State To Settle Backlogged TAPS Tariff Cases

14 Sep 2019 admin

first_imgUnder the proposed settlement, the State will retain the $224 million already collected, and will collect at least $165 million of additional revenue. Chief assistant attorney general for regulatory affairs and public advocacy, John Ptacin: ”Over time, we believe that’ll translate into over a billion dollars additional revenue to the state.” Facebook0TwitterEmailPrintFriendly分享The State of Alaska has agreed to settle dozens of cases involving Trans Alaska Pipeline System (TAPS) tariff rates for the years 2009-2015. In addition, the carriers will agree that approximately $625 million of costs associated with strategic reconfiguration, a project which automated and electrified equipment along the TAPS pipeline, will never be placed in TAPS tariff rates, keeping rates low into the future. According to a release from the State Department of Law, this settlement will likely increase the value of Alaska North Slope (ANS) crude for tax and royalty purposes.center_img Story as aired: Audio PlayerJennifer-on-Tarrif-settlement.mp3VmJennifer-on-Tarrif-settlement.mp300:00RPd To help keep future disputes about TAPS tariff rates to a minimum, the State and the carriers also agreed to use a settlement methodology to calculate interstate TAPS tariff rates through 2021. The settlement is subject to regulatory approval before it is final. In the legal settlement announced earlier in December, the State asserted that TAPS tariff rates were too high, resulting in reduced royalty and tax obligations by the shippers who utilize TAPS.last_img

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