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CenterPoint Energy Expansion OK'd to Transport More Rocky Mountain Gas Eastward

FERC has awarded CenterPoint Energy Gas Transmission a certificate to carry out a mainline compression expansion in Oklahoma that would permit greater volumes of Rocky Mountain natural gas to be transported eastward to markets across its pipeline system.

The project consists of two compressor units and associated facilities to be built at CenterPoint Energy's new Hinton and Allen Compressor Stations, and one additional compressor unit and associated facilities at its existing Amber Compressor Station to provide firm transportation service to ONEOK Energy Services Co. LP. The plan calls for the pipeline to install a total of 28,265 horsepower of new compression on its Line AD in Oklahoma.

The additional compression is expected to raise the capacity on CenterPoint Energy's Line AD by approximately 112,900 Dth/d, according to the pipeline. CenterPoint said it has executed a 10-year precedent agreement with ONEOK for 100,000 Dth/d, or 90% of the expansion capacity, contingent on the facilities being installed by Nov. 1 of this year.

The remaining 12,900 Dth/d of capacity to be created by the expansion will be set aside to serve potential future markets on CenterPoint Energy's system, the pipeline said. It estimated that the total construction cost will be $31.9 million.

The Federal Energy Regulatory Commission granted CenterPoint Energy's request to roll in the costs of the expansion in its next rate case. "CenterPoint has demonstrated that rolled-in pricing would not result in a subsidy from existing customers and that a rate decrease should result when the cost of the facilities are rolled into CenterPoint's existing rates," the order said [CP05-3].

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