TransCanada Corp. (TransCanada) has recently announced that its ANR Pipeline Company has filed a comprehensive settlement of its current Natural Gas Act Section 4 rate case with the Federal Energy Regulatory Commission (FERC).
The settlement was unopposed by all parties as they were able to reach an agreement on revised rates. The agreement reflects ongoing operating costs well as new costs and mandates that were not in effect when ANR's rates were last adjusted more than 20 years ago.
Its purpose is to settle all issues in its general rate case. New settlement rates will be effective from 1 August 2016, subject to ultimate approval of the settlement by FERC.
The settlement will result in ANR's general transportation rates increasing by 34.8% over previous rates. Storage rates will remain essentially unchanged and ANR will retain its seven-zone rate system.
In addition, the settlement includes a three year, US$837 million capital maintenance programme to enhance the efficiency, reliability and safety of ANR's system.
"TransCanada and ANR appreciate the efforts of the parties and FERC staff to reach this comprehensive agreement and avoid costly, time-consuming litigation," said Stan Chapman, TransCanada’s Senior Vice President and General Manager, US Natural Gas Pipelines.
Adapted from press release byAnna Nicklin
Read the article online at: https://www.worldpipelines.com/business-news/22092016/anr-pipeline-files-settlement-with-ferc/