Maine delegation urges swift action on natural gas rate proposal to give businesses certainty
Maine’s congressional delegation is urging federal energy regulators to make a swift decision on a proposed natural gas rate increase, citing a desire to give certainty to businesses and other consumers of natural gas.
U.S. Sens. Susan Collins and Angus King and U.S. Reps. Mike Michaud and Chellie Pingree sent a letter to the Federal Energy Regulatory Commission on Tuesday regarding the Portland Natural Gas Transmission System’s 2010 proposal to increase its interstate transportation rate. The Portland Natural Gas Transmission System, one of the major natural gas pipelines in Maine, is a partnership between TransCanada Corp. and Quebec-based Gaz Metro Inc.
The federal lawmakers said in a joint press release that under current law, the transmission system is allowed to charge contracting entities for the higher requested rate until FERC makes its decision, meaning that the businesses and other natural gas consumers are ultimately paying higher energy bills by absorbing the rate increase through those entities.
Collins, King, Michaud and Pingree said if FERC decides to deny the proposal, the contracting entities and natural gas customers will be entitled to a refund. They added that if FERC can make a timely decision, businesses and other natural gas consumers will be given more certainty when making plans for long-term investments.
“This case is complex and, because of rehearing requests and compliance filing challenges, natural gas consumers in northern New England continue to pay interstate transportation rates that may be more than 50% higher than the rate that the Commission finally approves,” Maine’s congressional delegation wrote in the letter. “While these higher rates may ultimately be refunded, we are concerned that consumers face another winter heating season paying more than they should.”
“Further, uncertainty about transportation rates creates a difficult business climate for the pipeline owners, the shippers, and, ultimately, retail customers,” the letter continued. “The pipeline owners need business certainty and the retail customers should not pay higher than necessary rates. Additionally, our Maine paper mills face too many challenges – from foreign trade to changing market conditions – and they should not be asked to continue paying gas pipeline shipping rates that have not been approved by the Commission.”
Read more
Will natural gas alleviate Maine's energy woes?
Oil, propane expected to remain stalwarts as Mainers try new energy sources
Most Recent
Most Recent
Comments