192 FERC ¶ 61,183

FEDERAL ENERGY REGULATORY COMMISSION

WASHINGTON, DC 20426

August 27, 2025

In Reply Refer To:
Kinetica Energy Express, LLC
Docket No. RP25-1056-000

Kinetica Energy Express, LLC
1001 McKinney St.
Houston, TX 77002

Attention: Bill Prentice

Dear Mr. Prentice:

On August 1, 2025, Kinetica Energy Express, LLC (Kinetica) filed a revised tariff

record1 to reflect the addition of a new section 15 to the General Terms and Conditions
(GT&C) of its tariff. Proposed GT&C section 15 would permit Kinetica to reserve,
for future expansion projects, any available capacity or capacity under expiring or
terminating service agreements where such capacity is not subject to term extension
rights. For the reasons set forth below, the Commission accepts the tariff record to
become effective September 1, 2025, as requested, subject to the condition discussed
herein.

Kinetica states that the proposed tariff revisions are consistent with Commission

policy and precedent, including orders finding that the reservation of expiring capacity
without extension rights for expansion projects will “minimize facility construction and
associated environmental impacts, will encourage fuller utilization of capacity, and
will minimize the rate impact of allocating costs of unsubscribed capacity to existing
customers once the pipeline completes the expansion.”2 Pursuant to Commission policy,3
Kinetica proposes procedures permitting Kinetica to reserve such capacity for up to

1 See Appendix.

2 Transmittal at 1 (citing Midwestern Gas Transmission Co., 106 FERC ¶ 61,229,

at P 6 (2004)).

3 Id. (citing Gulf S. Pipeline Co., 132 FERC ¶ 61,145, at P 9 (2010); Transcon.

Gas Pipe Line Corp., 118 FERC ¶ 61,234, at P 10 (2007)).

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Docket No. RP25-1056-000

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12 months prior to filing a certificate application for the expansion/extension project, and
thereafter until the facilities are placed into service. Kinetica states that the capacity will
first be posted in an auction for at least five business days, to ensure that all potential
customers have a reasonable opportunity to acquire the available capacity before Kinetica
reserves such capacity for a future project.

Public notice of Kinetica’s filing was issued on August 4, 2025. Interventions and

protests were due as provided in section 154.210 of the Commission’s regulations.4
Pursuant to Rule 214,5 all timely motions to intervene are granted. On August 13, 2025,
as corrected on August 14, 2025, Indicated Shippers6 filed a protest in response to
Kinetica’s filing. On August 18, 2025, Kinetica filed an answer in response to the protest
of Indicated Shippers. Rule 213(a)(2) of the Commission’s Rules of Practice and
Procedure7 prohibits an answer to a protest unless otherwise ordered by the decisional
authority. We accept Kinetica’s answer because it has provided information that assisted
us in our decision-making process.

Indicated Shippers state that they do not oppose Kinetica’s proposal to reserve

capacity for future projects as a general matter, but protest that Kinetica’s proposed tariff
revision would not expressly require Kinetica to post on its website the reservation
information required by Commission policy and precedent. Specifically, Indicated
Shippers request that the Commission direct Kinetica to modify its proposed tariff
revision to include the following information in postings for reserved capacity:
(1) a description of the project for which the capacity will be reserved; (2) the total
quantity of capacity to be reserved; (3) the location of the proposed reserved capacity
on the pipeline system; (4) the timing of the open season for the reserved capacity or
the posting of the reserved capacity for bids; (5) the projected in-service date of the
expansion/extension project; and (6) on an ongoing basis, how much of the reserved
capacity has been sold on a limited-term basis that would otherwise be eligible for a right

4 18 C.F.R. § 154.210 (2024).

5 18 C.F.R. § 385.214 (2024).

6 Indicated Shippers joining in the protest are Anadarko US Offshore LLC, BP

Energy Company, Chevron U.S.A. Inc., ConocoPhillips Company, Hess Corporation,
and Shell Offshore Inc.

7 18 C.F.R. § 385.213(a)(2) (2024).

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Docket No. RP25-1056-000

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of first refusal.8 Indicated Shippers note that Midwestern’s corresponding tariff
provision, cited by Kinetica in its filing, contains all of this information.9

In its answer, Kinetica states that it is agreeable to revising proposed GT&C

section 15 by inserting language consistent with the reservation posting requirements
requested by Indicated Shippers and adopted by the Commission in Midwestern.10
Attachment A to Kinetica’s answer contains clean and redline versions of the proposed
tariff record with the revised language. Kinetica states that Indicated Shippers have
reviewed the revised language and confirmed that it resolves the concerns expressed
in their protest. Kinetica requests that the Commission approve the filing subject to
Kinetica making a compliance filing containing the revised tariff language.

We find Kinetica’s proposal is consistent with Commission policy and precedent.

The Commission has previously accepted tariff provisions permitting pipelines to reserve
capacity for future expansions and extensions under certain conditions.11 Such provisions
promote the efficient use and allocation of capacity on the pipeline’s system while
preserving the rights of expansion shippers.12 Consistent with these precedents,
Kinetica’s proposal includes a 12-month limitation on reservations prior to filing for
certificate approval, a requirement to post capacity in an auction for at least five business
days before reserving it, and provisions for making reserved capacity available on an
interim, limited-term basis without a right of first refusal.

The revised tariff language in Attachment A to Kinetica’s answer resolves the

concerns raised by Indicated Shippers in their protest and is consistent with Commission
policy.13 Accordingly, we accept Kinetica’s tariff record, subject to Kinetica filing a

8 Protest at 2-3.

9 Id. at 3 (citing GT&C § 35.2 of Midwestern’s tariff).

10 Answer at 2.

11 E.g., Midwestern Gas Transmission Co., 106 FERC ¶ 61,229; Gulf S. Pipeline

Co, 132 FERC ¶ 61,145; Transcon. Gas Pipeline Corp., 118 FERC ¶ 61,234.

12 Midwestern Gas Transmission Co., 106 FERC ¶ 61,229 at P 6.

13 Crossroads Pipeline Co., 100 FERC ¶ 61,131, at P 6 (2002).

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revised tariff record within 30 days of the date of this order, incorporating the reservation
posting requirements as agreed to in its answer.

By direction of the Commission.

Debbie-Anne A. Reese,

Secretary.

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Appendix

Kinetica Energy Express, LLC

Kinetica Energy Express LLC - FERC Gas Tariff

Tariff Record Accepted Subject to Condition Effective September 1, 2025:

TERMS AND CONDITIONS, Sheet Number 095C (4.0.0)

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Document Content(s)
RP25-1056-000.docx........................................................1

Document Accession #: 20250827-3052 Filed Date: 08/27/2025