THE PURPOSE OF THE FEDERAL 1 ENERGY REGULATORY COMMISSION'S 10:07 OPEN MEETING IS FOR THE 10:07 COMMISSION TO CONSIDER THE 10:07 MATTERS THAT HAVE BEEN DULY 10:07 POSTED IN ACCORDANCE WITH THE 10:07 GOVERNMENT AND THE SUNSHINE ACT. 10:07 MEMBERS OF THE PUBLIC ARE 10:07 INVITED TO OBSERVE, WHICH 10:07 INCLUDE ATTENDING, LISTENING AND 10:07 TAKING NOTES, BUT DOES NOT 10:07 INCLUDE PARTICIPATING IN THE 10:07 MEETING OR ADDRESSING THE 10:07 COMMISSION. 10:07 ACTIONS THAT PURPOSELY INTERFERE 10:07 OR ATTEMPT TO INTERFERE WITH THE 10:07 COMMENCEMENT OR CONDUCTING OF 10:07 THE MEETING OR INHIBITS THE 10:07 AUDIENCE'S ABILITY TO OBSERVE OR 10:08 LISTEN TO THE MEETING, INCLUDING 10:08 ATTEMPTS BY AUDIENCE MEMBERS TO 10:08 ADDRESS THE COMMISSION WHILE THE 10:08 MEETING IS IN PROGRESS, ARE NOT 10:08 PERMITTED. 10:08 ANY PERSONS ENGAGING IN SUCH 10:08 BEHAVIOR WILL BE ASKED TO LEAVE 10:08 THE BUILDING. 10:08 ANYONE WHO REFUSES TO LEAVE 10:08 VOLUNTARILY WILL BE ESCORTED 10:08 FROM THE BUILDING. 10:08 ADDITIONALLY, DOCUMENTS 10:08 PRESENTED TO THE CHAIRMAN, 10:08 COMMISSIONERS OR STAFF DURING 10:08 THE MEETING WILL NOT BECOME PART 10:08 OF THE OFFICIAL RECORD OF ANY 10:08 COMMISSION PROCEEDING. 10:08 NOR WILL THEY REQUIRE FURTHER 10:08 ACTION BY THE COMMISSION. 10:08 IF YOU WISH TO COMMENT ON AN 10:08 ONGOING PROCEEDING BEFORE THE 10:08 COMMISSION, PLEASE VISIT OUR 10:08 WEBSITE FOR MORE INFORMATION. 10:08 THANK YOU FOR YOUR COOPERATION. 10:08 10:08

CHAIRMAN MCINTYRE: THANK 10:08 YOU, MADAM SECRETARY. 10:08 WITH THAT, WE ARE READY TO 10:08 BEGIN. 10:08

GOOD MORNING, MR. CHAIRMAN, 10:08 GOOD MORNING, COMMISSIONERS. 10:08 THIS IS THE TIME AND PLACE THAT 10:08 2 HAS BEEN NOTICED FOR THE OPEN 10:08 MEETING OF THE FEDERAL ENERGY 10:08 REGULATORY COMMISSION TO 10:08 CONSIDER THE MATTERS THAT HAVE 10:09 WITHIN DULY POSTED IN ACCORDANCE 10:09 WITH THE GOVERNMENT IN THE 10:09 SUNSHINE ACT. 10:09 PLEASE JOIN US IN THE PLEDGE OF 10:09 ALLEGIANCE. 10:09 10:09 [PLEDGE OF ALLEGIANCE] 10:09 10:09

MR. CHAIRMAN AND 10:09 COMMISSIONERS, SINCE THE JANUARY 10:09 OPEN MEETING, THE COMMISSION HAS 10:09 ISSUED 84 NOTATIONAL ORDERS. 10:09 THANK YOU, MR. CHAIRMAN. 10:09

CHAIRMAN MCINTYRE: THANK 10:09 YOU, MADAM SECRETARY. 10:09 AND GOOD MORNING, GOOD MORNING 10:09 TO ONE AND ALL. 10:09 I WILL BEGIN WITH SOME BRIEF 10:09 OPENING REMARKS AND THEN I WILL 10:09 OFFER MY COLLEAGUES AN 10:09 OPPORTUNITY TO DO LIKEWISE. 10:09 THERE'S BEEN A LOT OF INTEREST 10:09 IN OUR ONGOING WORK ON GRID 10:09 RESILIENCE AND I WOULD JUST LIKE 10:09 TO TAKE A BRIEF MOMENT TO BRING 10:09 EVERYONE UP TO SPEED ON WHERE WE 10:09 ARE. 10:10 EARLIER THIS YEAR, AS YOU KNOW, 10:10 ON JANUARY 8, WE ISSUED A -- WE 10:10 INITIATED RATHER A PROCEEDING IN 10:10 DOCKET NUMBER AD17 TO ADDRESS 10:10 THE RESILIENCE OF OUR BULK POWER 10:10 SYSTEM. 10:10 AND IN OUR ORDER, WE DIRECTED 10:10 THE NATION'S REGIONAL 10:10 TRANSMISSION ORGANIZATIONS AND 10:10 INDEPENDENT SYSTEM OPERATORS 10:10 TO -- WITHIN 60 DAYS OF THE DATE 10:10 OF OUR ORDER TO ADDRESS 10:10 QUESTIONS AND ISSUES THAT WE SET 10:10 OUT IN THE ORDER. 10:10 WE ALSO INVITED OTHER INTERESTED 10:10 PARTIES TO FILE REPLY COMMENTS 10:10 30 DAYS THEREAFTER. 10:10 THIS PAST FRIDAY, JUST SEVERAL 10:10 DAYS AGO, MARCH 9, THE ISOS 10:10 3 AND RTOS MADE THEIR SUBMITTALS 10:10 REGARDING RESILIENCE IN THEIR 10:10 RESPECTIVE REGIONS. 10:10 WE THANK YOU FOR THOSE 10:10 SUBMITTALS, RTOS AND ISOS, 10:10 WE APPRECIATE THOSE FILINGS AND 10:10 THEIR TIMELINESS AND WE ARE NOW 10:10 REVIEWING THEM VERY CLOSELY TO 10:10 SEE WHAT WE CAN LEARN FROM THEIR 10:10 INPUT AND TO HELP US TO THINK 10:10 ABOUT WHAT WOULD BE APPROPRIATE 10:10 NEXT STEPS IN THE COMMISSION'S 10:11 WORK ON THIS IMPORTANT ISSUE OF 10:11 GRID RESILIENCE. 10:11 WE ALSO VERY MUCH LOOK FORWARD 10:11 TO THE NEXT ROUND OF COMMENTS, 10:11 WHICH ARE DUE MONDAY, APRIL 9, 10:11 TO ALSO BETTER INFORM US TO 10:11 VIEWS ABOUT RESILIENCE AND STEPS 10:11 THAT ARE RECOMMENDED FOR US TO 10:11 ADDRESS THE CONCEPT. 10:11 ALTHOUGH OUR JANUARY ORDER'S 10:11 DESCRIPTION OF THE COMMENT 10:11 PROCESS CHARACTERIZED THE NEXT 10:11 ROUND OF COMMENTS AS, QUOTE, 10:11 REPLY COMMENTS, IN MY VIEW, 10:11 INTERESTED ENTITIES SHOULD FEEL 10:11 FREE TO SUBMIT TO US THEIR OWN 10:11 VIEWS INDEPENDENT OF ANYTHING 10:11 PUT FORWARD BY THE RTOS AND 10:11 ISOS. 10:11 INDEPENDENT PERSPECTIVES AND 10:11 RECOMMENDATIONS AS TO HOW THE 10:11 COMMISSION SHOULD ADDRESS 10:11 RESILIENCE. 10:11 I'M CERTAIN I SPEAK FOR MY 10:11 COLLEAGUES IN ADDITION TO MYSELF 10:11 IN SAYING WE HAVE AN OPEN MIND 10:11 ON THESE ISSUES AND ARE EAGER 10:11 FOR GOOD AND THOUGHTFUL INPUT. 10:11 I BELIEVE OUR WORK IN THIS AREA 10:11 WILL BENEFIT FROM AS MUCH GOOD 10:11 AND THOUGHTFUL INPUT AS 10:12 POSSIBLE. 10:12 SO PLEASE CONSIDER THIS YOUR 10:12 INVITATION TO SUBMIT SUCH INPUT 10:12 TO US FOR OUR CONSIDERATION. 10:12 THE RESILIENCE OF OUR BULK POWER 10:12 SYSTEM IS A PRIORITY OF THE 10:12 COMMISSION, IT'S A CRITICAL 10:12 4 ISSUE FOR THE AMERICAN PEOPLE, 10:12 AND FOR OUR ECONOMY, AND OUR 10:12 NATIONAL SECURITY. 10:12 AND IT IS IMPERATIVE THAT WE 10:12 BASE OUR NEXT STEPS ON THE BEST 10:12 AVAILABLE INFORMATION. 10:12 SO I LOOK FORWARD TO GOOD INPUT 10:12 FROM STAKEHOLDERS ACROSS THE 10:12 ENERGY SPECTRUM AND TO WORKING 10:12 WITH MY VERY THOUGHTFUL AND 10:12 ENGAGED COLLEAGUES ON THIS 10:12 IMPORTANT ISSUE. 10:12 WITH THAT, LET ME TURN TO MY 10:12 COLLEAGUES TO SEE IF THEY WOULD 10:12 CARE TO CHIME IN ON ANYTHING. 10:12 10:12

COMMISSIONER LAFLEUR: THANK 10:12 YOU FOR THOSE COMMENTS. 10:12 I HAVE SEVERAL THINGS TO TALK 10:12 ABOUT THIS MORNING. 10:12 FIRST, I WANT TO LET EVERYONE 10:12 KNOW OF SEVERAL STAFF CHANGES 10:12 THAT HAVE TAKEN PLACE IN MY 10:12 OFFICE. 10:12 FIRST OF ALL, AS WAS ANNOUNCED 10:12 INTERNALLY A COUPLE WEEKS AGO, 10:13 BECKY ROBINSON, WHO I BELIEVE IS 10:13 IN THE FAR CHAIR TO THE FAR ROW 10:13 BACK THERE HAS LEFT MY OFFICE 10:13 AFTER BEING WITH ME FOR THREE 10:13 YEARS TO BECOME THE DEPUTY 10:13 DIRECTOR OF THE DIVISION OF 10:13 ECONOMIC AND TECHNICAL ANALYSIS 10:13 IN THE OFFICE OF ENERGY POLICY 10:13 AND INNOVATION. 10:13 A LOT OF WORDS. 10:13 BECKY HAD BEEN A TECHNICAL 10:13 ADVISER IN MY OFFICE AND ONE OF 10:13 OUR REAL EXPERTS ON MARKETS AND 10:13 MARKET DESIGN, AND SHE MADE 10:13 CRITICAL CONTRIBUTIONS ON A 10:13 LARGE NUMBER OF ISSUES, 10:13 ESPECIALLY ON -- THE WEST, PJM, 10:13 ENERGY STORAGE, AND WE MISS HER 10:13 BUT WE'RE HAPPY SHE'S IN HER NEW 10:13 ROLE. 10:13 WITH BECKY'S DEPARTURE -- 10:13 SITTING BEHIND ME, I BELIEVE, ON 10:13 DETAIL IN MY OFFICE, HAS JOINED 10:13 MY OFFICE AS A LEGAL ADVISER, AS 10:13 5 PERMANENT AS ANYTHING IS IN THIS 10:13 FERC WORLD, INVOLVED IN A WIDE 10:13 RANGE OF PERMITTING, HYDROLYZING 10:13 GAS AND OIL RATES AND I'M HAPPY 10:14 TO HAVE HER ON THE TEAM, 10:14 ESPECIALLY WITH ALL THE 10:14 STRATEGIC WORK GOING ON IN THAT 10:14 AREA RIGHT NOW. 10:14 FINALLY I'M VERY HAPPY TO 10:14 ANNOUNCE THIS WEEK CHRIS 10:14 FITZPATRICK HAS BEGUN A DETAIL 10:14 AS TECHNICAL ADVISER IN MY 10:14 OFFICE, HE CAME THROUGH THE 10:14 RELUCTANT COURTESY OF CURT 10:14 LONGOW, WHO'S LOSING ONE OF HIS 10:14 STAR PLAYERS, HE'S WORKED ON A 10:14 LOT OF CAPACITY MARKET MATTERS 10:14 AND HE ALSO SERVED A DETAIL IN 10:14 COMMISSIONER TONY CLARK'S 10:14 OFFICE, SO THAT MARKS A CLEAN 10:14 SWEEP OF THE FINAL ROUND OF 10:14 CLARK ADVISERS, SOUTER, LAWD AND 10:14 FITZPATRICK ARE NOW BACK ON THE 10:14 FLOOR. 10:14 HE'S A GRADUATE OF THE 10:14 UNIVERSITY OF MIAMI WITH A 10:14 MASTER'S FROM DUKE JUST IN TIME 10:14 FOR MARCH MADNESS. 10:14 IN ALL SERIOUSNESS, I DO WANT TO 10:14 THANK ANNA AND CURT FOR ALLOWING 10:14 THE DETAIL. 10:14 OKAY. 10:14 SECOND THING, LAST NIGHT, CARMEN 10:14 CINTRON, OUR CHIEF 10:15 ADMINISTRATIVE LAW JUDGE, IS 10:15 SITTING IN THE THIRD ROW, WON 10:15 THE WOMAN OF THE YEAR FROM THE 10:15 WHATEVER IT'S CALLED. 10:15 YEA! 10:15 THERE WAS A BIG FERC CONTINGENT 10:15 TO CELEBRATE HER AND SHE MADE AN 10:15 AWESOME SPEECH OF ADVICE AND WE 10:15 COULD NOT BE MORE PROUD. 10:15 THIRD, BACK TO WORK, I JUST WANT 10:15 TO MENTION THAT I AM A 10:15 DISSENTING IN PART ON TWO ITEMS 10:15 ON THIS MORNING'S CONSENT 10:15 AGENDA, BOTH WITH COMMISSIONER 10:15 GLICK. 10:15 THE FIRST IS ITEM C1, WHICH 10:15 6 RELATES TO THE BIRDSBORO 10:15 PIPELINE IN PENNSYLVANIA. 10:15 WE'RE DISSENTING FOR TWO 10:15 REASONS. 10:15 THE FIRST IS A PROCEDURAL 10:15 CONCERN THAT WE HAVE THAT I KNOW 10:15 RICH IS GOING TO EXPLAIN IN HIS 10:15 COMMENTS, BUT SECONDLY, WE'RE 10:15 DISSENTING BECAUSE WE DO NOT 10:15 AGREE WITH THE MAJORITY'S 10:16 REASONING ON THE CONSIDERATION 10:16 OF SOCIAL COST OF CARBON FOR 10:16 REASONS EXPLAINED IN OUR 10:16 RESPECTIVE DISSENTS LAST NIGHT 10:16 THE IN THE STABLE TRAIL REMAND 10:16 ORDER. 10:16 IN THE SABLE TRAIL CASE, THE 10:16 UNITED STATES COURT OF APPEALS 10:16 FOR THE D.C. CIRCUIT HAD VACATED 10:16 AND REMANDED OUR EARLIER 10:16 AUTHORIZATION, WHICH I VOTED 10:16 FOR, DUE TO WHAT THEY DEEMED WAS 10:16 INADEQUATE CONSIDERATION OF 10:16 CLIMATE CHANGE ISSUES. 10:16 THEY FOUND THAT -- QUITE 10:16 EXPRESSLY THAT DOWNSTREAM GHG 10:16 EMISSIONS FROM THE POWER PLANTS 10:16 SERVED BY THE PIPELINE WERE 10:16 INDIRECT EFFECTS OF THE PIPELINE 10:16 FOR NEPA PURPOSES AND MUST BE 10:16 CONSIDERED IN OUR ANALYSIS. 10:16 AS I STATED IN MY DISSENT, WHICH 10:16 I GENEROUSLY WILL NOT READ IN 10:16 FULL HERE, I WOULD STILL HAVE 10:16 APPROVED THE PIPELINE ON 10:16 BALANCE. 10:16 I DID BELIEVE IT WAS NEEDED. 10:16 BUT ONLY AFTER EXPLICITLY 10:16 CONSIDERING THE GHG IMPACTS AS 10:17 INDIRECT EFFECTS. 10:17 THE STAFF SUPPLEMENTAL 10:17 ENVIRONMENTAL IMPACT STATEMENT 10:17 WHICH CAME OUT AFTER THE COURT 10:17 ORDER DID INCLUDE THE DOWNSTREAM 10:17 GHG EMISSIONS, BUT THE 10:17 COMMISSION'S ORDER ISSUED LAST 10:17 NIGHT AND REPEATED THIS MORNING 10:17 DID NOT CONSIDER THEM EXPLICITLY 10:17 AS INDIRECT EFFECTS OF THE 10:17 PIPELINE AND SAID THEY CANNOT 10:17 7 MEANINGFULLY INFORM OUR PUBLIC 10:17 INTEREST DETERMINATION. 10:17 I DISAGREE, I DIDN'T THINK WE 10:17 FULLY IMPLEMENTED THE COURT'S 10:17 INSTRUCTIONS BECAUSE I THINK 10:17 THAT BALANCING THE DOWNSTREAM 10:17 GHG EFFECTS HAS TO BE CONSIDERED 10:17 AS PART OF OUR PUBLIC INTEREST 10:17 DETERMINATION. 10:17 ON THE SOCIAL COST OF CARBON, IN 10:17 BOTH SABLE TRAIL AND IN C-1 THIS 10:17 MORNING, THE MAJORITY RECOUNTS A 10:17 NUMBER OF REASONS, BOTH 10:17 TECHNICAL AND POLICY, WHY THE 10:17 SOCIAL COST OF CARBON IS 10:17 BELIEVED TO BE NOT USEFUL TO OUR 10:17 PUBLIC INTEREST ANALYSIS AND 10:17 NEED NOT BE CONSIDERED WITH 10:17 WHICH I DISAGREE. 10:17 I THINK THE MAJORITY'S ARGUMENTS 10:17 REALLY ON BOTH DOWNSTREAM GHG 10:17 AND SOCIAL COST OF CARBON AMOUNT 10:17 TO SAYING THAT IT'S EXTREMELY 10:18 HARD TO FACTOR CLIMATE CHANGE 10:18 INTO OUR PIPELINE CASES, AND I 10:18 STRONGLY AGREE WITH THAT. 10:18 IT IS EXTREMELY HARD. 10:18 HOW TO DEAL WITH CLIMATE CHANGE 10:18 IN THESE CASES IS SOMETHING I 10:18 HAVE PERSONALLY STRUGGLED 10:18 MIGHTILY WITH FOR THE LAST FEW 10:18 YEARS. 10:18 I APPRECIATE THAT SINCE LATE 10:18 2016, THE COMMISSION HAS 10:18 PROGRESSIVELY PUT MORE 10:18 INFORMATION ON UPSTREAM AND 10:18 DOWNSTREAM IMPACTS INTO ITS 10:18 ORDERS, SOMETHING I STRONGLY 10:18 SUPPORTED AND THINK WE SHOULD 10:18 DO. 10:18 I'VE TRIED TO WEIGH THOSE 10:18 IMPACTS, I'VE WEIGHED THOSE 10:18 IMPACTS IN MY OWN PUBLIC 10:18 INTEREST DETERMINATION EVEN 10:18 THOUGH THEY WEREN'T EXPRESSLY 10:18 WEIGHED THAT WAY IN THE ORDERS. 10:18 NOW THAT A COURT HAS VACATED ONE 10:18 OF OUR ORDERS FOR FAILURE TO DO 10:18 THAT, THINK WE SIMPLY MUST DO 10:18 MORE, NO MATTER HOW HARD IT IS. 10:18 8 AND I HOPE THAT WE WILL -- I 10:18 THINK THE BEST WAY TO TACKLE 10:18 THESE ISSUES WOULD BE TO BUILD A 10:18 FULLER RECORD OF THE FEED FOR AN 10:18 IMPACT TO THE PIPELINE, AND IT'S 10:18 SOMETHING I HOPE WE CAN DISCUSS 10:18 IN THE GENERIC DOCKET THAT THE 10:18 CHAIRMAN HAS RECENTLY ANNOUNCED. 10:18 SECONDLY, WE'RE DISSENTING IN 10:18 PART ON H-4, WHICH IS A 10:19 REHEARING OF TWO HYDRO LICENSED 10:19 FACILITIES IN WEST VIRGINIA. 10:19 THERE HAVE BEEN A LOT OF JOKES 10:19 ON THE FLOOR THIS WEEK, MANY OF 10:19 THEM MADE BY ME, THAT I'M 10:19 DISSENTING ON THE ISSUE OF 10:19 PORT-A-POTTIES VERSUS PERMANENT 10:19 TOILETS, WHICH I ACTUALLY THINK 10:19 IS A FINE ISSUE FOR DISSENT, BUT 10:19 THERE ACTUALLY IS SOMETHING A 10:19 LITTLE MORE MEANINGFUL GOING ON 10:19 IN THIS DOCKET IN MY MIND. 10:19 THE ORDER FINDS, AND WE AGREE, 10:19 THAT THE WEST VIRGINIA 10:19 DEPARTMENT OF ENVIRONMENTAL 10:19 PROTECTION WAS LATE -- A LITTLE 10:19 BIT LATE, A COUPLE WEEKS LATE IN 10:19 ITS WATER QUALITY CERTIFICATE 10:19 AND WAS, THEREFORE, DEEMED 10:19 WAIVED, AND I AGREE WITH THAT. 10:19 HOWEVER, UNDER THE FEDERAL POWER 10:19 ACT, WE STILL HAVE DISCRETION TO 10:19 ADOPT CONDITIONS SUGGESTED BY A 10:19 STATE EVEN IF THE WATER QUALITY 10:19 CERTIFICATE IS NOT BINDING, AND 10:19 IN MY EXPERIENCE OVER THE PAST 10:19 SEVERAL YEARS, WE HAVE ON OTHER 10:19 OCCASIONS DONE SO AS A MATTER OF 10:19 DISCRETION IF THOSE CONDITIONS 10:20 ARE MINOR AND ARE NOT GOING TO 10:20 AFFECT THE -- INTERFERE WITH THE 10:20 SAFE AND EFFECTIVE OPERATION OF 10:20 THE FACILITY. 10:20 IN THIS CASE, THE RECORDS SHOW 10:20 THAT THE CONDITIONS WERE 10:20 UNOPPOSED, AND I WOULD HAVE 10:20 GRANTED SOME AS SPECIFIED IN THE 10:20 DISSENT OF THE WEST VIRGINIA 10:20 CONDITIONS AS A MATTER OF 10:20 DISCRETIONS, AS A MATTER OF 10:20 9 COOPERATIVE FEDERALISM AND FOR 10:20 THAT REASON, WE'RE DISSENTING. 10:20 THANK YOU, MR. CHAIRMAN. 10:20

CHAIRMAN MCINTYRE: THANK 10:20 YOU VERY MUCH. 10:20 COMMISSIONER CHATTERJEE. 10:20

COMMISSIONER CHATTERJEE: 10:20 THANK YOU, MR. CHAIRMAN. 10:20 I WANT TO BEGINNING BY EXTENDING 10:20 MY SINCERE GRATITUDE TO STAFF 10:20 FOR THEIR CAREFUL REVIEW OF THE 10:20 IMPLICATIONS OF TAX REFORM, 10:20 WHICH INFORM THE COMMISSION'S 10:20 DECISION-MAKING ON 10:20 JURISDICTIONAL ELECTRIC, NATURAL 10:20 GAS AND OIL RATES TODAY. 10:20 I'LL WILL HAVE MORE TO SAY ON 10:20 THIS TOPIC LATER. 10:20 I WOULD ALSO LIKE TO THANK THE 10:20 CHAIRMAN FOR HIGHLIGHTING THE 10:20 IMPORTANCE OF THE COMMISSION'S 10:20 RESILIENCE DOCKET. 10:20 SINCE OUR ORDER IN JANUARY, 10:20 WE'VE EXPERIENCED A NUMBER OF 10:20 EVENTS THAT HAVE UNDERSCORED THE 10:20 TIMELINESS OF THE COMMISSION'S 10:20 RESILIENCE INQUIRY, INCLUDING 10:20 MORE ANNOUNCE DOLLARS OR 10:21 THREATENED CLOSURES OF EXISTING 10:21 GENERATION ASSETS, A BOMB LIKE 10:21 CYCLONE THAT TOUCHED LARGE PARTS 10:21 OF THE GRID AND A SERIES OF 10:21 NOR'EASTERS. 10:21 THOSE EVENTS, IN MY MIND, ALSO 10:21 UNDERSCORE THE NEED FOR A 10:21 DILIGENT EXPEDITIOUS REVIEW OF 10:21 THE RECORD THAT IS DEVELOPED IN 10:21 THAT PROCEEDING. 10:21 AS THE CHAIRMAN NOTED, THE 10:21 COMMISSION HAS RECEIVED THE 10:21 RTOS AND ISOS' COMMENTS AND 10:21 ALL OF US AND COMMISSION STAFF 10:21 ARE CAREFULLY REVIEWING THEM AS 10:21 WE SPEAK. 10:21 AS YOU CAN SEE, IT'S NO JOKE, 10:21 THE SUM MEDICATIONS ARE AN 10:21 IMPRESSIVE WORK PRODUCT. 10:21 I APPRECIATE THE SERIOUS 10:21 APPROACH THE GRID OPERATORS HAVE 10:21 TAKEN TO GIVING THE ISSUE THE 10:21 10 ATTENTION IT DEMANDS. 10:21 OVER THE NEXT MONTH, WE EXPECT 10:21 MORE COMMENTS TO COME IN FROM A 10:21 BROAD SPECTRUM OF STAKEHOLDERS 10:21 AND WE LOOK FORWARD TO RECEIVING 10:21 AND THOROUGHLY REVIEWING THOSE 10:21 SUBMISSIONS. 10:21 MY ADVICE TO ANY INTERESTED 10:21 PARTIES WHO ARE ON THE FENCE 10:21 ABOUT WHETHER OR NOT TO SUBMIT 10:21 COMMENTS, NO MAKER WHAT SIDE OF 10:21 THE SPECTRUM YOU'RE ON OR WHERE 10:22 YOUR INTERESTS LIE IS THIS: ERR 10:22 ON THE SIDE OF CAUTION, MAKE 10:22 YOUR VOICE HEARD. 10:22 IN MY VIEW, THIS RESILIENCE 10:22 PROCEEDING COULD BE ONE OF THE 10:22 MOST IMPORTANT ISSUED BY THE 10:22 COMMISSION IN A GENERATION. 10:22 THAT'S WHY I AGAIN EMPHASIZE THE 10:22 FOLLOWING STAKEHOLDERS. 10:22 IF YOU HAVE ANY DOUBT THAT YOUR 10:22 POSITION IS NOT CURRENTLY BEING 10:22 ADEQUATELY REPRESENTED BY A 10:22 TRADE GROUP OR THROUGH THE 10:22 COMMENTS YOU IMPART, THE 10:22 FOUNDATION UPON WHICH MY 10:22 COLLEAGUES AND I WILL ADDRESS 10:22 THIS ISSUE, ASSUMING IN OUR 10:22 EARLY RULEMAKING PROCEED 10:22 WILLING, YOU SHOULD COMMIT 10:22 COMMENTS NOW. 10:22 THESE SUBMISSIONS ARE IN PART 10:22 THE FOUNDATION ON WHICH MY 10:22 COLLEAGUES AND I WILL ASSESS 10:22 THIS ISSUE. 10:22 I LOOK FORWARD TO THE 10:22 OPPORTUNITY TO REVIEW THEM 10:22 JUDICIOUSLY AS THEY ASSIST US IN 10:22 MAKING A DILIGENT, FACT-BASED 10:22 DECISION ON THE COMMISSION'S 10:22 PATH FORWARD. 10:22 WITH THAT, I CONCLUDE MY OPENING 10:22 REMARKS. 10:22

CHAIRMAN MCINTYRE: THANK 10:22 YOU. 10:22 COMMISSIONER POWELSON. 10:22

COMMISSIONER POWELSON: 10:22 THANK YOU, MR. CHAIRMAN. 10:22 I'M GOING TO BE VERY BRIEF HERE 10:22 11 THIS MORNING. 10:23 I SIMPLY WANT TO TAKE THIS 10:23 OPPORTUNITY TO PROVIDE SOME 10:23 MEANINGFUL RECOGNITION, I'M 10:23 LOOKING STRAIGHT AT HER, MADAM 10:23 SECRETARY, TO YOU AND YOUR STAFF 10:23 FOR THE INCREDIBLE WORK YOU DID 10:23 ON FRIDAY, GETTING THE CASPER 10:23 ORDER OUT THE DOOR. 10:23 I UNDERSTAND YOU WERE HERE INTO 10:23 THE WEE HOURS OF THE MORNING AND 10:23 I THINK MY COLLEAGUES AND I JOIN 10:23 TOGETHER TO SALUTE YOU IN A JOB 10:23 WELL DONE, ALTHOUGH I WAS IN A 10:23 MINORITY ON THE POSITION BUT 10:23 THAT'S AN ASIDE. 10:23 [LAUGHTER] 10:23

COMMISSIONER POWELSON: 10:23 THANK YOU. 10:23 THAT'S THE CONCLUSION OF MY 10:23 REMARKS HERE, UNTIL THE TAX 10:23 REFORM. 10:23 THANK YOU, MR. CHAIRMAN. 10:23

CHAIRMAN MCINTYRE: 10:23 COMMISSIONER GLICK. 10:23

COMMISSIONER GLICK: I 10:23 WANTED TO FIRST CONGRATULATE THE 10:23 JUDGE FOR THE REWARD, WELL 10:23 DESERVED, CONGRATULATIONS AGAIN. 10:23 I WANTED TO START OFF WITH A 10:23 LITTLE BIT OF HAPPY NEWS WITH 10:23 OUR OFFICE. 10:23 ONE OF MY LEGAL ADVISERS, MATT 10:23 AND HIS WIFE CELIA RECENTLY 10:23 WELCOMED THEIR FIRST CHILD, A 10:23 BABY GIRL NAMED LILA ROSALYN. 10:23 WE LOOK FORWARD TO THEM COMING 10:23 TO THE OFFICE TODAY, SHE'S 10:23 MAKING HER DEBUT, WE'RE GOING TO 10:23 PUT HER RIGHT TO WORK, THOSE 10:24 DISSENTS DON'T WORK RIGHT 10:24 THEMSELVES. 10:24 [LAUGHTER] 10:24 SPEAKING OF DISSENTS, I DID WANT 10:24 TO TAKE A MINUTE AS COMMISSIONER 10:24 LAFLEUR HAD NOTED EARLIER THE 10:24 SABLE TRAIL ORDER LAST NIGHT, I 10:24 WANTED TO BRIEFLY DISCUSS THE 10:24 REASONING FOR MY DISSENT IN LAST 10:24 NIGHT'S ORDER. 10:24 12 IT'S NOT BEING OVERLY DRAMATIC 10:24 TO POINT OUT CLIMATE CHANGE REP 10:24 TENTS AN EXTENSION THREAT. 10:24 IT WOULD BE IRRESPONSIBLE TO 10:24 IGNORE THE IMPACT BOTH POSITIVE 10:24 AND NEGATIVE ON OUR DECISION ON 10:24 CLIMATE CHANGE. 10:24 LAST YEAR THE CIRCUIT -- THE 10:24 DOWNSTREAM GREENHOUSE GAS 10:24 EMISSION ASSOCIATED WITH THE NEW 10:24 SET OF PIPELINES IN THE 10:24 SOUTHEAST OR EXPLAIN WHY IT'S 10:24 UNABLE TO DO SO. 10:24 AND TOO MUST ALSO EXPLAIN THE 10:24 SOCIAL COST OF CORE BON IS A 10:24 USEFUL TOOL FOR ASSESSING THE 10:24 IMPACT OF GREENHOUSE GAS 10:24 EMISSIONS FOR THE PURPOSES OF 10:24 NEPA. 10:24 MY OPINION YESTERDAY'S ORDER 10:24 FAILED TO SUFFICIENTLY SUPPLY 10:24 WITH THE ORDER WHICH I EXPLAIN 10:25 FURTHER IN MY DISSENT. 10:25 THE NATURAL GAS ACT AND NEPA 10:25 BOTH REQUIRE THE COMMISSION 10:25 ADEQUATELY CONSIDER THE 10:25 ENVIRONMENTAL IMPACT OF THE 10:25 DECISION TO ISSUE A CERTIFICATE 10:25 TO A PIPELINE INCLUDING 10:25 DOWNSTREAM IMPACTS. 10:25 THAT BY ITS VERY DEFINITION MUST 10:25 INCLUDE AN EXAMINATION OF THE 10:25 IMPACTS OF CLIMATE CHANGE. 10:25 IN ADDITION, I BELIEVE THE 10:25 CONDITION NEEDS TO UTILIZE THE 10:25 SOCIAL COST OF CARBON TO INFORM 10:25 ABOUT THE ENVIRONMENTAL IMPACTS 10:25 OF OUR DECISION. 10:25 SEVERAL RECENT COURT 10:25 DECISIONS -- MUST APPLY THE 10:25 SOCIAL COST OF CARBON WHEN IT'S 10:25 HERE ATTEMPTS TO MONETIZE 10:25 CERTAIN BENEFITS OF A PROPOSED 10:25 PIPELINE. 10:25 I CAN'T UNDERSTAND WHY WE WOULD 10:25 NOT WANT TO ENSURE THAT BOTH THE 10:25 PUBLIC AND THIS AGENCY HAS THE 10:25 INFORMATION THAT ADEQUATELY 10:25 ASSESSES WHAT THE POTENTIAL 10:25 BENEFITS AND POTENTIAL ADVERSE 10:25 13 IMPACTS OF THOSE PIPELINES 10:25 BEFORE ISSUING A CERTIFICATE OF 10:25 PUBLIC CONVENIENCE AND 10:25 NECESSITY. 10:25 I'M CONCERNED AS IT DID LAST 10:25 SUMMER THE D.C. CIRCUIT WILL 10:25 AGAIN VACATE AND REMAND BACK TO 10:25 THE COMMISSION. 10:25 HOPEFULLY WE WILL HAVE -- A -- 10:25 PROPOSED PIPELINE PROJECT ON 10:26 CLIMATE CHANGE. 10:26 AND ALONG THOSE LINES ON C-1, I 10:26 WON'T GET INTO THE CLIMATE 10:26 CHANGE PORTION OF OUR -- OF 10:26 COMMISSIONER LAFLEUR'S AND MY 10:26 PARTIAL DISSENT BUT I DO WANT TO 10:26 TALK ABOUT ANOTHER ISSUE ON THE 10:26 CASE THAT I'M CONCERNED ABOUT, 10:26 THAT THE ORDER, THE C-1 ORDER 10:26 THAT WE'RE ISSUING TODAY FURTHER 10:26 EXPANDS UPON A POLICY ANNOUNCED 10:26 BY THE COMMISSION IN THE RECENT 10:26 TENNESSEE GAS CASE REGARDING 10:26 LATE INTERVENTION. 10:26 TODAY'S ORDER SUGGESTS THAT THE 10:26 COMMISSION WON'T ALLOW LACK OF 10:26 KNOWLEDGE OF A PROCEEDING OFF 10:26 DEADLINE TO CONSTITUTE GOOD 10:26 CAUSE FOR PERMITTING A LATE 10:26 INTERVENTION. 10:26 IN MY OPINION, THIS POLICY FAILS 10:26 TO RECOGNIZE THAT MANY 10:26 INDIVIDUALS AND ORGANIZATIONS DO 10:26 NOT HAVE THE RESOURCES PIPELINE 10:26 COMPANIES DO TO HIRE HIGH PRICED 10:26 WASHINGTON, D.C. LAW FIRMS THAT 10:26 COULD SPEND ALL DAY KEEPING UP 10:26 WITH THE LATEST COMMISSION 10:26 NOTICES. 10:26 AS I MENTIONED IN MY DISSENT TO 10:26 YOU YESTERDAY IN THE SABLE TRAIL 10:26 ORDER, PUBLIC CONFIDENCE IS 10:26 WANING. 10:26 THE COMMISSION'S ANNOUNCEMENT IN 10:26 C-1 IS JUST GOING TO ACCELERATE 10:26 THAT TREND. 10:26 DO WE REALLY WANT TO KEEP 10:26 AFFECTED LAND OWNERS AND 10:26 COMMUNITY ORGANIZATIONS FROM 10:26 PARTICIPATING IN A PROCEEDING 10:27 14 THAT WOULD IMPACT WAY OF LIFE? 10:27 THANK YOU, MR. CHAIRMAN. 10:27

CHAIRMAN MCINTYRE: THANK 10:27 YOU, COMMISSIONER GLICK. 10:27 MADAM SECRETARY, WITH THAT, I 10:27 BELIEVE WE'RE READY TO TURN TO 10:27 OUR CONSENT AGENDA. 10:27

THANK YOU, MR. CHAIRMAN. 10:27 SINCE THE ISSUANCE OF THE 10:27 SUNSHINE ACT NOTICE ON 10:27 MARCH 8TH, 2018, NO ITEMS HAVE 10:27 BEEN STRUCK FROM THIS MORNING'S 10:27 CONSENT AGENDA. 10:27 YOUR CONSENT AGENDA IS AS 10:27 FOLLOWS: ELECTRIC ITEMS: E4, 10:27 E5, E6, E7, E8, AND E10. 10:27 GAS ITEMS, G4, G5, G6, G7, G8, 10:27 G9, AND G10. 10:27 HYDRO ITEMS, H1, H2, H3, H4, AND 10:27 H5. 10:27 CERTIFICATE ITEMS, C1 AND C3. 10:27 AS REQUIRED BY LAW WITH REGARD 10:28 TO THE FOLLOWING, CHAIRMAN 10:28 MCINTYRE IS NOT PARTICIPATING IN 10:28 ITEMS E3, E4, E5, E6, AND E8. 10:28 AS TO H4, COMMISSIONERS LAFLEUR 10:28 AND GLICK ARE DISSENTING IN PART 10:28 WITH A JOINT SEPARATE STATEMENT. 10:28 AS TO C1, COMMISSIONERS LAFLEUR 10:28 AND GLICK ARE DISSENTING IN PART 10:28 WITH A JOINT SEPARATE STATEMENT. 10:28 WITH THE EXCEPTION OF E3, WHERE 10:28 A VOTE WILL BE TAKEN AFT 10:28 PRESENTATION AND DISCUSSION OF 10:28 THAT ITEM, WE WILL NOW TAKE A 10:28 VOTE ON THIS MORNING'S CONSENT 10:28 AGENDA. 10:28 THE VOTE BEGINS WITH 10:28 COMMISSIONER GLICK. 10:28

COMMISSIONER GLICK: NOTING 10:28 MY PARTIAL DISSENT IN C1 AND 10:28 PARTIAL DISSENT ALSO ON H4, I 10:28 VOTE AYE. 10:28

COMMISSIONER POWELSON: I 10:28 VOTE AYE ON ALL ITEMS. 10:28

COMMISSIONER CHATTERJEE: 10:28 AYE. 10:28

COMMISSIONER LAFLEUR: 10:28 NOTING MY PARTIAL DISSENTS IN 10:28 H4 AND C1, I VOTE AYE. 10:28 15

CHAIRMAN MCINTYRE: NOTING 10:29 MY NON-PARTICIPATION IN CERTAIN 10:29 ITEMS, I VOTE AYE. 10:29

THANK YOU, COMMISSIONERS. 10:29 WE WILL NOW MOVE ON TO THE 10:29 DISCUSSION AND PRESENTATION 10:29 PORTION OF THE MEETING. 10:29 THE FIRST ITEM FOR PRESENTATION 10:29 AND DISCUSSION THIS MORNING ARE 10:29 E1, E2, E3, AND G1. 10:29 THESE ITEMS CONCERN THE EFFECTS 10:29 OF THE TAX CUTS AND JOBS ACT OF 10:29 2017 ON CERTAIN COMMISSION 10:29 ACTIONS. 10:29 THERE WILL BE A PRESENTATION BY 10:29 JONATHAN TAYLOR AND ADAM ALDEAN 10:29 FROM THE OFFICE OF THE GENERAL 10:29 COUNCIL, AND KRISTEN FROM THE 10:29 OFFICE OF ENERGY MARKET 10:29 REGULATIONS. 10:29 THEY'RE ACCOMPANIED BY JAMES 10:29 ARECUS -- BARRY AND -- PATEL 10:29 FROM THE OFFICE OF MARKET 10:29 REGULATIONS AND JIM FROM THE 10:29 OFFICE OF ENFORCEMENT. 10:29 10:29

THANK YOU, MADAM SECRETARY. 10:29 GOOD MORNING, MR. CHAIRMAN AND 10:29 COMMISSIONERS. 10:29

CHAIRMAN MCINTYRE: GOOD 10:29 MORNING. 10:30

ITEMS E1, E2, E3 AND G1 ARE 10:30 FOUR ITEMS THAT RELATE TO THE 10:30 EFFECTS OF THE TAX CUTS AND JOBS 10:30 ACT, WHICH WAS SIGNED INTO LAW 10:30 BY PRESIDENT DONALD TRUMP ON 10:30 DECEMBER 22ND, 2017. 10:30 NOTABLY, THE TAX CUTS AND JOBS 10:30 ACT REDUCES THE FEDERAL 10:30 CORPORATE INCOME TAX RATE FROM 10:30 THE MAXIMUM 35% RATE TO A FLAT 10:30 21% RATE. 10:30 THIS MEANS THAT ALL PUBLIC 10:30 UTILITIES IN OUR STATE NATURAL 10:30 GAS PIPELINE AND OIL PIPELINES 10:30 SUBJECT TO FEDERAL CORPORATE 10:30 INCOME TAXES WILL COMPUTE THOSE 10:30 TAXES OWED TO THE IRS ON A FLAT 10:30 21% RATE. 10:30 SOME OF THE COMMISSION 10:30 16 JURISDICTIONAL RATES CHARGED BY 10:30 PUBLIC UTILITIES IN OUR STATE 10:30 NATURAL GAS PIPELINES AND OIL 10:30 PIPELINES ARE SET USING COST OF 10:30 SERVICE. 10:30 WHICH INCLUDES INCOME TAX 10:30 ALLOWANCE. 10:30 THUS, WHEN THE TAX EXPENSE 10:30 DECREASES, SO DOES THE COST OF 10:30 SERVICE. 10:30 TURNING FIRST TO PUBLIC 10:30 UTILITIES, MOST PUBLIC UTILITIES 10:30 USE TRANSMISSION FORMULA RATES 10:30 WILL TO RECOVER THEIR COST OF 10:30 SERVICE. 10:30 AND MOST TRANSMISSION FORMULA 10:31 RATES INCLUDE AN INPUT FOR THE 10:31 UTILITIES COST OF PAYING THE 10:31 CORPORATE INCOME TAX, WHICH IS 10:31 ADJUSTED ANNUALLY. 10:31 UNDER THIS COMMON ARRANGEMENTS, 10:31 THE UTILITIES COST OF PAYING THE 10:31 REDUCED INCOME TAX RATE WILL BE 10:31 REFLECTED IN A PUBLIC UTILITIES 10:31 TRANSMISSION REVENUE REQUIREMENT 10:31 WITHOUT REQUIRING A REVISION TO 10:31 THE FORMULA RATE. 10:31 THEREFORE, NO WILL FILING WILL 10:31 NEED TO BE MADE TO CHANGE THE 10:31 CORPORATE INCOME TAX RATE FOR 10:31 THESE TYPES OF RATES. 10:31 SOME PUBLIC UTILITIES, THOUGH, 10:31 USE TRANSMISSION FORMULA RATES 10:31 THAT INCLUDE A FIXED LINE ITEM 10:31 FOR THE FEDERAL WILL CORPORATE 10:31 INCOME TAX RATE OR THE -- STATED 10:31 RATE. 10:31 ABSENT A REVISION TO THESE TYPES 10:31 OF RATES, THE REDUCED TAX RATE 10:31 WOULD NOT BE REFLECTED IN A 10:31 PUBLIC UTILITIES TRANSMISSION 10:31 REVENUE REQUIREMENT. 10:31 ITEMS E2 AND E3 ARE ORDERS TO 10:31 SHOW CAUSE THAT ADDRESS SUCH 10:31 SITUATIONS IN THESE ORDERS, THE 10:31 COMMISSION, PURSUANT TO SECTION 10:31 206 OF THE FEDERAL POWER ACT, 10:31 DIRECTS 48 INDIVIDUAL PUBLIC 10:31 UTILITIES WITH STATED 10:31 TRANSMISSION RATES OR 10:32 17 TRANSMISSION FORMULA RATES WITH 10:32 A FIXED LINE ITEM OF 35% FOR THE 10:32 FEDERAL CORPORATE INCOME TAX 10:32 COMPONENT, EITHER TO PROPOSE 10:32 REVISIONS TO THE TRANSMISSION 10:32 RATES UNDER THEIR OPEN ACCESS 10:32 TRANSMISSION TARIFFS ARE OR 10:32 TRANSMISSION OWNER TARIFFS TO 10:32 REFLECT THE CHANGE IN THE 10:32 FEDERAL CORPORATE INCOME TAX 10:32 RATE OR TO SHOW CAUSE WHY THEY 10:32 SHOULD NOT BE REQUIRED TO DO SO. 10:32 THE PUBLIC UTILITIES NAMED IN 10:32 THE ORDERS TO SHOW CAUSE MUST 10:32 SUBMIT THEIR RESPONSES WITHIN 60 10:32 DAYS. 10:32 WITH THAT, MY COLLEAGUE ADAM 10:32 WILL NOW TOUCH ON INTERSTATE 10:32 NATURAL GAS PIPELINES AND OIL 10:32 PIPELINES. 10:32 10:32

INTERSTATE NATURAL GAS 10:32 PIPELINES GENERALLY HAVE STATED 10:32 RATES FOR THEIR SERVICES WHICH 10:32 ARE APPROVED IN A RATE 10:32 PROCEEDING UNDER NATURAL GAS 10:32 SECTIONS 4 OR 5 AND REMAIN IN 10:32 EFFECT UNTIL CHANGE IN 10:32 SUBSEQUENT SECTION 4 OR 10:32 5 PROCEEDING. 10:32 ITEM G1 IS A NOTICE OF PROPOSED 10:32 RULEMAKING THAT ADDRESSES THE 10:32 RATES OF INTERSTATE NATURAL GAS 10:32 PIPELINES. 10:32 IN THE PROPOSED RULE, THE 10:32 COMMISSION PROPOSES TO REQUIRE 10:32 INTERSTATE NATURAL GAS PIPELINES 10:33 TO MAKE A ONE-TIME INFORMATIONAL 10:33 FILING WITH THE COMMISSION 10:33 CALLED THE FERC FORM NUMBER 501G 10:33 THAT IS DESIGNED TO COLLECT 10:33 FINANCIAL INFORMATION TO 10:33 EVALUATE THE IMPACT OF THE TAX 10:33 CUTS AND JOBS ACT AND ALSO OF 10:33 THE REVISED POLICY STATEMENT ON 10:33 TREATMENT OF INCOME TAXES, WHICH 10:33 IS ITEM G2 AND WILL BE DISCUSSED 10:33 IN THE NEXT PRESENTATION. 10:33 UNDER THE PROPOSED RULE, EACH 10:33 INTERSTATE NATURAL GAS PIPELINE 10:33 18 WOULD HAVE THE FOLLOWING FOUR 10:33 OPTIONS TO VOLUNTARILY MAKE A 10:33 FILING TO ADDRESS THE EFFECT OF 10:33 THE TAX CUTS AND JOBS ACT AND 10:33 THE REVISED POLICY STATEMENT, OR 10:33 EXPLAIN WHY NO ACTION IS NEEDED. 10:33 FIRST, FILE A LIMITED NATURAL 10:33 GAS ACT SECTION 4 FILING TO 10:33 REDUCE THE PIPELINE'S RATES, 10:33 TWO, MAKE A COMMITMENT TO FILE A 10:33 GENERAL NATURAL GAS ACT SECTION 10:33 4 RATE CASE IN THE NEAR FUTURE, 10:33 THREE, FILE A STATEMENT 10:33 EXPLAINING WHY AN ADJUSTMENT TO 10:33 ITS RATES IS NOT NEEDED, OR 10:33 FOUR, TAKE NO ACTION OTHER THAN 10:33 FILING THE INFORMATIONAL FILING. 10:33 THE COMMISSION ALSO PROPOSES TO 10:34 PROVIDE SEPARATE PROCEDURES FOR 10:34 INTRASTATE NATURAL GAS PIPELINES 10:34 PERFORMING INTRASTATE NOTICE 10:34 PURSUANT TO SECTION 311 OF THE 10:34 NATURAL GAS POLICY ACT OF 1978 10:34 AND HINSHAW PIPELINES PERFORMING 10:34 INTERSTATE TRANSPORTATION -- 10:34 LIMITED JURISDICTION 10:34 CERTIFICATE. 10:34 UNDER THE PROPOSED RULE, THE 10:34 PIPELINES WOULD HAVE TO FILE A 10:34 NEW RATE ELECTION FOR INTRASTATE 10:34 SERVICE IF THEIR RATES WERE 10:34 IN -- TO REFLECT THE JOBS -- 10:34 ACT. 10:34 COMMENTS ON THE PROPOSED RULE 10:34 ARE DUE 30 DAYS AFTER 10:34 PUBLICATION IN THE FEDERAL 10:34 REGISTER. 10:34 UNLIKE PUBLIC UTILITIES WILL IN 10:34 INTRASTATE NATURAL PIPELINES, 10:34 THE MAJORITY OF OIL PIPELINES 10:34 USE INDEXING NOT COST OF SERVICE 10:34 RATE MAKING. 10:34 UNDER INDEXING, OIL PIPELINES 10:34 MAY ADJUST THE RATES ANNUALLY SO 10:34 LONG AS THOUGH RATES REMAIN AT 10:34 OR BELOW THE APPLICABLE CEILING 10:34 LEVELS WHICH CHANGE EVERY 10:34 JULY 1 BASED ON A COMMISSION 10:34 APPROVED INDEX THAT TRACKS 10:34 INDUSTRY-WIDE COST CHANGES. 10:35 19 UNDER CURRENTLY EFFECTIVE 10:35 REQUIREMENTS GOVERNING THE 10:35 SCHEDULE FOR INDEXING CHANGES, 10:35 THE COMMISSION WILL RE-ASSESS 10:35 THE OIL INDEX AGAIN IN 2020 10:35 BASED ON COST CHANGES BETWEEN 10:35 2014 AND 2019. 10:35 THUS BECAUSE THE COST DATA FOR 10:35 THE 2014 TO 2019 PERIOD WILL 10:35 REFLECT THE EFFECTS OF THE TAX 10:35 CUTS JOBS ACT IN REVISED POLICY 10:35 STATEMENT, THE COMMISSION IS NOT 10:35 TAKING AN INDUSTRY-WIDE ACTION 10:35 REGARDING OIL PIPELINE RATES AT 10:35 THIS TIME. 10:35 MY COLLEAGUE KRISTEN WILL NOW 10:35 DISCUSS THE COMMISSION'S OTHER 10:35 ACTION TO ADDRESS THE EFFECTS OF 10:35 THE TAX CUTS AND JOBS ACT. 10:35

CHAIRMAN MCINTYRE: THANK 10:35 YOU. 10:35

ALTHOUGH THE COMMISSION IS 10:35 ADOPTING SPECIFIC APPROACHES FOR 10:35 CERTAIN PUBLIC UTILITIES AND 10:35 INTERSTATE NATURAL GAS 10:35 PIPELINES, ITEM E1 IS A GENERIC 10:35 NOTICE OF INQUIRY THAT SEEKS 10:35 COMMENT ON OTHER EFFECTS OF THE 10:35 TAX CUTS AND JOBS ACT ON ALL 10:35 COMMISSION JURISDICTIONAL RATES. 10:35 THE NOTICE OF INQUIRY IS A 10:35 VEHICLE TO HELP THE COMMISSION 10:35 BUILD A RECORD TO DETERMINE 10:35 WHETHER ADDITIONAL ACTION IS 10:35 NEEDED. 10:35 OF PARTICULAR INTEREST, THE 10:36 COMMISSION SEEKS COMMENTS ON THE 10:36 TOPIC OF ACCUMULATED DEFERRED 10:36 INCOME TAXES, WHICH ARE THE 10:36 DOLLAR AMOUNTS OF TAXES THAT 10:36 PUBLIC UTILITIES, INTERSTATE 10:36 NATURAL GAS PIPELINES AND OIL 10:36 PIPELINES COLLECTED FROM 10:36 CUSTOMERS IN ANTICIPATION OF 10:36 PAYING THE INTERNAL REVENUE 10:36 SERVICE. 10:36 -- THE TAX RATE CHANGE, THE 10:36 CURRENT BALANCE OF CURRENT 10:36 DEFERRED INCOME TAXES DOES NOT 10:36 ACCURATELY REFLECT THE CURRENT 10:36 20 TAX LIABILITY. 10:36 AS DETAILED IN THE NOTICE OF 10:36 INQUIRY, COMMENT -- A HOST OF 10:36 CONSIDERATIONS RELATED TO THIS 10:36 TOPIC. 10:36 ALSO OF PARTICULAR INTEREST, THE 10:36 COMMISSION SEEKS COMMENTS ON THE 10:36 TOPIC OF BONUS DEPRECIATION. 10:36 GENERALLY BONUS DEPRECIATION IS 10:36 A TAX INCENTIVE GIVEN TO 10:36 COMPANIES TO ENCOURAGE CERTAIN 10:36 TYPES OF INVESTMENT. 10:36 THE COMPANY THAT PURCHASES A 10:36 QUALIFIED BUSINESS PROPERTY AND 10:36 PLACES IT INTO SERVICE WITHIN A 10:36 TAXABLE YEAR CAN TAKE A FIRST 10:36 YEAR DEDUCTION IN ADDITION TO 10:36 ANY DEPRECIATION DEDUCTION 10:36 AVAILABLE. 10:36 THE TAX CUTS AND JOBS ACT 10:37 PROHIBITS THE USE OF BONUS 10:37 DEPRECIATION FOR ASSETS ACQUIRED 10:37 IN A TRADE OR BUSINESS OF THE 10:37 FURNISHING OR SALE OF ELECTRICAL 10:37 ENERGY, WATER OR SEWAGE DISPOSAL 10:37 SERVICES, GAS OR -- LOCAL 10:37 DISTRIBUTION SYSTEM OR 10:37 TRANSPORTATION OF GAS OR STEAM 10:37 BY PIPELINE. 10:37 THE COMMISSION SEEKS COMMENT ON 10:37 THE EFFECT OF THE BONUS 10:37 DEPRECIATION CHANGE UNDER THE 10:37 TAX CUTS AND JOBS ACT AND 10:37 WHETHER AND IF SO HOW IT SHOULD 10:37 TAKE ACTION TO ADDRESS BONUS 10:37 DEPRECIATION RELATED ISSUES. 10:37 THE NOTICE OF INQUIRY ARE DUE 60 10:37 DAYS AFTER PUBLICATION IN THE 10:37 FEDERAL REGISTER. 10:37 FINALLY, I WOULD LIKE TO THANK 10:37 AND RECOGNIZE THE MEMBERS OF THE 10:37 TEAM THAT ARE NOT SEATED HERE AT 10:37 THE TABLE IN HELPING TO PREPARE 10:37 THESE ORDERS. 10:37 THANK YOU. 10:37 THIS CONCLUDES OUR PRESENTATION. 10:37 WE ARE HAPPY TO ANSWER ANY 10:37 QUESTIONS YOU MAY HAVE. 10:37

CHAIRMAN MCINTYRE: THANK 10:37 YOU, MS. FLEET, AND I THANK THE 10:37 21 ENTIRE TEAM HERE AND I JOIN YOU 10:37 IN THANKING THE BROADER TEAM 10:37 THAT'S BEHIND THE SCENES. 10:37 THIS IS A VERY IMPRESSIVE GROUP 10:38 OF ORDERS, AND SINCE I HAVE 10:38 NO -- I TAKE NO PERSONAL CREDIT, 10:38 I FEEL AT LIBERTY TO CROW A BIT 10:38 ABOUT THE TEAM'S WORK HERE, 10:38 BECAUSE IT'S VERY IMPRESSIVE NOT 10:38 ONLY IN TERMS OF ITS SUBSTANTIVE 10:38 CONTENT BUT THE TIMING, TIMING 10:38 IS TRULY IMPRESSIVE. 10:38 THE TAX REFORM REFLECTED IN THE 10:38 TAX CUTS AND JOBS ACT WAS SIGNED 10:38 INTO LAW DECEMBER 22ND. 10:38 AND HERE WE ARE NOT EVEN TO TAX 10:38 DAY WITH A BODY OF ORDERS THAT 10:38 ADDRESS THE COMPLEX AND 10:38 IMPORTANT ISSUES OF HOW BEST TO 10:38 ADDRESS IT, WHICH OF COURSE 10:38 INCLUDES A COMPONENT OF HOW BEST 10:38 TO FLOW THROUGH ULTIMATELY TO 10:38 CONSUMERS THE BENEFITS OF THIS 10:38 HISTORIC AND DRAMATIC REDUCTION 10:38 IN THE CORPORATE INCOME TAX RATE 10:38 FROM MAXIMUM 35%, YOU CITED TO A 10:38 FLAT 21% LEVEL. 10:38 SO THIS IS HISTORIC STUFF, AND I 10:38 THANK YOU ALL FOR YOUR 10:38 CONTRIBUTIONS IN MAKING IT 10:38 HAPPEN. 10:38 I CERTAINLY SUPPORT THE ORDERS. 10:38 I BELIEVE THEY DO AN APPROPRIATE 10:39 JOB OF ADDRESSING THE NUANCES OF 10:39 THE DIFFERENT SITUATIONS OF THE 10:39 DIFFERENT TYPES OF ENTITIES THAT 10:39 WE REGULATE AS YOU'VE EXPLAINED 10:39 THEM. 10:39 I WOULD SAY AS WELL, A CORE PART 10:39 OF OUR MISSION HAS ALWAYS BEEN 10:39 TO ENSURE RELIABLE SERVICES AT 10:39 REASONABLE RATES THROUGH 10:39 APPROPRIATE REGULATORY AND 10:39 MARKET CONSTRUCTS. 10:39 AND THESE ORDERS THAT WE 10:39 ADDRESSED TO, WHICH ADDRESS 10:39 VARIOUS ENTITIES UNDER THE 10:39 COMMISSION'S JURISDICTION, 10:39 VARIOUS TYPES OF ENTITIES, WILL 10:39 HELP US TO ENSURE JUST AND 10:39 22 REASONABLE RATES, WHICH IS TO 10:39 SAY HELP US TO DO OUR STATUTORY 10:39 JOB. 10:39 SO AGAIN, I THANK THE TEAM FOR 10:39 THE HARD WORK. 10:39 I DO HAVE A FEW QUESTIONS, IF I 10:39 MAY. 10:39 FIRST IT WAS MENTIONED THAT 10:39 ACCUMULATED DEFERRED INCOME 10:39 TAXES ARE BEING HAPPENED 10:39 SEPARATELY AND I WANTED TO ASK 10:39 FOR A LITTLE MORE ELUCIDATION OF 10:39 THE SIGNIFICANCE OF ADIT. 10:39

THANK YOU, MR. CHAIRMAN, FOR 10:40 THE QUESTION. 10:40 -- SIGNIFICANCE OVER 10:40 ACCUMULATED DEFERRED INCOME 10:40 TAXES. 10:40 IN RATE MAKING, ACCUMULATED 10:40 DEFERRED INCOME TAXES REPRESENT 10:40 INCOME TAXES THAT HAVE BEEN PAID 10:40 BY THE CUSTOMERS ALREADY TO THE 10:40 PUBLIC UTILITIES AND THE 10:40 PIPELINE ARE NOT YET OWED BY 10:40 THOSE PUBLIC UTILITIES AND 10:40 PIPELINES TO THE IRS, AND 10:40 BECAUSE OF THE TAX CUT AND JOBS 10:40 ACT LOWERING THE TAX RATE, THE 10:40 AMOUNTS OWED BY THE PUBLIC 10:40 UTILITIES AND PIPELINES AT THE 10:40 IRS ARE NOW LOWER, AND 10:40 ACCORDINGLY, IT'S THE 10:40 INCREMENTAL PIECE OF THE AMOUNT 10:40 ALREADY COLLECTED FROM CUSTOMERS 10:40 BY THE PUBLIC UTILITIES AND 10:40 PIPELINES, WE BELIEVE ARE 10:40 CONSIDERED EXCESS ACCUMULATED 10:40 DEFERRED INCOME TAXES, AND THOSE 10:40 AMOUNTS SHOULD BE FLOWED BACK TO 10:40 CUSTOMERS. 10:40 10:40

CHAIRMAN MCINTYRE: THANK 10:40 YOU VERY MUCH. 10:40 THE NOPR ALSO PROPOSES TO 10:40 REQUIRE INTER STATE GAS 10:41 PIPELINES TO MAKE THIS ONE-TIME 10:41 FILING YOU DESCRIBED. 10:41 COULD HE U. EXPLAIN A LITTLE 10:41 MORE ABOUT THE RATIONALE BEHIND 10:41 THE SUBMITTAL OF THE FORM? 10:41 23 10:41

I'LL TAKE THAT ONE. 10:41 THE NOPR RECOGNIZES THAT THE 10:41 FINANCIAL PROFILE FOR EACH 10:41 INTRASTATE NATURAL GAS PIPELINE 10:41 WITH -- RATES IS DIFFERENT. 10:41 THE FERC 501G, THE INFORMATIONAL 10:41 FILING, IT'S AN ABBREVIATED COST 10:41 AND REVENUE STUDY USING 2017 10:41 FERC FORM NUMBER 2 AND 2A DATA 10:41 THAT WILL ESTIMATE THE 10:41 PERCENTAGE RATE REDUCTION IN 10:41 EACH PIPELINE'S COST OF SERVICE 10:41 RESULTING FROM THE TAX CUTS AND 10:41 JOBS ACT AND THE -- POLICY 10:41 STATEMENT. 10:41 THE ONE-TIME REPORT WILL ALSO 10:41 ESTIMATE THE PIPELINE'S ACTUAL 10:41 RETURN ON EQUITY, BOTH BEFORE 10:41 AND AFTER THE TAX CHANGE AND 10:41 IMPLEMENTATION OF THE REVISED 10:41 POLICY STATEMENT. 10:41 THE INFORMATION IN THE ONE-TIME 10:41 REPORT WILL BE USED TO GUIDE THE 10:41 COMMISSION, OTHER STAKEHOLDERS 10:41 AND POTENTIALLY THE PIPELINES IN 10:41 DETERMINING ADDITIONAL STEPS. 10:42 FOR EXAMPLE, THE NOPR PROPOSES 10:42 TO ALLOW PIPELINES TO MAKE A 10:42 LIMITED SECTION 4 FILING TO 10:42 REDUCE THE RATES BY THE 10:42 PERCENTAGE REDUCTION IN THEIR 10:42 COST OF SERVICE CALCULATED IN 10:42 THAT INFORMATIONAL FILING. 10:42 THE ONE-TIME REPORT WILL ALSO 10:42 ASSIST THE COMMISSION IN 10:42 DETERMINING WHETHER TO USE ITS 10:42 AUTHORITY UNDER SECTION 5 OF THE 10:42 NATURAL GAS ACT TO REQUIRE A 10:42 PIPELINE TO NOT VOLUNTARILY 10:42 MODIFY THEIR RATES, TO EITHER 10:42 REDUCE THEIR RATES TO REFLECT 10:42 THE INCOME TAX REDUCTION OR 10:42 EXPLAIN WHY THEY SHOULD NOT BE 10:42 REQUIRED TO DO SO. 10:42

CHAIRMAN MCINTYRE: SO THE 10:42 INFO FROM THE FORM SUBMITTALS 10:42 WILL HELP US TO ASSESS THAT 10:42 ISSUE. 10:42

RIGHT. 10:42 24

CHAIRMAN MCINTYRE: THANK 10:42 YOU VERY MUCH. 10:42 I THINK THIS IS SORT OF AN 10:42 ACROSS THE BOARD -- WHEN WOULD 10:42 WE EXPECT TO SEE THE FERC 10:42 JURISDICTIONAL RATES TO ACTUALLY 10:42 CHANGE TO REFLECT THESE STEPS? 10:42 10:42

I'LL TOUCH ON PUBLIC 10:42 UTILITIES FIRST. 10:42 SO THOSE PUBLIC UTILITIES WITH 10:42 TRANSMISSION FORMULA RATES WAS 10:42 AUTOMATIC ADJUSTMENTS FOR THE 10:42 FEDERAL INCOME TAX COMPONENT. 10:43 THE REVISED RATES WILL BEGIN 10:43 TAKING EFFECT AS THOSE 10:43 ADJUSTMENTS OCCUR. 10:43

CHAIRMAN MCINTYRE: IN THEIR 10:43 ORDINARY PROCESSES? 10:43

CORRECT. 10:43 IN ITEMS E2 AND E3, WHICH ARE 10:43 ORDERS TO SHOW CAUSE, BECAUSE 10:43 THE COMMISSION IS ACTING UNDER 10:43 SECTION 206 OF THE FEDERAL POWER 10:43 ACT, RECEIPT FUND EFFECTIVE DATE 10:43 WILL BE THE DATE THE -- THE 10:43 NOTICE OF ORDER IS PUBLISHED IN 10:43 THE FEDERAL REGISTER, THUS, 10:43 CUSTOMERS WILL HAVE REFUND 10:43 PROTECTION AS OF THAT DATE. 10:43 10:43

AND FOR INTRASTATE NATURAL 10:43 GAS PIPELINES THE EFFECTIVE RATE 10:43 OF -- DEPENDING ON PIPELINE TO 10:43 PIPELINE, IN THE NOPR THE 10:43 PIPELINE CHOOSES. 10:43 SO THE NOPR ANTICIPATES THAT THE 10:43 DEADLINES FOR PIPELINE FILINGS 10:43 WILL BE LATE SUMMER OR OH EARLY 10:43 FALL. 10:43 OBVIOUSLY HAVE TO GO TO A FINAL 10:43 RULE FIRST, SO ASSUMING WE GO TO 10:43 FINAL RULE, INFORMATIONAL 10:43 FILINGS WILL COME IN AT THAT 10:43 TIME. 10:43 IF A PIPELINE CHOOSES THE OPTION 10:43 OF MAKING THE LIMITED SECTION 10:43 4 WILL FILING TO REDUCE ITS 10:44 RATES, THEY MAY TAKE EFFECT 30 10:44 DAYS AFTER THAT FILING. 10:44 25 ANY RATE REDUCTIONS PURSUANT TO 10:44 SECTION 5 OF THE NATURAL GAS ACT 10:44 WILL TAKE LONGER BECAUSE THE 10:44 COMMISSION CANNOT ORDER REFUNDS 10:44 UNDER SECTION 5. 10:44 IN ADDITION, THE NOPR RECOGNIZES 10:44 THAT SOME PIPELINES MAY BE ABLE 10:44 TO SHOW THAT NO RATE CHANGE IS 10:44 JUSTIFIED, SO BECAUSE THEY'RE 10:44 CURRENT RATES, FOR EXAMPLE, 10:44 RECOVERING COST OF SERVICE AND 10:44 OTHER REASONS. 10:44

CHAIRMAN MCINTYRE: I SEE. 10:44 THANK YOU VERY MUCH. 10:44 WELL, I AGAIN THANK THE TEAM 10:44 HERE AND BEHIND THE SCENES FOR 10:44 THIS EXCELLENT WORK PRODUCT. 10:44 AND AGAIN NOTING THE VERY QUICK 10:44 SPEED PARTICULARLY IN FERC TIME, 10:44 IN WHICH WE ARE ACTING ON THIS 10:44 DUE TO YOUR HARD WORK. 10:44 I HAVE A FUN FACT AS TO TIMING. 10:44 THE TAX REFORM ACT OF 1986 10:44 AFFORDED THIS COMMISSION THE 10:44 LAST OPPORTUNITY TO TRY TO TAKE 10:44 A PAY JUROR TAX REFORM AND 10:45 REFLECT IT IN THE RATES THAT WE 10:45 REGULATE. 10:45 THAT WAS SIGNED INTO LAW ON JUNE 10:45 BE 26, 1987. 10:45 COMMISSION'S ACTION FOLLOWED BY 10:45 246 DAYS. 10:45 IN THIS INSTANCE, WE ARE A MERE 10:45 83 DAYS FROM THE STATUTE BEING 10:45 SIGNED INTO LAW. 10:45 SO WE CLOBBERED THOSE 1986 -- 10:45 [LAUGHTER] 10:45

CHAIRMAN MCINTYRE: THANK 10:45 YOU AGAIN VERY MUCH AND LET ME 10:45 TURN TO MY COLLEAGUES TO SEE IF 10:45 THEY CARE TO ADD SOME QUESTIONS 10:45 OF THEIR OWN. 10:45 COMMISSIONER LAFLEUR. 10:45

COMMISSIONER LAFLEUR: THANK 10:45 YOU VERY MUCH, MR. CHAIRMAN. 10:45 I'D ALSO LIKE TO THANK THE TEAM 10:45 FROM ACROSS THE COMMISSION THAT 10:45 WORKED ON THIS BODY OF ORDERS 10:45 THAT WE'RE ACTING ON TODAY. 10:45 I WAS GOING TO MAKE A SIMILAR 10:45 26 ALTHOUGH NOT AS HUMOROUS 10:45 OBSERVATION ABOUT THE DIFFERENCE 10:45 OF 1986, I THINK YOUR ACTION IS 10:45 EXTRAORDINARILY TIMELY. 10:45 ULTIMATELY, ALL OF THE RATES 10:45 THAT WE REGULATE AT THE 10:45 COMMISSION ARE PAID BY 10:45 CONSUMERS. 10:45 WHETHER IN THEIR ELECTRIC BILL, 10:45 THEIR GAS BILL TO HEAT THEIR 10:45 HOUSE, THEIR PROPANE BILL, WHEN 10:46 THEY FILL THEIR CAR WITH 10:46 GASOLINE OR WHEN THEY GET ON A 10:46 COMMERCIAL AIRPLANE, SOME PART 10:46 OF THAT IS REGULATED BY FERC. 10:46 AND I THINK THE ACTIONS LIKE WE 10:46 ARE TAKING ACTIONS SUCH AS WE'RE 10:46 TAKING TODAY ARE PART OF OUR 10:46 CORE RESPONSIBILITY TO ENSURE 10:46 THAT CONSUMERS PAY JUST AND 10:46 REASONABLE RATES. 10:46 SOME PARTS OF THIS SEEM RATHER 10:46 SIMPLE, EVEN I CAN DO ALGEBRA 10:46 1 AND CHANGE 35 TO 21, BUT OTHER 10:46 ASPECTS OF THE IMPACT OF TAX 10:46 REFORM ON RATES LIKE ACCUMULATED 10:46 DEFERRED INCOME TAXES THAT 10:46 KRISTEN SPOKE ABOUT AND BONUS 10:46 DEPRECIATION ARE EXTREMELY 10:46 COMPLICATED. 10:46 ONE MIGHT EVEN SAY THEY'RE PART 10:46 OF THE BORING GOOD, BECAUSE ON 10:46 ST. PATRICK'S DAY, YOU TALK 10:46 ABOUT IRISH -- YOU QUOTE THEIR 10:46 LEARNINGS, BUT I RECENTLY -- I 10:46 FREQUENTLY SPEAK ON COLLEGE 10:46 CAMPUSES AND PEOPLE ASK ME, WHAT 10:46 DO YOU WISH YOU STUDIED MORE OF 10:46 IN COLLEGE AND THERE'S SO MANY 10:46 THINGS LIKE ELECTRICAL 10:46 ENGINEERING THAT I COULD USE 10:46 NOW, BUT I ALWAYS SAY ACCOUNTING 10:46 BECAUSE I FEEL IT'S VERY 10:46 DIFFICULT TO GET THROUGH SOME OF 10:47 THESE THINGS, AND WE'RE VERY 10:47 FORTUNATE TO HAVE THE STRONG 10:47 TEAM HERE AS WELL AS IN OUR 10:47 AUDIT GROUP TO HELP US WITH 10:47 THAT. 10:47 I KNOW WITH HAVE SHORT TIME 10:47 27 LINES ON BOTH THE NOTICE OF 10:47 INQUIRY AND NOTICE OF PROPOSED 10:47 RULEMAKING FOR A REASON, SO I 10:47 HOPE WE GO ET A VERY STRONG 10:47 RESPONSE FROM THE REGULATED 10:47 COMMUNITY. 10:47 THANK YOU. 10:47

CHAIRMAN MCINTYRE: THANK 10:47 YOU, COMMISSIONER. 10:47 COMMISSIONER CHATTERJEE. 10:47

COMMISSIONER CHATTERJEE: 10:47 THANK YOU, MR. CHAIRMAN. 10:47 AGAIN, THANK YOU TO THE TEAM FOR 10:47 YOUR HARD WORK AND FOR PUTTING 10:47 TOGETHER TODAY'S PRESENTATION. 10:47 THE TAX CUTS AND JOBS ACT IS A 10:47 SIGNIFICANT PIECE OF 10:47 LEGISLATION, ONE OF THE MOST 10:47 CONSEQUENTIAL IN THE GENERATION, 10:47 AND I THINK THE ACTIONS WE TAKE 10:47 HERE TODAY WILL ENSURE THAT THE 10:47 BENEFITS OF THAT HISTORIC 10:47 LEGISLATION FLOW TO RATE PAY 10:47 ORS. 10:47 PUT SIMPLY, THAT MEANS LOWER 10:47 ELECTRIC AND NATURAL GAS BILLS. 10:47 WHILE COMMISSION ACTION IS 10:47 IMPORTANT TO REALIZING THE 10:47 BENEFITS OF TAX REFORM, 10:48 ADJUSTING JURISDICTIONAL RATES 10:48 TO REFLECT TAX CHANGES IS A 10:48 COMPLEX TASK. 10:48 THE PRECISE WAY THAT FEDERAL 10:48 CORPORATE TAX RATES ARE BAKED IN 10:48 TO THE RATES DEPEND ON A NUMBER 10:48 OF FACTORS INCLUDING BUT NOT 10:48 LIMITED TO WHETHER THE RATE IS 10:48 AN ELECTRIC RATE OR NATURAL GAS 10:48 RATE, WHETHER THE FEDERAL 10:48 CORPORATE INCOME TAX RATE IS A 10:48 FIXED LINE ITEM OR A VARIABLE 10:48 INPUT TO A FORMULA RATE, AND HOW 10:48 THE RATE TREATS ACCUMULATED 10:48 DEFERRED INCOME TAX. 10:48 CLEARLY, THESE ARE COMPLICATED 10:48 ISSUES, BUT I THINK THE APPROACH 10:48 THE COMMISSION IS TAKING TODAY 10:48 STRIKES AN APPROPRIATE BALANCE 10:48 AMONG THE VARIOUS INTERESTS OF 10:48 STAKEHOLDERS AFFECTED BY TAX 10:48 28 REFORM. 10:48 I LOOK FORWARD TO REVIEWING THE 10:48 RESPONSES WE RECEIVE ON THE 10:48 ORDERS WE ISSUE TODAY. 10:48 JUST A COUPLE OF QUESTIONS. 10:48 THERE'S A TENDENCY ON THE PART 10:48 OF MANY OF US AT FERC HERE TO 10:48 SPEAK IN TERMS OF JARGON: 10:48 INDUSTRY, STAKEHOLDERS, PUBLIC 10:48 UTILITIES. 10:48 COULD YOU TAKE A MOMENT TO 10:48 DISCUSS THE BOTTOM LINE? 10:48 WHAT COULD TODAY'S ACTIONS MEAN 10:48 FOR HARD WORKING AMERICANS? 10:49 MORE SPECIFICALLY, HOW COULD 10:49 TODAY'S ORDERS AND RULE MAKINGS 10:49 CONTRIBUTE TO PASSING ALONG THE 10:49 TAX REFORM SAVINGS TO THEM? 10:49

SURE, THANKS FOR THE 10:49 QUESTION. 10:49 SO TO THE TODAY'S ACTIONS COULD 10:49 MEAN WHOLESALE CUSTOMERS COULD 10:49 GO DOWN, TAX EXPENSES ARE 10:49 RECOVERED AS COST OF SERVICE 10:49 RATE MAKING. 10:49 WHEN TAX EXPENSES GO DOWN, SO 10:49 DOES THE COST OF SERVICE. 10:49 SO WE WOULD EXPECT THAT 10:49 WHOLESALE CUSTOMERS COULD SEE A 10:49 REDUCTION THERE. 10:49 INDIVIDUAL CITIZEN MAY ALSO 10:49 RECEIVE A BENEFIT AS ANY COST 10:49 SAVINGS ARE PASSED DOWN THROUGH 10:49 THE RETAIL AND STATE SIDE. 10:49

COMMISSIONER CHATTERJEE: 10:49 THANK YOU VERY MUCH, THAT IS 10:49 IMPORTANT. 10:49 MY SECOND QUESTION, HOW DID 10:49 STAFF IDENTIFY THE ELECTRIC 10:49 TRANSMISSION PUBLIC UTILITIES 10:49 NAMED IN ITEMS E2 AND E3, AND 10:49 ARE THOSE ONLY THE UTILITIES 10:49 WHOSE TARIFFS WILL NOT 10:49 AUTOMATICALLY ADJUST TO REFLECT 10:49 THE REDUCTION OF FEDERAL INCOME 10:49 TAX RATES? 10:49

OH SO WE IDENTIFIED THE 10:49 COMPANIES IN E2 AND E3 BY 10:50 CONDUCTING A COMPREHENSIVE 10:50 REVIEW OF EVERY PUBLIC UTILITY 10:50 29 THAT HAS A TRANSMISSION TARIFF 10:50 ON FILE WITH US, AND THROUGH 10:50 THAT REVIEW, WE IDENTIFIED THOSE 10:50 UTILITIES WITH STATED RATES AS 10:50 WELL AS THE PUBLIC UTILITIES 10:50 WITH FORMULA RATES THAT INCLUDE 10:50 A FIXED 35% LINE ITEM. 10:50 AND WE EXPECT THAT THROUGH THIS 10:50 REVIEW, WE HAVE IDENTIFIED THE 10:50 MAJORITY OF PUBLIC UTILITIES 10:50 THAT HAVE A RATE THAT WILL NOT 10:50 AUTOMATICALLY ADJUST. 10:50 10:50

COMMISSIONER CHATTERJEE: 10:50 THANK YOU. 10:50 SEVERAL OF TODAY'S ORDERS 10:50 CHARACTERIZE THE ACTION BEING 10:50 UNDERTAKEN AS SINGLE ISSUE 10:50 RULEMAKING. 10:50 WHY IS THE COMMISSION GENERALLY 10:50 AVOIDED THAT APPROACH AND DO 10:50 TODAY'S ORDERS EXPLAIN WHY THE 10:50 COMMISSION IS DEVIATING FROM 10:50 THAT GENERAL POLICY HERE? 10:50

THANK YOU FOR THE QUESTION. 10:50 THE COMMISSION GENERALLY 10:50 DISFAVORS PUBLIC UTILITIES WILL 10:50 AND PIPELINES FROM ADJUSTING 10:50 THEIR RATES TO REFLECT A SINGLE 10:50 COST ITEM BECAUSE INCREASES IN 10:50 ONE COST ITEM MAY BE OH OFFSET 10:51 BY DECREASES IN OTHER COST 10:51 ITEMS. 10:51 THE ITEM G1, THE NOTICE OF 10:51 PROPOSED RULEMAKING PROPOSES AN 10:51 EXCEPTION TO THIS POLICY TO 10:51 PERMIT PIPELINES TO FILE THE 10:51 LIMITED SECTION 4 FILING TO 10:51 REDUCE THEIR RATES BASED SOLELY 10:51 ON THE REDUCTION IN THE 10:51 CORPORATE INCOME TAX RATE OR 10:51 ELIMINATION FROM THE REVISED 10:51 SPIEL STATEMENT. 10:51 THE NOTICE OF PROPOSED 10:51 RULEMAKING EXPLAINS THAT THIS 10:51 WILL ALLOW PIPELINES TO QUICKLY 10:51 PASS ON THE BENEFIT OF THESE 10:51 COST REDUCTIONS TO HAD CONSUMERS 10:51 WITHOUT THE NEED FOR FULL 10:51 EXAMINATION OF THEIR COSTS AND 10:51 30 REVENUES SO WE FELT THAT IT WAS 10:51 APPROPRIATE IN THIS SITUATION. 10:51 SO WITH RELATION TO PUBLIC 10:51 UTILITIES, THE ITEMS E2 AND E3, 10:51 ORDERS TO SHOW CAUSE, THEY POINT 10:51 OUT THAT BECAUSE CHANGES TO 10:51 REFLECT THE REDUCED INCOME TAX 10:51 RATE ARE LIMITED IN SCOPE, 10:51 SINGLE ISSUE RATE MAKING MAY BE 10:51 APPROPRIATE IN THESE CASE. 10:51 ADDITIONALLY, THE USE OF SINGLE 10:51 RATE MAKING IN THESE CASES MAY 10:52 ALLOW THE ECONOMIC BENEFITS 10:52 ASSOCIATED WITH THE TAX CUT TO 10:52 FLOW BACK TO RATE -- CUSTOMERS 10:52 MORE QUICKLY. 10:52

COMMISSIONER CHATTERJEE: 10:52 THANK YOU. 10:52 MY FINAL QUESTION, THE CHAIRMAN 10:52 REFERRED TO THE PREVIOUS EFFORT 10:52 IN 1986, AND THE SPEED WITH 10:52 WHICH YOU WERE ALL ABLE TO ACT 10:52 THIS GO AROUND COMPARED TO '86. 10:52 COULD YOU JUST GIVE ME A LITTLE 10:52 BUILT OF BACKGROUND ON HOW 10:52 TODAY'S ORDERS COMPARE TO THE 10:52 APPROACH THE COMMISSION TOOK 10:52 FOLLOWING THAT LEGISLATION? 10:52 10:52

THANK YOU FOR THE QUESTION. 10:52 ITEM G1, THE NOTICE OF PROPOSED 10:52 RULEMAKING IS MODELED ON THE 10:52 APPROACH THE COMMISSION TOOK 10:52 WITH RESPECT TO PUBLIC UTILITIES 10:52 FOLLOWING THE 1986 TAX REFORM. 10:52 WE'RE PROVIDING PIPELINES THE 10:52 SAME FOUR OPTIONS OF FILING A 10:52 LIMITED OR GENERAL SECTION 10:52 4 CASE OR EXPLAINING WHY NO RATE 10:52 CHANGE IS NECESSARY OR TAKING NO 10:52 ACTION. 10:52 HOWEVER, UNLIKE THE 1986 10:52 SITUATION, THIS NOTICE OF 10:52 PROPOSED RULEMAKING REQUIRES ALL 10:52 PIPELINES TO FILE THAT ONE-TIME 10:52 REPORT SHOWING THE FINANCIAL 10:53 IMPACT OF THE TAX LAW ON THE 10:53 REVISED POLICY STATEMENT. 10:53 THE ONE-TIME REPORT WILL, LIKE I 10:53 SAID EARLIER, WILL CALCULATE 10:53 31 THAT PERCENTAGE RATE DECREASE 10:53 THAT A PIPELINE MAY PROPOSE IN A 10:53 LIMITED SECTION 4 FILING, AND 10:53 ALSO PROVIDE THE COMMISSION AND 10:53 INTERESTED PARTIES INFORMATION 10:53 CONCERNING WHETHER TO INITIATE A 10:53 SECTION 5 RATE INVESTIGATION OF 10:53 PIPELINES THAT DON'T VOLUNTARILY 10:53 REDUCE THEIR RATES. 10:53

AND I WILL ADD FOR PUBLIC 10:53 UTILITIES, THE APPROACH HERE IS 10:53 A LITTLE DIFFERENT BECAUSE 10:53 PUBLIC UTILITIES, GENERALLY 10:53 THESE DAYS, USE TRANSMISSION 10:53 FORMULA RATES, INSTEAD OF STATED 10:53 RATE. 10:53 SO THE TRANSMISSION FORMULA 10:53 RATES GENERALLY ALLOW FOR THE 10:53 AUTOMATIC ADJUSTMENTS AND THIS 10:53 WASN'T COMMON IN '86 SO WE'RE 10:53 TAKING A DIFFERENT APPROACH WITH 10:53 REGARD TO PUBLIC UTILITIES. 10:53

COMMISSIONER CHATTERJEE: 10:53 THANK YOU, I HAVE NO FURTHER 10:53 QUESTIONS BUT AGAIN I JUST WANT 10:53 TO THANK YOU AND COMMEND THE 10:53 ENTIRE TEAM FOR YOUR FANTASTIC 10:53 WORK IN THIS AREA. 10:53 10:54

CHAIRMAN MCINTYRE: THANK 10:54 YOU, COMMISSIONER. 10:54

COMMISSIONER POWELSON: 10:54 THANK YOU, MR. CHAIRMAN. 10:54 LET ME ECHO THE SENTIMENTS 10:54 EXPRESSED HERE TODAY IN 10:54 APPRECIATION OF THE WORK BEING 10:54 DONE. 10:54 I APPRECIATE COMMISSIONER 10:54 LAFLEUR REFERENCING ALGEBRA 10:54 1 FOR A REGULATORY BODY. 10:54 FOR A LEGISLATIVE BODY, IT WOULD 10:54 BE LIKE QUANTUM PHYSICS. 10:54 SIMPLY PUT. 10:54

COMMISSIONER CHATTERJEE: I 10:54 TAKE OFFENSE TO THAT. 10:54 [LAUGHTER] 10:54

COMMISSIONER POWELSON: WE 10:54 HAVE A 12-STEP PROGRAM, WORKING 10:54 QUITE WELL. 10:54 SERIOUSLY, I JUST WANT THE TO 10:54 32 AGAIN ECHO WHAT'S BEEN SAID HERE 10:54 ALREADY. 10:54 THE FACT THAT I THINK IT'S FAIR 10:54 TO SAY THE THOUGHTFUL APPROACH, 10:54 THE BALANCE THAT WE'VE TAKEN IN 10:54 THIS MULTI-PRONG APPROACH TO 10:54 ENSURE THAT FERC JURISDICTIONAL 10:54 ENTITIES APPROPRIATELY ADDRESS 10:54 THE NEW LEGISLATION, WHICH WILL 10:54 IS A FORMER STATE PUBLIC UTILITY 10:54 COMMISSIONER, AND I WAS GLAD TO 10:54 SEE, TO COMMISSIONER 10:54 CHATTERJEE'S POINT, THIS DIRECT 10:54 PASS-THROUGH SAVINGS TO 10:54 CUSTOMERS, IT'S HISTORIC IN 10:54 NATURE, IT ONLY TOOK US ABOUT 30 10:54 YEARS TO GET TO THIS POINT, AND 10:55 YOU COUPLE THAT WITH REDUCTIONS 10:55 IN GAS PURCHASE COSTS FOR LDCS 10:55 COUPLED WITH HISTORIC DROPS IN 10:55 WHOLESALE POWER PRICES, THE 10:55 STORY ONLY GETS BETTER FOR 10:55 CONSUMERS. 10:55 AND AGAIN, TOGETHER THESE 10:55 ACTIONS WILL ENSURE THAT RATES 10:55 OF FERC JURISDICTIONAL ENTITIES 10:55 REMAIN JUST AND REASONABLE AND 10:55 THAT ANY SAVINGS RESULTING FROM 10:55 THE TAX CUT OR THE TAX REFORM 10:55 WILL BE REALIZED TO CONSUMERS. 10:55 IF THERE'S ONE THING I'VE 10:55 LEARNED AS A COMMISSIONER HERE, 10:55 IT IS THAT NO TWO FERC 10:55 JURISDICTIONAL ENTITIES ARE 10:55 ALIKE, AND BELIEVE ME, AFTER 10:55 OPENING MY BIG MOUTH, 10:55 MR. CHAIRMAN, AT THE PUBLIC 10:55 MEETING WHERE I MADE THE GLOWING 10:55 STATEMENT ABOUT THE TAX REFORM, 10:55 MY PHONE LIT UP RATHER QUICKLY, 10:55 AND THANKS TO YOU, TO MAKING US 10:55 LOOK GOOD IN SPITE OF OURSELVES, 10:55 I APPRECIATE THE WORK THAT 10:55 YOU'RE DOING HERE TODAY. 10:55 I ALSO THINK IT'S ESSENTIAL THAT 10:55 ALL FERC JURISDICTIONAL ENTITIES 10:56 TAKE A HARD LOOK AT THEIR RATES 10:56 AND OBVIOUSLY MAKE SURE THE 10:56 APPROPRIATE CHANGES ARE ADJUSTED 10:56 IN LIGHT OF THE NEW LAW, AND 10:56 33 OBVIOUSLY WE'RE ENCOURAGING KIND 10:56 OF A LIGHT TOUCH APPROACH THAT 10:56 ALL ENTITIES IMPACTED BY THESE 10:56 PROCEEDINGS BE PROACTIVE AND 10:56 FORTHRIGHT IN COMPLYING WITH THE 10:56 COMMISSION'S DIRECTIVE. 10:56 I WAS A LITTLE ALARMED THAT 10:56 THERE WERE SOME UTILITIES NOW 10:56 THAT WE DON'T REGULATE ELECTRIC 10:56 DISTRIBUTION COMPANIES, BUT I 10:56 WAS A LITTLE ALARMED THAT SOME 10:56 OF THEM WERE SAYING WE'RE GOING 10:56 TO USE THESE PROCEEDS FOR TREE 10:56 TRIMMING. 10:56 I DON'T THINK THAT'S A GOOD USE 10:56 OF THE TAX SAVINGS, 10:56 MR. CHAIRMAN, BUT AGAIN, THAT'S 10:56 MY PRIOR LIFE. 10:56 BUT I COMMEND THE WORK THAT'S 10:56 BEING DONE BY NEIGHBORHOOD 10:56 COMMISSIONERS WITH RESPECT TO 10:56 WORKING WITH ELECTRIC 10:56 DISTRIBUTION COMPANIES AND LOCAL 10:56 GAS DISTRIBUTION COMPANIES. 10:56 AND FINALLY, I JUST, AGAIN, WANT 10:56 TO APPLAUD YOU FOR THE WORK 10:56 HERE. 10:56 MR. CHAIRMAN, YOUR POINT THAT WE 10:56 TOOK 246 DAYS BACK IN 1986 DOWN 10:56 TO 83 DAYS SPEAKS TO A MORE 10:56 AGILE, NIMBLE, RESILIENT FEDERAL 10:57 ENERGY REGULATORY COMMISSION. 10:57 THANK YOU VERY MUCH. 10:57 10:57

CHAIRMAN MCINTYRE: I 10:57 COULDN'T AGREE MORE. 10:57 COMMISSIONER GLICK. 10:57

COMMISSIONER GLICK: THANK 10:57 YOU, MR. CHAIRMAN. 10:57 I THINK COMMISSIONER CHATTERJEE 10:57 AND I HAVE ANSWERED MINE AND 10:57 COMMISSIONER POWELSON THAT 10:57 CONGRESS HAS AN OVERSIGHT 10:57 ROLLOVER THE COMMISSION. 10:57 [LAUGHTER] 10:57

IT'S AMAZING WHAT HAPPENS 10:57 ONCE YOU GET CONFIRMED. 10:57 10:57

COMMISSIONER GLICK: NEXT 10:57 TIME I GO BEFORE CONGRESS TO 10:57 34 TESTIFY, I'M SURE THEY'LL REMIND 10:57 ME OF THAT. 10:57 ANYWAY, I DO WANT TO REALLY 10:57 THANK THE STAFF FOR THE 10:57 PRESENTATION BUT EVEN MORE SO 10:57 FOR BEING VERY PATIENT, SPENDING 10:57 LIGHT OF TIME WITH MYSELF AND MY 10:57 TEAM EXPLAINING SOME VERY 10:57 DIFFICULT CONCEPTS, MUCH MORE 10:57 DIFFICULT ISSUES THAN I THOUGHT. 10:57 WHEN CONGRESS FIRST ENACTED THE 10:57 TAX LEGISLATION BILL LAST 10:57 DECEMBER, I THOUGHT IT WAS GOING 10:57 TO BE RELATIVELY SIMPLE FOR US 10:57 TO MAKE A COUPLE CALCULATIONS, 10:57 MAKE SURE ARE RATE PAYORS GET 10:57 THEIR REFUNDS AS QUICKLY AS 10:57 POSSIBLE AND WE CAN MOVE ON, BUT 10:57 AS POINTED OUT IN THE 10:57 PRESENTATION BUT EVEN MORE SO IN 10:57 OUR DISCUSSIONS, THESE ISSUES 10:57 ARE EXTREMELY COMPLEX AND IT'S 10:58 GOING TO TAKE A LIT LONGER TO 10:58 SORT OUT EVERYTHING BUT 10:58 NONETHELESS, WE'RE TAKING A 10:58 PROACTIVE APPROACH REQUIRING 10:58 IDENTIFIED -- TO TAKE IMMEDIATE 10:58 ACTION, AT THE SAME TIME 10:58 GATHERING ADDITIONAL INFORMATION 10:58 NEEDED TO ENSURE THE GAS 10:58 PIPELINE RATES WILL BE JUST AND 10:58 REASONABLE. 10:58 I DID HAVE A QUESTION ABOUT ADIT 10:58 BUT THE CHAIRMAN ALREADY ASKED 10:58 THAT QUESTION. 10:58 IT WAS A VERY IMPORTANT CONCEPT, 10:58 WE WANT TO MAKE SURE WE ACT AS 10:58 QUICKLY AS POSSIBLE TO ENSURE 10:58 THAT ANY EXCESS AMOUNTS OF FUNDS 10:58 THAT ARE IN THESE ADIT ACCOUNTS 10:58 GET REFUNDED BACK TO CONSUMERS 10:58 AS QUICKLY AS POSSIBLE. 10:58 I KNOW THE COMMISSION IS WORKING 10:58 ON THAT, AND ALSO LOOK FORWARD 10:58 TO THE COMMENTS THAT PEOPLE 10:58 SUBMIT TO THE DOCKET. 10:58

CHAIRMAN MCINTYRE: THANK 10:58 YOU, COMMISSIONER. 10:58 MADAM SECRETARY. 10:58

WE WILL NOW TAKE A VOTE ON 10:58 35 THESE ITEMS TOGETHER. 10:58 THE VOTE BEGINS WITH 10:58 COMMISSIONER GLICK. 10:58

COMMISSIONER GLICK: AYE 10:58

COMMISSIONER POWELSON: AYE 10:58

COMMISSIONER CHATTERJEE: 10:58 AYE 10:58

COMMISSIONER LAFLEUR: AYE 10:58

CHAIRMAN MCINTYRE, I WILL 10:58 CALL FOR YOUR VOTE IN E1, E2 AND 10:58 G1. 10:59

CHAIRMAN MCINTYRE: AS TO 10:59 THOSE ITEMS, I VOTE AYE. 10:59 10:59

OUR LAST ITEM. 10:59 FOR DISCUSSION AND PRESENTATION 10:59 THIS MORNING, THE ITEMS ARE 10:59 G2 AND G3. 10:59 CONCERNING INCOME TAX POLICY 10:59 ISSUES RELATED TO CERTAIN 10:59 COMMISSION ACTION. 10:59 THERE WILL BE A PRESENTATION BY 10:59 GLEN O'REILLY FROM THE OFFICE OF 10:59 THE GENERAL COUNSEL. 10:59 SHE IS ACCOMPANIED BY ANDREW 10:59 FROM THE OFFICE OF THE GENERAL 10:59 COUNSEL AND SCOTT AND MANIL 10:59 PATEL AND JAMES FROM THE OFFICE 10:59 OF ENERGY MARKET REGULATION. 10:59 10:59

THANK YOU. 10:59 GOOD MORNING, MR. CHAIRMAN AND 10:59 COMMISSIONERS. 10:59

CHAIRMAN MCINTYRE: GOOD 10:59 MORNING. 10:59

ITEMS G2 AND G3 RESPOND TO 10:59 THE JULY 1ST, 2016 DECISION OF 11:00 THE U.S. COURT OF APPEALS FOR 11:00 THE DISTRICT OF COLUMBIA CIRCUIT 11:00 AND UNITED AIRLINES VERSUS -- 11:00 THE D.C. CIRCUIT'S DECISION 11:00 REVIEWED A COMMISSION ORDER 11:00 PERMITTING SFPP A LIMITED 11:00 PARTNERSHIP PIPELINE TO RECEIVE 11:00 AN INCOME TAX ALLOWANCE FOR 11:00 INVESTOR TAXES. 11:00 UNDER THE COMMISSION'S 2005 11:00 POLICY STATEMENT, MASTER LIMITED 11:00 PARTNERSHIPS, WHICH ARE PASS 11:00 THROUGH ENTITIES AND PAY NO 11:00 36 TAXES THEMSELVES, WERE ABLE TO 11:00 RECEIVE A TAX ALLOWANCE TO 11:00 COMPENSATE FOR INVESTORS' TAXES 11:00 ON THE PARTNERSHIP'S INCOME. 11:00 IN UNITED AIRLINES, THE DC 11:00 CIRCUIT HELD THAT THE COMMISSION 11:00 FAILED TO DEMONSTRATE THAT THERE 11:00 WAS NO DOUBLE RECOVERY OF INCOME 11:00 TAX COST WHEN PERMITTING SFPP TO 11:00 RECOVER BOTH AN INCOME TAX 11:00 ALLOWANCE AND A RETURN ON EQUITY 11:01 DETERMINED PURSUANT TO THE 11:01 DISCOUNTED CASH FLOW 11:01 METHODOLOGY. 11:01 ON DECEMBER 15TH, 2015, THE 11:01 COMMISSION ISSUED A NOTICE OF 11:01 INQUIRY AND RECEIVED COMMENTS 11:01 REGARDING THE DOUBLE RECOVERY 11:01 ISSUE IN DOCKET NUMBER PL17-1. 11:01 AMONG OTHER FINDINGS, THE DRAFT 11:01 ORDER PRESENTED AS ITEM 11:01 G3 IMPLEMENTS UNITED AIRLINES BY 11:01 DENYING SFPP AND INCOME TAX 11:01 ALLOWANCE IN ITS COST OF 11:01 SERVICE. 11:01 THE DRAFT REVISED POLICY 11:01 STATEMENT PRESENTED AS ITEM 11:01 G2 REVISES THE COMMISSION'S 2005 11:01 INCOME TAX POLICY TO INDICATE 11:01 THAT MASTER LIMITED PARTNERSHIPS 11:01 NO LONGER MAY RECOVER AN INCOME 11:01 TAX ALLOWANCE IN THEIR COST OF 11:01 SERVICE. 11:01 AS THE UNITED AIRLINES DECISION 11:01 STATED, THE DISCOUNTED CASH FLOW 11:01 METHODOLOGY DETERMINES THE 11:01 PRE-TAX INVESTOR RETURN REQUIRED 11:01 TO ATTRACT INVESTMENT. 11:02 GIVEN THAT THE RETURN IS A 11:02 PRE-TAX INVESTOR RETURN, 11:02 PERMITTING A MASTER LIMITED 11:02 PARTNERSHIP SUCH AS SFPP TO 11:02 RECOVER BOTH AN INCOME TAX 11:02 ALLOWANCE FOR THE PARTNER'S TAX 11:02 COST AND A DISCOUNTED CASH FLOW 11:02 RETURN ON EQUITY LEADS TO A 11:02 DOUBLE RECOVERY. 11:02 IN ADDITION, THE DRAFT REVISED 11:02 POLICY STATEMENT INSTRUCTS OIL 11:02 PIPELINES ORGANIZED AS MASTER 11:02 37 LIMITED PARTNERSHIPS TO REFLECT 11:02 THE COMMISSION'S ELIMINATION OF 11:02 THE INCOME TAX ALLOWANCE IN 11:02 THEIR FORM NUMBER 6 PAGE 700 11:02 REPORTING. 11:02 BASED UPON THIS PAGE 700 DATA, 11:02 THE COMMISSION WILL INCORPORATE 11:02 THE EFFECTS OF THE REVISED 11:02 POLICY ON INDUSTRY WIDE OIL 11:02 PIPELINE COST IN THE 2020 11:02 FIVE-YEAR REVIEW OF THE OIL 11:02 PIPELINE INDEX LEVEL. 11:02 AS DISCUSSED IN THE PRIOR 11:02 PRESENTATION, IN ITEM G1, THE 11:02 COMMISSION IS ISSUING A NOTICE 11:03 OF PROPOSED RULEMAKING THAT 11:03 ADDRESSES THE EFFECTS OF THIS 11:03 REVISED INCOME TAX POLICY ON THE 11:03 RATES OF INTRASTATE NATURAL GAS 11:03 PIPES LINES ORGANIZED AS MASTER 11:03 LIMITED PARTNERSHIPS. 11:03 THANK YOU, THIS CONCLUDES OUR 11:03 PRESENTATION. 11:03 11:03

CHAIRMAN MCINTYRE: WELL, 11:03 THANK YOU VERY MUCH FOR THE 11:03 INFORMATIVE PRESENTATION AND AS 11:03 BEFORE, I THINK NOT ONLY YOU 11:03 HERE BUT ALSO THE TEAM THAT'S 11:03 BEHIND THIS WORK. 11:03 I CERTAINLY SUPPORT THESE ORDERS 11:03 IN RESPONSE TO THE DC CIRCUIT'S 11:03 UNITED AIRLINES DECISION AND THE 11:03 REMAND TO US. 11:03 AS ONE WOULD EXPECT, WHEN A 11:03 COURT REMANDS, AND I QUOTE HERE, 11:03 FOR FURTHER PROCEEDINGS 11:03 CONSISTENT WITH THIS OPINION, 11:03 UNQUOTE, WITH THAT LANGUAGE, OF 11:03 COURSE IT GETS OUR ATTENTION. 11:03 AND THE OPINION IS QUITE 11:03 IMPORTANT. 11:03 IN THE UNITED AIRLINES CASE, THE 11:03 COURT DID NOT MINCE ITS WORDS. 11:03 IT NOT ONLY VACATED THE 11:03 COMMISSION'S PRIOR ORDERS WITH 11:03 RESPECT TO THIS DOUBLE RECOVERY 11:03 ISSUE THAT YOU HAVE SO WELL 11:04 EXPLAINED, BUT IT STATED IN NO 11:04 UNCERTAIN TERMS THAT GRANTING AN 11:04 38 INCOME TAX ALLOWANCE TO MASTER 11:04 LIMITED PARTNERSHIPS RESULTS IN, 11:04 QUOTE, INEQUITABLE RETURNS, 11:04 UNQUOTE. 11:04 IT'S VERY CLEAR LANGUAGE THAT 11:04 AMOUNTS TO VERY CLEAR MARCHING 11:04 ORDERS FOR US AS A COMMISSION. 11:04 ULTIMATELY THAT'S HELPFUL 11:04 BECAUSE OF THE CLARITY THAT IT 11:04 PROVIDES AND THE DIRECTION IT 11:04 PROVIDES, BUT IT CLEARLY DID NOT 11:04 ALLOW US WIGGLE ROOM ON REMAND. 11:04 NOT WITHSTANDING THE CLARITY OF 11:04 THIS MANDATE, THE ISSUE OF HOW 11:04 THE INCOME TAX ALLOWANCE GRANTED 11:04 TO MLPS RELATES TO THE RETURN 11:04 ON EQUITY, IT'S A DIFFICULT 11:04 ISSUE. 11:04 AND ONE THAT THE COMMISSION HAS 11:04 BEEN LOOKING AT FOR YEARS. 11:04 THE FACT THAT THE COURT'S 11:04 OPINION IMPLICATES NOT ONLY THE 11:04 ORDERS THAT THE COURT WAS 11:04 DIRECTLY REVIEWING BUT ALSO A 11:04 GENERIC COMMISSION POLICY MADE 11:04 IT ALL THE MORE IMPORTANT FOR US 11:04 TO DO OUR DUE DILIGENCE BEFORE 11:04 RESPONDING TO THE COURT IN OUR 11:05 ACTIONS ON REMAND. 11:05 I'M CONFIDENT THAT WITH THESE 11:05 ORDERS, WE ARE DOING SO IN THE 11:05 PROPER WAY. 11:05 I WANT TO THANK THE STAKEHOLDERS 11:05 FOR THEIR ROBUST RESPONSE TO THE 11:05 COURT'S REMAND AND TO THE 11:05 COMMISSION'S NOTICE OF INQUIRY 11:05 ON THIS ISSUE. 11:05 AND OF COURSE I COMMEND OUR 11:05 STAFF FOR ITS THOROUGH AND 11:05 THOUGHTFUL ANALYSIS OF THE 11:05 COMMENTS IN THE PROCEEDING, AND 11:05 I THANK YOU ALL. 11:05 AGAIN, I DO HAVE A QUESTION OR 11:05 TWO, IF I MAY. 11:05 THE REVISED POLICY STATEMENT 11:05 ELIMINATES THE INCOME TAX 11:05 ALLOWANCE FOR MLPS. 11:05 HOW DOES THAT STATEMENT AFFECT 11:05 OTHER TYPES OF PASS THROUGH 11:05 ENTITIES THAT ARE NOT STRICTLY 11:05 39 MLPS? 11:05

THANK YOU. 11:05 WHILE ALL PASS THROUGH ENTITIES 11:05 CLAIMING AN INCOME TAX ALLOWANCE 11:05 WILL NEED TO ADDRESS THE DOUBLE 11:05 RECOVERY ISSUE PRESENTED BY 11:05 UNITED AIRLINES, THE COMMISSION 11:05 WILL ADDRESS THESE ISSUES FOR 11:05 OTHER PASS THROUGH FORMS IN 11:05 SUBSEQUENT PROCEEDINGS. 11:06 11:06

CHAIRMAN MCINTYRE: I SEE, 11:06 THANK YOU. 11:06 AND HOW DOES THE COMMISSION'S 11:06 ACTION IN THE REVISED POLICY 11:06 STATEMENT RELATE TO THE NOPR 11:06 THAT WE ADDRESS IN ITEM G1 AND 11:06 THE NOTICE OF INQUIRY THAT WE 11:06 ADDRESS IN AGENDA ITEM E1? 11:06

THANK YOU. 11:06 THESE ORDERS ARE INTERRELATED. 11:06 AS NOTED IN THE PRIOR 11:06 PRESENTATION, THE NOTICE OF 11:06 PROPOSED RULEMAKING ITEM 11:06 G1 INITIATES A PROCESS FOR 11:06 ADDRESSING THE REDUCTION TO GAS 11:06 PIPELINE COST OF SERVICE 11:06 RESULTING FROM THE TAX CUTS AND 11:06 JOBS ACT, AS WELL AS REDUCTIONS 11:06 TO CERTAIN GAS PIPELINES COST OF 11:06 SERVICE, RESULTING FROM THE 11:06 UNITED AIRLINES DECISION AND THE 11:06 COMMISSION'S SUBSEQUENT FINDINGS 11:06 IN THE REVISED POLICY STATEMENT. 11:06 YOU ALSO ASKED ABOUT THE NOTICE 11:06 OF INQUIRY IN E1. 11:06 THE NOTICE OF INQUIRY INVITES 11:06 COMMENT ON HOW THE ELIMINATION 11:06 OF THE INCOME TAX ALLOWANCE FROM 11:06 MASTER LIMITED PARTNERSHIPS 11:07 AFFECTS ACCUMULATED DEFERRED 11:07 INCOME TAXES, ABBREVIATED AS 11:07 ADIT. 11:07 SPECIFICALLY FOR THOSE ENTITIES 11:07 LOSING THEIR INCOME TAX 11:07 ALLOWANCE AS A RESULT OF UNITED 11:07 AIRLINES, THE NOI ASKS WHETHER 11:07 PREVIOUSLY ACCUMULATED SUMS IN 11:07 ADIT SHOULD BE ELIMINATED ALL 11:07 TOGETHER FROM COST OF SERVICE OR 11:07 40 WHETHER THOSE PREVIOUSLY 11:07 ACCUMULATED SUMS SHOULD BE 11:07 PLACED IN A REGULATORY LIABILITY 11:07 ACCOUNT AND RETURNED TO RATE 11:07 PAYORS. 11:07 BY ADDRESSING THESE ISSUES 11:07 CONCURRENTLY, THE COMMISSION ADD 11:07 SURES ADMINISTRATIVE 11:07 EFFICIENCIES BY REDUCING THE 11:07 NUMBER OF FILINGS REQUIRED OF 11:07 REGULATED ENTITIES AS WE RESOLVE 11:07 THESE TAX ISSUES. 11:07 11:07

CHAIRMAN MCINTYRE: VERY 11:07 GOOD. 11:07 THANK YOU VERY MUCH. 11:07 I TURN NOW TO MY COLLEAGUES. 11:07

COMMISSIONER LAFLEUR: THANK 11:07 YOU VERY MUCH, MR. CHAIRMAN. 11:07 THANK YOU TO THE TEAM FOR THEIR 11:07 PRESENTATION FOR ALL YOUR WORK 11:07 OF THE LARGER TEAM ON THESE 11:07 ORDERS. 11:07 WE DON'T OFTEN SEE OUR CRACK OIL 11:07 TEAM AT OPEN MEETING, SO IT'S 11:07 NICE TO HAVE YOU HERE. 11:08 AT LEAST NOT SITTING IN THOSE 11:08 SEATS. 11:08 I KNOW YOU'RE ALWAYS HERE. 11:08 THE SFPP CASE WHICH LED TO 11:08 UNITED AIRLINES WAS ONE OF THE 11:08 FIRST OIL CASES I VOTED ON HERE, 11:08 AND I KNOW IT'S ONE OF THE FEW 11:08 MAJOR COST OF SERVICE OIL TYPE 11:08 LINE CASES THAT WAS LITIGATED 11:08 ALL THE WAY THROUGH, BY FAR THE 11:08 MOST PROMINENT, AND I JUST WANT 11:08 TO RECOGNIZE HOW COMPLEX ALL 11:08 STAGES OF THAT CASE, WE VOTED 11:08 OUT A FEW OF THEM ON CONSENT 11:08 AGENDA TODAY, HAVE BEEN FOR 11:08 EVERYONE INVOLVED IN OMR, OGC, 11:08 OH OAL, AND OAL JDR, OUR OWN 11:08 AWARD WINNING JUDGE CINTRON 11:08 REFLECTED IN HER REMARKS ALL THE 11:08 TIME SHE SPENT IN ALASKA TRYING 11:08 TO FIGURE THESE RATES OUT. 11:08 I AM VERY HAPPY TO SUPPORT 11:08 TODAY'S ORDER. 11:08 I BELIEVE IT'S THE CORRECT 11:08 41 RESPONSE TO THE CIRCUIT COURT 11:08 REMAND AND RELATED NOTICE OF 11:09 INQUIRY THAT WE ISSUED. 11:09 I KNOW THIS WAS NOT THE ANSWER 11:09 THAT THE COMPANIES WERE HOPING 11:09 FOR BUT I BELIEVE IT WAS 11:09 DICTATED BY THE COURT'S 11:09 DIRECTION TO US AND THE RECORD 11:09 IN THE DOCKET THAT WE DEVELOPED. 11:09 I KNOW THAT OIL COMPANIES, OIL 11:09 PIPELINES WILL NOW BE UPDATING 11:09 THEIR FORM 6S TO REFLECT THE 11:09 INCOME TAX ALLOWANCE. 11:09 I WANT TO REMIND THEM OF THE 11:09 IMPORTANCE OF DOING THAT 11:09 CORRECTLY AND I KNOW OUR AUDIT 11:09 TEAM WILL ALSO BE FOLLOWING UP 11:09 ON THAT AS WE MOVE FORWARD. 11:09 I HAVE ONE QUESTION. 11:09 I KNOW THAT IN THE CASE OF MOST 11:09 OIL PIPELINES, THE ACTUAL RATE 11:09 ADJUSTMENT WON'T COME UNTIL THE 11:09 NEXT FIVE-YEAR INDEX ADJUSTMENT 11:09 IN 2020. 11:09 CAN YOU EXPLAIN IF THE FULL 11:09 IMPACT OF ELIMINATE BEING THE 11:09 DOUBLE RECOVERY WILL BE FELT AT 11:09 THAT TIME? 11:09

THE COMMISSION WILL DETERMINE 11:09 THE 2020 INDEX LEVEL BY 11:09 COMPARING 2014 COSTS TO THE 2019 11:09 COSTS, AND THEN CALCULATING THE 11:09 ANNUAL COST CHANGE -- THE DATA 11:09 FOR THE 2019 WILL REFLECT BOTH 11:10 THE DENIAL OF THE -- FOR UNITED 11:10 AIRLINES AND HE RAO YOU DUED 11:10 COST RESULTING FROM THE TAX CUTS 11:10 AND THE JOBS ACT. 11:10 THIS WILL ENSURE THAT THE NEW 11:10 INDEX LEVEL TO BE EFFECTIVE 11:10 FOLLOWING FIVE YEARS REFLECTS 11:10 THE TAX CUT REDUCTIONS. 11:10

THANK YOU, THAT'S VERY 11:10 HELPFUL BECAUSE I WAS ORIGINALLY 11:10 CONCERNED THAT SOMEHOW ONLY TWO 11:10 OR 1 1/2 YEARS OF REDUCED RATES 11:10 WOULD GET INTO THE FIVE-YEAR 11:10 FORMULA AND IT WOULD DELAY 11:10 RECOGNITION BUT BECAUSE OF THE 11:10 FACT YOU INDEX IT -- YOU 11:10 42 COMPARED THE BEGINNING TO THE 11:10 END, BY 2019, THIS SHOULD ALL BE 11:10 REFLECTED IN RATES. 11:10 THANK YOU VERY MUCH, AND THANK 11:10 YOU AGAIN TO THE TEAM. 11:10 11:10

COMMISSIONER CHATTERJEE: I 11:10 JUST WANT TO TAKE A MOMENT TO 11:10 AGAIN THANK THE TEAM AND COMMEND 11:10 YOU FOR YOUR WORK IN THIS 11:10 DIFFICULT AREA, AND I HAVE NO 11:10 FURTHER COMMENTS OR QUESTIONS. 11:10

CHAIRMAN MCINTYRE: 11:10 COMMISSIONER POWELSON. 11:10

COMMISSIONER POWELSON: I 11:10 ALSO HAVE NO FURTHER COMMENTS 11:10 OTHER THAN, AGAIN, THANK YOU FOR 11:10 YOUR WORK PRODUCT HERE THIS 11:10 MORNING. 11:10

CHAIRMAN MCINTYRE: THANK 11:10 YOU. 11:10 COMMISSIONER GLICK. 11:10

COMMISSIONER GLICK: THANKS, 11:10 MR. CHAIRMAN. 11:11 I AGREE WITH THE ORDER, DON'T 11:11 HAVE ANYTHING FURTHER TO ADD 11:11 EXCEPT TO THANK STAFF FOR THE 11:11 HELPFUL PRESENTATION. 11:11

CHAIRMAN MCINTYRE: THANK 11:11 YOU. 11:11

WE ARE NOW READY TO TAKE A 11:11 VOTE ON G1 -- G2 AND G3. 11:11 THE VOTE BEGINS ARE COMMISSIONER 11:11

COMMISSIONER GLICK:. 11:11 AYE 11:11

COMMISSIONER POWELSON: AYE 11:11

COMMISSIONER CHATTERJEE: 11:11 AYE 11:11

COMMISSIONER LAFLEUR: AYE 11:11

CHAIRMAN MCINTYRE: AYE 11:11

THAT CONCLUDES THE DISCUSSION 11:11 AND PRESENTATION PORTION OF THE 11:11 MEETING. 11:11

CHAIRMAN MCINTYRE: THANK 11:11 YOU, MADAM. 11:11 THAT CONCLUDES, I BELIEVE, OUR 11:11 FORMAL AGENDA, DOES IT NOT? 11:11 I DO HAVE ONE MATTER I WOULD 11:11 LIKE TO ADDRESS THAT IS NOT ON 11:11 THE FORMAL AGENDA CONCERNING A 11:11 43 KEY MEMBER OF OUR COMMISSION 11:11 STAFF TEAM HERE. 11:11 UPON THE RETIREMENT OF MIKE 11:11 BARDI, OH OUR RECENTLY DEPARTED 11:11 DIRECTOR OF THE OFFICE OF 11:11 ELECTRIC RELIABILITY, I WILL 11:11 ASKED DEPUTY DIRECTOR DAVID 11:11 ORTIZ TO TAKE ON THE ROLE OF 11:11 ACTING DIRECTOR, AND I'M VERY 11:11 PLEASED TO ANNOUNCE, HERE, THAT 11:11 DAVID HAS AGREED TO ACCEPT THAT 11:11 ROLE. 11:11 THIS IS GOOD NEWS FOR THE 11:12 COMMISSION. 11:12 DAVID HAS BEEN DEPUTY DIRECTOR 11:12 SINCE 2016. 11:12 PRIOR TO THAT, HE WAS DEPUTY 11:12 ASSISTANT SECRETARY FOR ENERGY 11:12 INFRASTRUCTURE MODELING AND 11:12 ANALYSIS AT THE U.S. DEPARTMENT 11:12 OF ENERGY, WHERE HE DIRECTED A 11:12 WIDE RANGE OF RESEARCH AND 11:12 DEVELOPMENTS ON ELECTRICITY 11:12 TRANSMISSION SYSTEMS AND ENERGY 11:12 SYSTEM RISK. 11:12 DAVID EARNED HIS DOCTORATE IN 11:12 ELECTRICAL ENGINEERING FROM THE 11:12 UNIVERSITY OF MICHIGAN, AND HE 11:12 EARNED HIS UNDERGRADUATE DEGREE 11:12 FROM PRINCETON UNIVERSITY. 11:12 THE COMMISSION'S OFFICE OF 11:12 ELECTRIC RELIABILITY WITH OVER 11:12 90 EMPLOYEES OVERSEES THE 11:12 COMMISSION'S IMPORTANT WORK ON 11:12 RELIABILITY, RELIABILITY 11:12 STANDARDS, AND CYBERSECURITY 11:12 ISSUES. 11:12 I'M VERY GRATEFUL WILL TO DAVID 11:12 FOR AGREEING TO TAKE ON THIS 11:12 ROLE FOR CONTINUING THE CRITICAL 11:12 WORK THAT OUR OFFICE OF ELECTRIC 11:12 RELIABILITY DOES, DAY IN AND DAY 11:12 OUT, WITH REGARD TO THESE 11:12 IMPORTANT ISSUES FOR THE 11:12 COMMISSION, AND FOR THE AMERICAN 11:12 PEOPLE. 11:12 I LOOK FORWARD TO WORKING WITH 11:12 DAVID AND HIS STAFF. 11:12 SO THANK YOU, DAVID. 11:12 IF I MAY ASK FOR A ROUND OF 11:13 44 APPLAUSE. 11:13 [APPLAUSE] 11:13 THANK YOU. 11:13 I'LL NOW OFFER AN OPPORTUNITY 11:13 FOR MY COLLEAGUES TO SAY 11:13 ANYTHING THEY MAY CARE TO ADD. 11:13 11:13

COMMISSIONER LAFLEUR: OF 11:13 COURSE I CAN HARDLY RESIST. 11:13 I FIRST GOT TO KNOW DAVID AT THE 11:13 NERC BOARD WHERE I USED TO 11:13 TORMENT HIM WITH BIG POPPY JOKES 11:13 LIKE HE HASN'T HEARD THAT A 11:13 HUNDRED TIMES, BUT I THOUGHT IT 11:13 WAS A REAL COUP WHEN MIKE HIRED 11:13 DAVID FROM THE DEPARTMENT OF 11:13 ENERGY BECAUSE HIS WORK ON GRIT 11:13 SECURITY, PHYSICAL, CYBER, IS SO 11:13 CLOSELY RELATED TO WHAT WE'RE 11:13 WORKING ON UNDER THE LIABILITY 11:13 RESILIENCE AND SO MANY OTHER 11:13 THINGS. 11:13 HE'S DONE A GREAT JOB AS DEPUTY 11:13 AND I HAVE TOTAL CONFIDENCE IN 11:13 HIM AND IN THE OFFICE OF 11:13 ELECTRIC RELIABILITY. 11:13 THANK YOU. 11:13

CHAIRMAN MCINTYRE: 11:13 COMMISSIONER CHATTERJEE? 11:13 11:13

COMMISSIONER CHATTERJEE: I 11:13 WOULD ALSO LIKE TO CONGRATULATE 11:13 DAVID FOR STEPPING INTO THIS 11:13 ROLE. 11:13 YOU ARE NOW THE OFFICIAL BIG 11:13 BOBBY, BIG SHOES TO FILL, BUT 11:14 I'VE ALREADY SEEN IN THE MONTHS 11:14 THAT YOU'VE TAKEN OVER THE 11:14 FANTASTIC WORK THAT YOU HAVE 11:14 DONE AND WILL CONTINUE TO DO IN 11:14 THAT ROLE. 11:14 I ALSO WANT TO TAKE A MOMENT, 11:14 MR. CHAIRMAN, I DID NOT GET THE 11:14 MEMO THAT WE WERE COMMEMORATING 11:14 ST. PATRICK'S DAY TODAY SO I 11:14 DIDN'T WEAR GREEN, BUT I DO HAVE 11:14 MY U.K., UNIVERSITY OF KENTUCKY 11:14 BLUE TIE TODAY, AND WANT TO TAKE 11:14 A MOMENT TO WISH MY FRIEND JOHN 11:14 CALIPARI AND HIS YOUNG TEAM GOOD 11:14 45 LUCK AS THEY PURSUE THE SCHOOL'S 11:14 NINTH NATIONAL TITLE IN THE NCAA 11:14 TOURNAMENT. 11:14 HE'S HAD A RELIABLE MIX OF NEW 11:14 DYNAMIC PLAYERS COUPLED WITH 11:14 STABLE VETERAN LEADERS. 11:14 IT HASN'T ALWAYS BEEN EASY THIS 11:14 SEASON, BUT WHEN THEY'VE 11:14 STRUGGLED, THEY'VE BEEN 11:14 RESILIENT AND HAVE BEEN ABLE TO 11:14 BOUNCE BACK QUICKLY DUE TO A 11:14 RICH STABLE OF ONSITE BENCH 11:14 SUPPORT, AND I AM CONFIDENT THAT 11:14 THIS STABLE GROUP WILL BE ABLE 11:14 TO CLAW THEIR WAY OUT OF BOISE 11:14 AND MAKE THEIR WAY THROUGH THIS 11:15 TOURNAMENT. 11:15 SO GOOD LUCK TO COACH CAL AND 11:15 BIG BLUE NATION. 11:15 THANK YOU. 11:15

CHAIRMAN MCINTYRE: 11:15 COMMISSIONER, IT'S INTERESTING 11:15 THAT IN THE CONTEXT OF A REMARK 11:15 ABOUT ST. PATRICK'S DAY, YOU USE 11:15 THE TERM RELIABLE MIX. 11:15 [LAUGHTER] 11:15

CHAIRMAN MCINTYRE: I WOULD 11:15 HAVE INTERPRETED IT AS SOMETHING 11:15 POSITIVE YOU INTENDED. 11:15 WE THANK YOU FOR THAT. 11:15 AS ALWAYS. 11:15 THANK YOU. 11:15 COMMISSIONER POWELSON. 11:15

COMMISSIONER POWELSON: I'LL 11:15 BE BRIEF, MR. CHAIRMAN. 11:15 I KNEW THE FIRST TIME I MET 11:15 DAVID, I HAD A FONDNESS FOR HIM. 11:15 HE HAD HIS PITTSBURGH STEELERS 11:15 LANYARD ON, AND MORE 11:15 IMPORTANTLY, PROBABLY THAT 11:15 YOU'RE A PRINCETON TIGER, 11:15 COMMISSIONER LAFLEUR, THAT WAS 11:15 YOUR UNDERGRAD OR LAW? 11:15 11:15

COMMISSIONER LAFLEUR: 11:15 UNDERGRAD BUT ONLY BECAUSE 11:15 PRINCETON DOESN'T HAVE A LAW 11:15 SCHOOL. 11:15 [LAUGHTER] 11:15 11:15 46

COMMISSIONER LAFLEUR: 11:15 OTHERWISE I WOULD NEVER HAVE HAD 11:15 TO LEAVE. 11:15 11:15

STAY ON SCRIPT, PLEASE. 11:15 REALLY? 11:15 TRYING TO GIVE THE GUY A SHOUT 11:15 OUT. 11:15 [LAUGHTER] 11:16 SERIOUSLY, I WATCHED YOU IN 11:16 ACTION A COUPLE WEEKS AGO WITH 11:16 MIKE'S RETIREMENT AND I KNEW 11:16 THEN, I KNEW IT THE FIRST TIME I 11:16 MET YOU IN MY OFFICE, YOU'RE A 11:16 KEY ASSET TO THIS ORGANIZE, I 11:16 WISH YOU ALL THE BEST, AND THANK 11:16 YOU FOR THE TIME YOU'VE TAKEN 11:16 WITH ALL OF US AND OUR TECHNICAL 11:16 STAFFS. 11:16 MR. CHAIRMAN, I KNOW YOU 11:16 SELECTED THE RIGHT MAN FOR THIS 11:16 JOB, AND HE'LL DO A GREAT JOB AT 11:16 THE HELM. 11:16 SO DAVID, CONGRATULATIONS. 11:16

CHAIRMAN MCINTYRE: THANK 11:16 YOU, COMMISSIONER. 11:16

COMMISSIONER GLICK: I 11:16 ALMOST FORGOT WHAT WE WERE 11:16 TALKING ABOUT FOR A SECOND. 11:16 [LAUGHTER] 11:16

COMMISSIONER GLICK: I TOO 11:16 WANT TO CONGRATULATE DAVID AND 11:16 ALSO THANK HIM VERY MUCH FOR ALL 11:16 THE HELP HE'S PROVIDED ME IN MY 11:16 SEVERAL MONTHS HERE AT THE 11:16 COMMISSION. 11:16 IN PARTICULAR, ON THE ER 11:16 PROPOSED RULEMAKING IN TERMS OF 11:16 HELPING ME UNDERSTAND BETTER 11:16 SOME OF THE RELIABILITY CONCERNS 11:16 THAT HAVE BEEN RAISED IN THAT 11:16 PARTICULAR DOCKET. 11:16 HOPEFULLY WE'LL BE ABLE TO 11:16 ADDRESS THEM IN OUR TECHNICAL 11:16 CONFERENCE NEXT MONTH. 11:16 THANK YOU AGAIN, DAVID, AND 11:16 CONGRATULATIONS. 11:16

CHAIRMAN MCINTYRE: THANK 11:16 YOU, COMMISSIONER. 11:16 MADAM SECRETARY, ANY FURTHER? 11:16 47

NOTHING FURTHER, 11:16 MR. CHAIRMAN. 11:16

CHAIRMAN MCINTYRE: WITH 11:16 THAT, LADIES AND GENTLEMEN, THE 11:16 MEETING IS ADJOURNED. 11:16