FERC opens investigations into rates on three interstate gas pipelines

These rates impact the price of natural gas which in turn impacts the price of electricity. The pipelines:

–ANR Storage provides firm and interruptible natural gas storage services to shippers on the systems of ANR Pipeline Co. and Great Lakes Gas Transmission Limited Partnership. Its northern Michigan fields provide 56 Bcf of storage capacity. Based on the Form 2 reports, FERC staff estimates that ANR Storage’s return on equity (ROE) to be 130.38 percent for 2009 and 153.71 percent for 2010.

–Bear Creek provides individually certificated storage services in Louisiana to its owners, Southern Natural Gas Co. and Tennessee Gas Pipeline Co., which in turn provide contract storage services to certain customers. Southern, which operates Bear Creek, and Tennessee are subsidiaries of El Paso Corp. Based on review of Bear Creek’s Form 2 reports, FERC staff estimates the company’s ROE to be 22.43 percent for 2009 and 29.16 percent for 2010.

–MIGC is a 256-mile interstate pipeline system with a capacity of 175 million cubic feet per day that operates in the Power River Basin of Wyoming, providing firm and interruptible service to shippers. Based on the Form 2 reports, FERC staff estimates the company’s ROE to be 47.74 percent for 2009 and 57.14 percent for 2010.

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