Kern River Pursues Two Paths to Recover Deferred Depreciation Expenses

摘要

Kern River Gas Transmission Co. (RP10-1406) defended its September 30 tariff proposal filed with FERC to implement a periodic rate adjustment (PRA) that is designed to ensure recovery of deferred depreciation expenses arising from investments in replacement compressor engines and general plant (CE/GP). Protests were filed against Kern River's PRA by Calpine Energy Services, LP; Nevada Power Co.; BP Energy Co.; Southern California Gas Co. and San Diego Gas & Electric Co. (SoCal/SDG&E); the Rolled-ln Customer Group (RCG); Southern California Generation Coalition; and Morgan Stanley Capital Group. (FNGR No. 2818, pp20-22) The interveners contend that Kern River's proposal to recover deferred costs through a PRA should be rejected. But Kern River complained that these same parties assert that the deferred costs cannot be recovered in Period Two rates and that Kern River has not properly designed its compliance rates to recover them in Period One. The Commission cannot let these parties "play a shell game with Kern River's Commission-approved depreciation expenses."