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FGT's Tampa Contract Questioned

FGT's Tampa Contract Questioned

Florida Gas Transmission went too far in special rate treatment and terms --- not offered to other customers --- to get Tampa Electric on board for its Phase V expansion, according to Florida Power. FGT's current customers would unlawfully be required to bear extra costs and operate under less favorable conditions, Florida Power told the Federal Energy Regulatory Commission in its protest to FGT's amendment to its expansion certificate (CP00-40-001).

FGT had filed Aug. 1, revising its proposed Phase V expansion, including construction of 191.5 miles of new pipe, plus compression, to add service to Tampa Electric to re-power its Gannon Power station from coal to natural gas and to delete capacity no longer needed by Enron North America and Dynegy.

Florida Power said that phased rate caps offered on service to Tampa could result in subsidies by other customers if costs go above the caps. If the rate caps are approved the Commission should prohibit FGT from seeking a discount adjustment for under-recovery in any future rate case.

Beyond the capping mechanism, Florida Power maintains Tampa has been offered special services which "amounts to undue discrimination in favor of Tampa Electric and against such other similarly situated shippers." For instance, a phase-in schedule for payment of reservation charges allows Tampa Electric "to avoid payment of firm transportation rate reservation charges on most of its Phase V FT capacity until well after the in-service date of the other Phase V facilities for which FGT seeks certificate authorization." The pipeline also has offered Tampa greater flexibility in hourly rates of gas flow and a greater delivery pressure, which Florida Power labeled "unduly discriminatory negotiated terms and conditions of service."

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