Surcharge

ConocoPhillips Co. and Encana Marketing (USA) Inc. are challenging Plains All American’s plans to implement a surcharge on its Cactus II crude oil pipeline, a 5.0-cent/bbl fee designed to offset costs related to U.S. tariffs on steel imports.

Faced with higher costs because of U.S. tariffs on imported steel needed for its pipeline buildout, Plains All American LP is moving forward with a surcharge to make up the difference as it seeks an exemption from the Department of Commerce, according to management.

FERC on Friday issued certificates for two Dominion Transmission Inc. (DTI) Marcellus Shale-related projects in Pennsylvania and New York: the Tioga Area Expansion Project and the Sabinsville-to-Morrisville Project.

An increased surcharge to pay for energy efficiency programs went into effect last Saturday for Spokane, WA-based Avista Utilities, but it is subject to a review by Idaho regulators that got under way Monday. The Idaho Public Utilities Commission (PUC) will take comments on Avista’s higher charges through Aug. 28.

On the eve of emerging from Chapter 11 bankruptcy, Pacific Gas and Electric Co. announced last Wednesday it made 2003 local franchise fee and surcharge payments totaling $42 million in 49 California counties in which it operates. The payments, which were nearly equal for natural gas and electric facilities, represent a 22% increase over the combination utility’s 2002 payments. The fees are a percentage of gross receipts on the utility’s system that are paid to cities and counties for the “right to use public streets” in which to run gas and electric service pipes and wires, PG&E’s utility said in its announcement. The franchise fee surcharges are a percentage of the transportation and energy costs to customers choosing to buy their energy from third parties, or so-called “exit fees.”

Funded by a surcharge on investor-owned utility customer bills, the Portland-based Oregon Energy Trust added natural gas and solar programs to ones for which it will provide incentives and energy efficiency programs to customers of the state’s major private sector utilities — Pacific Power, Portland General Electric and Northwest Natural Gas. The expanded programs for the 18-month-old nonprofit organization started earlier in July.

The Oklahoma Corporation Commission said, “No More” to Oklahoma Natural Gas’ continuing 75-cent/Dth surcharge on customer bills related to its recovery of last winter’s high gas costs. In a final order issued last Tuesday, the commission told the utility that starting Dec. 1 it will no longer be allowed to recover those costs. The final order follows a similar preliminary ruling on the matter earlier this month.

The Oklahoma Corporation Commission said, “No More” to Oklahoma Natural Gas’ continuing 75-cent/Dth surcharge on customer bills related to its recovery of last winter’s high gas costs. In a final order Tuesday, the commission told the utility that starting Dec. 1 it will no longer be allowed to recover those costs. The final order follows a similar preliminary ruling on the matter earlier this month.