ASSUMPTIONS
Panhandle Eastern Pipeline Long & Short Haul Delivery and Storage
- 2,000 DTH of Peak Day Deliverability
- $1.714/DTH Storage Commodity Average
- $1,000,000 LNG Equipment Investment
- 10% Allowed Utility ROE
- 200,000 DTH Storage Gas for 2,000/day Deliverability
- $7.54/DTH LNG Cost
- 5.5% Combined Depreciation & Property Tax Rate
- 7% Allowed Utility Weighted Average Cost of Capital
TRADITIONAL SOLUTION
| Pipeline Capacity Costs | $190,825 |
| Storage Costs | $156,200 |
| Variables | $ 25,253 |
| Working Capital Charge | $ 13,257 |
| Commodity Costs | $ 34,280 |
| Total Ratepayer Costs | $419,815 |
No Utility Return
LNG SOLUTION
| LNG Costs | $150,720 |
| Return on LNG Rate Base | $100,000 |
| Utility Operating Costs | $ 55,000 |
| Total Ratepayer Costs | $305,720 |