One Blue Hill Plaza, 7th Floor

Post Office Box 1565

Pearl River, NY 10965
845.620.1300 Voice | 845.620.1320 Fax

September 30, 2016

Ms. Kimberly D. Bose, Secretary
Federal Energy Regulatory Commission
888 First Street, N.E.
Washington, D.C. 20426
Re:

Millennium Pipeline Company, L.L.C., Docket No. CP16-486-000

Response to September 21, 2016 Data Request

Dear Ms. Bose:

On July 29, 2016, Millennium Pipeline Company, L.L.C. (Millennium) filed with the
Federal Energy Regulatory Commission Commission) in Docket No. CP16-486-000 an
Abbreviated Application for a Certificate of Public Convenience and Necessity (Application)
for its proposed Eastern System Upgrade Project (Project). 1 Millennium hereby submits its
responses to the Data Request issued by the Commission Staff on September 21, 2016, in the
referenced proceeding.
If you have any questions regarding this filing, please contact me at 845-620-1300.
Respectfully submitted,
/s/ Georgia Carter
Georgia Carter
Vice President and General Counsel
Millennium Pipeline Company, L.L.C.
Attachment
cc:

Darya Khanin, FERC

Service List

Millennium Pipeline Company, L.L.C., Abbreviated Application for a Certificate of Public Convenience and
Necessity, Docket No. CP16-486-000 (July 29, 2016).

www.millenniumpipeline.com

Millennium Pipeline Company, L.L.C.

Docket No. CP16-486-000
Response to September 21, 2016 Data Request

Data Request:
1.
In Exhibit K, Millennium estimates the capitalized allowance for funds used during
construction (AFUDC) to be $21,152,661. Please provide the following in Microsoft Excel.
Also, the worksheets and/or files should retain all notes, plus any formulas supporting the
calculation:
a. The worksheet computations on a monthly basis to support the $21,152,661 of AFUDC.
Identify the debt/equity AFUDC amounts.
b. The computation and methodology to support the debt/equity cost rates used to derive the
AFUDC rate.
Response:
Attached as Attachment A are Millenniums revised Exhibit K and worksheet computations on a
monthly cash flow basis for all categories, including AFUDC, as requested in FERCs data
request.
Upon further examination, Millennium inadvertently included Company Overheads
(Overheads) within the AFUDC category on its Exhibit K. Prior to filing of its application
for the Eastern System Upgrade Project, Millennium had combined AFUDC and Overheads on a
summary sheet under a single category of AFUDC/Overheads. However, in its application,
Millennium inadvertently failed to separate out the two cost categories and provide the proper
description in its Exhibit K. As set forth on the attached spreadsheet, AFUDC is estimated to be
$16,519,258 and Overheads are estimated to be $4,633,403.
Millennium has separated out the calculations for AFUDC based on Debt and Equity to assist
FERC with its review of AFUDC calculations. Additionally, Millennium has provided
information for the basis of the debt/equity cost rates utilized in the AFUDC computations.

Respondent: John Keith

Title: Vice President Finance & Controller
Phone: 845-620-1300

ATTACHMENT A

EASTERN SYSTEM UPGRADE PROJECT

DOCKET NO. CP16-486-000
Estimated Cost of Facilities
Exhibit K
Description
Right of Way
Surveys
Materials
Labor
Engineering, Permitting & Inspection
Legal Fees
Other Costs
Overhead
AFUDC Debt
AFUDC Equity
Contingency
Total Project

$
$
$
$
$
$
$
$

Feb-15
65,655
-

AFUDC Debt
AFUDC Equity
Total

$
$
$
$
$
$
$
$

Mar-15
26,040
-

Apr-15
$
$
$
$
$ 15,814
$
$
$
-

$
$

65,655

$
$

26,040

$
$ 15,814

$
Activity Excluding AFUDC
Land Purchased/Owned Excluded
Total Current Month Activity
CWIP Balance (Prior Month CWIP + Current

65,655

26,040

65,655

month Activity + Current month AFUDC)

65,655

May-15
$
$
$
$
$
$
$
$

$
$

7,708
-

7,708

Jun-15
$
$
$
$
$
$
$
$

1,775
-

2.86%
6.87%
9.73%

Jul-15
$
$
$
$
$
$
$
$

8,805
9,210
-

Aug-15
$
$
$
$
$
$
$
$

13,614
27,086
-

Sep-15
$
$
$
$
$
$
$
$

15,260
24,537
1,750

$
$
$
$
$
$
$
$

Oct-15
5,478
20,538
27,755
5,750
2,497
1,830

$
$
$
$
$
$
$
$

Nov-15
34,119
9,921
89,528
45,488
32,304
9,528

$
$

1,775

$
$

18,015

$
$

40,700

$
$

41,547

$
$

63,848

$
$

220,888

15,814 $

7,708 $

1,775

18,015

40,700

41,547

63,848

220,888

26,040

15,814

7,708

1,775

18,015

40,700

41,547

63,848

91,695

107,509

115,217

116,992

135,007

175,707

217,254

281,102

$
$
$
$
$
$
$
$
$
$
$
$

$
$

Dec-15
508,848
27,269
143,477
110,544
35,505
3,953
598
1,437
831,631

2015
$
548,445
$
57,728
$
$
$
400,171
$
204,128
$
104,053
$
17,061
$
598
$
1,437
$
$ 1,333,621

Jan-16
$ 1,484,890
$
26,564
$
$
$
159,498
$
68,636
$
55,342
$18,265
$
2,091
$
5,022
$
$ 1,820,307

$
$
$
$
$
$
$
$
$
$
$

$ 1,813,195 $

220,888

829,596
(456,467)
373,129

501,990

877,154

Feb-16
76,489
71,860
182,917
60,319
65,804
$13,554
6,429
15,443
492,815

$
$
$
$
$
$
$
$
$
$
$

Mar-16
297,101
72,137
265,939
60,676
215,445
$17,259
7,603
18,264
954,425

$
$
$
$
$
$
$
$
$
$
$
$

Apr-16
213,812
58,904
275,466
96,276
117,482
14,595
9,878
23,728
810,142

May-16
$
179,243
$
59,165
$
68,681
$
100,000
$
373,772
$
147,688
$
73,620
$
15,557
$
11,809
$
28,366
$
$ 1,057,902

$
$
$
$
$
$
$
$
$
$
$
$

Jun-16
71,530
593
422,207
41,590
95,750
15,655
14,330
34,423
696,078

470,943 $

928,557 $

776,535 $ 1,017,726 $

647,325

1,813,195

470,943

928,557

776,535

1,017,726

647,325

2,697,461

3,190,276

4,144,701

4,954,843

6,012,744

6,708,823

a). AFUDC started accruing December 15, 2015, which is after the Commission approved the request to initiate the pre-filing process.
b). AFUDC is calculated by taking Prior Month CWIP Total (row 35) x Rate / 12; AFUDC Debt = 2.86%; AFUDC Equity = 6.87%; Total AFUDC Rate = 9.73%.
c). Calculated one-half month of AFUDC in the first qualifying month of the project and in the month the project is estimated to be placed into service. (For both of these months divide AFUDC calculation in footnote b by 2)
d). Land to be purchased and owned by Millennium is excluded from the AFUDC calculation.

9/28/2016

12:09 PM

EASTERN SYSTEM UPGRADE PRO

DOCKET NO. CP16-486-000
Estimated Cost of Facilities
Exhibit K
Description
Right of Way
Surveys
Materials
Labor
Engineering, Permitting & Inspection
Legal Fees
Other Costs
Overhead
AFUDC Debt
AFUDC Equity
Contingency
Total Project

$
$
$
$
$
$
$
$
$
$
$
$

$
Activity Excluding AFUDC
Land Purchased/Owned Excluded
Total Current Month Activity
CWIP Balance (Prior Month CWIP + Current
month Activity + Current month AFUDC)

Jul-16
20,980
94,158
413,233
39,890
104,069
18,388
15,989
38,408
745,115

$
$
$
$
$
$
$
$
$
$
$
$

Aug-16
11,188
34,142
223,991
800
471,124
39,606
119,293
11,430
17,765
42,674
972,013

Sep-16
$
91,500
$
34,580
$
979,998
$
$
383,117
$
40,000
$
59,014
$
20,000
$
20,082
$
48,239
$
$ 1,676,529

$
$
$
$
$
$
$
$
$
$
$
$

Oct-16
40,000
30,081
310,679
103,257
49,000
20,000
24,078
57,837
634,931

$
$
$
$
$
$
$
$
$
$
$
$

690,718 $

911,574 $ 1,608,209 $

553,017 $

690,718

911,574

1,608,209

553,017

7,453,938

8,425,951

10,102,480

10,737,412

Nov-16
40,000
30,081
308,118
306,929
101,257
49,000
20,000
25,591
61,472
942,448

Dec-16
$
596,900
$
30,081
$
$
$
274,171
$
103,256
$
25,000
$
20,000
$
27,837
$
66,867
$
$ 1,144,112

855,385 $ 1,049,408
$ (230,000)
855,385
819,408
11,679,859

12,593,971

2016
$ 3,123,633
$
541,753
$ 1,581,381
$
100,800
$ 3,839,052
$
902,451
$ 1,028,819
$
204,703
$
183,482
$
440,743
$
$ 11,946,817

$
$
$
$
$
$
$
$
$
$
$
$

Jan-17
274,537
2,862
100,000
262,158
116,424
25,000
20,000
30,016
72,100
903,097

Feb-17
$
292,178
$
$
876,617
$
$
226,690
$
117,524
$
25,000
$
20,000
$
32,168
$
77,271
$
$ 1,667,448

Mar-17
$
291,269
$
$
841,381
$
$
220,802
$
118,424
$
25,000
$
20,000
$
36,142
$
86,817
$
$ 1,639,835

Apr-17
$
291,268
$
$ 2,456,000
$
$
208,302
$
119,424
$
25,000
$
35,000
$
40,050
$
96,205
$
$ 3,271,249

May-17
$
231,268
$
$
950,000
$
$
168,646
$
120,424
$
25,000
$
25,000
$
47,847
$
114,933
$
$ 1,683,118

Jun-17
$
211,269
$
$ 1,682,630
$
$
177,069
$
125,381
$
25,000
$
40,000
$
51,858
$
124,569
$
$ 2,437,776

Jul-17
$
250,268
$
$ 10,328,403
$
$
73,106
$
125,424
$
25,000
$
230,509
$
57,668
$
138,525
$
$ 11,228,903

Aug-17
$
141,269
$
$ 4,405,795
$
$
68,107
$
125,424
$
25,000
$
105,565
$
84,431
$
202,810
$ 1,500,000
$ 6,658,401

Sep-17
$
162,613
$
$ 6,056,988
$
$
85,106
$
125,424
$
25,000
$
126,356
$
100,300
$
240,930
$ 1,500,000
$ 8,422,716

Oct-17
$
122,613
$
60,724
$ 12,650,669
$ 5,538,260
$
36,106
$
125,424
$
25,000
$
359,546
$
120,374
$
289,150
$ 4,000,000
$ 23,327,865

$
$
$
$
$
$
$
$
$
$
$
$

Nov-17
618,070
7,469,147
9,813,513
76,439
126,724
20,000
363,984
175,972
422,702
4,500,000
23,586,551

Dec-17
$
122,613
$
$ 5,135,703
$ 2,966,343
$
76,439
$
125,424
$
20,000
$
176,226
$
232,187
$
557,735
$ 2,250,000
$ 11,662,669

$
$
$
$
$
$
$
$
$
$
$
$

2017
3,009,235
63,586
52,953,333
18,318,115
1,678,970
1,471,445
290,000
1,522,186
1,009,012
2,423,746
13,750,000
96,489,628

800,981 $ 1,558,009 $ 1,516,876 $ 3,134,994 $ 1,520,338 $ 2,261,349 $ 11,032,710 $ 6,371,160 $ 8,081,487 $ 22,918,342 $ 22,987,877 $ 10,872,748
800,981

1,558,009

1,516,876

3,134,994

1,520,338

2,261,349

11,032,710

6,371,160

8,081,487

22,918,342

22,987,877

10,872,748

13,497,069

15,164,516

16,804,351

20,075,600

21,758,718

24,196,494

35,425,397

42,083,798

50,506,515

73,834,380

97,420,931

109,083,600

9/28/2016

12:09 PM

EASTERN SYSTEM UPGRADE PRO

DOCKET NO. CP16-486-000
Estimated Cost of Facilities
Exhibit K
Description
Right of Way
Surveys
Materials
Labor
Engineering, Permitting & Inspection
Legal Fees
Other Costs
Overhead
AFUDC Debt
AFUDC Equity
Contingency
Total Project

Jan-18
$
123,613
$
$ 3,096,611
$
$
63,439
$
120,424
$
20,000
$
158,563
$
259,983
$
624,504
$
$ 4,467,136

Feb-18
$
123,613
$
$ 6,992,379
$
$
15,606
$
120,424
$
20,000
$
175,616
$
270,629
$
650,078
$
$ 8,368,345

Mar-18
$
100,794
$
$
383,790
$
$
15,606
$
120,424
$
20,000
$
45,000
$
290,574
$
697,987
$
$ 1,674,175

Apr-18
$
180,794
$
38,921
$
703,299
$
$
15,606
$
120,424
$
20,000
$
45,000
$
294,564
$
707,571
$
$ 2,126,179

May-18
$
180,794
$
9,900
$ 2,839,284
$ 19,065,330
$
15,606
$
120,424
$
428,333
$
454,492
$
299,631
$
719,744
$ 2,750,000
$ 26,883,538

Jun-18
$
146,352
$
37,996
$
$ 23,703,590
$
15,606
$
120,424
$
708,129
$
520,083
$
363,704
$
873,652
$ 4,750,000
$ 31,239,536

Jul-18
$
146,352
$
41,996
$
$ 28,066,800
$
15,606
$
120,424
$
638,333
$
615,365
$
438,158
$ 1,052,498
$ 5,250,000
$ 36,385,532

Aug-18
$
146,352
$
43,996
$
$ 22,018,385
$
15,606
$
120,424
$ 1,600,463
$
497,722
$
524,877
$ 1,260,806
$ 3,750,000
$ 29,978,630

Sep-18
$
146,352
$
43,996
$
$ 14,604,600
$
15,606
$
120,424
$ 1,678,333
$
353,007
$
596,326
$ 1,432,433
$ 2,750,000
$ 21,741,077

Oct-18
$
183,306
$
91,193
$
$
$
15,606
$
120,424
$
828,129
$
24,605
$
324,071
$
778,450
$
$ 2,365,784

Nov-18

Dec-18

2018
$
1,478,322
$
307,998
$ 14,015,363
$ 107,458,705
$
203,893
$
1,204,240
$
5,961,720
$
2,889,453
$
3,662,516
$
8,797,723
$ 19,250,000
$ 165,229,933

Cash Forecast
$
8,159,635
$
971,065
$
68,550,077
$ 125,877,620
$
6,122,086
$
3,782,264
$
7,384,592
$
4,633,403
$
4,855,609
$
11,663,649
$
33,000,000
$ 275,000,000

685,614 $ 1,124,044 $ 25,864,163 $ 30,002,180 $ 34,894,876 $ 28,192,948 $ 19,712,318 $ 1,263,263

$ 3,582,650 $ 7,447,638 $
Activity Excluding AFUDC
Land Purchased/Owned Excluded
Total Current Month Activity
3,582,650
7,447,638
685,614
1,124,044
25,864,163
30,002,180
34,894,876
28,192,948
19,712,318
1,263,263
CWIP Balance (Prior Month CWIP + Current
113,550,736 121,919,081 123,593,256 125,719,435 152,602,973 183,842,509 220,228,041 250,206,671 271,947,749 274,313,533
month Activity + Current month AFUDC)
Date
Acquired Land Excluded from CWIP

456,467
230,000

12/15
12/16
275,000,000 Ties to total project cost by adding the land
purchased / owned to the CWIP Balance at
OCT 18.

9/28/2016

12:09 PM