FERC Initiates Pipeline Rate Investigation, Terminates 38 Proceedings
The Federal Energy Regulatory Commission (FERC) today opened an investigation and ordered a hearing to determine if Stagecoach Pipeline & Storage Company may be substantially over-recovering its cost of service, resulting in unjust and unreasonable rates. FERC also found that 38 gas companies have complied with the filing requirements of Order 849 and terminated their FERC Form 501-G proceedings without any further action.
FERC in July 2018 directed each interstate natural gas pipeline to file Form 501-G, a one-time report that provides a rough estimate of the pipelineís return on equity before and after passage of the Tax Cuts & Jobs Act and changes to the Commissionís income tax allowance policies in response to rulings by the D.C. Circuit.
Todayís order initiating the investigation follows the Commissionís review of the FERC Form No. 501-G and other filings submitted by Stagecoach (RP19-439). The Commission is concerned that the level of earnings for the company may exceed its actual cost of service, including a reasonable rate of return on equity.
The investigation and hearing will determine whether the existing rates are just and reasonable in accordance with section 5 of the Natural Gas Act. The Commission has not yet determined a just and reasonable return on equity for Stagecoach, and therefore set this issue, among others, for hearing before FERCís administrative law judges. FERC directed the company to file a cost and revenue study for the latest available 12-month period within 75 days of the issuance of its order.
The 38 companies whose FERC Form 501-G proceedings were terminated without further action are: Cheniere Creole Trail Pipeline, L.P. (RP19-417), Cheyenne Plains Gas Pipeline Company, L.L.C. (RP19-430), Cimarron River Pipeline, LLC (RP19-415), Colorado Interstate Gas Company, L.L.C. (RP19-413), Crossroads Pipeline Company (RP19-410), Dauphin Island Gathering Partners (RP19-435), DBM Pipeline, LLC (RP19-397), Destin Pipeline Company, L.L.C. (RP19-434), Florida Gas Transmission Company, LLC (RP19-402), Florida Southeast Connection, LLC (RP19-440), Golden Pass Pipeline LLC (RP19-387), Gulf Crossing Pipeline Company LLC (RP19-432), Kinder Morgan Illinois Pipeline LLC (RP19-393), Kinder Morgan Louisiana Pipeline LLC (RP19-390), KO Transmission Company (RP19-433), MarkWest Pioneer, L.L.C. (RP19-396), Midcontinent Express Pipeline LLC (RP19-392), Mojave Pipeline Company, L.L.C. (RP19-404), National Grid LNG, LLC (RP19-421), NGO Transmission, Inc. (RP19-418), Pine Needle LNG Company, LLC (RP19-424), Rockies Express Pipeline LLC (RP19-412), Rover Pipeline LLC (RP19-422), Ruby Pipeline, L.L.C. (RP19-428), Sabal Trail Transmission, LLC (RP19-444), Sabine Pipe Line LLC (RP19-448), Sea Robin Pipeline Company, LLC (RP19-394), Sierrita Gas Pipeline LLC (RP19-425), Stingray Pipeline Company, L.L.C. (RP19-378), TransColorado Gas Transmission Company LLC (RP19-426), Trans-Union Interstate Pipeline, L.P. (RP19-438), Transwestern Pipeline Company, LLC (RP19-450), UGI Mt. Bethel Pipeline, LLC (RP19-461), UGI Sunbury, LLC (RP19-462), USG Pipeline Company, LLC (RP19-383), Venice Gathering System, L.L.C.(RP19-436), West Texas Gas, Inc. (RP19-442), and WTG Hugoton, LP (RP19-441).
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