FERC to Investigate Rates Charged by Two Interstate Pipeline Companies
FERC will launch Natural Gas Act section 5 investigations of the rates charged by Natural Gas Pipeline Company of America LLC and Wyoming Interstate Company, L.L.C. to determine if the companies may be substantially over-recovering their costs, resulting in unjust and unreasonable rates.
The agency reviewed the cost and revenue information provided by the companies in their publicly available FERC Form No. 2 annual reports for the years 2014 and 2015. Based on its review of this data, FERC estimates Natural’s return on equity for those calendar years to be 28.5 percent and 20.8 percent, respectively. The Commission estimates WIC’s return on equity for those calendar years to be 17.7 percent and 19.0 percent, respectively.
Based on these figures, FERC is concerned that both Natural’s and WIC’s level of earnings may exceed their actual cost of service, including a reasonable return on equity.
FERC directed each pipeline to file a cost and revenue study for the latest available 12-month period within 75 days of the issuance date of its order and also set each case for evidentiary hearings before a FERC administrative law judge.
Related News
Related News
- Phillips 66 to Shut LA Oil Refinery, Ending Major Gasoline Output Amid Supply Concerns
- FERC Sides with Williams in Texas-Louisiana Pipeline Dispute with Energy Transfer
- U.S. Appeals Court Blocks Kinder Morgan’s Tennessee Pipeline Permits
- ConocoPhillips Eyes Sale of $1 Billion Permian Assets Amid Marathon Acquisition
- Valero Considers All Options, Including Sale, for California Refineries Amid Regulatory Pressure
- U.S. LNG Export Growth Faces Uncertainty as Trump’s Tariff Proposal Looms, Analysts Say
- Marathon Oil to Lay Off Over 500 Texas Workers Ahead of ConocoPhillips Merger
- Valero Considers All Options, Including Sale, for California Refineries Amid Regulatory Pressure
- Another Major U.S. Oil Refinery Shutting Down as Lyondell Confirms Houston Closure
- Chevron CEO Wirth Under Fire as Hess Deal Delay Drags Down Stock Performance
Comments