Tuesday, October 14, 2008

PG&E to Anchor Ruby Pipeline

PG&E will be the anchor customer on El Paso's Ruby natural gas pipeline which will run from Wyoming to the California/Oregon border and which is slated to be online in 2011.

PG&E recently received a favorable ruling from the PUC's Administrative Law Judge for 375,000 dekatherms per day of capacity , but still needs full commission approval. FERC also has to sign off on the pipeline, and El Paso plans to file an application in 2009.

The project appears to have broad support. According to an El Paso news release:

"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. "

The same release stated, "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."