FERC Approves Midwestern Gas Transmission Company's Negotiated Rate Agreement

Strategic Insights -

The US Federal Energy Regulatory Commission (FERC) has granted waiver of the 30-day notice requirement to allow the tariff records of Midwestern Gas Transmission Company (Midwestern) to become effective February 23, 2015. The company filed tariff records to add a negotiated rate Firm Park and Loan (FPAL) agreement with Duke Energy Indiana, Inc. (Duke) to its tariff, citing compliance with all material aspects of its pro forma service agreement.

Midwestern and Duke entered into a master PAL agreement on December 8, 2006, and a negotiated rate FPAL agreement for a term beginning February 20, 2015. The agreement allows Midwestern to loan Duke up to 4,029 dekatherms (Dth) over the term of the agreement at a daily demand rate of $3.00 per Dth, resulting in total revenue of $12,087.

Key Takeaways:

  • FERC granted waiver of the 30-day notice requirement for Midwestern Gas Transmission Company's tariff records, allowing them to become effective on February 23, 2015.
  • The company entered into a master PAL agreement with Duke Energy Indiana, Inc. on December 8, 2006, and a negotiated rate FPAL agreement for a term beginning February 20, 2015.
  • The negotiated rate FPAL agreement allows Midwestern to loan Duke up to 4,029 dekatherms (Dth) at a daily demand rate of $3.00 per Dth, resulting in total revenue of $12,087.
  • Public notice of the filing was issued on February 24, 2015, with no protests or adverse comments filed.
  • The acceptance for filing does not waive the requirements of section 7 of the Natural Gas Act, nor constitutes approval of the referenced filing or any rate, classification, or rule affecting the rate or service.

Statistics:

  • Total revenue: $12,087
  • Daily demand rate: $3.00 per Dth
  • Dekatherms (Dth) loaned: up to 4,029 Dth
  • Effective date of tariff records: February 23, 2015
  • Issuance date of order: March 16, 2015
  • Date of public notice: February 24, 2015

Sources:

  • FERC, "Letter Order", Docket No. RP15-496-000, March 16, 2015
  • Midwestern Gas Transmission Company, FERC NGA Gas Tariff, Midwestern FERC Gas Tariff, Part 10, Non-conforming and Negotiated Rate Agreements, 22.0.0 and Part 10.24, Duke Energy Indiana, Inc. FP0564, 0.0.0.