FERC Approves Higher Mountaineer XPress Rates
The US Federal Energy Regulatory Commission (Ferc) on August 24 approved amended rates for the Mountaineer XPress pipeline requested by Columbia Gas Transmission due to estimated cost increases on the now-$3.03bn project.
In a July filing to Ferc, Columbia Gas had asked that its initial incremental recourse monthly reservation rate be increased to $14.633/dekatherm (Dth, equivalent to $14.633/mn Btu) from $9.827/Dth.
The increased reservation charge is based on an amended cost of service of some $469.59mn, reflecting increased facility costs – to $3.03bn from $2.03bn – and a lower accumulated deferred income tax amount reflecting the new 21% corporate income tax rate in the US.
Portions of the 2.72bn f3/day pipeline, serving the Appalachian region of the US, are expected to be in service in September.