PTEP settlement talks at FERC ongoing

Kristen Nelson

Petroleum News

The Regulatory Commission of Alaska has extended a suspension of its proceedings on the tariff for the Point Thomson export line by one year.

RCA said Feb. 25 that counsel for the Alaska Attorney General, Regulatory Affairs and Public Advocacy Section, advised the commission that settlement discussions in the related Federal Energy Regulatory Commission case dealing with the proposed increase in the tariff for PTE Pipeline LLC are “showing signs of progress” and RAPA, on behalf of the parties, requested an extension of the suspension in the docket. The existing suspension was due to expire March 1.

The issue is a proposed increase in the Point Thomson Export Pipeline tariff. Last July PTEP LLC filed a revenue requirement study and proposed an increase in the tariff for intrastate shipments of condensate from $12.09 per barrel - established by a settlement - to $20.84 per barrel.

Based on progress in the FERC settlement discussions for the interstate rates, RCA said it is extending the tariff suspension for an additional year, ending March 1, 2020. The parties had requested a six-month suspension of the docket and said they would jointly file a progress report no later than May 31.

When PTEP proposed an increase in its rate the state protested, calling the proposed rate “unjust and unreasonable” citing lack of data on a number of issues.

In August RCA suspended the new rate for an initial period of six months and said PTEP could collect the proposed new rate, “subject to refund of the difference between the temporary rate and the rate we establish at the conclusion of this proceeding plus interest.”

In response to the state’s challenge, PTE said its proposed equity risk premium was based on risks greater than a pipeline proxy group and the single throughput source of the pipeline, the Point Thomson unit (see stories in Aug. 12 and Sept. 9 issues of Petroleum News).

- KRISTEN NELSON