Responding to increased natural gas demand in Utah, Nevada and California, Kern River Gas Transmission Co. is holding a supplemental open season for 84,000 Dth/d of firm year-round transportation service to those states, the company said Thursday. Expansion service is expected to be available Nov. 1, 2010.
“We are pleased market interest supports another expansion of the Kern River pipeline system,” said Kern River President Micheal Dunn. “Our analysis and recently concluded open season have demonstrated this 145,000 Dth/d project is the most economical project at this time, is the best value of any project that has been announced to serve competing markets and will provide valuable transportation capacity to our customers. The current expansion project positions Kern River to expand the pipeline system in the future with projects that can meet the market demand as conditions warrant.”
Service would be provided under Kern River’s existing KRF-1 rate schedule for firm incremental rate service for its 2003 expansion project on either 10- or 15-year terms. Under this structure, the rate on a 15-year term would be 47 cents/Dth, if the compliance rates Kern River filed in its pending rate case, Docket No. RP04-274, are approved. Rates are subject to the final outcome of Kern River’s pending rate case. Compressor fuel is expected to be 3.2%.
Kern River owns and operates a 1,680-mile gas pipeline between southwestern Wyoming and Southern California and currently delivers more than 1.7 Bcf/d to expanding markets in Utah, Nevada and California. Kern River is a subsidiary of MidAmerican Energy Holdings Co.
For information on the open season contact Kern River business development representatives Laurie Brown at (801) 937-6410, Kevin Billings at (801) 937-6167 or Greg Snow at (801) 937-6270. A precedent agreement must be completed, executed and returned by noon MST March 6.
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