FERC Thursday issued a certificate to Kinder Morgan Interstate Gas Transmission LLC to build a lateral that would provide distribution customers in Greeley, CO, with access to natural gas from competing pipelines.
The project calls for Kinder Morgan to construct a 41.4-mile Colorado Lateral that would begin at Kinder Morgan’s existing facilities at the Rockport Compressor Station within the Cheyenne Hub and terminate in Greeley, where service would be provided to Atmos Energy Corp., a local distribution company (LDC). The project, which would deliver up to 55,000 Dth/d, has an estimated cost of $30 million.
Atmos currently obtains all of its gas supplies for the Greeley area from the Public Service Company of Colorado (PSCo), an LDC that is a wholly owned subsidiary of Xcel Energy. With the completion of the proposed lateral, Atmos will be able to receive supplies from both PSCo and Kinder Morgan to serve the Greeley market.
In addition to receipts from Kinder Morgan’s Cheyenne Hub facilities, the proposed lateral would have the capability to receive natural gas from Wyoming Interstate Co., Colorado Interstate Gas Co. and Xcel Energy at sufficient pressures to meet contractual requirements, according to the FERC order.
FERC rejected a request by PSCo to deny or delay approval of Kinder Morgan’s application until Kinder Morgan and Atmos have received authority from the Colorado Public Utilities Commission to construct Atmos extension lines to the lateral. “PSCo has failed to provide any support for such a request,” the order said [CP07-430].
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