Regulators finalize Swanson River rates

State regulators have made permanent new rates for the Swanson River Oil Pipeline.

In a Dec. 14 order, the Regulatory Commission of Alaska approved a settlement between Swanson River Oil Pipeline LLC and the Regulatory Affairs and Public Advocacy Section of the office of the Attorney General over rates on the pipeline.

The Swanson River Oil Pipeline will charge 42 cent per barrel to ship oil through the end of 2017. The commission approved that shipping rate on a temporary and refundable basis in November. The current order makes the rate permanent for the coming year.

In addition to setting present rates, a recent agreement between the pipeline company and the Attorney General’s office also established a methodology for determining rates in the future and requires Swanson River Oil Pipeline to file new rates by the end of each year.

The case emerged from earlier proceedings where the Swanson River Oil Pipeline asked to operate under simplified rate filing, which creates a mechanism for changing rates without undergoing the long and expensive ratemaking process. The company later withdrew the request, as part of its settlement negotiations with the Attorney General.

The Swanson River Oil Pipeline runs from the Swanson River field on the Kenai Peninsula to a tie-in point with Kenai Pipeline facilities at the Nikiski Marine Terminal.

- ERIC LIDJI