Destin Customer Asks for Limited Waiver of Suspension
Southern Company Services Inc. last week asked FERC to grant a
"limited waiver" of Destin Pipeline Co. L.L.C.'s suspension of its
blanket-certificate authority so it can complete a delivery point
to supply gas to a generation plant being developed in Mississippi.
Southern Company, acting as an agent for Mississippi Power Co.
(MPC), said Destin contacted MPC to inform it that it wouldn't be
able to complete the new delivery point for MPC's generation plant
until mid-September 2000, when its blanket-certificate would be
"Although [Southern Company] and MPC appreciate the
circumstances that led the Commission to issue its order suspending
Destin's blanket-certificate authority, in this instance the impact
of the Commission's order is to penalize MPC --- not Destin,"
Southern Company said [CP98-238]. Having based its construction
schedule on Destin's blank-certificate authority, the suspension
has the potential to adversely affect both MPC's schedule and
construction costs, it said.
A major reason why MPC chose to build its 1,000 MW combined
power generating facility in Jackson County, MS, was its "proximity
to Destin and, through an interconnection with Destin, access to
the significant offshore reserves transported through Destin,"
according to Southern Company. MPC has entered into a number of gas
supply contracts with producers served by Destin's system.
Granting the waiver "would avoid any delay or increase in cost
associated with the construction of the....Destin delivery point.
Although this will benefit MPC, it will not generate additional
transportation revenues for, or otherwise reward, Destin," Southern
FERC pulled Destin's blanket-certificate authority for six
months for grossly exceeding the $19.6 million cost cap during
construction of an offshore lateral, and for dragging its feet in
reporting the cost overrun to the Commission (See NGI 3/20/00).
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