Tennessee Gas Pipeline Co. (TGP), a Kinder Morgan Energy Partners LP company, filed a proposal with the Maine Public Utilities Commission to offer the state of Maine a long-term contract for gas pipeline capacity, with the goal of lowering energy costs for Maine consumers.
Previously, TGP announced an agreement with multiple local gas distribution companies across New England for about 500,000 dekatherms per day of capacity on its Northeast Energy Direct project. Negotiations continue with other potential customers and shippers.
Under the Maine Energy Cost Reduction Act, the Maine Public Utilities Commission has the authority to execute a contract with TGP for up to 200 million cubic feet per day of pipeline capacity for up to 20 years, subject to certain conditions. TGP’s proposal was filed in response to a proceeding the Commission opened in March 2014 to implement its authority. The Commission has encouraged the filing of gas pipeline capacity proposals at any time during the proceeding.
Analyses by regional grid operator ISO-New England have shown that a lack of incremental gas pipeline capacity into New England has led to large premiums on gas and electricity for energy consumers in the region. Analysis showed that last winter, New Englanders spent about $3 billion more for electricity than they would have if sufficient pipeline capacity had been available.
Separately, on Sept. 15, TGP filed a letter at the Federal Energy Regulatory Commission (FERC) requesting to begin the pre-filing process for its proposed Northeast Energy Direct project. During pre-filing, TGP will work with FERC and interested stakeholders to refine the proposed route and draft the environmental report to accompany its FERC certificate application. TGP expects to file in September 2015. The pre-filing request is the first step in the regulatory project for the project, which TGP expects will provide new pipeline infrastructure into New England during the winter of 2018.
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