FERC Monday gave Kinder Morgan Interstate Gas Transmission LLC the go-ahead to begin service on a lateral that provides distribution customers in Greeley, CO, with access to natural gas from competing pipelines.

The 41.4-mile Colorado Lateral begins at Kinder Morgan’s existing facilities at the Rockport Compressor Station within the Cheyenne Hub and terminates in Greeley, where service will be provided to Atmos Energy Corp., a local distribution company (LDC). The lateral, which the Federal Energy Regulatory Commission (FERC) approved in February, will deliver up to 55,000 Dth/d (see Daily GPI, Feb. 22).

Atmos had been receiving 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 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 lateral has the capability to receive natural gas from Wyoming Interstate Co., Colorado Interstate Gas Co. and Xcel Energy at sufficient pressures to meet contractual requirements [CP07-430].

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