What’s the issue?
Gas pipelines with a total of over $13 billion in annual revenue have moratoriums and comeback dates that expire before the end of 2022.
Why does it matter?
The time to resolve those cases and the impact they will have on a pipeline’s revenue is critical to understanding the risks to the pipeline, but also the potential for cost increases for a pipeline’s shippers.
What’s our view?
In the first quarter, settlements were filed with respect to Dominion Energy Cove Point LNG, Maritimes & Northeast Pipeline and Alliance Pipeline, and Panhandle Eastern moved toward a fully litigated resolution, which may benefit the entire industry by raising the return on equity from the last litigated rate case, a key measure used by FERC, from 10.55% to 11.43%.
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