FERC Initiates Section 5 Investigations of Three Pipelines' Return on Equity and Rates Based on Form 2 Data for 2008; Expedited Proceedings Set for Large Midwestern Region Suppliers Northern Natural, Natural Gas Pipeline Co. of America, and Great Lakes Gas Transmission

摘要

During the monthly public meeting on November 19, FERC unexpectedly launched section 5 investigations under the Natural Gas Act (NGA) into the rates charged by three interstate natural gas pipelines - Northern Natural Gas Co. (RP10-148), Great Lakes Gas Transmission LP (RP10-149), and Natural Gas Pipeline Co. of America LLC (NGPL)(RP10-147)- to determine whether the companies are realizing exceptionally high rates of return and over-recovering costs, causing rates to be unjust and unreasonable. FERC ordered a presiding Administrative Law Judge (ALJ) to convene within 30 days a pre-hearing conference to clarify the positions of the participants and consider any procedural issues and discovery dates. The orders make no finding as to what would constitute a just and reasonable return on equity (ROE) for each pipeline. That is among the issues set for hearing and to be decided consistent with the Commission's Policy Statement in Composition of Proxy Groups for Determining Gas and Oil Pipeline Return on Equity.