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News Release: January 21, 2016
Docket Nos. RP16-299-000, RP16-300-000, RP16-301-000 and RP16-302-000
Item Nos. G-1, G-2, G-3 & G-4

Decisions: G-1 PDF, G-2 PDF, G-3 PDF & G-4 PDF

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FERC Initiates Investigations of Four Interstate Pipeline Companies’ Rates

The Federal Energy Regulatory Commission (FERC) today announced it will initiate Natural Gas Act section 5 investigations of the rates charged by four interstate natural gas pipelines to determine if the companies may be substantially over-recovering their costs, resulting in unjust and unreasonable rates.

The Commission will investigate the rates of Tuscarora Gas Transmission Company (Docket No. RP16-299-000), Empire Pipeline, Inc. (Docket No. RP16-300-000), Iroquois Gas Transmission System, LP (Docket No. RP16-301-000) and Columbia Gulf Transmission, LLC (Docket No. RP16-302-000).

FERC reviewed the cost and revenue information provided by the companies in their filings of FERC Form No. 2, the Annual Report for Major Natural Gas Companies, and FERC Form No. 2-A, Annual Report for Non-Major Natural Gas Companies, for 2013 and 2014. Based on this review, the Commission became concerned that each pipeline company is collecting revenue substantially in excess of the pipeline’s actual cost of service, including a reasonable return on equity.

FERC directed each pipeline to file a cost and revenue study within 75 days of the issuance date of that pipeline’s order. The Commission also set each case for evidentiary hearings before a FERC administrative law judge.