Prime Infrastructure Group
(ASX:PIH), formerly Babcock & Brown Infrastructure Group, has reached a settlement on its Natural Gas Pipeline asset in the US.
The company says it has reached a settlement with all customers and staff at the Federal Energy Regulatory Commission, which paves the way for a reduction in the service charges for customers of Prime’s Natural Gas Pipeline Company of America.
As part of the settlement reached, Prime will lower the amount it charges for transporting and storing gas.
According to The Australian Financial Review, the Federal Energy Regulatory Commission, which regulates the transmission of electricity, natural gas and oil in different states, believed the pipeline business makes a higher rate of return that it thought appropriate.
However, The Fin Review says Prime undertook a study to argue that it has actually been underpaid for the services it is providing customers.
The settlement needs to be approved by an administrative law judge and separately by the commissioners at the Federal Energy Regulatory Commission, with a result expected in the third quarter of this year.
