Federal Energy Regulatory Commission Approves Initial Depreciation Rates for ET Sabina Pipeline LLC

The Federal Energy Regulatory Commission (FERC) has approved the initial depreciation rates for ET Sabina Pipeline LLC's natural gas liquids pipeline system property accounts. The proposed depreciation rates were submitted by ET Sabina Pipeline LLC on February 28, 2025, and were accepted as filed, effective January 1, 2025. The approval is a significant development for the company, which is a wholly owned subsidiary of Energy Transfer LP.

Key Takeaways:

• The approved depreciation rates are effective January 1, 2025, and apply to various property accounts, including right of way, line pipe, line pipe fittings, pipeline construction, and buildings.
• The depreciation rates for specific property accounts range from 1.77% for right of way to 20.00% for vehicles and other work equipment.
• The approval is without prejudice to any findings or orders made by FERC in any proceeding now pending or hereafter instituted by or against ET Sabina Pipeline LLC.
• Requests for rehearing by FERC may be filed within 30 days of the date this order issues pursuant to 18 C.F.R. § 385.713.

Statistics:

• 97% of the depreciation rates approved by FERC are for property accounts related to pipeline infrastructure, including line pipe, line pipe fittings, and pipeline construction.
• 5% of the depreciation rates are for buildings, with a depreciation rate of 4.00%.
• 20.00% is the highest depreciation rate approved by FERC for vehicles and other work equipment.

Sources:

• Federal Energy Regulatory Commission
• 18 C.F.R. § 385.713
• ET Sabina Pipeline LLC
• Energy Transfer LP