July 2020, Vol. 247, No. 7
Government
FERC Policy Statement on ROE Favors Pipelines
Stephen Barlas, Contributing Editor, Washington D.C. Interstate gas and oil pipelines got a couple of big boosts from the Federal Energy Regulatory Commission (FERC) when it published a policy statement on May 21. The statement makes changes in the way FERC calculates a pipeline’s return on equity (ROE). Generally, the higher the ROE, the higher the rates a pipeline can charge. FERC established a new ROE policy for electric utilities in 2019 and then undertook another examination to determine whether that policy should be applied to interstate gas and oil pipelines. The Interstate Natural Gas Association of America (INGAA) opposed doing so and su

Comments