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FERC investigates pipeline rates

Published by
World Pipelines,


The Federal Energy Regulatory Commission (FERC) announced on 21 January 2016 that it will initiate Natural Gas Act section 5 investigations of the rates charged by four interstate natural gas pipelines, to determine if the companies may be substantially over-recovering their costs, resulting in unjust and unreasonable rates.

The commission will investigate the rates of Tuscarora Gas Transmission Company, Empire Pipeline, Inc., Iroquois Gas Transmission System, LP and Columbia Gulf Transmission, LLC.

FERC reviewed the cost and revenue information provided by the companies in their filings of FERC Form No. 2, the Annual Report for Major Natural Gas Companies, and FERC Form No. 2-A, Annual Report for Non-Major Natural Gas Companies, for 2013 and 2014. Based on this review, the commission became concerned that each pipeline company is collecting revenue substantially in excess of the pipeline’s actual cost of service, including a reasonable return on equity.

FERC directed each pipeline to file a cost and revenue study within 75 days of the issuance date of that pipeline’s order. The commission also set each case for evidentiary hearings before a FERC administrative law judge.

Edited from source by Stephanie Roker

Read the article online at: https://www.worldpipelines.com/regulations-and-standards/22012016/ferc-investigates-pipeline-rates/


 

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