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Several weeks ago, we reported on a new Federal Energy Regulatory Commission (FERC) Notice of Inquiry (NOI) seeking comments on whether its existing return on equity (ROE) policy should be revamped. A recent federal court of appeals ruling enhances the importance of this new FERC NOI for those concerned that the current policy encourages pipeline overbuilding. Under its existing policy, FERC grants virtually all new gas pipeline expansions an ROE of 14 percent regardless of…
Although primarily focused on the electric transmission industry, a recent Federal Energy Regulatory Commission (FERC) Notice of Inquiry (NOI) announced reconsideration of how the agency determines returns on equity (ROE) and seeks comments on whether it should apply any revamped ROE policies to interstate natural gas and oil pipelines. This NOI creates an additional avenue for gas industry participants seeking changes in how the FERC evaluates and approves the construction of new gas pipeline facilities.…