FERC Denies Kinetica Companies’ Request for More Time to File Form
On Oct. 10, 2018, FERC denied requests from Kinetica Deepwater Express LLC and Kinetica Energy Express LLC (Kinetica companies) to extend the deadline for filing FERC Form No. 501-G (One-time Report on Rate Effect of the Tax Cuts and Jobs Act).
When FERC established the requirement to file Form No. 501-G, it randomly divided natural gas pipelines into three groups with successive deadlines, 28 days apart. The Kinetica companies were assigned the first deadline, Oct. 11, 2018.
In their Sept. 13, 2018 petition, the Kinetica companies explained that they have filed applications with FERC for authority to merge into one company. If accepted, then one of the companies will not be required to file the form. The other will need to file the form, but with updated information.
The Kinetica companies asserted that it “would be counter-productive and serve no purpose for the Commission to receive two separate Forms that would be based on pipeline entities that would have been superseded and whose data would be outdated and irrelevant to the Commission’s inquiry. Such Forms would not assist the Commission in the task it has set for itself, to evaluate the applicable data to see whether each pipeline may be over-recovering its costs and thus subject to a [Natural Gas Act] Section 5 initiative.”
FERC noted that the cited applications remain pending and found that the request for extension of time “may have the effect of delaying rate relief. Accordingly, we deny the requests for an extension of time.”
Kinetica Deepwater Express LLC and Kinetica Energy Express LLC, Letter Order Denying Filing of Request for Extension of Time, 165 FERC ¶61,014 (2018) [Docket Nos. RP18-1171-000 and RP18-1172-000].