Friday, June 3, 2011

Kinder Morgan's Bannigan says he'll fight California PUC action, asks for rehearing

HOUSTON, Texas - SFPP LP, a wholly owned subsidiary of Kinder Morgan Energy Partners, on May 26 vowed to seek a rehearing and pursue other legal options to have an adverse order issued by the California Public Utilities Commission (CPUC) overturned.

Among other things, the order would eliminate from SFPP's rates an allowance for income taxes on income generated by SFPP. The order would affect only the rates for SFPP's pipeline service within California.

"This order is contrary to both CPUC precedent and to existing and established federal regulatory policies for pipelines," said Tom Bannigan, president of KMP's products pipelines, in a news release.

SFPP's assets include about 2,500 miles of pipelines in California and other western states that transport refined petroleum products. Kinder Morgan is reviewing the order to quantify the financial effect on SFPP and the rates it charges shippers. (Source: Julie Armstrong, Houston Business Journal, May 27, 2011)

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