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FERC Rejects Algonquin's No-Notice Service Plan

FERC has rejected a proposal by Algonquin Gas Transmission LLC to allow some of its firm transportation customers to convert some or all of their service to no-notice firm service, but it left the door open for the company to submit a revised filing on the matter.

Last Friday, the Federal Energy Regulatory Commission rejected Algonquin's proposal to modify Rate Schedule AFT-E, under which the company offers a firm no-notice service [RP15-1274]. The Houston-based company had proposed adding a provision to AFT-E that would allow shippers -- specifically, no-notice, bundled sales customers using Rate Schedule AFT-1 at the time of a previous restructuring order [No. 636] -- to convert all or part of their AFT-1 service to no-notice firm transportation service.

"The Commission finds Algonquin's proposal to be unduly discriminatory and therefore rejects the instant filing," FERC Deputy Secretary Nathaniel J. Davis Sr. said. "While Commission policy does not require Algonquin to offer shippers who have contracted for AFT-1 service an opportunity to convert that service to no-notice service during the terms of their contracts, if Algonquin chooses to offer such a conversion right it must offer that right on a not unduly discriminatory basis."

However, Davis added that FERC's rejection was without prejudice, and said Algonquin could file a revised tariff record "setting forth provisions that would allow all AFT-1 firm transportation shippers to convert all or part of their AFT-1 service to no-notice service under AFT-E, and not just former bundled sales conversion shippers, subject to the availability of capacity."

FERC issued Order No. 636 in April 1992. It required, among other things, that pipelines unbundle their sales services from their transportation services, and it established for the first time a no-notice firm transportation service.

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