Hypothetical LNG 10-day Peaking Service

Posted on Saturday, June 6, 2020

ASSUMPTIONS

Panhandle Eastern Pipeline Long & Short Haul Delivery and Storage

  • 2,000 DTH of Peak Day Deliverability
  • $1.714/DTH Storage Commodity Average
  • $1,000,000 LNG Equipment Investment
  • 10% Allowed Utility ROE
  • 200,000 DTH Storage Gas for 2,000/day Deliverability
  • $7.54/DTH LNG Cost
  • 5.5% Combined Depreciation & Property Tax Rate
  • 7% Allowed Utility Weighted Average Cost of Capital

TRADITIONAL SOLUTION

Pipeline Capacity Costs $190,825
Storage Costs $156,200
Variables $  25,253
Working Capital Charge $  13,257
Commodity Costs $  34,280
Total Ratepayer Costs $419,815

No Utility Return

LNG SOLUTION

LNG Costs $150,720
Return on LNG Rate Base $100,000
Utility Operating Costs $  55,000
Total Ratepayer Costs $305,720

$100,000 UTILITY RETURN

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