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United States. Federal Energy Regulatory Commission

Equinor Natural Gas LLC Seeks Expedited Approval of Interim Rate Reduction for Vector Pipeline

Strategic Insights

— 1 min read

The Federal Energy Regulatory Commission (FERC) has been presented with a document by Equinor Natural Gas LLC in support of the Michigan Public Service Commission's motion to expedite approval of commission trial staff's motion to implement interim rate reduction for Vector Pipeline L.P. The motion, filed on June 6, 2025, seeks to reduce Vector's transportation rates by 34-48% based on its cost and revenue study, and Equinor argues that immediate interim rate relief is necessary to prevent customers from overcompensating Vector under its inflated rates.

Key Takeaways:

  • Equinor Natural Gas LLC has submitted an answer in support of the Michigan Public Service Commission's motion to expedite approval of commission trial staff's motion to implement interim rate reduction for Vector Pipeline L.P.
  • The motion seeks to reduce Vector's transportation rates by 34-48% based on its cost and revenue study, which was filed on April 15, 2025.
  • The drastic disparity between Vector's currently effective rates and the rates calculated based on its C&R Study necessitates immediate interim rate relief.
  • Equinor argues that prompt Commission action is warranted to direct Vector to implement rates calculated based on its C&R Study, which should serve as the refund floor applicable to Vector's new Section 4 rate case filing.
  • The Commission has held that after a pipeline has moved into effect rates proposed under NGA section 4, Commission action in a pending NGA Section 5 rate investigation cannot reduce the refund floor.

Statistics:

  • Vector's C&R Study calculated a reservation rate of $3.6661 Dth/month for FT-1 service in Zone 2, which is 48% lower than the currently effective rate of $7.0515.
  • The drastic disparity between Vector's currently effective rates and the rates calculated based on its C&R Study amounts to 34% to 48%.
  • The proposed effective date of Vector's Section 4 rate case filing is July 1, 2025.

Sources:

  • Answer of Equinor Natural Gas LLC in Support of the Motion of Commission Trial Staff to Implement Interim Rate Reduction, Docket No. RP24-971-000 (filed Apr. 30, 2025)
  • Commission Trial Staff Motion, Docket No. RP24-971-000, at 2 (filed April 15, 2025)
  • Vector Pipeline L.P., Section 4 Rate Case Filing, Docket No. RP25-936-000 (filed May 30, 2025)
  • Panhandle Eastern Pipe Line Company, LP, 171 FERC P 61,244, at P 34 (2020)

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