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PRESS RELEASE

1/31/2020

PRESS RELEASE – IMPENDING PANHANDLE TRANSPORTATION RATE INCREASE 

We have been notified that the pipeline serving the Village of Rossville, Panhandle Eastern Pipe Line Company (Panhandle), has filed for a rate increase to its customers at the Federal Energy Regulatory Commission (FERC).  That fee increase, a 400%+ increase in the transportation fee, will be on the March bill to the Village of Rossville, barring any last minute settlement between the pipeline and its customers halting such an adjustment.  I stress that this is an increase in the transportation fee, and not to the price of the natural gas itself.  The transportation fee is currently about 12% of the total monthly bill for the natural gas.

The Village has joined with other municipalities to contest this fee increase in an ongoing rate case at the FERC in which the lawfulness of Panhandle’s rate increase is being determined.  We do not know how long that process will take, but per the rate case process via FERC, PEPL will be imposing this transportation increase now (beginning March 1, 2020).  If our opposition in this rate case is successful, Panhandle will have to refund any excess charges, plus accrued interest, that were imposed as of March 1.  This increase will appear on your bill in the month following the increase charged to the Village.