On April 25, 2025, FERC approved two uncontested stipulation and agreements that propose to settle the Natural Gas Act (“NGA”) section 4 general rate cases filed on May 30, 2024, by two interconnected pipelines, Algonquin Gas Transmission, LLC (“Algonquin”) and Maritimes & Northeast Pipeline, L.L.C. (“Maritimes”). Both settlements established a 13.5% return on equity (“ROE”) for the calculation of rates for new incremental expansion projects following the settlements’ effective dates, and for the equity component of Allowance for Funds Used During Construction (“AFUDC”).

Algonquin’s rate case filing first proposed an ROE of 15.38%. Following settlement procedures, Algonquin filed its settlement on February 13, 2025. Algonquin’s settlement stated that Algonquin will apply a 13.5% ROE when calculating either rates for new incremental expansion projects that use incremental rates or the equity component of AFUDC. Algonquin’s settlement also prohibited any modifications to the settlement’s terms or rates until May 31, 2028, and required Algonquin to file another rate case no later than May 31, 2031.

Maritimes’ rate case filing first proposed an ROE of 15.87%. Following settlement procedures, Maritimes filed its settlement on February 13, 2025. The settlement also established an ROE of 13.5% for the equity component of AFUDC and for calculating initial rates filed under section 7 of the NGA for new incremental expansion projects. Maritimes’ settlement also prohibited any modifications to the settlement’s terms or rates until May 31, 2028, and required Maritimes to file another rate case no later than November 30, 2029.

Both settlement agreements indicated that any future modifications will be reviewed under the just and reasonable standard instead of the public interest standard. Both settlement agreements were certified as uncontested on March 19, 2025.

FERC found both settlements to be fair and reasonable and in the public interest. FERC indicated both were supported or not opposed by all parties in each rate case proceeding and facially resolved all issues. FERC thus directed both Algonquin and Maritimes to file tariff records reflecting the terms of their respective settlements.

FERC’s approval of the Algonquin settlement, issued in Docket Nos. RP24-781-009 and RP24-781-000, is available here. FERC’s approval of the Maritimes settlement, filed in Docket Nos. RP24-780-007 and RP24-780-000, is available here.