Kentucky Attorney General Supports Scrutiny of Texas Gas Transmission Practices
The Kentucky Attorney General's Office of Rate Intervention (Kentucky ORI) has submitted a comment to the Federal Energy Regulatory Commission (FERC) in support of a complaint filed by Jay-Bee Production Company against Texas Gas Transmission, LLC. The complaint alleges that Texas Gas Transmission has imposed unreasonable demand charges and segmentation restrictions on shippers, violating open access principles and resulting in unreasonable rates for natural gas deliveries to Kentucky ratepayers. Kentucky ORI has reviewed the complaint and agrees that FERC should review the matter in the light most favorable to Kentucky's ratepayers.
Key Takeaways:
- The complaint alleges that Texas Gas Transmission has wrongfully imposed demand charges and segmentation restrictions on shippers for firm transportation of natural gas to delivery points in Zone 4 of its pipeline.
- The backhaul provisions of the applicable tariffs result in unreasonable rates, according to Jay-Bee's allegations.
- If substantiated, the complaint could result in unreasonable rates for natural gas deliveries to Kentucky ratepayers.
- Kentucky ORI supports the scrutiny provided by this docket and asks that FERC review the complaint in the light most favorable to Kentucky's ratepayers.
- If Jay-Bee's concerns are substantiated, FERC should grant relief to protect the interests of Kentucky ratepayers.
- The complaint was filed by Jay-Bee on June 24, 2025, and FERC's Rules of Practice and Procedure, as well as the FERC Combined Notice of Filing, were issued on June 25, 2025.
Statistics:
- None provided in the source material.
Sources:
- United States of America Before the Federal Energy Regulatory Commission, Jay-Bee Production Company, Complainant v. Texas Gas Transmission, LLC, Respondent, Docket Nos. RP25-966-000
- Combined Notice of Filing issued June 25, 2025, by the Federal Energy Regulatory Commission, FERC Rules of Practice and Procedure.