Utilities and Transportation Commission approved Tacoma LNG corporate structure settlement

The Utilities and Transportation Commission (UTC) recently approved an all-party settlement agreement with conditions to protect Puget Sound Energy (PSE) customers in relation to PSE’s proposed liquified natural gas (LNG) facility at the Port of Tacoma.

PSE’s parent company, Puget Energy, can now create a wholly-owned subsidiary named Puget LNG, LLC. The company’s sole purpose will be owning, developing and financing the Tacoma LNG facility. Puget LNG will will liquified natural gas for ships’ fuel.

The agreement stipulates that PSE and Puget LNG will operate the Tacoma LNG facility under a joint ownership agreement that the companies are required to file with the commission if the project moves forward.

The commission said that the provisions of the settlement would allow PSE ratepayers to continue to have the same or enhanced level of protection from financial liability that might result from Puget Energy owning an unregulated subsidiary.

Prior to its decision, the commission conducted an evidentiary hearing on Oct. 17, and subsequently held a public comment period. The commission received 142 written comments, resulting in 12 comments being in favor and 130 opposed.

The proposed Tacoma LNG facility will be capable of receiving approximately 21,000 decatherms of natural gas per day, producing approximately 250,000 gallons of LNG when liquefying at capacity. Additionally, the facility will be capable of storing approximately 8 million gallons of LNG.