NGI The Weekly Gas Market Report

Briefs -- Texas Eastern Transmission LP | Black Hills

In a filing with the Federal Energy Regulatory CommissionTexas Eastern Transmission LP (Tetco) is seeking approval to abandon the last of its Cameron System onshore in Louisiana and offshore in state and federal waters in the Gulf of Mexico (GOM). Tetco has abandoned other parts of the Cameron System over the last few decades. Due to declining natural gas production in the offshore areas served by the system, only de minimis quantities of casinghead gas now flow on remaining portions of the system, Tetco said in the filing. The facilities covered by the filing are between the Grand Chenier compressor station in Cameron Parish, LA, and the end of the system in the shallow waters of the GOM in the West Cameron, East Cameron and Vermilion offshore areas.

Rapid City, SD-based Black Hills Corp., which operates natural gas and power utilities in eight states, has reached rate settlements in three states to pass along federal tax reform savings. New rates for the Colorado utility Rocky Mountain Natural Gas took effect June 1, representing a $1.1 million revenue increase with a 9.9% return on equity (ROE). In Wyoming, under a similar settlement with a $1 million revenue increase and a 9.6% ROE, new rates are expected to be effective in 4Q2018. A larger annual increase through a rate settlement is pending in Arkansas, with an expected effective date in the fourth quarter and an annual increase estimated to be $19.6 million. Black Hills serves 1.2 million customers in Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming. Regulatory commissions in Colorado, Iowa, Kansas and Nebraska approved passing through annual savings of $1.9-10.8 million after the federal income tax rate was reduced to 21% from 35%.

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