El Paso Corporation announced the California Public Utilities Commission (CPUC) has given final approval to Pacific Gas and Electric Company (PG&E) to proceed with an agreement announced last year to obtain 375,000 dekatherms per day of capacity on the Ruby Pipeline for the delivery of natural gas to PG&E’s gas and electric customers.
The unanimous CPUC approval of this important “anchor” shipping agreement paves the way for El Paso to move forward with the approximately 680-mile interstate natural gas pipeline that will extend from the Opal Hub in Wyoming to a pipeline interconnect at Malin, Oregon, near California’s northern border.
“We are very pleased with this decision by the California Public Utilities Commission,” said Jim Cleary, president of El Paso’s Western Pipelines. “This was an important milestone in keeping Ruby Pipeline on schedule to provide a much needed outlet for an increasing amount of Rocky Mountain natural gas production as well as improved supply diversity for the Western United States. With this approval, Ruby remains on schedule for a planned first quarter of 2011 in-service date.”
In granting its approval, the CPUC agreed that Ruby will serve the public interest by enhancing competition, increasing reliability, and promoting gas supply diversity. In addition, the CPUC decision cited lower gas commodity and transportation costs, a reduction in environmental impacts, and favorable rates for consumers. Next, Ruby will file with the Federal Energy Regulatory Commission in January 2009 for necessary federal approvals. For more information on the Ruby project, please visit www.rubypipeline.com.
El Paso Corporation provides natural gas and related energy products in a safe, efficient, and dependable manner. The company owns North America’s largest interstate natural gas pipeline system and one of North America’s largest independent natural gas producers. For more information, please visit www.elpaso.com.