Texas Eastern Transmission, LP Submits Response to FERC's Data Request

Strategic Insights -

Texas Eastern Transmission, LP, a gas pipeline company, has submitted a response to a data request issued by the Federal Energy Regulatory Commission (FERC) on August 19, 2025, as part of an ongoing docket, CP25-379-000. The response addresses a specific issue related to the calculation of Allowance for Funds Used During Construction (AFUDC) for one of Texas Eastern's projects. The company's calculation method, which proposes quarterly compounding for the first three months of construction followed by semi-annual compounding, has been challenged by FERC staff.

Key Takeaways:

  • Texas Eastern's proposed AFUDC calculation method was found to be inconsistent with FERC's accounting regulations, which allow only semi-annual compounding.
  • The company has resubmitted a revised calculation illustrating that AFUDC is compounded semi-annually, with a minimum of six months between each compounding event.
  • Texas Eastern believes that both its compounding practice and the submitted calculation are in compliance with FERC's regulations and guidance on semi-annual compounding.
  • The company has provided a specific breakdown of how AFUDC is calculated, with compounding events occurring on January 1st and July 1st.
  • The resubmitted calculation addresses a prior filing made by Texas Eastern on July 25, 2025, in response to an earlier FERC staff data request.
  • The FERC docket, CP25-379-000, is related to the Longwall Mining Panel M1 Project and has been subject to ongoing review and analysis by FERC staff.

Statistics:

  • Texas Eastern's proposed AFUDC calculation method was found to be inconsistent with FERC's accounting regulations.
  • The company has revised its calculation to reflect semi-annual compounding with a minimum of six months between each event.
  • The revised calculation was resubmitted by Texas Eastern on ______________ (date not specified).
  • The Longwall Mining Panel M1 Project is a part of FERC docket CP25-379-000.
  • The FERC data request that prompted Texas Eastern's response was issued on August 19, 2025.

Sources:

  • Texas Eastern Transmission, LP (2025) September 11, 2025 letter to Ms. Debbie-Anne A. Reese, Secretary Federal Energy Regulatory Commission, Re: Texas Eastern Transmission, LP, Docket No. CP25-379-000 Longwall Mining Panel M1 Project Response to Data Request Pursuant to 18 C.F.R. SS 375.308(x)(3) OEP/DPC/CB-1.
  • Federal Energy Regulatory Commission (2025) August 19, 2025 data request in Docket No. CP25-379-000.
  • Texas Eastern Transmission, LP (2025) July 25, 2025 filing in response to FERC staff's data request issued on July 22, 2025, in Docket No. CP25-379-000.