OGJ Newsletter

02/02/2009
General Interest — Quick TakesFERC issues first ROE order incorporating MLPsThe Federal Energy Regulatory Commission rejected a Kern River Gas Transmission Co. settlement on Jan. 15 in its first return-on-equity (ROE) order under its 2008 policy statement.The commission found that Kern River’s 12.5% ROE was excessive and would result in unjust and unreasonable rates. It determined that the ROE rate should be 11.55% based on the record established in a paper hearing on ROE established in an April 2008 order.“The reason for including master limited partnerships [MLPs] in setting a proxy group is to assure an adequate sample for determining a pipeline’s ROE and to obta...
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