Ruby Pipeline Shipper Receives Favorable California Regulatory Decision
October 14 2008 - 8:00AM
Marketwired
El Paso Corporation (NYSE: EP) announced today that the anchor
shipper on El Paso's Ruby interstate natural gas pipeline project,
Pacific Gas and Electric Company (PG&E), recently received a
favorable proposed decision regarding the project from a California
Public Utilities Commission administrative law judge. If approved
by the Commission, the proposed decision would allow the utility to
finalize an agreement announced last year to obtain 375,000
dekatherms per day of capacity on the Ruby Pipeline for delivery of
natural gas to PG&E's gas and electric customers. The proposed
decision was issued October 7, 2008 and is before the Commission
for final disposition as early as November 6. The full text can be
accessed at
http://docs.cpuc.ca.gov/published/proceedings/A0712021.htm
"This is a significant and welcome proposed decision, which
clearly recognizes the benefits of the Ruby Pipeline Project to
California consumers," said Jim Cleary, president of El Paso's
Western Pipelines.
In his proposed decision, the judge found that Ruby will serve
the public interest by enhancing competition, increasing
reliability, promoting gas supply diversity, lowering
transportation costs, reducing environmental impacts, and providing
consumers with favorable rates.
PG&E's request for Commission approval of its Ruby agreement
received support from a number of public interest groups, including
the Commission's Division of Ratepayer Advocates (DRA), The Utility
Reform Network (TURN), and Californians for Renewable Energy
(CARE). In Commission filings, both DRA and TURN stated that the
increased supply diversity that Ruby brings from the Rockies will
enhance reliability and promote competition. CARE noted that Ruby's
commitment to environmentally responsible operations will be
particularly advantageous to California.
In June 2008, Ruby announced that it had received more than 1.1
billion cubic feet per day (Bcf/d) of commitments from customers
under 10- to 15-year contracts and is moving forward with the
pipeline project, subject to regulatory approvals.
The Ruby Pipeline is an approximately 680-mile interstate
natural gas pipeline that will extend from the Opal Hub in Wyoming
to a pipeline interconnect at Malin, Oregon, near California's
northern border. The 42-inch diameter pipeline will have an initial
design capacity of between 1.3 Bcf/d and 1.5 Bcf/d, depending on
the final level of customer commitments. Issuance of the proposed
decision, together with the Federal Energy Regulatory Commission's
(FERC) September 26, 2008 issuance of a notice of intent to prepare
Ruby's federal environmental impact statement, means that Ruby is
on track to be in service by March 2011. In January 2009, Ruby
plans to file with FERC an application for a certificate of public
convenience and necessity. For more information on the Ruby
project, visit www.rubypipeline.com.
El Paso Corporation provides natural gas and related energy
products in a safe, efficient, and dependable manner. The company
owns North America's largest interstate natural gas pipeline system
and one of North America's largest independent natural gas
producers. For more information, visit www.elpaso.com.
El Paso Corporation Cautionary Statement Regarding
Forward-Looking Statements
This release includes certain forward-looking statements and
projections. The company has made every reasonable effort to ensure
that the information and assumptions on which these statements and
projections are based are current, reasonable, and complete.
However, a variety of factors could cause actual results to differ
materially from the projections, anticipated results or other
expectations expressed in this release, including, without
limitation, our ability to obtain all necessary federal, state and
local regulatory approvals; our ability to successfully construct
and operate the proposed facilities described in this release on
time and within budget; our ability to obtain additional
contractual commitments; changes in steel prices for a portion of
the pipeline to be purchased from our steel mills; creditworthiness
of our shippers; the successful close of our financing
transactions; general economic conditions in geographic regions or
markets served by El Paso Corporation and its affiliates, or where
operations of the company and its affiliates are located, and other
factors described in the company's (and its affiliates') Securities
and Exchange Commission filings. While the company makes these
statements and projections in good faith, neither the company nor
its management can guarantee that anticipated future results will
be achieved. Reference must be made to those filings for additional
important factors that may affect actual results. The company
assumes no obligation to publicly update or revise any
forward-looking statements made herein or any other forward-looking
statements made by the company, whether as a result of new
information, future events, or otherwise.
Contacts: Investor-Media Relations Bruce Connery Vice President
Office: (713) 420-5855 Media Relations Richard Wheatley Manager
Office: (713) 420-6828
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