DTE, Enbridge JV to Settle FTC Charges
14 September 2019 - 2:29AM
Dow Jones News
By Allison Prang
An energy joint venture is going to settle charges from the
Federal Trade Commission over its agreement to purchase a pipeline
that the FTC said hinders competition, the regulator said
Friday.
NEXUS Gas Transmission LLC, whose member companies are Enbridge
Inc. (ENB, ENB.T) and DTE Energy Co. (DTE), agreed to buy
Generation Pipeline LLC from North Coast Gas Transmission LLC for
$160 million earlier this year. But the FTC said its complaint
alleges that a part of the deal agreement is against antitrust
law.
The deal would hinder competition because North Coast wouldn't
be allowed to compete for natural-gas pipeline transportation in
certain parts of Ohio for three years after the deal, according to
the FTC's complaint. But the FTC said that the North Coast and
Generation pipelines could be the best options for certain
customers.
As part of the settlement, the clause in question has to be
omitted from the deal agreement, the FTC said. The joint venture
and companies involved in it also can't enter any other types of
noncompetitive agreements with other natural-gas pipeline
transportation operations in that part of the state without prior
FTC approval.
Write to Allison Prang at allison.prang@wsj.com
(END) Dow Jones Newswires
September 13, 2019 12:14 ET (16:14 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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