NATURAL GAS SUPPLY ASSOCIATION

805 15th Street N.W., Suite 510
Washington, D.C. 20005
 

DATE: February 19, 1998

CONTACT: Charlotte LeGates

PHONE: 202/326-9316

FAX: 202/326-9334

E-MAIL: clegates@ngsa.org

Natural Gas Producers Support Current FERC Policy on Pipeline Return on Equity

Washington, DC--The Natural Gas Supply Association has filed comments recommending that the Federal Energy Regulatory Commission maintain its current policy on pipeline returns on equity. The comments expand the testimony of Amoco's Chad King, who testified for the Association at a January 30 FERC conference on the issue.

NGSA listed the following reasons for its recommendation:

  • The sizeable capital expenditures over the last decade and the significant number of new pipeline projects clearly demonstrate that adequate capital is available to the pipeline industry both to maintain existing facilities and to construct new facilities.

  • All available evidence suggests that pipeline risks have decreased since Order 636.

  • The Commission's discounted cash flow (DCF) methodology properly accounts for the risks faced by the pipeline industry in its calculation of pipeline returns on equity.

    NGSA's complete comments are available (in Adobe Acrobat format only) by clicking here, or by calling the NGSA recptionist at 202/326-9300.

    The Natural Gas Supply Association represents producers and marketers of domestic natural gas.

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    This page was last updated March 2, 1998.