RCA closes Kenai Beluga Pipeline tariff case

The Regulatory Commission of Alaska has closed a tariff case involving a rate increase for gas transportation in the Kenai Beluga Pipeline, owned and operated by an affiliate company of Hilcorp Alaska. In February the commission approved the rate increase and on March 30 KBPL filed a new tariff reflecting the approved new rate.

The fees charged for gas transportation in the KBPL are particularly important for Cook Inlet gas producers and for gas and power utilities in Southcentral Alaska, because the pipeline system forms a major artery for the shipment of gas around the Cook Inlet region.

Originally KBPL proposed a major rate increase from 29.15 cents to 63.98 cents per mcf. The fee is what is termed a postage stamp rate, given that the same fee applies regardless of where the gas enters or leaves the pipeline system.

Following a storm of protests by gas shippers against that original proposed price hike, the various parties involved entered settlement talks. In December those talks resulted in a settlement agreement for a revised new tariff of 37.05 cents. In January the Alaska Attorney General, Regulatory Affairs & Public Advocacy Section, notified the commission of its concurrence with the result of the settlement, thus paving the way for commission approval of the tariff in February.

- ALAN BAILEY