REGULATORY MATTERS

9 Months Ended

Sep. 30, 2011

REGULATORY MATTERS

REGULATORY MATTERS

NOTE 13                      REGULATORY MATTERS

On May 24, 2011, the FERC issued an Order (May 24 Order) initiating an investigation pursuant to Section 5 of the Natural Gas Act (NGA) to determine whether Tuscarora’s existing rates for jurisdictional services are unjust and unreasonable. The FERC initiated this proceeding following a complaint filed by the Public Utilities Commission of Nevada (PUCN) and Sierra Pacific Power Company d/b/a NV Energy (NV Energy) (collectively, Complainants). Tuscarora filed a cost and revenue study with FERC on August 8, 2011, as required by the May 24 Order.  The May 24 Order directed that a hearing be conducted pursuant to an accelerated timeline and that an initial decision be issued by April 27, 2012.  The outcome of this proceeding to Tuscarora is not currently determinable.