171 FERC ¶ 63,024

UNITED STATES OF AMERICA

FEDERAL ENERGY REGULATORY COMMISSION

Kinetica Deepwater Express, LLC

Kinetica Energy Express, LLC

Docket Nos. RP19-1634-003

RP20-788-001

ORDER OF CHIEF JUDGE GRANTING MOTION FOR INTERIM

IMPLEMENTATION OF SETTLEMENT RATES

(Issued May 12, 2020)

1.

On May 7, 2020, Kinetica Deepwater Express, LLC (KDE) and Kinetica Energy

Express, LLC (KEE) (collectively, Kinetica) filed an Unopposed Motion to Place
Settlement Rates into Effect on an Interim Basis (Motion).1 Pursuant to Rule 213(d)(1),
the Motion is subject to a 15-day answer period,2 running from its respective filing date
“unless otherwise ordered.”3 Kinetica states that no participant expressed opposition to
the Motion4 and no answers to the Motion were received. Therefore, for good cause
shown, Kinetica’s request to waive the Motion’s answer period is hereby granted. This
Order now decides Kinetica’s request to implement the proposed interim rates.

2.

In the Motion, Kinetica requests interim implementation of two settlement rates

(Interim Settlement Rates), effective as of February 1, 2020, in advance of and pending

1 The Motion was docketed twice, once in each of the above-captioned dockets,

with separate motions to waive the Motion’s answer period in each docket. See Kinetica,
Unopposed Motion for Waiver of Answer Period on Unopposed Motion to Place
Settlement Rates into Effect of an Interim Basis (May 7, 2020) (Waiver Motion).

2 The request to waive the answer period is also subject to a 5-day answer period.

18 C.F.R. § 385.213(d)(1)(i) (2019).

3 Id.; id. § 385.213(d)(1).

4Waiver Motion at 4 (“Kinetica circulated a draft of the Settlement Rates Motion

to the Commission’s Trial Staff and the active intervenors, none of which have indicated
that they oppose or do not support the request to place the settlement rates into effect on
an interim basis effective February 1, 2020.”).

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Docket Nos. RP19-1634-003 and RP20-788-001

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the approval of a comprehensive settlement agreement (Settlement) “resolving all issues”
in Docket Nos. RP19-1634, RP19-54, and RP20-788.5 The Settlement was filed in the
above-captioned dockets on April 15, 2020, and supplemented on April 21, 2020. Before
granting this request, Section 307(a)(7)(v) requires a determination that implementation
of the interim rates results in lower rates during the pendency of Commission action on
the Settlement.6

3.

Pursuant to Section 307(a)(7)(v), it is found that the Interim Settlement Rates set

forth in this uncontested Motion constitute a reduction. The Interim Settlement Rates
proposed by KDE and KEE constitute rate reductions of approximately 14% and 4.2%,
respectively.7 Additionally, it is found that implementing the Interim Settlement Rates is
in the public interest. Doing so will permit the reduced rates to be placed into effect
pending the Commission’s consideration of the Settlement.

4.

Accordingly, the requested Interim Settlement Rates are hereby accepted.8

Kinetica is hereby authorized to implement the Interim Settlement Rates effective as of
February 1, 2020. The Interim Settlement Rates shall remain in effect pending the
Commission’s consideration of the Settlement and will be subject to refund or surcharge,
pending the outcome of the proceeding.

5 Motion at 1 (“. . . resolving all issues in the above-captioned proceedings”)

(captioning Docket Nos. RP19-1634, RP19-54, and RP20-788); see also Motion at
Transmittal Letter at 2 (“The Settlement resolves all issues in KDE’s Docket No. RP19-
1634 and in KEE’s Docket No. RP19-54, and addresses KEE’s currently effective rates . .
. in the new Docket No. RP20-788 . . . . It also resolves any and all issues arising from
the Tax Cuts and Jobs Act of 2017 and the Final Rule in Docket No. RM18-11-000.”);
KEE, Notification of May 7, 2020 Motion to Place Interim Rates into effect . . ., Docket
No. RP19-54-000 (May 8, 2020) (reporting the interim rate motions related to this
docket, filed in the above-captioned dockets).

6 18 C.F.R. § 375.307(a)(7)(v) (2019) (requiring also that motions requesting

interim rates be “uncontested”).

7 See Motion at Attach. (displaying Redlined Interim Rate Sheets for KDE and

KEE).

8 Kinetica Deepwater Express, LLC, NGA Gas Tariff, TC Offshore Tariffs, 4.1 -

Statement of Rates, Rate Schedules FTS-1, ITS, TTS and IPLS (4.0.0) (Feb. 1, 2020);
Kinetica Energy Express, LLC, NGA Gas Tariff, Schedule of Rates, Sheet Number 005,
(4.0.0) (Feb. 1, 2020).

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Docket Nos. RP19-1634-003 and RP20-788-001

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5.

The thirty (30) day prior notice and filing requirement of NGA section 4(d) is

hereby waived so that the Interim Settlement Rates can be implemented effective as of
February 1, 2020.9

6.

This Order terminates Docket Nos. RP19-1634-003 and RP20-788-001.

SO ORDERED.

Carmen A. Cintron
Chief Administrative Law Judge

9 15 U.S.C.A. § 717c(d) (2005); 18 C.F.R. § 35.3 (2019).

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Digitally signed by

CARMEN CINTRON

Date: 2020.05.12

13:52:19 -04'00'

Document Content(s)

RP19-1634-003 CJO Grant Interim Rate.docx.PDF.........................1-3

20200512-3066 FERC PDF (Unofficial) 05/12/2020