Vitter Works to Make Sure Baton Rouge Area Residents Aren't Overpaying for Natural Gas Infrastructure

Press Release

Date: Feb. 21, 2014
Location: Baton Rouge, LA
Issues: Oil and Gas

U.S. Sen. David Vitter is pushing the Federal Energy Regulatory Commission (FERC) to open an investigation into potential inappropriate shuttering of a natural gas distribution pipeline in the Baton Rouge area. Vitter visited with Slaughter's Mayor, Robbie Jackson, earlier this week about a request he filed for FERC to open an investigation into whether a company was planning to overcharge customers with a new rate structure, or threating to withdraw service. Vitter spoke with FERC Acting Chairman Cheryl A. LaFleur this afternoon to push them to act on Mayor Jackson's filing.

"The bottom line is that this pipeline services a lot of rural residents around the Baton Rouge area, and they deserve affordable energy," Vitter said. "FERC has plenty of regulations in place to protect ratepayers and I told them today they need to investigate. The discussion was positive and I have confidence that Acting Chairman LaFleur will be responding in writing so that Mayor Jackson and the residents in East Feliciana Parish and the surrounding areas receive some important answers to this matter soon."

Mayor Jackson filed a request for an investigation into circumstances surrounding the transaction and expenditure of past fees for the maintenance of a pipeline providing service to customers near Baton Rouge. Significant portions of Midla's system serve rural and economically depressed areas. There are concerns that residents may be forced to accept new terms for natural gas services for the costs of building a new pipeline, or to accept abandonment of service to the region.

The Midla pipeline is an interstate natural gas pipeline with approximately 370 miles of pipeline linking the Monroe Natural Gas Field in Northern Louisiana and interconnections with the Transco Pipeline system and Gulf South Pipeline system to customers near Baton Rouge. Midla was owned by American Midstream but was partially acquired by Boston-based ArcLight and then sold to an ArcLight entity, Highpoint.


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