FERC Wednesday approved a certificate for Paiute Pipeline to acquire and operate the H.G. Laub LNG storage peaking facilities and an associated stretch of pipeline near Lovelock, NV from Uzal LLC for $21.97 million. Paiute currently leases and operates the facilities, which were built in 1982, including the 61 miles of 20-inch pipeline loop.

Paiute’s parent, Southwest Gas Corp., originally built the facilities, entering into a sale/leaseback arrangement with General Electric Credit Corp., the predecessor in interest to Uzal, in order to finance the project. The LNG facilities provide service for high-priority peak demand.

Paiute proposes to provide storage and daily delivery service to four customers: Avista, Sierra Pacific, Southwest Gas Corp. in Northern California and Southwest in Northern Nevada.

The Federal Energy Regulatory Commission granted Paiute rolled-in rate treatment for $9 million of its $21.97 million purchase price that will be associated with its transmission function.

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