The Federal Energy Regulatory Commission is investigating concerns that two Kinder Morgan pipeline systems are overcharging customers.
FERC reviewed costs and revenues for Natural Gas Pipeline Co. of America and Wyoming Interstate Co., both owned by Kinder Morgan, for 2014 and 2015 and estimated the companies’ returns on equity between 17 and 30 percent, which it called “unjust and unreasonable.”
The commission directed Kinder to file new cost and revenue studies.
Anadarko Petroleum Corp., Apache Corp., Chevron Corp., ConocoPhillips, Occidental Petroleum Corp., ExxonMobil and Royal Dutch Shell are among those who ship on the Kinder lines, and, in the past, have requested the commission’s intervention.
But Kinder Morgan said FERC is using “stale data in a rapidly evolving environment,” made calculation errors, doesn’t understand the facts and didn’t talk to the company before acting.
“FERC’s analysis also grossly overstates returns on equity,” Tom Martin, president of Kinder Morgan Natural Gas Pipelines, said in a statement.