Transcontinental Gas Pipe Line has filed a new rate case seekingto roll in costs of several expansions and reflecting an increasedrate of return and related taxes, and higher operation andmaintenance expenses.

The new cost of service would be $876,958,109, compared to$649,115,408 set in a settlement approved by the Federal EnergyRegulatory Commission, which went into effect in May, 1997.

The rate change, proposed to go into effect April 1, wouldinclude a rate base of $2.3 billion, compared to $1.7 billionpreviously. Included in the new rate base are Transco’s Sunbelt,Pocono, Cherokee, Maiden lateral, Mobile Bay and SouthCoastexpansion projects.

In approving the Mobile Bay project, FERC established apresumption in favor of rolled-in rate treatment in the first ratefiling after the project went into service, the company said.Transco also is seeking to have the “at risk” condition removedfrom the Mobile Bay certificate. The pipeline said the costs of itsSunbelt, Pocono and Cherokee expansions meet Commission guidelines,including its 5% criterion (i.e. roll-in would not increase ratesto existing customers by more than 5%).

Transco is seeking an overall after-tax return of 12.25%.

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