Rate and Regulatory Matters (Notes)

6 Months Ended

Jun. 30, 2020

Public Utilities, Rate Matters [Abstract]

Public Utilities, Disclosure of Rate Matters [Text Block]

RATE AND REGULATORY MATTERS

FERC Developments

Notice of Inquiry (Docket No. PL19-4-000) On May 21, 2020, the FERC issued a “Policy Statement on Determining Return on Equity for Natural Gas and Oil Pipelines” (Policy Statement) in Docket No. PL19-4-000 adopting changes to its policies concerning the calculation of a public utility return on equity (ROE). In this Policy Statement, the FERC revised its ROE policy

for natural gas pipelines and oil pipelines to provide that the FERC will determine a pipeline’s ROE by averaging the results of the Discounted Cash Flow model and the Capital Asset Pricing Model, with each weighted equally. The FERC declined to adopt any additional policy changes at this time and will address all other issues concerning the determination of a pipeline’s ROE as they arise in future proceedings.

Our next general rate case must be filed for new rates to become effective no later than January 1, 2023.