On May 26, 2021, EDF submitted written testimony in response to FERC’s notice of inquiry (NOI) seeking comments on the process the Commission uses to certify and approve the development of new pipeline infrastructure. EDF included an affidavit prepared by EIP CEO Jim Murchie as an expert witness to present the Commission with the views of a successful, long-term investor whose clients provide capital funding to North America’s energy infrastructure.
EIP has been collaborating with EDF since Jim Murchie testified on energy issues before the Senate Committee on Energy and Natural Resources on July 12, 2018.
Since then, EIP and EDF submitted testimony in response to a FERC inquiry into how it determines the allowed return on equity (ROE) for existing and new facilities on June 26, 2019 . EIP and EDF have common views on the responsible development and use of energy according to which maximum efficient use of pipeline and utility assets should be achieved before new facilities are permitted and built. EDF’s interests and views are informed by a pragmatic approach to protecting the environment, while EIP’s are rooted in a view that overbuilding depresses returns and wastes capital, ultimately driving up costs.
Why it Matters
Our collaboration with EDF has been mutually beneficial:
What We Said in Our Affidavit
The Affidavit’s Conclusion:
“Infrastructure of any kind achieves greatest cost and capital efficiency when utilized to its optimal potential. Underutilization of any capital asset drives up its cost on a per-unit basis, wastes capital, drives higher costs to end-users, and can contribute needless negative environmental and social externalities. Investor, consumer, and social interest are aligned when an infrastructure system is optimally sized and utilized. The companies regulated by the Commission today face a changing energy landscape in which future profitability will derive more from optimal use of what is already built—and attendant identification of new revenue opportunities—than from simply putting new steel in the ground as was done in the past.”
The Information provided in this article is believed to be accurate as of the date above. EIP reserves the right to update, modify or change information without notice. Any statements of opinion are EIP’s opinion and should not be relied upon as a prediction of any future event. The information is based on data obtained from third party publicly available sources that EIP believes to be reliable but EIP has not independently verified and cannot warrant the accuracy of such information. Investors are encouraged to seek their own legal, tax, or other advice before investing. EIP is not responsible for any information provided in third party links.
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