Regulators oppose CINGSA request

Mar 8, 2019

 

CINGSA sought pre-approval on a $41 million improvement plan that some of its customers found unnecessary.

Cook Inlet Natural Gas Storage Alaska, or CINGSA, won’t have any guarantees of recouping proposed investments through rate hikes. The Regulatory Commission of Alaska issued its decision on the matter this week.

CINGSA wanted pre-approval of work to expand its storage capacity at its facility in Kenai, where natural gas is stored in the Cannery Loop field. The stored gas is used by utilities during peak demand in the winter.

The facility currently has five wells, however just one of them accounts for nearly half of the gas delivered. CINGSA wanted to put $41 million into drilling two new wells and other improvements. By granting pre-approval for the work, regulators would have opened the door for rate increases to pay for the work.

One of CINGSA’s main customers, Homer Electric Association, opposed the plan, citing no issues in deliverability of gas since the storage facility went online in 2012.