which Respondent Does Business:	Havre Pipeline Company, LLC
5
6	Date Utility Service First Offered in Montana:	10/1/1995
7
8	Person Responsible for Report:	Jeff B. Berzina
9
10	Telephone Number for Report Inquiries:	[phone]
11
12	Address for Correspondence Concerning Report:	11 East Park Street
13		Butte, MT 59701
14
15
16
17

1. Control Over Respondent:
2. If direct control over respondent is held by another entity, provide below the name, address,
3. means by which control is held and percent ownership of controlling entity:

21
22	1a. Name and address of the controlling organization or person:
23		NorthWestern Corporation
24		3010 West 69th Street
25		Sioux Falls, SD 57108
26
27	1b. Means of which control was held:	Managing Member
28
29	1c. Percent Ownership	96.13%
30

Schedule 1

Sch. 3		OFFICERS
	Title	Department Supervised	Name
1
2
3
4	President		Michael Cashell
5
6	Vice President		Bleau LaFave
7
8	Vice President		Jason McClafferty
9
10	Treasurer		Crystal Lail
11
12	Secretary		Tim Olson
13
14	Assistant Secretary		Emily Larkin Folsom
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58

Reflects active officers as of December 31, 2023.

Schedule 3

Sch. 6		AFFILIATE TRANSACTIONS - PRODUCTS & SERVICES PROVIDED TO UTILITY
					Charges	% of Total	Charges
	Affiliate Name		Products & Services	Method to Determine Price	to Utility	Affil. Rev.	to MT Utility
1	Nonutility Subsidiaries
2
3
4	Total Nonutility Subsidiaries				$0		$0
5	Total Nonutility Subsidiaries Revenues		$0
6
7
8	Utility Subsidiaries
9
10	NorthWestern Corporation		Management Services	Negotiated Contract Rate	$500,400		$500,400
11	NorthWestern Corporation		Labor Cost	Actual Expense	1,283,172		1,283,172
12
13	Total Utility Subsidiaries				$1,783,572		$1,783,572
14	Total Utility Subsidiaries Revenues
15	TOTAL AFFILIATE TRANSACTIONS				$1,783,572		$1,783,572

Schedule 6

Sch. 8		MONTANA UTILITY INCOME STATEMENT - HAVRE PIPELINE CO., LLC
				This Year		Last Year
		Account Number & Title		Montana		Montana		% Change
1
2	400	Operating Revenues	$	2,608,256	$	2,686,054		-2.90%
3
4	Total Operating Revenues		2,608,256		2,686,054		-2.90%
5		Operating Expenses
6
7
8	401	Operation Expense		2,290,097		2,147,731		6.63%
9	402	Maintenance Expense		882,834		276,694		219.07%
10	403	Depreciation Expense		421,171		420,798		0.09%
11	404-405	Amort. & Depletion of Gas Plant		1,686		1,686		0.02%
12	406	Amort. of Plant Acquisition Adj.		-		-
13	407.3	Regulatory Amortizations - Debit		-		-
14	407.4	Regulatory Amortizations - Credit		-		-
15	408.1	Taxes Other Than Income Taxes		561,856		601,094		-6.53%
16	409.1	Income Taxes-Federal		-		-
17		-Other		-		-
18	410.1	Deferred Income Taxes-Dr.		-		-
19	411.1	Deferred Income Taxes-Cr.		-		-
20	411.4	Investment Tax Credit Adj.		-		-
21
22	Total Operating Expenses		4,157,645		3,448,003		20.58%
23	NET OPERATING INCOME	$	(1,549,389)	$	(761,949)		-103.35%

Schedule 8

Sch. 9	MONTANA REVENUES - HAVRE PIPELINE CO., LLC
			Last Year
	Account Number & Title	This Year	Montana	% Change
1

2 Core Distribution Business Units

3		(DBUs)
4	440	Residential	$	49,528	$	40,148	23.36%
5	442.1	Commercial		7,330		6,877	6.59%
6	442.2	Industrial Firm		-		-	-
7	445	Public Authorities		-		-	-
8	448	Interdepartmental Sales		-		-	-
9	491.2	CNG Station		-		-	-
10
11	Total Sales to Core DBUs		56,858		47,025	20.91%
12
13	447	Sales for Resale		-		-	-
14
15	Total Sales of Natural Gas		56,858		47,025	20.91%
16
17	496.1	Provision for Rate Refunds		-		-	-
18
19	Total Revenue Net of Rate Refunds		56,858		47,025	20.91%
20
21	489.1	Gathering		1,499,023		1,561,975	-4.03%
22	489.2	Transmission		862,310		907,412	-4.97%
23
24	Total Revenues From Transportation		2,361,334		2,469,387	-4.38%
25
26		Miscellaneous Revenues		190,064		169,642	12.04%
27
28	Total Other Operating Revenue		190,064		169,642	12.04%
29	TOTAL OPERATING REVENUE	$	2,608,256	$	2,686,054	-2.90%
30
31
32
33
34
35
36
37

Schedule 9

Sch. 10	MONTANA OPERATION & MAINTENANCE EXPENSES - HAVRE PIPELINE CO., LLC
				This Year		Last Year
		Account Number & Title		Montana		Montana	% Change
1		Gas Raw Materials
2	Gas Raw Materials-Operation
3	728	Liquefied Petroleum Gas	$	-	$	-	-
4	735	Miscellaneous Production Expenses		-		-	-
5	Total Operation-Gas Raw Materials		-		-	-
6	Gas Raw Materials-Maintenance
7
8	741	Structures & Improvements		-		-	-
9	Total Maintenance-Gas Raw Materials		-		-	-
10	Total Gas Raw Materials		-		-	-
11		Production Expenses
12	Production Maintenance
13
14	762	Maint. of Gathering Structures		-		-	-
15	763	Maint. of Producing Gas Wells		-		-	-
16	764	Maint. of Field Lines		14,202		24,581	-42.23%
17	765	Maint. of Field Compressor Stations		735,152		135,610	>300.00%
18	766	Maint. of Field Meas. & Reg. Stations		3,672		1,422	158.26%
19	767	Maint. of Purification Equipment		76,076		73,144	4.01%
20	769	Maint. of Other Equipment		-		-	-
21	Total Maintenance - Production		829,102		234,757	253.17%
22	Production & Gathering-Operation
23
24	750	Supervision & Engineering		28,393		38,650	-26.54%
25	751	Maps & Records		-		-	-
26	752	Gas Wells Expenses		-		-	-
27	753	Field Lines Expenses		20,226		12,843	57.48%
28	754	Field Compressor Station Expense		465,261		488,701	-4.80%
29	755	Field Comp. Station Fuel & Power		-		-	-
30	756	Field Meas. & Reg. Station Expense		244,304		217,295	12.43%
31	757	Dehydration Expense		100,467		74,006	35.76%
32	758	Gas Well Royalties		-		-	-
33	759	Other Expenses		65,690		151,450	-56.63%
34	760	Rents		-		-	-
35	Total Oper.-Production & Gathering		924,340		982,945	-5.96%
36	Other Gas Supply Expense-Operation
37
38	800	NG Wellhead Purchases		-		-	-
39	803	NG Transmission Line Purchases		-		-	-
40	805	Other Gas Purchases		-		-	-
41	805	Purchased Gas Cost Adjustments		-		-	-
42	805	Incremental Gas Cost Adjustments		-		-	-
43	805	Deferred Gas Cost Adjustments		-		-	-
44	806	Exchange Gas		-		-	-
45	807	Well Expenses-Purchased Gas		29,321		86,733	-66.19%
46	807	Purch. Gas Meas. Stations-Oper.		-		-	-
47	807	Purch. Gas Meas. Stations-Maint.		-		-	-
48	807	Purch. Gas Calculations Expenses		-		-	-
49	808	Other Purchased Gas Expenses		-		-	-
50	808	Gas Withdrawn from Storage -Dr.		-		-	-
51	809	Gas Delivered to Storage -Cr.		-		-	-
52	810	Gas Used-Comp. Station Fuel-Cr.		-		-	-
53	811	Gas Used-ProductsExtraction-Cr.		-		-	-
54	812	Gas Used-Other Utility Oper.-Cr.		-		-	-
55	813	Other Gas Supply Expenses		-		-	-
56	Total Other Gas Supply Expenses		29,321		86,733	-66.19%
57	Total Production Expenses		1,782,764		1,304,435	36.67%

Schedule 10

Sch. 10 MONTANA OPERATION & MAINTENANCE EXPENSES - HAVRE PIPELINE CO., LLC

		This Year	Last Year
	Account Number & Title	Montana	Montana	% Change
1	Storage Expenses
2

3 Underground Storage-Operation

4	814	Supervision & Engineering	-	-	-
5	815	Maps & Records	-	-	-
6	816	Wells	-	-	-
7	817	Lines	-	-	-
8	818	Compressor Station	-	-	-
9	819	Compressor Station Fuel & Power	-	-	-
10	820	Measuring & Regulating Station	-	-	-
11	821	Purification	-	-	-
12	824	Other Expenses	-	-	-
13	825	Storage Well Royalties	-	-	-
14	826	Rents	-	-	-
15	Total Operation-Underground Storage	-	-	-
16	Underground Storage-Maintenance
17
18	830	Supervision & Engineering	-	-	-
19	831	Structures & Improvements	-	-	-
20	832	Reservoirs & Wells	-	-	-
21	833	Lines	-	-	-
22	834	Compressor Station Equipment	-	-	-
23	835	Meas. & Reg. Station Equipment	-	-	-
24	836	Purification Equipment	-	-	-
25	837	Other Equipment	-	-	-
26	Total Maintenance-Underground Storage	-	-	-
27	Total Underground Storage Expenses	-	-	-
28		Transmission Expenses
29	Transmission-Operation
30	850	Supervision & Engineering	34,493	43,991	-21.59%
31	851	System Control & Load Dispatching	-	-	-
	852	Communications System Expenses	-	-	0.00%
32	853	Compressor Station Labor & Expense	198,063	208,657	-5.08%
33	855	Other Fuel & Power for Comp. Stat.	-	-	-
34	856	Mains	-	-	-
35	857	Measuring & Regulating Station	83,828	68,455	22.46%
36	858	Transmission & Comp.-By Others	-	-	-
37	859	Other Expenses	697,997	707,873	-1.40%
38	860	Rents	-	-	-
39	Total Operation-Transmission	1,014,381	1,028,976	-1.42%
40	Transmission-Maintenance
41	861	Supervision & Engineering	-	-	-
42	862	Structures & Improvements	-	-	-
43	863	Mains	20,816	4,723	>300.00%
44	864	Compressor Station Equipment	-	8,592	-100.00%
45	865	Meas. & Reg. Station Equipment	32,745	23,272	40.71%
46	867	Other Equipment	-	5,285	-100.00%
47	Total Maintenance-Transmission	53,561	41,872	27.92%
48	Total Transmission Expenses	1,067,943	1,070,848	-0.27%

Schedule 10A